• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • MKS Says Business Is Booming Enough to Give Dividends

    June 12, 2006 Timothy Prickett Morgan

    Canadian software change management vendor MKS reported its financial results for its fourth quarter and year end for fiscal 2006 last week, and business is so good that the company has instituted the practice of giving investors dividends.

    MKS had sales of $12.6 million (U.S. dollars, not Canadian) in its fourth fiscal quarter ended April 30, which was up only a smidgen from the same quarter last year, and its application lifecycle management (ALM) software sales declined by 2 percent to $10 million. The company brought a mind-bogglingly large $6 million to the bottom line, an increase of over 256 percent compared to the $1.5 million profit it booked in the year ago quarter, but that income included a $5.2 million gain from an income tax recovery relating to the re-evaluation of assets at the company. Still, for the full fiscal 2006 year, MKS booked sales of $48.3 million, up 17 percent, while net income rose to $9.1 million, more than triple the $2.7 million in profit MKS had in fiscal 2005.

    Because the company increased its cash reserves to $15.7 million, it has decided to give out a dividend of 2 cents a share, payable on July 17. “Our long term strategy and commitment to profitable organic growth, has resulted in steady growth in cash,” explained Philip Deck, chief executive officer at MKS in a statement accompanying the financial results. “Our dividend is intended to act as a long term mechanism to reduce the accumulation of excess cash by returning it to its owners.”

    Looking ahead, MKS says that the revenue growth trend that it has been riding for the past three years will continue in fiscal 2007. The company expects sales in the range of $57 million to $60 million for the current fiscal year, with $4 million to $6 million in pre-tax profits. That puts net income in the range of $2.6 million to $3.9 million with a tax rate of 35 percent.

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Tags: Tags: mtfh_rc, Volume 15, Number 24 -- June 12, 2006

    Sponsored by
    Maxava

    Migrate IBM i with Confidence

    Tired of costly and risky migrations? Maxava Migrate Live minimizes disruption with seamless transitions.

    Upgrading to Power10, Power11, or cloud hosted system, Maxava has you covered!

    Book A Consultation Today

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Admin Alert: Preparing Your i5 Shop for a Pandemic New in V5R4: OLAP Ranking Specifications

    Leave a Reply Cancel reply

TFH Volume: 15 Issue: 24

This Issue Sponsored By

    Table of Contents

    • Pirates Steal $34 Billion in PC Software in 2005
    • IBM Offers Contingency Planning Assessment Service for Pandemics
    • MKS Says Business Is Booming Enough to Give Dividends
    • Sales Up 8 Percent in the Third Quarter for SSA Global
    • IDC Projects Disk Array Capacity to Keep Exploding Through 2010
    • Pirates Steal $34 Billion in PC Software in 2005
    • Executives Complain That IT Is Broken and Can’t Keep Up
    • As I See It: Taking Care
    • Gartner Report Espouses the Virtues of i5/OS
    • The Dollars and Sense of Training Newbie RPG Programmers

    Content archive

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

    Recent Posts

    • With Power11, Power Systems “Go To Eleven”
    • With Subscription Price, IBM i P20 And P30 Tiers Get Bigger Bundles
    • Izzi Buys CNX, Eyes Valence Port To System Z
    • IBM i Shops “Attacking” Security Concerns, Study Shows
    • IBM i PTF Guide, Volume 27, Number 26
    • 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

    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