Moldflow finalizes results for Q4, appoints new execs, restates FY08 guidance
Shares of Moldflow Corp. (Nasdaq: MFLO) are treading higher today after the provider of design analysis for the plastics injection molding industry announced a slew of positive news after Thursday’s close that included finalizing results for its fourth quarter and full 2007 fiscal year, appointing new management and restating financial guidance for 2008.
The Framingham, Mass.-based company, which previously reported preliminary results on August 23, has now finalized those results with the exception of a cash flow item.
As previously announced, for the fourth quarter ended June 30, revenue increased 17% to $15.0 million. Net income was $2.8 million, or $0.23 per diluted share, up 38% from the fiscal fourth quarter of 2006. An analyst polled by Thomson Financial was expecting earnings per share of $0.19 on revenues of $15.03 million.
During the process of finalizing its fourth quarter and full 2007 fiscal year results, the company determined that the cash generated by the operating activities of its continuing operations was $1 million dollars higher and cash used in the operating activities of the company's discontinued operations was $1.0 million dollars lower than preliminarily reported on Aug. 23, 2007.
Cash generated by operating activities of the company's continuing operations and used in discontinued operations for the full 2007 fiscal year was $13.2 million and $(2.2) million, respectively. Moldflow said the adjustments were a result of the finalization of the allocation of certain balance sheet items between its continuing and discontinued operations.
Additionally, Moldflow reported the completion of its SEC comment letter process. The company said there were no adjustments to its historic or current financial statements as a result of the process.
The company also appointed new managers in the positions of Chief Operating Officer and Chief Administrative Officer, as the company turns its focus on being a CAE software-only company in fiscal 2008. Long-time executives of Moldflow, Ken Welch and Lori Henderson, will take the helm as the company’s Chief Operating Officer and Chief Administrative Officer, respectively.
Going forward, in fiscal 2008, Moldflow said it expects revenue to grow in the range of 10% to 13%, compared with fiscal 2007. The company anticipates earnings per diluted share of approximately $0.94 to $1.00. An analyst polled by Thomson Financial expects earnings of $0.94 per share on revenues of $61.50 million.
Shares of Moldflow rose 9.92%, or $1.58, to $17.50 in midday trading Friday.
