Tecnomatix Reports Record Revenues, Profit for 4th Quarter, Full Year 1999
Tecnomatix Technologies Ltd. (Herzliya, Israel), supplier of Digital Factory and e-manufacturing software solutions, announced record financial results for the 4th quarter and for the year ended Dec. 31, 1999. The financial figures contained here are adjusted results, which exclude non-recurring, in-process research and development charges, amortization of acquired intangibles related to acquisitions, and extraordinary items.
Revenues for the three months ended Dec. 31,1999 increased by 20% to $23.8 million compared to $19.8 million for the same period in 1998. Operating profit increased by 56% to $4.2 million compared to $2.7 million for the 4th quarter in 1998. Net income was $4.7 million or 43 cents per diluted share compared to $3.9 or 39 cents per diluted share for the 4th quarter of 1998.
Total yearly revenues for 1999 increased by 29% to $88.0 million compared to $68.3 million in 1998. Operating profit increased by 65% to $13.0 million compared to $7.9 million in 1998. Net income was $14.3 million or $1.37 per diluted share compared to $11.3 million or $1.10 per diluted share in 1998.
The company also announced the appointment of Gadi Becker as executive vice president of field operations. With the company for more than 10 years, Becker's most recent position was vice president of marketing. He also founded the company's Far East operations, which he led for 6 years. Becker replaces Sam Mancuso, who is leaving to pursue other interests.
"We are pleased to report a strong finish to an excellent year," said Harel Beit-On, president and CEO. "We had record revenues and profits for both the quarter and the year, and launched our new e-manufacturing solutions, positioning Tecnomatix at the center of manufacturing B2B."
The company experienced revenue growth in all geographic areas, especially in the U.S. and the Far East. Repeat orders came from several large automotive customers including Comau, Isuzu, Rover, and Ford, as well as from electronics companies including Ericsson and Sanmina. In addition, the company launched four new e-manufacturing solutions and booked initial orders for all of them.
"We had a particularly productive quarter and year in the electronics industry. We signed global agreements with major electronics contract manufacturers, including SCI and Celestica; we received orders from OEMs, including Canon, Ericsson, Philips, Scientific-Atlanta, and Siemens; and we established strategic relationships with key machine suppliers like Fuji, Siemens, Speedline, and Universal," explained Beit-On. The company worked to become a leading provider of software solutions for electronics assembly through its acquisition of Unicam and Fabmaster.
Also during the year, the company received initial orders from 600+ new customers as well as repeat orders from aerospace and automotive customers, which allowed the firm to increase its customer base to more than 2,000 companies.
"While I am very pleased with the results we achieved, I am even more excited about the future of our company as we move into B2B with our e-manufacturing software solutions. Our new product line enables our customers to develop, communicate, and operate optimal manufacturing processes across the extended enterprise. Building on our established Digital Factory solutions and comprising new web-based collaboration and B2B manufacturing applications, our new offering streamlines the relationship between manufacturers and their supply chain. It provides the high levels of speed, flexibility and collaboration they require for today's e-business environment," stated Beit-On.
"We are delighted with what we accomplished in 1999, and with the recognition by Daratech as the fastest growing company in our industry," Beit-On concluded. "In the next few weeks, we will be launching our new web site and e-manufacturing offering at several major industry events around the world. This is an exciting time for us and we believe that we are well positioned as we enter the new year."