MSC Software reported results tonight and has announced that it will not hold the earnings call previously scheduled for tomorrow afternoon because of its expected acquisition by Symphony Technology Group.
For the second quarter, total revenue was $51.7 million, down 20% from $64.4 million reported for the second quarter in 2008. Software revenue declined 29% to $14.9 million, maintenance revenue of $32.0 million was down 11% from a year ago and services shrank 35% to $4.8 million.
In a prepared statement, interim CEO is quoted as saying, "Our top line performance continued to be impacted by the global economic downturn and its effect on our key customers particularly in the automotive and heavy manufacturing sectors.”
Not surprising, revenue was down across all geos: North America was down 31%, EMEA down 15%, Asia down 14%.
Unfortunately, MSC doesn’t seem to be seeing the ‘bottoming out’ described by PTC and Dassault Systemes last week. On a sequential basis, total revenue was down 3.5%, led by 16% drop in software licenses. Maintenance actually rebounded a bit, up 3% from the first to second quarter, as was revenue from Europe (up 14% sequentially).
Let’s hope we get some color for this picture: Why is MSC not seeing a ‘bottom’? Was the slight sequential increase in maintenance due to one deal or is this a sustainable pattern? Software license revenue in Q2 was 2/3 of the year-ago level; what is MSC doing to reverse this trend? At worst, we’ll learn more in the Q2 report MSC will file with the SEC.