• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • MKS Recovering Nicely From the Economic Storm

    March 1, 2010 Timothy Prickett Morgan

    A year ago, at the peak of the economic meltdown, application lifecycle and software change management software maker MKS was doing comparatively well financially as gauged by its peers in the software biz. But no company can outrun the economy for long, and MKS had its share of revenue declines in fiscal 2010. But as MKS finished up its third quarter of fiscal 2010 ended January 31, the numbers were all pointing northward.

    In the quarter, MKS said that its software license sales were up an astounding 34.1 percent, to just under $5 million. (Although MKS is based in Waterloo, Ontario, it reports its financial results in U.S. dollars.) Maintenance revenues for the company in fiscal Q3 came to $7.75 million, up 11 percent, while services fees were up a more modest 3.1 percent to $2.6 million. Overall revenues came in at $15.3 million, up 16 percent.

    Costs rose a bit in the quarter, putting pressure on MKS’ profits, but revenues were so much larger than in the year-ago quarter that MKS could nearly triple net earnings to $1.1 million. The company generated $3.1 million in cash and equivalents, boosting its hoard to $22.1 million, and the board of directors paid out a 15 cent per share cash dividend.

    There are surely worse financial places to be.

    “We continue to see steady improvement in financial measures across the board,” explained Philip Deck, executive chairman at MKS. “Along with rebounding licensing, we saw steady improvements in services and maintenance, contributing to strong year-to-date profitability.”

    MKS says that it “is committed to profitable, organic growth” in its primary product segment, its ALM products, and says that it has balanced the needs of nurturing this business with the desire of shareholders to see profits and dividends. The company said it is preparing to make investments in its field sales and support personnel to meet what it anticipates will be an increase in demand for ALM products, and warned that it expects a 10 percent annual decline in its Toolkit and X Server interoperability software lines for the foreseeable future.

    Speaking of the ALM products, MKS said that Integrity ALM product sales in fiscal Q3 were up 15 percent to $13.3 million, and that for the nine months of the fiscal year, ALM sales were up 4 percent to $40.7 million.

    “We were pleased to see strong growth in our ALM licensing this quarter,” said Michael Harris, president and chief executive officer at MKS, in a statement accompanying the financial results. “As the need for comprehensive management of software engineering and quality processes for advanced manufacturing customers becomes more and more evident, and as capital budgets are restored from the depths of the recession we continue to increase our investment in field operations as the driver to license revenue growth.”

    RELATED STORIES

    MKS Adds Test Management to ALM Suite

    MKS Weathers the Economic Storm in Fiscal Q3

    MKS Updates Change Management for i OS, Warns of Big Revenue Jump

    Q&A with MKS CEO Philip Deck: Automating the Automaters

    MKS Swings to a Profit on Revenue Growth in Fiscal 2008 Second Quarter

    MKS Updates ALM Tools for iSeries, Distributed Systems

    MKS Refreshes Change Management Suite, Adds ‘Dashboard’ View

    MKS Integrates Workflow Application with WDSc



                         Post this story to del.icio.us
                   Post this story to Digg
        Post this story to Slashdot

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Tags: Tags: mtfh_rc, Volume 19, Number 9 -- March 1, 2010

    Sponsored by
    VISUAL LANSA 16 WEBINAR

    Trying to balance stability and agility in your IBM i environment?

    Join this webinar and explore Visual LANSA 16 – our enhanced professional low-code platform designed to help organizations running on IBM i evolve seamlessly for what’s next.

    🎙️VISUAL LANSA 16 WEBINAR

    Break Monolithic IBM i Applications and Unlock New Value

    Explore modernization without rewriting. Decouple monolithic applications and extend their value through integration with modern services, web frameworks, and cloud technologies.

    🗓️ July 10, 2025

    ⏰ 9 AM – 10 AM CDT (4 PM to 5 PM CEST)

    See the webinar schedule in your time zone

    Register to join the webinar now

    What to Expect

    • Get to know Visual LANSA 16, its core features, latest enhancements, and use cases
    • Understand how you can transition to a MACH-aligned architecture to enable faster innovation
    • Discover native REST APIs, WebView2 support, cloud-ready Azure licensing, and more to help transform and scale your IBM i applications

    Read more about V16 here.

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Hunting Down Storage Hogs CNX Offers Free Community Edition of Valence Web 2.0 App

    Leave a Reply Cancel reply

TFH Volume: 19 Issue: 9

This Issue Sponsored By

    Table of Contents

    • X64 and Blade Servers Lead the Server Recovery
    • Custom Baby Data Centers Coming from Big Blue
    • System Automation, VTL, and Security Linked in Help/Systems, Crossroads Deal
    • Mad Dog 21/21: It’s i or Die for Power in the Midrange
    • Hackers Escalate Web Site Attacks, Despite Decline in Security Vulnerabilities
    • IBM Cuts Power 595 CPU Prices, Offers Remote Server Migration
    • No Power 750, 770, and 780 Prices for i Configs? What Gives?
    • MKS Recovering Nicely From the Economic Storm
    • IBM Assigns Per-Core Pricing Metrics to Power7 Chips
    • Intelliden Snapped Up by IBM for Network Management

    Content archive

    • The Four Hundred
    • Four Hundred Stuff
    • Four Hundred Guru

    Recent Posts

    • Liam Allan Shares What’s Coming Next With Code For IBM i
    • From Stable To Scalable: Visual LANSA 16 Powers IBM i Growth – Launching July 8
    • VS Code Will Be The Heart Of The Modern IBM i Platform
    • The AS/400: A 37-Year-Old Dog That Loves To Learn New Tricks
    • IBM i PTF Guide, Volume 27, Number 25
    • Meet The Next Gen Of IBMers Helping To Build IBM i
    • Looks Like IBM Is Building A Linux-Like PASE For IBM i After All
    • Will Independent IBM i Clouds Survive PowerVS?
    • Now, IBM Is Jacking Up Hardware Maintenance Prices
    • IBM i PTF Guide, Volume 27, Number 24

    Subscribe

    To get news from IT Jungle sent to your inbox every week, subscribe to our newsletter.

    Pages

    • About Us
    • Contact
    • Contributors
    • Four Hundred Monitor
    • IBM i PTF Guide
    • Media Kit
    • Subscribe

    Search

    Copyright © 2025 IT Jungle