Tecnomatix announces fourth quarter and full year 2000 results

HERZLIYA, Israel—(BUSINESS WIRE)—Tecnomatix Technologies Ltd., world-leading supplier of e-Manufacturing software solutions, today announced financial results for the fourth quarter and full year ended December 31, 2000.

All financial figures in the press release are proforma results. Proforma results exclude non-recurring, in-process research and development charges, and amortization of acquired intangibles related to acquisition and extraordinary items.

Revenues for the fourth quarter ended December 31, 2000 were $21.7 million compared to $23.8 million for the same period in 1999 and compared to $20.1 million for third quarter of 2000. Operating loss was $4.9 million compared to operating income of $4.2 million in the fourth quarter of 1999. Net loss for the fourth quarter was $4.9 million or $0.48 per diluted share, compared to net income of $4.7 million or $0.43 per diluted share for the fourth quarter in 1999.

Revenues for the year 2000 were $89.0 million compared to $88.0 million for the same period in 1999. Operating loss was $7.6 million compared to operating income of $13.0 million in 1999. Net loss was $6.9 million or $0.68 per diluted share compared to net income of $14.3 million or $1.37 per diluted share in 1999.

"Although we are disappointed by our financial performance this year, we are encouraged by the growing market acceptance of our e-Manufacturing solutions, especially during the fourth quarter," said Harel Beit-On, president and chief executive officer.

"Our goal in 2000 was to expand our addressable market by evolving Tecnomatix from a provider of specialized engineering applications to a leading provider of collaborative e-manufacturing solutions for today's e-Business environment. Manufacturers, increasingly beset by customers' requirements for varied products and functionalities, are looking to planning and production solutions to optimize their manufacturing processes. eMPower, our e-manufacturing solution, addresses these needs by streamlining the relationship between manufacturers and their supply chain while providing the highest levels of speed, flexibility and collaboration.

"To accomplish this goal, we have leveraged our market leadership position in specialized manufacturing and engineering software, and our customer base, while establishing partnerships with world-class manufacturing companies to expand our distribution reach."

Continued Beit-On, "Today, our strategy is beginning to pay off as we receive positive customer feedback and a growing number of endorsements of eMPower from leading manufacturers. Customers are beginning to realize that our solutions can help them significantly cut their products' time-to-market, time-to-consumer, and production costs. During the fourth quarter, several of our pilot projects with leading electronics, aerospace and automotive companies matured into successful implementations. Recently, we announced a $3.5 million contract with EADS Airbus SA, the largest e-Manufacturing software contract to date.

"In order to build upon this initial success and better serve our customers, we have reorganized the Company into industry-focused business units serving the automotive, aerospace, electronics industries, and tier-1 automotive suppliers," continued Beit-On. "Additionally, we have formed a Global Professional Services division with over 100 professionals worldwide to provide end-to-end, e-Manufacturing solutions and services, including consulting, development, implementation support and engineering."

During the fourth quarter, the Company established new partnerships with Siemens and with Zuken Corporation. Tecnomatix and Siemens will jointly offer a virtual environment that integrates manufacturing process design with shop floor automation. Siemens will also integrate the Company's eMPower electronics optimization software into all of its SIPLACE electronics assembly equipment. Tecnomatix and the Zuken Corporation of Japan, a leading provider of electronics design solutions, have formed a joint venture to market, sell and support Tecnomatix-Unicam products in Japan.

"Looking forward to 2001 and beyond, the market is developing and customers are realizing the value of our solutions to their manufacturing processes," concluded Beit-On. "We enter the new year with initial success in our strategy and are confident in our prospects as we pursue e-Manufacturing opportunities."

The Company also announced changes in management. Shmuel Arvatz, Chief Financial Officer, departs the Company to pursue other endeavors. The Company is currently conducting a search for his replacement. The Company also announced the appointment of Amir Livne to Executive Vice President of Industry Marketing, Alex Shapira to Executive Vice President of Products and Arie Rochman to Vice President of Global Professional Services.

Conference Call Information
Tecnomatix will hold a conference call to discuss its fourth quarter results on February 8, 2001 at 8:30am EST. To access the conference call, please dial (212) 896-6016 by 8:20 a.m. A replay of the conference call will also be available approximately two hours after the completion on the live conference call. To access the replay, please dial (800) 633-8284, reservation# 17834935. The replay will be available until 5:00pm EST on February 12th.

About Tecnomatix Technologies
Tecnomatix Technologies Ltd. is the world's leading provider of e-Manufacturing solutions that develop, communicate and operate optimal manufacturing processes across the extended enterprise. The Company's software helps manufacturers in the automotive, aerospace, electronics, PCB and heavy equipment industries meet the challenges of e-business by accelerating time-to-market and time-to-customer, reducing production costs and increasing quality and productivity.

Tecnomatix Technologies Ltd., 16 Hagalim Ave., Herzeliya 46733, Israel. Tel: 972-9-9594777. Fax: 972-9-9544402.

Tecnomatix Technologies, Inc., 39810 Grand River Avenue, Suite 100, Novi, MI 48375-2108, USA. Tel: 248-471-6140. Fax: 248-471-6147.