Press Release
MSC.Software Announces Streamlining of Global Operations
SANTA ANA, Calif. - January 19, 2007 - MSC.Software Corporation (NASDAQ: MSCS), the leading global provider of enterprise simulation solutions including simulation software and services, today announced that it will streamline its global operations by reducing its current workforce by approximately 85 people. The Company is also taking additional steps to further reduce operating expenses through facility consolidations and other overhead cost reductions. Severance costs and other one-time charges associated with these reductions and consolidations will total between $6 and $8 million, most of which will be recognized in the first quarter of 2007.
"We believe that streamlining our global operations is the next step in positioning MSC for sustained profitable growth aligned with our new enterprise sales strategy," said Bill Weyand, Chairman and CEO of MSC Software. "We have implemented this cost improvement program in order to more efficiently align our operating expense structure with our evolving business model as we move to larger value enterprise transactions. This realignment has effectively flattened the sales organization and eliminated layers of management and overhead within our corporate marketing, product development and global sales organizations. Our ability to execute our multi-discipline and enterprise strategy remains intact, given our off-shore R&D investment and continued growth of resources in India."
"Along with our new global business partners, we feel that MSC is well positioned to efficiently and profitably execute our 2007 plan," continued Mr. Weyand.
About MSC.Software Corporation
MSC.Software Corporation (NASDAQ: MSCS) is a leading global provider of enterprise simulation solutions, including simulation software and services,that help companies make money, save time and reduce costs associated with designing and testing manufactured products. MSC.Software works with thousands of companies in hundreds of industries to develop better products faster by utilizing information technology, software and services. MSC.Software employs more than 1200 people in 23 countries. For additional information about MSC.Software's products and services, please visit www.mscsoftware.com.
Safe Harbor Language
This press release contains forward-looking statements that involve risks and uncertainties. The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, including, without limitation, statements regarding our expectations, beliefs, intentions or strategies regarding the future. All forward-looking statements included in this press release are based on information available to us on the date hereof. These statements involve known and unknown risks, uncertainties and other factors, which may cause our actual results to differ materially from those implied by the forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "could," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "targets," "goals," "projects," "continue," or variations of such words, similar expressions, or the negative of these terms or other comparable terminology. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. Neither we nor any other person can assume responsibility for the accuracy and completeness of forward-looking statements. Important factors that may cause actual results to differ from expectations include, but are not limited to, those discussed in "Risk Factors" on our 2005 Form 10-K filed with the Securities and Exchange Commission. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.
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| Contact: Joanne Keates Vice President, Investor Relations MSC.Software 714.444.8551 joanne.keates@mscsoftware.com |
