MKS Inc.

MKS Inc.

May 03, 2007 17:00 ET

MKS Announces Preliminary Fourth Quarter Results for Fiscal 2007

WATERLOO, ONTARIO--(CCNMatthews - May 3, 2007) - MKS Inc. ('MKS' or the 'Company') (TSX:MKX), today announced preliminary results for the fourth quarter of fiscal 2007. MKS expects to report fourth quarter fiscal 2007 revenue in the range of $12.5 to $12.7 million, compared to revenue of $12.6 million reported in the fourth quarter of fiscal 2006 and revenue of $11.6 million reported in the third quarter of fiscal 2007. MKS expects to report operating costs in the range of $13.0 to $13.3 million for the fourth quarter of fiscal 2007. All amounts are reported in US dollars under United States Generally Accepted Accounting Principles.

MKS expects to report application lifecycle management (ALM) licensing revenue for the fourth quarter of fiscal 2007 in the range of $3.9 to $4.0 million, up approximately 23 percent from $3.2 million reported for the third quarter of 2007. Other components of ALM revenue were essentially stable. As a result, MKS expects to report overall ALM revenue in the range of $10.2 to $10.4 million.

"Our ALM license revenue has begun to rebound from the sluggish middle quarters of fiscal 2007 contributing to the stronger fourth quarter revenue, which we expect will result in the second best overall MKS revenue number in our history," said Philip Deck, chairman and CEO of MKS Inc. "We believe that the improving trend is firmly in place as we work with customers to implement much more ambitious ALM capability in increasingly large organizations."

MKS's closing cash balance at April 30, 2007 was $15.3 million.

Conference Call Details

The Company will hold a conference call at 5:00 p.m. EST on June 6, 2007 to discuss its fourth quarter performance.

Interested parties may access the call by dialing 877-871-9526 or 416-620-2400. A digital recording of the call will be available for one (1) week from June 6, 2007 to June 13, 2007 and may be accessed by dialing 800-558-5253 or 416-626-4100 and by entering reservation #21337073.

About MKS

MKS is the premier provider of application lifecycle management solutions for the global 1000. MKS's flagship ALM solution, MKS Integrity, is the most highly integrated ALM platform in the industry today, spanning all aspects of the software development lifecycle and supporting critical business transformations including SOA, application rationalization and outsourcing. MKS Integrity's single architecture drives high levels of user productivity, facilitates rapid deployment and process standardization while delivering a complete view of application development activity through real time metrics, trends and reporting. MKS Integrity also provides essential support for IT operations through software deployment and issue management. Founded in 1984, MKS serves more than 10,000 customers in countries across the world. Whether through deployment of MKS's solution strategically on an enterprise scale, or by leveraging individual components to solve project-level challenges, our customers can use MKS's software to enable higher levels of process maturity, better manage global development activity and safeguard their most critical business applications and software assets. Under its widely known MKS Toolkit brand, MKS also provides UNIX-Windows co-existence and system administration that significantly cut development and administrative costs and reduce time to market, while enabling enhanced performance. More information about MKS can be found at or by calling 1-800-265-2797 (US & Canada), +49-711-351775-0 (Germany), +44-1483-733900 (United Kingdom), +65-6732-8768 (Singapore), +61 3 9674 0454 (Australia) and 1-519-884-2251 (Rest of World).

Copyright (c) 2007 MKS Inc. MKS and MKS Toolkit are trademarks or registered trademarks of MKS Inc. All other trademarks mentioned in this release are the property of their respective owners.

This news release may contain forward-looking statements that involve risks and uncertainties, which could cause actual results to differ materially from the statements made. When used in this document, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" and similar expressions are intended to identify forward-looking statements. Such statements reflect the Company's current views with respect to future events and are subject to such risks and uncertainties. Although the Company believes the expectations represented by such forward looking statements are reasonable, there can be no assurance that those expectations will prove to be correct. Many factors could cause the Company's actual results to differ materially from the statements made including those factors detailed from time to time in filings made by the Company with Canadian securities regulatory authorities including fluctuations in quarterly results, the Company's focus on the ALM market and the associated complex and lengthy sales cycle, exchange rate fluctuations, management of growth, dependence on and retention of management and key employees, importance of maintenance contracts, economic uncertainty, international sales, dependence on a limited number of products, acquisitions, distribution channels in the interoperability market, potential for undetected errors in software, protection of intellectual property, reliance on third party relationships, limited financial resources, litigation, concentration of ownership, intense competition, rapid technological change and development of the software application management market. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated or expected. The Company does not intend and does not assume any obligation to update these forward-looking statements.

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