MRO targets Oil & Gas sector with Maximo

MRO Software, a provider of strategic asset management solutions, is ramping up its Middle East operations. The vendor will concentrate on sales of its Maximo solution to the Oil & Gas sector.

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By  Patrick Phelvin Published  December 1, 2003

MRO Software, a provider of strategic asset management solutions, is ramping up its Middle East operations. The vendor will concentrate on sales of its Maximo solution, particularly to the Oil & Gas sector.

“The start of a new fiscal year is an appropriate time for us to review our operations in the Middle East,” says Oliver Schulz, Sales and Marketing Manager, eSolutions, which is trading as MRO Software Middle East. “The region is on track to proceed with its development goals, including major IT projects. MRO has identified the Middle East as a high potential area, particularly for our Maximo solution, which has strong applications in core areas such as oil and gas and other maintenance intensive verticals. All this makes us extremely upbeat about our operations in the Middle East.”

During the fiscal year, MRO earned US$94.6 million in cash and marketable securities, with no long-term debt, against US$67.8 million in cash and marketable securities of the previous financial year, representing a 40% increase year-over-year. To date, Maximo is still the only asset management application with Sun Microsystem’s Java Verification Certification making it 100% compatible with all Java2 platforms and J2EE technology-based products.

“Businesses in the Middle East are increasingly adopting global standards to achieve success in a world that has become highly competitive. MRO’s industry leading edge solutions have been helping businesses achieve a quicker return on investment. We are pleased to say that companies in the Middle East have shown tremendous interest in our products,” says Schulz. “Our new strategy for the Middle East is to target new businesses and industries by demonstrating our global success in helping enterprises achieve higher productivity and profitability.”

MRO’s financial results showed revenues of US$176.9 million for the fiscal year ended September 30, 2003, compared with US$171.9 million for the prior year, an increase of 3%. Software revenues were US$49.9 million compared with US$49.0 million for the prior year, an increase of 2%. Support and services revenues were US$127.0 million compared with US$122.9 million for the prior year, an increase of 3%.

“During the recently ended fiscal year we have improved every important metric with increases in revenue, software sales, earnings and cash,” said Chip Drapeau, president and CEO, MRO Software. “Last year’s results were driven by the increased adoption of Maximo’s Web-architecture, increased sales of our IT Asset Management solution and a continuation of our high customer retention rates delivered by our support and services organizations.”

Peter Rice, Executive Vice President and CFO, MRO Software, said: “For the fiscal year 2004, we expect total revenues to grow by approximately 5% above fiscal 2003 results. We believe that our operating margins will continue to increase and that will result in improved earnings that are expected to be in the range of US$0.30-US$0.40 per share on a GAAP basis and US$0.40-US$0.50 per share on a pro forma basis.”

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