• The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
Menu
  • The Four Hundred
  • Subscribe
  • Media Kit
  • Contributors
  • About Us
  • Contact
  • MKS Sees Software Licensing Downturn in Q4, Gears Up for Rebound

    June 11, 2007 Timothy Prickett Morgan

    Midrange application lifecycle management software provider MKS closed out is fiscal 2007 on April 30, and while the company had what it called sluggish license sales for its biggest accounts in the fiscal year, MKS is expecting that customers will embrace its newest products and buy services as they roll out application lifecycle management tools in the coming fiscal year, getting it back on track again.

    While MKS is based in the Canadian city of Waterloo, Ontario, and is listed on the Toronto Stock Exchange, it reports its financial results in U.S. dollars. For the fourth quarter, total sales at MKS came to $12.6 million, flat from the year-ago quarter. ALM product revenues in the quarter were $10.3 million, up 3 percent from a year ago. MKS posted a net loss of $500,000 during the quarter, compared to $6 million profit a year ago, but most of that profit came from an income tax recovery. For the fiscal 2007 year, MKS had sales of $48.3 million, the same as the prior year, but booked a loss of $2.8 million, or 6 cents a share, compared to a $9.1 million profit in fiscal 2006, which worked out to 20 cents per share.

    “While we experienced sluggish license orders from our largest accounts this year, we did realize increased services revenue with the same, laying the groundwork for increasingly ambitious implementations of MKS software,” explained Michael Harris, president and chief operating officer at MKS, in a statement accompanying the financials. “We are confident that the pace of licensing will rebound and increase as these customers roll out additional capabilities of MKS’ unified lifecycle management platform.”

    MKS exited the fiscal 2007 year with $15.3 million in cash and equivalents, and boosted its maintenance and services businesses significantly in the year. While software license sales in the year fell by 18 percent, maintenance fees rose by 18 percent to $22.1 million and services sales were up by 23 percent to just under $6 million. Those increases perfectly balanced the declines in license revenue, and if you are going to manage a transition from SCM to ALM tools, there surely are less elegant ways that it could have been done. MKS has had to shoulder increased sales and marketing costs as it makes this transition, and its employee headcount has risen from 278 a year ago to 316 at the end of April.

    MKS said that it expected ALM license revenues would improve in fiscal 2008, rising above 2007’s levels, and that it expected maintenance services revenues would also grow, offsetting expected and modest declines in the sales of its interoperability products. The company says that it will be managing costs and that it will be profitable for all of fiscal 2008.

    RELATED STORIES

    Product Transitions Affect Financials at MKS During Fiscal Q2

    MKS Signs Japanese Partner

    MKS Updates ALM Tools for iSeries, Distributed Systems

    MKS Refreshes Change Management Suite, Adds ‘Dashboard’ View



                         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 16, Number 23 -- June 11, 2007

    Sponsored by
    New Generation Software

    Free NGS-IQ Webinar: A Better Way to Connect IBM i Data and Microsoft 365 Users.

    Business users rely on Excel, SharePoint, Access, and other Microsoft tools to view, analyze, and share data. But what if your data is too sensitive and complex to simply open up to non-technical users via ODBC and Microsoft 365’s query functions?

    Attend our webinar on June 22, 2022, and see how you can make the people you support smile even as you centrally manage and secure IBM i data access.

    www.ngsi.com– 800-824-1220

    Share this:

    • Reddit
    • Facebook
    • LinkedIn
    • Twitter
    • Email

    Admin Alert: Weird i5 User Profile Sign-On Secrets ASNA Preps AVR for Visual Studio 2008

    Leave a Reply Cancel reply

TFH Volume: 16 Issue: 23

This Issue Sponsored By

    Table of Contents

    • Agilysys Buys Hospitality POS Partner InfoGenesis for $90 Million
    • MKS Sees Software Licensing Downturn in Q4, Gears Up for Rebound
    • The i5 515 and 525 Versus the Windows Competition
    • Open Source Software Sales Pegged at $5.8 Billion by 2011
    • CIOs Get Ready to Hire in the Summer
    • Mainsoft Updates .NET-Java Tool with 2.0 Release
    • One More Time: There Is No Gender Pay Gap
    • Spam Lives On Following Arrest of ‘Spam King’
    • As I See It: The Ne’er-Do-Well’s Guide to Enlightenment
    • IBM Buys Watchfire to Bolster Security and Compliance Testing

    Content archive

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

    Recent Posts

    • POWERUp Brings IBM i Base Back Together in the Big Easy
    • New Nav for i Brings New Stuff to You
    • Why Infor’s IDF Is Important for Customer Innovation
    • Four Hundred Monitor, May 25
    • IBM i PTF Guide, Volume 24, Number 21
    • How Committed Is Big Blue To The IBM Cloud?
    • Immutable Copies Are Only As Good As Your Validation
    • Guru: IBM i *USRPRF Security
    • ERP Transitions Loom for SAP on IBM i Customers
    • Inflation Pumps Up Global IT Spending, Supply Chain Deflates It

    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 © 2022 IT Jungle

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.