Annual revenue up 155 percent for PlanetCAD
PlanetCAD Inc., a leading developer and provider of engineering data quality and interoperability software solutions, today announced results for its fourth quarter and financial year ended December 31, 2000.
For the year ended December 31, 2000, PlanetCAD™ recorded revenues from continuing operations of $2.1 million and for the fourth quarter of 2000 revenues of $500,000. Net loss from continuing operations for the year was $11.4 million or $1.00 per share, and for the fourth quarter net loss from continuing operations was $4.2 million or $0.36 per share.
On November 14, 2000, the Company completed the sale of its Component Software Division to Dassault Systèmes Corp. for a net gain of $17.4 million. The Company simultaneously changed its name from Spatial Technology Inc. to PlanetCAD Inc. following a shareholder vote. As a result of this transaction, the financial results of the Component Software Division have been accounted for and discussed as discontinued operations.
"With the sale of our Component Software Division we are now able to focus on our core competencies of providing cost-saving engineering data quality and interoperability software solutions to global manufacturing organizations," commented Jim Bracking, CEO and President, PlanetCAD Inc. "This organization has the financial resources to grow this business organically and leverage our existing client-base with proven products in one of the largest, untapped global markets today, the digital manufacturing supply chain."
Financial Results
Continuing Operations
Total revenue from continuing operations of $500,000 for the fourth quarter ended December 31, 2000 increased 150% over total revenue from continuing operations of $200,000 reported in the fourth quarter of 1999 for the PlanetCAD division of the former Spatial Technology Inc. Annual revenue from continuing operations of $2.1 million increased 155% compared to $800,000 in 1999 for the PlanetCAD division. Of the total revenue reported in the fourth quarter of 2000, $300,000 was derived from license fees and royalties and $200,000 was from services. License fees and royalties for the year grew 150% from $600,000 in 1999 to $1.5 million in 2000 and services grew 100% from $300,000 in 1999 to $600,000 in 2000. Increased revenue for the quarter and year ended December 31, 2000 is primarily due to revenue generated by sales of PlanetCAD's PrescientQA™ product line, which PlanetCAD acquired in July 2000.
Loss from continuing operations totaled $4.2 million in the fourth quarter of 2000, compared to $300,000 for the fourth quarter of 1999. Annual loss from continuing operations in 2000 totaled $11.4 million compared to a loss of $1.1 million in 1999. The increased loss reflects additional expenses to support the PrescientQA line of products.
Discontinued Operations
Annual loss from discontinued operations in 2000 totaled $4.8 million compared to a loss of $1.7 million in 1999. Loss from discontinued operations in the fourth quarters of each 2000 and 1999 was unchanged at $1.5 million. Including the gain on the sale of discontinued operations of $17.4 million, PlanetCAD had net income of $1.2 million, or $0.11 per share, for the year 2000, and net income of $11.8 million, or $0.97 per share, for the quarter ended December 31, 2000.
Fourth Quarter Highlights
November 14, 2000: Spatial Technology Inc. Changes Name to PlanetCAD Inc.
Following shareholder approval, the company name was changed to PlanetCAD Inc. with a new stock ticker of PCD on the American Stock Exchange.
December 18, 2000: PlanetCAD Announces Appointment of New President and CEO.
Jim Bracking, a seasoned executive who most recently held the positions of Chief Operating Officer/Executive Vice President and Director of Novazen, a software company, was appointed as PlanetCAD's new CEO and President, bringing with him extensive operational and management experience of successful start-up companies in the technology sector.
December 21, 2000: PlanetCAD's DesignQA® Wins CADENCE Editor's Choice Award.
The DesignQA product from the PrescientQA product line adds to the list of awards the Cadence Editor's Choice Awards for 2000.
Subsequent Events: 2001
February 12, 2001: Dassault Systèmes and PlanetCAD Announce a CAA V5 Development Partnership Agreement. PlanetCAD completed the CAAv5 agreement with Dassault Systèmes which authorizes PlanetCAD to develop its PrescientQA products on the CATIA® v5 architecture as well as benefit from a range of joint marketing efforts between the two companies. This agreement benefits the customer by providing products certified by Dassault Systèmes to be compatible with the CATIA v5 architecture.
March 6, 2001: PlanetCAD Appoints Craig Berry as Vice President of Sales. PlanetCAD appointed Craig Berry as Vice President of Sales. Mr. Berry brings more than 16 years of sales management experience to the Company including telecommunications, graphics and software sales.
Business Outlook
The following statements are based on current expectations. These statements are forward looking and actual results may differ materially. See comments under "Cautionary Information Regarding Forward Looking Statements" below. PlanetCAD undertakes no obligations to update these statements.
In 2001, PlanetCAD's principal operating objectives are to continue growing the business rapidly while significantly improving profitability and to demonstrate the ability to generate cash from operations.
The appointment of Jim Bracking as CEO and President of PlanetCAD Inc. in December 2000 has resulted in an increased focus on the core competencies of PlanetCAD, reduction of unnecessary expenses, as well as the development of a strong management team to take the company to profitability.
Sales efforts are directly focused on developing enterprise-based sales throughout the existing PrescientQA customer base as well as targeting new, major customer sites worldwide. This existing user base, which includes major aerospace, automotive and discrete product manufacturers, is also a target for sales of PlanetCAD's 3Dshare™ Enterprise, a product which provides automated translation and healing of 3D CAD files, and IntraVISION®, a viewing and markup product which supports Windows and Unix systems for the manufacturing enterprise. PlanetCAD is also undertaking further efforts to maintain and develop its existing relationships with major CAD developers to leverage sales effort and closure rates.
PlanetCAD is focusing all product development resources on releasing strong upgrades of its PrescientQA product line for CATIA, Unigraphics® and Pro/ENGINEER® platforms and on achieving a first release of 3Dshare-Enterprise in early Q2 2001. A new upgrade of IntraVISION was released in early February 2001.
Due to the Company's increased focus on its core product lines, it has postponed the development of its Internet-based engineering services. Specifically, PlanetCAD has postponed the development and launch of Bits2PARTS until a suitable partner is located to assist with developing the technology further. Similarly, PlanetCAD has postponed the commercial hosting of Quote-a-part, an engineering application service by Tecnomatix Technologies. PlanetCAD will continue the operation of the 3Dshare.com website but plans to use it as a marketing and sales tool for enterprise sales of 3Dshare.
Conference Call for Analysts and Investors
The Company will host a conference call and simultaneous Web cast for analysts and investors at 2 p.m. MST on Thursday, March 8, 2001. The webcast can be accessed via the CCBN link which will be available at the home page of www.planetcad.com.
About PlanetCAD Inc.
PlanetCAD develops and delivers high quality enterprise products and application services for streamlining quality engineering data interchange throughout the digital manufacturing supply chain. PlanetCAD's products include the PrescientQA design-quality engineering software suite, which reduces costly design errors, accelerates time-to-market, and improves the product development process; PlanetCAD uses 3Dshare.com (www.3dshare.com), to market 3Dshare Enterprise, a product which provides automated translation and healing of 3D CAD files; and IntraVISION, which enables viewing, mark-up, measuring and converting of more than 300 CAD file formats.
PlanetCAD, 530 Howard St. - Suite 300, San Francisco, CA 94105 USA. Tel: 415-625-0310. Fax: 415-625-0322.
Source: PlanetCAD