Intergraph Reports Third Quarter 2006 Financial Results

HUNTSVILLE, Ala.—(BUSINESS WIRE)—October 25, 2006— Intergraph Corporation (NASDAQ: INGR), a leading global provider of spatial information management (SIM) software, today announced financial results for its third quarter ended September 30, 2006. Revenue for the quarter was $156.9 million, an increase of 4.7% from the $149.9 million reported in the third quarter of 2005. For the nine months ended September 30, 2006, revenue was $448.6 million, an increase of 3.9% from the $431.7 million reported in the same period of 2005.

Operating income for the quarter was $19.9 million, or 12.7% of revenue, compared to $6.4 million, or 4.3% of revenue, reported in the third quarter of 2005. The Company reported restructuring charges of $5.3 million in the third quarter of 2005, resulting in operating income before restructuring (a non-GAAP measure) of $11.7 million, or 7.8% of revenue. For the nine months ended September 30, 2006, operating income was $38.1 million, or 8.5% of revenue, compared to $22.1 million, or 5.1% of revenue, reported in the same period of 2005. The Company reported restructuring charges of $10.4 million and $9.0 million in the nine months ended September 30, 2006 and 2005, respectively. For the nine months ended September 30, 2006, operating income before restructuring (a non-GAAP measure) was $48.5 million, or 10.8% of revenue, compared to $31.1 million, or 7.2% of revenue, reported in the same period of 2005.

"We are pleased with our third quarter and year-to-date 2006 financial results," said R. Halsey Wise, Intergraph President & CEO. "Our recent operating performance underscores the progress of Intergraph's business transformation and value creation efforts over the past several years. I attribute our operational improvements to the people of Intergraph, whose support of our mission and hard work each and every day made these results possible."

Net income for the quarter was $20.6 million, or $0.69 per diluted share, compared to $13.8 million, or $0.44 per diluted share, reported in the third quarter of 2005. Net income includes approximately ($0.2) million and $5.6 million of after-tax intellectual property income (expense), net of all fees and expenses, in the third quarter of 2006 and 2005, respectively. During the third quarter of 2006, Intergraph reported income tax benefits that it now expects to realize in the amount of $8.4 million, or $0.28 per diluted share. For the nine months ended September 30, 2006, net income was $51.4 million, or $1.68 per diluted share, compared to $103.3 million, or $3.24 per diluted share, for the same period of 2005. Net income includes approximately $15.0 million and $86.4 million of after-tax intellectual property income, net of all fees and expenses, in the first nine months of 2006 and 2005, respectively.
(dollars in millions)                                   Nine Months
                                                          Ended
                                 Quarterly Results     September 30,
                              ----------------------- ---------------
                              Q3 2006 Q2 2006 Q3 2005   2006    2005
                              ------- ------- ------- ------- -------

Revenue                       $156.9  $152.8  $149.9  $448.6  $431.7
Year-over-year growth            4.7%    5.1%   11.3%    3.9%    6.6%

Operating income - before
restructuring (b)              $19.9   $17.7   $11.7   $48.5   $31.1
Operating margin - before
restructuring (b)               12.7%   11.6%    7.8%   10.8%    7.2%

Restructuring charges              -    $5.7    $5.3   $10.4    $9.0

Operating income               $19.9   $12.0    $6.4   $38.1   $22.1
Operating margin                12.7%    7.8%    4.3%    8.5%    5.1%

Net income                     $20.6   $16.8   $13.8   $51.4  $103.3
Earnings per share (diluted)   $0.69   $0.56   $0.44   $1.68   $3.24

-----------------------------

(dollars in millions)                              Financial
                                                 Guidance (a)
                                        ------------------------------
                                            Q4 2006        CY 2006
                                        --------------- --------------

Revenue                                    $156 - $160    $604 - $608
Year-over-year growth

Operating income - before
restructuring (b)                        $19.0 - $21.0  $67.5 - $69.5
Operating margin - before
restructuring (b)

Restructuring charges                          -                $10.4

Operating income                         $19.0 - $21.0  $57.1 - $59.1
Operating margin

Net income
Earnings per share (diluted)

---------------------------------------

(a)Forward-looking statements. See "Cautionary Note Regarding Forward-
    Looking Statements."
(b)See "Non-GAAP Financial Measures."


Fluctuations in the value of the U.S. dollar in international markets can have a significant impact on the Company's financial results. The Company estimates for the quarter that the weakening of the U.S. dollar in its international markets, primarily in Europe, positively impacted revenue by 2.0%, increased operating expenses by 1.6%, and increased its quarterly net income by approximately $0.02 per diluted share in comparison to the third quarter of 2005. The Company estimates that the weakening of the U.S. dollar in the third quarter of 2006 as compared with the second quarter of 2006 positively impacted revenue by 0.5%, increased operating expenses by 0.4%, and increased its quarterly net income by approximately $0.01 per diluted share. The Company estimates for the nine months ended September 30, 2006 that the strengthening of the U.S. dollar negatively impacted revenue by 0.3%, reduced operating expenses by 0.5%, and increased its net income by approximately $0.01 per diluted share in comparison to the same period of 2005.

Recent Business Highlights

1 | 2 | 3 | 4 | 5  Next Page »



Review Article Be the first to review this article
Airbus

Featured Video
Jobs
Business Partner Manager for Cityworks - Azteca Systems, LLC at Sandy, UT
GIS Analyst II for Air Worldwide at Boston, MA
Mechanical Engineer for IDEX Corporation at West Jordan,, UT
Senior Structural Engineer for Design Everest at San Francisco, CA
Upcoming Events
SPTechCon 2016, Dec 5 - 8, 2016, San Francisco, CA at San Francisco CA - Dec 5 - 8, 2016
RoboUniverse San Diego at San Diego CA - Dec 14 - 15, 2016
DGI 2017 at QEII Centre London United Kingdom - Jan 23 - 25, 2017
Trimble
Teledyne Optech
University of Denver GIS Masters Degree Online
CADalog.com - Countless CAD add-ons, plug-ins and more.



Internet Business Systems © 2016 Internet Business Systems, Inc.
595 Millich Dr., Suite 216, Campbell, CA 95008
+1 (408)-337-6870 — Contact Us, or visit our other sites:
AECCafe - Architectural Design and Engineering EDACafe - Electronic Design Automation TechJobsCafe - Technical Jobs and Resumes  MCADCafe - Mechanical Design and Engineering ShareCG - Share Computer Graphic (CG) Animation, 3D Art and 3D Models
  Privacy Policy