MSC.Software Reports Total second quarter revenue of $51.7 million

Cash totaled $148.2 million and working capital was $119.4 million at June 30, 2009.

SANTA ANA, Calif - MSC.Software Corporation (NASDAQ: MSCS), a leading global provider of simulation software and services, today reported results for the second quarter ended June 30, 2009. Key financial results include the following:

Second quarter:

* Total second quarter revenue of $51.7 million, with software revenue of $14.9 million, maintenance revenue of $32.0 million, and services revenue of $4.8 million;
* Second quarter operating loss of $2.6 million.

Six Months:

* Total revenue for the six months of $105.3 million, with software revenue of $32.3 million, maintenance revenue of $63.0 million, and services revenue of $10.0 million;
* Operating loss for the six months of $1.1 million;
* Deferred revenue totaled $77.3 million, cash totaled $148.2 million and working capital was $119.4 million at June 30, 2009.

On July 7, 2009, MSC.Software announced that it has entered into a definitive agreement with affiliates of Symphony Technology Group (STG) under which a company controlled by STG will acquire all of MSC's outstanding shares in a one-step cash merger transaction valued at approximately $360 million. Under the terms of the agreement, MSC's stockholders will receive $7.63 in cash for each share of MSC common stock. The transaction is subject to customary closing conditions, including approval of MSC's stockholders and regulatory approvals. This transaction is proceeding and is expected to close near the end of the third quarter of 2009. As a result of the recent announcement of a definitive merger agreement with Symphony, MSC will not hold its 2009 second quarter conference call previously scheduled for Wednesday, August 5, 2009, at 1:30 p.m. PT.

REVENUE
Total revenue for the second quarter ended June 30, 2009 was $51.7 million compared to $64.4 million for the second quarter in 2008. Software revenue for the second quarter totaled $14.9 million compared to $21.1 million for the second quarter in 2008. For the second quarter ended June 30, 2009, maintenance revenue totaled $32.0 million and services revenue totaled $4.8 million, compared to $35.9 million of maintenance revenue and $7.4 million of services revenue for the second quarter in 2008. Changes in foreign currency negatively impacted total revenue by $2.0 million in the second quarter.

For the six months ended June 30, 2009 total revenue was $105.3 million compared to $125.7 million for the six month period in 2008. For the six month period software revenue totaled $32.3 million compared to $43.0 million for the six month period in 2008. For the six month period ended June 30, 2009, maintenance revenue totaled $63.0 million and services revenue totaled $10.0 million, compared to $69.0 million of maintenance revenue and $13.7 million of services revenue for the six month period in 2008. Changes in foreign currency negatively impacted total revenue by $2.6 million in the six month period.

"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. I am pleased however that the second quarter overall results were in line with our guidance," said Ashfaq Munshi, interim CEO and President of MSC Software.

"The cost containment measures implemented over the past four quarters have better aligned our cost structure with our revenue performance and these measures resulted in an overall reduction in operating expenses of more than $20 million when comparing the first six months of 2009 to the same period last year," said Mr. Munshi. "Our expense structure was impacted during Q2 by costs associated with the Symphony transaction of approximately $800,000. Without these costs our expense structure is in line with our guidance as well."

REVENUE BY GEOGRAPHY
Total revenue in the Americas for the second quarter and the six months ended June 30, 2009 was $13.9 million and $30.7, respectively, compared to $20.1 million and $38.7 million for the same periods last year. Total revenue in EMEA for the second quarter and six months ended June 30, 2009 was $21.0 million and $39.3 million, respectively, compared to $24.8 million and $48.3 million for the same periods last year. Changes in the EURO decreased EMEA revenue by $3.1 million and $5.8 million in the second quarter and six month periods of 2009. In the Asia region, revenue for the second quarter and six months ended June 30, 2009 totaled $16.8 million and $35.3 million, respectively, compared to $19.5 million and $38.7 million for the same periods last year. Changes in the Japanese Yen increased Asia revenue by $1.1 million and $3.2 million in the second quarter and six month periods of 2009.

RESULTS OF OPERATIONS AND EPS
Total operating expenses for the second quarter and six months ended June 30, 2009 were $44.1 million and $85.7 million, respectively, compared to $52.5 million and $106.2 million for the same periods last year. Operating loss for the second quarter and six months ended June 30, 2009 was $2.6 million and $1.1 million, respectively, compared to an operating loss of $0.3 million and $4.8 million for the same periods last year. For the second quarter and six months ended June 30, 2009, net loss totaled $1.6 million and $1.5 million, respectively, or $0.04 per share and $0.03 per share, respectively. This compares to a net income of $1.0 million or $0.02 per share in the second quarter last year and a net loss of $1.2 million or $0.03 per share in the six month period last year.

BALANCE SHEET
Cash and investments at June 30, 2009 totaled $148.2 and deferred revenue stood at $77.3 million and working capital increased to $119.4 million.