CLOUD

SANTA ANA, CA -- MSC.Software Corp. (NYSE:MNS), the leading global provider of simulation software, services and systems, helping companies develop better products faster as part of their Product Lifecycle Management (PLM) implementation, today announced financial results for the fourth quarter and fiscal year ended December 31, 2001. Fourth quarter highlights include: -- Revenues of $80.1 million, an increase of 53 percent over the fourth quarter last year; -- Net income of $7.6 million, excluding goodwill amortization, an increase of 11 percent over the fourth quarter last year; -- Reported net income of $6.3 million or $0.21 per diluted share. Fiscal year highlights: -- FY 2001 revenues grew to $236.1 million, up 33 percent over last year; -- FY 2001 net income, excluding goodwill amortization and restructuring costs, of $16.9 million or $0.77 per diluted share; -- Key balance sheet items include $89.5 million in cash and investments, $35 million in debt and $277 million in shareholders' equity; -- Outstanding shares grew to 29 million as of December 31, 2001, from 14 million as of December 31, 2000. "Our simulation software, service and systems products continue to provide quantifiable and meaningful return on investment for our customers, allowing us to execute on our strategy and see very positive shareholder returns and revenue and earnings growth," said Frank Perna, Jr., chairman and CEO, MSC.Software Corp. "Current economic conditions and competitive pressures are continuing to drive demand for digital technologies that help companies save time and reduce costs. Our customers are finding significant value in our integrated software, services and systems offerings, which prove integral to driving PLM efficiencies within their organizations. "The core MSC.Software business of software sales was very strong in 2001. Our services business continues to show strong growth prospects in all world regions. And our enterprise systems business is continuing to find success selling integrated solutions both into our core customer base as well as into new markets. Sales of MSC.Software's products and services via our web-based engineering-e.com web store continued to grow in the fourth quarter, indicating continued market acceptance of our e-commerce strategy." For the fourth quarter ended December 31, 2001, MSC.Software reported revenue of $80.1 million, an increase of 53 percent over reported revenue of $52.2 million for the fourth quarter last year. Net income, excluding goodwill amortization, for the fourth quarter was $7.6 million compared with $6.9 million in the fourth quarter last year, an increase of 11 percent. Earnings per share, excluding goodwill amortization was $0.25 per diluted share compared with $0.42 per diluted share in the fourth quarter last year. Reported net income, including amortization of goodwill, was $6.3 million or $0.21 per diluted share, compared with $5.5 million, or $0.34 per diluted share in the fourth quarter last year. The decline in diluted earnings per share is primarily attributable to the growth in the diluted weighted-average shares outstanding from 18.4 million in the fourth quarter 2000 to 30.3 million in the fourth quarter 2001. For the fiscal year ended December 31, 2001, MSC.Software reported revenue of $236.1 million compared to $178.0 million of reported revenue in fiscal 2000, an increase of 33 percent. Net income, excluding goodwill amortization and restructuring costs, for the fiscal year 2001 was $16.9 million or $0.77 per diluted share, compared with $16.7 million or $1.07 per diluted share for the fiscal year ended 2000. Reported net income, including goodwill amortization and restructuring costs, was $10.3 million or $0.47 per diluted share in fiscal 2001, compared with $11.1 million or $0.76 per diluted share in fiscal 2000. The diluted weighted-average shares outstanding have increased from 14.6 million in FY 2000 to 21.9 million in FY 2001.