MSC Results Slip in Run-Up to Takeover

The simulation software specialist blames the economy for a downbeat Q2 and expects closure of an acquisition deal next month, although hurdles remain.


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Posted on Aug 06, 2009

In the shadow of its planned takeover by a private equity firm, simulation and design software vendor MSC.Software Corp. this week reported that it lost $1.6 million and experienced declining revenue during the three-month period ended June 30.

The company, which early last month announced plans to be acquired by Symphony Technology Group for $360 million, reported second-quarter revenue of $51.7 million, a drop of 20% from $64.4 million in the same period a year ago.

MSC’s revenue from software licenses fell 29% to $14.9 million, while its revenue from maintenance was down 11% to $32 million.

The second-quarter net loss of $1.6 million reversed earnings of $1 million in the same period a year ago.

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