(STRUCTURAL-RESEARCH)(SDRC) SDRC Anticipates Revenues and Earnings to be Below
Expectations for the June Quarter
(Business Wire; 07/06/98)
CINCINNATI--(BUSINESS WIRE)--July 6, 1998--Structural Dynamics Research
Corporation (NASDAQ:SDRC) today announced that it anticipates that second
quarter revenues and earnings will be less than analysts' expectations.
SDRC estimates total revenue for the quarter to be $95 million, about 8%
less than analysts' expectations, which range from $101-$106 million.
Earnings per average common share will be approximately $0.14 for the June
quarter. A complete earnings report is scheduled to be released on July 20.
European revenue continues to lead SDRC's growth and is expected to be up
about 35% compared to the same quarter last year. While Asian revenue for
the quarter is estimated to be up 10%, it will be significantly below
company expectations as a result of continued weakness in the Asian
economy. North American revenue is expected to be about 10% less than last
year's second quarter, due primarily to the timing of a significant order
for Metaphase(R) software, now expected in the September quarter. License
revenue from SDRC's market leading Metaphase Product Data Management
software grew about 30% compared to last year's June quarter. SDRC
announced Metaphase contracts in excess of $1 million each in the quarter
from ACER Inc., ABB Lummus Global BV, and ARVIN Industries, Inc.
William J. Weyand, SDRC Chairman, President and Chief Executive Officer
stated: "We regret that our financial results for the quarter fell far
short of our own expectations. Success with major Japanese accounts
overshadowed more general industry softness in the Asian marketplace. The
rebuilding of our North American sales organization continues as a work in
process, and we now anticipate seeing the results of these efforts by this
year's fourth quarter. Based on these recent developments, however, we are
more cautious in our business outlook for the remainder of 1998. As the
market leader in Product Data Management software and an emerging leader in
the automotive and aerospace design automation markets, SDRC's long term
business prospects remain excellent."
The company will hold a conference call today at 9:00am EST. You may access
the "live" call by dialing 312/470-0054 and asking for "SDRC". A replay of
the call will be available for 24 hours. To access the replay, dial
Except for historical information contained herein, the matters discussed
in this news release are forward-looking statements that involve risks and
uncertainties which could cause actual results to differ materially from
those projected, including the timely availability and acceptance of new
products, global economic uncertainties, the impact of competitive products
and pricing, the management of growth, and other risks detailed from time
to time in the Company's most recent reports on Form 10-K and 10-Q.
SDRC is a leading international supplier of integrated Mechanical Design
Automation and testing software, Product Data Management software, and
related services. The Company's products and services help manufacturers
optimize product concepts early in the design process, enabling them to
significantly improve product quality while reducing product development
time and cost. SDRC employs more than 2,200 people and has 64 offices in 16
countries throughout North America, Europe, and the Asia/Pacific region.
SDRC's market-leading PDM solution, Metaphase, is developed, marketed and
supported by the Metaphase Technology Division of SDRC.
Note to Editors: SDRC and Metaphase are registered trademarks. All other
trademarks or registered trademarks belong to their respective holders.
CONTACT: Structural Dynamics Research Corporation
Jeffrey J. Vorholt, 513/576-2138
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