Moldflow Corporation (MFLO) - 500 Beiträge pro Seite

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Profile:Moldflow Corporation is a provider of software products and services that increase the speed, efficiency, quality and drive down the cost of the design and manufacture of injection-molded plastic products. Companies use Moldflow`s complete suite of products to address plastic part design issues at the earliest possible stage, as well as to maximize productivity and profitability on the manufacturing floor. The Company collaborates with academia, industry and customers worldwide utilizing a complete design-to-manufacture process. Moldflow has offices and research and development centers in the United States, Europe, Australia and Asia.


http://www.moldflow.com

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Moldflow Reports Fourth Fiscal Quarter 2003 Results
Tuesday August 5, 6:31 am ET
Exceeds Guidance with Quarterly Growth in Revenues and EPS


WAYLAND, Mass.--(BUSINESS WIRE)--Aug. 5, 2003--Moldflow Corporation (NASDAQ: MFLO - News) today announced the results for its fourth fiscal quarter and year ended June 30, 2003, which were above the expectations previously set out by management. Fourth quarter revenues of $9.9 million increased 20% from the corresponding quarter of fiscal 2002 and increased 5% sequentially from the preceding quarter. Revenues of $36.6 million for the full 2003 fiscal year increased 4% over fiscal 2002.
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For the fourth fiscal quarter of 2003, Moldflow reported net income, as measured under generally accepted accounting principles ("GAAP"), of $250,000, or $0.02 per diluted share, compared to a net loss of $849,000, or $0.08 per share, during the same quarter of fiscal 2002. For the full 2003 fiscal year, the Company reported a net loss, as measured under GAAP, of $118,000, or $0.01 per share, compared to net income of $780,000, or $0.08 per diluted share, in fiscal 2002.

Pro forma net income, a non-GAAP financial measure, for the fourth quarter was $340,000, or $0.03 per diluted share, which compared to pro forma net loss of $222,000, or $0.02 per share, in the same quarter of the prior year. Pro forma net income for the full 2003 fiscal year was $973,000, or $0.09 per diluted share, which was unchanged from fiscal 2002. Pro forma net income in all periods excludes non-cash amortization expense related to acquired intangible assets and other restructuring and acquisition related charges, net of related tax effects. Additionally, fiscal 2002 pro forma net income excludes gains recognized on the sale of certain investments and long-term assets. Please refer to the Unaudited Consolidated Statement of Operations attached to this press release for a complete reconciliation of the pro forma amounts to the most directly comparable GAAP measures.

Roland Thomas, Moldflow`s president and CEO said, "I am pleased to report on a fiscal quarter and full fiscal year of strong financial and operating results. During the past quarter, we continued to execute well amid mixed global market conditions by delivering on our well-established value proposition. We were rewarded with solid growth in both revenues and profits."

He continued, "In the fourth quarter, we saw strong demand for our products, in particular, the Moldflow Manufacturing Solutions, or `MMS` products. In April, we released MMS 1.0 - the integration of our process and production monitoring and control products into a new, modular user environment - and it was well received by our customers. With the demonstrated rapid payback on investment afforded by the MMS suite, many new customers made initial investments and a notable number of world-class global manufacturing companies expanded pilot implementations into plant-wide deployments. In addition, we built upon the initial successes that we had in France in the third quarter with the production monitoring product acquired in our purchase of CPI in January. This resulted in the highest revenue quarter for the MMS product line in our history. This fiscal year also saw positive signs for our Design Optimization Solutions business, particularly in Japan where we were able to achieve many significant orders from both new and existing customers."

He concluded, "The successes we had in the fourth quarter and the last year are gratifying and make us optimistic about the future and our business strategy. As we look forward to fiscal 2004, we expect to see continued modest growth in total revenues. Further, we remain committed to managing the company for growth with increased profitability and cash flow while continuing to make investments in research and development to maintain our market leadership and in the distribution channels needed to reach our global customer base. Given that there is still a degree of uncertainty in the world economy and our end-user markets in particular, we will continue to monitor the economic conditions and adjust our business model when appropriate to meet these objectives."

Fourth Quarter Highlights

Fourth quarter 2003 revenues totaled $9.9 million and represented an increase of 20% over the same period in the prior year. Excluding the impact of movements in foreign currency exchange rates, revenues increased 9% over the corresponding period of the prior year. On a sequential basis, total revenues in the fourth fiscal quarter increased 5%, while growth in revenues on a constant currency basis was 2%.

Total product revenues for the fourth quarter of fiscal 2003 of $4.8 million increased by 21% over the same quarter of fiscal 2002 and increased sequentially by 4% over the preceding quarter. Revenues from Manufacturing Solutions products during the fourth quarter represented 32% of total product revenues, up from 18% in the prior year, while Design Optimization products accounted for 68% of total product revenues. Service revenues, primarily comprised of revenues from maintenance and support contracts, were $5.2 million for the fourth quarter of fiscal 2003, up 18% from the same quarter in fiscal 2002 and 5% from the preceding quarter. On a regional basis, revenues in Europe represented 44% of Moldflow`s total revenues for the fourth quarter of fiscal 2003, while revenues in the Americas and Asia Pacific regions represented 24% and 32% of total revenue, respectively. In total, 92 new customers were added during the quarter.

As of June 30, 2003, the Company had $52.1 million in cash and marketable securities and no long-term debt. Free cash flow generated during the fourth quarter was $327,000 while cash flow provided by operating activities was $914,000. Please refer to the Unaudited Condensed Consolidated Statement of Cash Flows attached to this press release for a complete reconciliation of free cash flow to cash flow provided by operating activities as measured under GAAP.

The Company had a total of 246 employees at June 30, 2003, of which 33 were sales representatives, 75 were in research and development, with the remainder employed in sales management, marketing, customer support, and general and administrative functions.

Business Outlook

The current business outlook is based on information as of August 5, 2003 and is current as of that day only. Moldflow expects revenues for the first fiscal quarter of 2004 to be between $9.4 million and $9.9 million and net income per diluted share, measured under GAAP, to be between $0.01 and $0.03 per share, assuming an effective income tax rate of 35%.

Moldflow expects negative free cash flow for the first fiscal quarter of 2004 to be between $400,000 and $600,000 consistent with historical seasonal trends. Free cash flow in Moldflow`s outlook is based upon a projection of cash flow used in operations of between $100,000 and $200,000 reduced by capital expenditures, including capitalized software development costs, projected to be between $300,000 and $400,000.

Financial Results

The unaudited condensed consolidated financial statements and supplemental information for the fourth fiscal quarter and the year ended June 30, 2003 follow.

Use of Non-GAAP Financial Information

To supplement our unaudited consolidated financial statements presented on a GAAP basis, we use non-GAAP, or "pro forma," additional measures of net income (loss), net income (loss) per share and cash flow that we believe are appropriate to enhance an overall understanding of our historical financial performance and future prospects. The non-GAAP results, which are adjusted to exclude certain costs, expenses, gains and losses from the comparable GAAP measures, are an indication of our baseline performance before gains, losses or other charges that are considered by management to be outside of our core operating results. These non-GAAP results are among the primary indicators management uses as a basis for evaluating our financial performance as well as for forecasting of future periods. For these reasons, and because the non-GAAP additional measures present additional information that is not readily ascertainable from the GAAP presentation, management believes these non-GAAP measures can be useful to investors, potential investors and others. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net income (loss), income (loss) per share or cash flow from operations prepared in accordance with GAAP.

Information Dissemination

Moldflow will host a conference call to discuss the fourth quarter and full fiscal year 2003 results and future outlook at 11:30 a.m. US Eastern time today. A live Webcast of the conference call, together with this press release and supplemental financial information, can be accessed through the Company`s Website at www.moldflow.com in the Investor Information section. In addition, the call, press release and supplemental information will be archived and can be accessed through the same link.

About Moldflow Corporation

Moldflow (NASDAQ: MFLO - News) is the world`s leading provider of software products and services that increase the speed, efficiency, quality and drive down the cost of the design and manufacture of injection molded plastic products. Companies use Moldflow`s complete suite of products to address plastic part design issues at the earliest possible stage as well as to maximize productivity and profitability on the manufacturing floor. Its collaboration with academia, industry and customers around the world has led to a reputation for constant innovation in the complete design-to-manufacture process. Headquartered in Wayland, Massachusetts, Moldflow has offices and research and development centers in the United States, Europe, Australia and the Asia Pacific region. For more information about Moldflow visit www.moldflow.com or call 508-358-5848; fax [phone].

Note to Editors: Moldflow, Moldflow Manufacturing Solutions and MMS are trademarks or registered trademarks of Moldflow Corporation or its subsidiaries worldwide. All other trademarks are properties of their respective holders.

Cautionary Statement Regarding Forward-Looking Information

Pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, the Company notes that any statements contained in this press release that are not historical facts are forward looking statements. Such forward looking statements include, but are not limited to, those regarding Moldflow`s or management`s intentions, hopes, beliefs, expectations, projections or plans for the future and statements regarding: (i) Moldflow`s market leadership and competitive position in its market segments, and (ii) the Company`s business outlook including revenue and earnings guidance. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include: (i) with respect to the Company`s market leadership and competitive position, the risks that a renewed economic downturn will adversely impact the market for the Company`s products, that competitors will emerge with greater resources or unforeseen technological breakthroughs and that our Manufacturing Solutions products will have a longer sales cycle than our Design Optimization products, and (ii) with respect to the Company`s business outlook, the risks that a continued weak world economy will further slow capital spending by the Company`s prospective customers, that the Company may not be able to recognize the revenue derived from orders received, that the sales cycle may lengthen based on the larger average deal sizes for our Manufacturing Solutions products, that foreign currency fluctuations may adversely affect our financial results, that our distribution partners will not achieve their revenue objectives, that the overall mix of revenues differs materially from that projected, and that changes in US or foreign tax legislation may result in a higher level of income tax expense than that projected, as well as other risks and uncertainties detailed from time to time in reports filed by Moldflow with the Securities and Exchange Commission, including the Company`s Annual Report on Form 10-K for the year ended June 30, 2002 as well as its subsequent quarterly and annual filings. Revenue and earnings guidance offered by senior management today represents a point-in-time estimate and is based on information as of the date of this press release. Senior management has made numerous assumptions in providing this guidance which, while believed to be reasonable, may not prove to be accurate. In addition, as noted above, there are numerous factors which may cause actual results to differ materially from the guidance provided. The Company expressly disclaims any current intention or obligation to update the guidance provided or any other forward-looking statement in this press release to reflect future events or changes in facts assumed for purposes of providing this guidance or otherwise affecting the forward-looking statements contained in this press release.

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Moldflow Corporation
Unaudited Consolidated Statement of Operations
(in thousands, except per share data)


Three Months Ended
June 30, 2003
---------------------------------
Adjustments
GAAP to GAAP Non-GAAP
Results(a) Results Results(b)
---------------------------------
Revenue:
Product $4,768 $- $4,768
Services 5,157 - 5,157
------- ----- -------
Total revenue 9,925 - 9,925
------- ----- -------

Costs and
expenses:
Cost of product
revenue 800 - 800
Cost of
services revenue 324 - 324
Research and
development 1,309 - 1,309
Selling and
marketing 5,232 - 5,232
General and
administrative 1,912 - 1,912
Non-recurring charges (33) 33(c) -
Amortization of
intangible assets 111 (111)(d) -
------- ----- -------
Total operating
expenses 9,655 (78) 9,577
------- ----- -------

Income (loss)
from operations 270 78 348

Interest
income, net 255 - 255
Other income
(loss), net (30) - (30)
------- ----- -------

Income (loss)
before income
taxes 495 78 573
Provision for
(benefit from)
income taxes 245 (12)(e) 233
------- ----- -------
Net income
(loss) $250 $90 $340
======= ===== =======

Net income (loss) per
common share:
Basic $0.02 $0.03
Diluted $0.02 $0.03
Weighted average
shares:
Basic 10,003 10,003
Diluted 10,465 10,465




Three Months Ended
June 30, 2002
------------------------------
Adjustments
GAAP to GAAP Non-GAAP
Results(a) Results Results(b)
------------------------------
Revenue:
Product $3,937 $- $3,937
Services 4,366 - 4,366
------- ------- -------
Total revenue 8,303 - 8,303
------- ------- -------

Costs and
expenses:
Cost of product
revenue 607 - 607
Cost of
services revenue 412 - 412
Research and
development 1,640 - 1,640
Selling and
marketing 4,276 - 4,276
General and
administrative 1,614 - 1,614
Non-recurring
charges 1,272 (1,272)(g) -
Amortization of
intangible assets 164 (164)(d) -
------- ------- -------
Total operating
expenses 9,985 (1,436) 8,549
------- ------- -------

Income (loss)
from operations (1,682) 1,436 (246)

Interest
income, net 312 - 312
Other income
(loss), net 317 (446) (129)
------- ------- -------

Income (loss)
before income
taxes (1,053) 990 (63)
Provision for
(benefit from)
income taxes (204) 363(e) 159
------- ------- -------
Net income
(loss) $(849) $627 $(222)
======= ======= =======

Net income (loss) per
common share:
Basic $(0.08) $(0.02)
Diluted $(0.08) $(0.02)
Weighted average
shares:
Basic 10,085 10,085
Diluted 10,085 10,085






Year Ended
June 30, 2003
---------------------------------
Adjustments
GAAP to GAAP Non-GAAP
Results(a) Results Results(b)
---------------------------------
Revenue:
Product $17,259 $- $17,259
Services 19,366 - 19,366
-------- ------- --------
Total revenue 36,625 - 36,625
-------- ------- --------

Costs and
expenses:
Cost of product
revenue 2,964 (179)(c) 2,785
Cost of
services revenue 1,210 - 1,210
Research and
development 5,650 - 5,650
Selling and
marketing 18,638 - 18,638
General and
administrative 7,242 - 7,242
Non-recurring
charges 405 (405)(c) -
Amortization of
intangible assets 605 (605)(d) -
-------- ------- --------
Total operating
expenses 36,714 (1,189) 35,525
-------- ------- --------

Income (loss)
from operations (89) 1,189 1,100

Interest
income, net 1,089 - 1,089
Other income
(loss), net (198) - (198)
-------- ------- --------

Income before
income taxes 802 1,189 1,991
Provision for
income taxes 920 98(e) 1,018
-------- ------- --------
Net income (loss) $(118) $1,091 $973
======== ======= ========

Net income (loss) per
common share:
Basic $(0.01) $0.10
Diluted $(0.01) $0.09
Weighted average
shares:
Basic 10,020 10,020
Diluted 10,020 10,368





Year Ended
June 30, 2002
---------------------------------
Adjustments
GAAP to GAAP Non-GAAP
Results(a) Results Results(b)
---------------------------------
Revenue:
Product $17,870 $- $17,870
Services 17,218 - 17,218
-------- ------- --------
Total revenue 35,088 - 35,088
-------- ------- --------

Costs and
expenses:
Cost of product
revenue 2,518 - 2,518
Cost of
services revenue 1,401 - 1,401
Research and
development 6,234 - 6,234
Selling and
marketing 18,134 - 18,134
General and
administrative 6,660 - 6,660
Non-recurring
charges 1,272 (1,272)(g) -
Amortization of
intangible assets 656 (656)(d) -
-------- ------- --------
Total operating
expenses 36,875 (1,928) 34,947
-------- ------- --------

Income (loss)
from operations (1,787) 1,928 141

Interest
income, net 1,455 - 1,455
Other income
(loss), net 1,712 (1,575)(f) 137
-------- ------- --------

Income before
income taxes 1,380 353 1,733
Provision for
income taxes 600 153(e) 753
-------- ------- --------
Net income (loss) $780 $200 $980
======== ======= ========

Net income (loss) per
common share:
Basic $0.08 $0.10
Diluted $0.08 $0.09
Weighted average
shares:
Basic 10,076 10,076
Diluted 10,360 10,360


(a)The Unaudited Consolidated Statement of Operations prepared in
accordance with accounting principles generally accepted in the United
States of America ("GAAP").

(b)The Unaudited Consolidated Statement of Operations prepared on an
adjusted basis from that of the statement prepared in accordance with
GAAP, which is intended to enhance the reader`s understanding of the
Company`s results from operations.

(c) Restructuring and other impairment charges resulting from actions
taken in conjunction with the Company`s January 2003 acquisition of
Controle de Processus Industriels, s.a.r.l. ("CPI") and related
subsequent adjustments.

(d) Amortization of acquired intangible assets.

(e) Net tax effect of the adjusted items.

(f) Gains on the sales of certain investments and other assets and a
gain on the settlement of an acquisition escrow matter.

(g) Restructuring charges resulting from actions taken in our April
2002 Restructuring Plan.




Moldflow Corporation
Unaudited Condensed Consolidated Balance Sheet
(in thousands)

June 30, June 30,
2003 2002
-------- --------

Assets
Current assets:
Cash and cash equivalents $38,320 $47,634
Marketable securities 13,820 3,233
Accounts receivable, net 6,147 5,927
Inventories, prepaid expenses
and other current assets 5,011 4,098
-------- --------
Total current assets 63,298 60,892

Fixed assets, net 3,891 3,793
Goodwill and other intangibles
assets, net 10,355 10,101
Other assets 1,933 1,227
-------- --------
Total assets $79,477 $76,013
======== ========

Liabilities and Stockholders`
Equity
Current liabilities:
Accounts payable $1,684 $1,164
Accrued expenses 7,439 7,664
Deferred revenue 8,551 7,931
-------- --------
Total current liabilities 17,674 16,759

Deferred revenue 513 -
Other long-term liabilities 641 614
-------- --------
Total liabilities 18,828 17,373
-------- --------

Stockholders` Equity:
Common stock 102 101
Additional paid-in capital 62,867 62,732
Treasury stock (926) (327)
Accumulated deficit (4,090) (3,972)
Accumulated other
comprehensive income 2,696 106
-------- --------
Total stockholders`
equity 60,649 58,640
-------- --------

Total liabilities and
stockholders` equity $79,477 $76,013
======== ========



Moldflow Corporation
Unaudited Condensed Consolidated Statement of Cash Flows
(in thousands)


Three Months Ended Year Ended
----------------- -----------------
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
-------- -------- -------- --------


Cash flows provided by operating
activities $914 $1,416 $2,384 $4,961
Cash flows provided by (used in)
investing activities (10,237) (3,683) (13,398) 8,836
Cash flows provided by (used in)
financing activities 43 27 (525) (55)
Effect of exchange rate changes on
cash and cash equivalents 1,477 569 2,225 923
-------- -------- -------- --------
Net increase (decrease) in cash
and cash equivalents (7,803) (1,672) (9,314) 14,665

Cash and cash equivalents,
beginning of period 46,123 49,305 47,634 32,969
-------- -------- -------- --------

Cash and cash equivalents,
end of period $38,320 $47,634 $38,320 $47,634
======== ======== ======== ========



Reconciliation of the Unaudited Condensed Consolidated Statement of
Cash Flows prepared in accordance with GAAP to free cash flows:

Three Months Ended Year Ended
----------------- -----------------
June 30, June 30, June 30, June 30,
2003 2002 2003 2002
-------- -------- -------- --------


Cash flows provided by
operating activities $914 $1,416 $2,384 $4,961
Purchases of fixed assets (236) (451) (1,240) (1,143)
Proceeds of fixed asset disposals - - - 930
Capitalization of software
development costs (351) - (669) (602)
-------- -------- -------- --------

Free cash flows $327 $965 $475 $4,146
======== ======== ======== ========



--------------------------------------------------------------------------------
Contact:
Moldflow Corporation
Dawn Soucier, 508-358-5848 x234
[e-mail]
or
Investor relations contact:
Suzanne MacCormack, 508-358-5848 x239
[e-mail]



--------------------------------------------------------------------------------
Source: Moldflow Corporation

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Moldflow Reports Second Fiscal Quarter 2004 Results
Monday January 26, 6:30 am ET
Threefold increase in earnings over same period of prior year


WAYLAND, Mass.--(BUSINESS WIRE)--Jan. 26, 2004--Moldflow Corporation (NASDAQ: MFLO - News) today announced the results for its second fiscal quarter and first six months of 2004. Worldwide revenue of $10.6 million for the quarter ended December 27, 2003 represented a 19% increase from the corresponding quarter of fiscal 2003. For the second quarter, Moldflow reported net income, as measured under generally accepted accounting principles ("GAAP"), of $595,000, or $0.06 per diluted share, compared to net income of $201,000, or $0.02 per diluted share, during the same quarter of fiscal 2003, a threefold increase.
For the first six months of fiscal 2004, revenue of $20.1 million increased 17% over the corresponding period of the prior year. Net income for the first six months of fiscal 2004 of $1.0 million, or $0.10 per diluted share, increased from $216,000, or $0.02 per diluted share in the same period of fiscal 2003.

Roland Thomas, president and chief executive officer of Moldflow said, "We are pleased to report another quarter of strong sales performance, with results that were in line with, and in some respects, better than our expectations. We noted particular strength in sales of our design products in Europe where we also benefited from foreign currency movements."

"In December, we released new products in each of our product lines and both contributed to the solid performance in the second quarter. We released Moldflow Plastics Advisers 7.0, targeted at design engineers who use our Design Optimization products during the initial stages of part and mold design. Two newly introduced modules in this product family, Performance Adviser and Cooling Circuit Adviser, expand the breadth of analysis capabilities in this product, allowing us to deliver enhanced cost-effective simulation capabilities to a wider mid-market audience. These modules contributed to the growth in this product line."

"We also introduced the English and Spanish language versions of the Moldflow Manufacturing Solutions/Production Monitoring product in December. This product, based upon technology and products acquired in our purchase of Controle de Processus Industriels last year, is the first major step in our plan to deliver this functionality to our global customer base" said Thomas. "As the plastics processing industry continues its trend of consolidation and globalization, it is increasingly important for companies to gain access to plant-wide and enterprise-wide information in order to measure, manage and control their operations to maximize their profitability. MMS/Production Monitoring provides a comprehensive set of manufacturing plant monitoring tools which provide management with the data for critical decision making."

He continued, "I am also particularly excited about our acquisition of American MSI, announced earlier today. American MSI has, over the course of the past twenty years, established a leading position as the premier supplier of hot runner controls for high-end, sophisticated molding applications in the United States and has received critical acclaim for its high standards for quality and customer service. In connection with this acquisition, we will reorganize our Company`s marketing, sales and support activities into business units focused on Design Analysis and Manufacturing Solutions. I look forward to working with Tim Triplett, former president and chief executive officer of American MSI, in his new role as executive vice president and general manager for the Moldflow Manufacturing Solutions business unit, as we seek to further expand our footprint in the growing market for high intellectual content solutions which increase productivity and profit on the manufacturing shop floor."

Thomas concluded, "The results for the second quarter represent continued progress toward the achievement of our plans for the fiscal year. We entered fiscal 2004 focused on earnings growth, and, as we now enter the second half of our fiscal year and begin the integration of the newly acquired American MSI business, we remain committed to meeting that objective."

Second Quarter Highlights

Second quarter 2004 revenue totaled $10.6 million and represented an increase of 19% over the same period in the prior year. Excluding the impact of movements in foreign currency exchange rates, total revenue increased 7% over the corresponding period of the prior year. On a sequential basis, total revenue in the second fiscal quarter increased 12%, while the increase in revenue on a constant currency basis was 7%.

Total product revenue for the second quarter of fiscal 2004 of $5.1 million increased by 21% over the same quarter of fiscal 2003 and increased 17% sequentially from the preceding quarter, consistent with seasonal trends. On a constant currency basis, product revenue increased 7% over the same quarter of fiscal 2003 and increased 11% sequentially from the preceding quarter. Revenue from Manufacturing Solutions products during the second quarter represented approximately 19% of total product revenue, compared to 23% in the same quarter of the prior year, during the second quarter Design Optimization products accounted for 81% of total product revenue. Services revenue, primarily comprised of revenue from maintenance and support contracts, was $5.5 million for the second quarter of fiscal 2004, up 17% from the same quarter in fiscal 2003 and up 7% from the preceding quarter. On a constant currency basis, services revenue increased 7% from the same quarter in fiscal 2003 and increased 3% from the preceding quarter.

On a regional basis, revenue in Europe represented 46% of Moldflow`s total revenue for the second quarter of fiscal 2004, while revenue in the Asia Pacific and Americas regions represented 32% and 22% of total revenue, respectively. In total, 122 new customers were added during the quarter.

As of December 27, 2003, the Company had $53.0 million in cash and marketable securities and no long-term debt. Cash used in operations in the second fiscal quarter of 2004 was $226,000 and negative free cash flow was $818,000. Please refer to the Unaudited Condensed Consolidated Statement of Cash Flows attached to this press release for a complete reconciliation of free cash flow to cash flows provided by operating activities as measured under GAAP.

Business Outlook

The current business outlook is based on information as of January 26, 2004 and is current as of that day only. These statements are forward looking, and actual results may differ materially.

The acquisition of American MSI will be recorded using the purchase method of accounting for business combinations, and therefore, Moldflow`s results of operations will include the results of operations of American MSI from the acquisition date. The acquisition of American MSI is expected to be accretive to earnings in fiscal year 2004, excluding the impact of purchase accounting adjustments, including those related to the recognition of revenue in American MSI`s order backlog at the purchase date and the amortization of purchased intangibles. Management will discuss the acquisition and its plans for integration of the operations of AMSI during its quarterly earnings release conference call on January 26, 2004.

Based on current visibility, Moldflow expects revenue for the combined business for the third fiscal quarter of 2004 to be between $12.2 million and $12.8 million.

Financial Results

The unaudited condensed consolidated financial statements and supplemental information for the second fiscal quarter ended December 27, 2003 follow.

Use of Non-GAAP Financial Information

To supplement our unaudited consolidated financial statements presented on a GAAP basis, we may use a non-GAAP, or "pro forma", measure referred to as free cash flow that we believe is appropriate to enhance an overall understanding of our historical financial performance and future prospects. Free cash flow is among the primary indicators management uses as a basis for evaluating our financial performance as well as for forecasting of future periods. For this reason, and because this measure presents additional information that is not readily ascertainable from the GAAP presentation, management believes this non-GAAP measure can be useful to investors, potential investors and others. The presentation of free cash flow is not meant to be considered in isolation or as a substitute for cash flow from operations prepared in accordance with GAAP.

Information Dissemination

Moldflow will host a conference call to discuss the second quarter 2004 results, the acquisition of American MSI and future outlook at 11:30 a.m. US Eastern time today. A live Webcast of the conference call, together with this press release and supplemental financial information, can be accessed through the Company`s Website at www.moldflow.com in the Investor Information section. In addition, the call, press release and supplemental information will be archived and can be accessed through the same link.

About Moldflow Corporation

Moldflow (NASDAQ: MFLO - News) is the leading global provider of automation and optimization software solutions for the plastics injection molding industry. Companies use Moldflow`s complete suite of products to address plastic part design issues at the earliest possible stage as well as to maximize productivity and profitability on the manufacturing floor. Moldflow`s collaboration with academia, industry, and customers around the world has led to a reputation for constant innovation in the complete design-to-manufacture process. Headquartered in Wayland, Massachusetts, Moldflow has offices, manufacturing and research and development centers in the United States, Europe, Australia, and Asia.

Note to Editors: Moldflow, Moldflow Manufacturing Solutions, MMS, Moldflow Plastics Advisers and MPA are trademarks or registered trademarks of Moldflow Corporation or its subsidiaries worldwide. All other trademarks are properties of their respective holders.

Cautionary Statement Regarding Forward-Looking Information

Pursuant to the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, the Company notes that any statements contained in this press release that are not historical facts are forward looking statements. Such forward looking statements include, but are not limited to, those regarding Moldflow`s or management`s intentions, hopes, beliefs, expectations, projections or plans for the future and statements regarding: (i) Moldflow`s market leadership and competitive position in its market segments, (ii) the impact of the acquisition of American MSI on the Company`s financial position and results of operations, and (iii) the Company`s business outlook including revenue guidance. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include: (i) with respect to the Company`s market leadership and competitive position, the risks that a renewed economic downturn will adversely impact the market for the Company`s products, that competitors will emerge with greater resources or unforeseen technological breakthroughs and that our Manufacturing Solutions products will have a longer sales cycle than our Design Optimization products, (ii) with respect to the Company`s intention to integrate American MSI, the risk that the acquisition will not be integrated effectively, that it may have a negative impact on the Company`s financial results including the potential that the Company may incur unexpected costs arising from integration of the people, products and operations of American MSI, or that the integration may result in lost revenue caused by business disruption or the distraction of our management, and (iii) with respect to the Company`s business outlook, the risks that a continued weak world economy will further slow capital spending by the Company`s prospective customers, that the Company may not be able to recognize the revenue derived from orders received, that the sales cycle may lengthen based on the larger average deal sizes for our Manufacturing Solutions products, that foreign currency fluctuations may adversely affect our financial results, that our distribution partners will not achieve their revenue objectives, that the overall mix of revenues differs materially from that projected, as well as other risks and uncertainties detailed from time to time in reports filed by Moldflow with the Securities and Exchange Commission, including the Company`s Annual Report on Form 10-K for the year ended June 30, 2003 as well as its subsequent quarterly and annual filings. Revenue guidance offered by senior management today represents a point-in-time estimate and is based on information as of the date of this press release. Senior management has made numerous assumptions in providing this guidance which, while believed to be reasonable, may not prove to be accurate. In addition, as noted above, there are numerous factors that may cause actual results to differ materially from the guidance provided. The Company expressly disclaims any current intention or obligation to update the guidance provided or any other forward-looking statement in this press release to reflect future events or changes in facts assumed for purposes of providing this guidance or otherwise affecting the forward-looking statements contained in this press release.

Moldflow Corporation
Unaudited Consolidated Statement of Income
(in thousands, except per share data)

Three Months Ended Six Months Ended
----------------- -----------------
Dec. 27, Dec. 28, Dec. 27, Dec. 28,
2003 2002 2003 2002
-------- -------- -------- --------

Revenue:
Product $5,113 $4,216 $9,467 $7,912
Services 5,518 4,710 10,675 9,315
-------- -------- -------- --------
Total revenue 10,631 8,926 20,142 17,227
-------- -------- -------- --------

Costs and expenses:
Cost of product revenue 605 674 1,243 1,335
Cost of services revenue 934 283 1,563 563
Research and development 1,535 1,319 3,128 2,774
Selling and marketing 4,698 4,463 8,884 8,628
General and administrative 2,117 1,802 4,031 3,452
Amortization of intangible
assets 110 159 221 318
-------- -------- -------- --------
Total operating expenses 9,999 8,700 19,070 17,070
-------- -------- -------- --------

Income from operations 632 226 1,072 157

Interest income, net 290 284 558 571
Other income (loss), net 9 (84) (34) (62)
-------- -------- -------- --------

Income before income taxes 931 426 1,596 666
Provision for income taxes 336 225 584 450
-------- -------- -------- --------
Net income $595 $201 $1,012 $216
======== ======== ======== ========

Net income per common share:
Basic $0.06 $0.02 $0.10 $0.02
Diluted $0.06 $0.02 $0.10 $0.02
Weighted average shares:
Basic 10,059 9,973 10,054 10,040
Diluted 10,658 10,269 10,619 10,320



Moldflow Corporation
Unaudited Condensed Consolidated Balance Sheet
(in thousands)

Dec. 27, June 30,
2003 2003
------------ --------

Assets
Current assets:
Cash and cash equivalents $40,956 $38,320
Marketable securities 12,004 13,820
Accounts receivable, net 6,233 6,147
Inventories, prepaid expenses and other current
assets 5,698 5,011
------------ --------
Total current assets 64,891 63,298

Fixed assets, net 4,107 3,891
Goodwill and other intangibles assets, net 10,191 10,355
Other assets 1,500 1,933
------------ --------
Total assets $80,689 $79,477
============ ========

Liabilities and Stockholders` Equity
Current liabilities:
Accounts payable $1,990 $1,684
Accrued expenses 7,553 7,439
Deferred revenue 6,480 8,551
------------ --------
Total current liabilities 16,023 17,674

Deferred revenue 788 513
Other long-term liabilities 592 641
------------ --------
Total long-term liabilities 1,380 1,154
------------ --------
Total liabilities 17,403 18,828
------------ --------

Stockholders` Equity:
Common stock 102 102
Additional paid-in capital 62,974 62,867
Treasury stock (823) (926)
Accumulated deficit (3,078) (4,090)
Accumulated other comprehensive income 4,111 2,696
------------ --------
Total stockholders` equity 63,286 60,649
------------ --------

Total liabilities and stockholders` equity $80,689 $79,477
============ ========




Moldflow Corporation
Unaudited Condensed Consolidated Statement of Cash Flows
(in thousands)

Three Months Ended Six Months Ended
----------------- -----------------
Dec. 27, Dec. 28, Dec. 27, Dec. 28,
2003 2002 2003 2002
-------- -------- -------- --------

Cash flows provided by (used in)
operating activities $(226) $352 $61 $85
Cash flows provided by (used in)
investing activities (664) 1,147 915 2,298
Cash flows provided by (used in)
financing activities 41 20 210 (712)
Effect of exchange rate changes
on cash and cash equivalents 1,080 342 1,450 (85)
-------- -------- -------- --------
Net increase in cash and cash
equivalents 231 1,861 2,636 1,586

Cash and cash equivalents,
beginning of period 40,725 47,359 38,320 47,634
-------- -------- -------- --------

Cash and cash equivalents, end of
period $40,956 $49,220 $40,956 $49,220
======== ======== ======== ========



Reconciliation of the Unaudited Condensed Consolidated Statement of
Cash Flows prepared in accordance with GAAP to free cash flows:

Three Months Ended Six Months Ended
----------------- -----------------
Dec. 27, Dec. 28, Dec. 27, Dec. 28,
2003 2002 2003 2002
-------- -------- -------- --------

Cash flows provided by (used in)
operating activities $(226) $352 $61 $85
Purchases of fixed assets (372) (475) (682) (765)
Capitalization of software
development costs (220) (170) (220) (170)
-------- -------- -------- --------

Free cash flows $(818) $(293) $(841) $(850)
======== ======== ======== ========



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Contact:
Moldflow
Dawn Soucier, 508-358-5848 Ext. 234
[e-mail]
or
Investor relations:
Suzanne MacCormack, 508-358-5848 Ext. 239
[e-mail]



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Source: Moldflow