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SANTA ANA, CA -- MSC.Software Corp. (NYSE:MNS), the leading global provider of simulation software, services and systems, today announced financial results for the third quarter ended Sept. 30, 2001. For the third quarter ended Sept. 30, 2001, MSC.Software reported revenue of $62.7 million, an increase of 46% over revenue of $43.0 million for the third quarter last year. Net income, excluding goodwill amortization and restructuring charges, was $2.3 million or $0.09 per diluted share compared with $4.1 million or $0.26 per diluted share in the third quarter last year. Reported net income, excluding restructuring charges, was $1.0 million or $0.04 per diluted share. During the third quarter, the Company recorded total restructuring charges of $2.5 million. Of this amount, approximately $0.6 million was included in the cost of acquisition of Advanced Enterprise Solutions ("AES") and $1.9 million was recorded as a charge to income during the quarter. These restructuring charges consist of approximately $1.8 million related to the consolidation of office facilities and $0.7 million related to asset write-downs associated with the acquisition of AES. For the nine months ended Sept. 30, 2001, MSC.Software reported revenue of $156.0 million, an increase of 24% over revenue of $125.8 million for the same period last year. Net income, excluding goodwill amortization and restructuring charges, was $9.2 million or $0.48 per diluted share compared with $9.8 million or $0.64 per diluted share in the nine months last year. Reported net income, excluding restructuring charges, was $5.2 million or $0.27 per diluted share for the nine months ended Sept. 30, 2001. "The current world economic climate and the uncertain business environment in North America created by the terrorist attacks contributed to a disappointing quarter," said Frank Perna, CEO and chairman of MSC.Software. "In spite of these factors, MSC.Software's growth strategy and business momentum remains strong and intact in all world regions, as our customers continue to derive significant cost savings and return on investment value from the use of our software, systems and services. "All evidence points to the fact that customers are postponing, not canceling, purchasing decisions. Our pipeline of new opportunities is stronger now than at any time in MSC.Software's history and our operations in Europe and Asia-Pacific continue to make significant headways into both our core and emerging markets. "The value of MSC.Software's business is directly related to the ways in which we can extend the value of simulation and design data across the enterprise. To that end, MSC.Software recently purchased software from SGI called Virtual Insight. This unique software and qualified team fit well with our existing simulation data management capabilities and initiatives. Our expanded team will help manufacturers realize the added value of having a system that anyone across the enterprise can use to access simulation data. "We are pleased to announce that our relationship with both IBM and Dassault Systemes has now been extended to both Asia-Pacific and Europe, and we are now IBM's business partner in eleven new countries. MSC.Software's status as an accredited business partner of IBM and Dassault Systemes gives us the ability to provide Product Lifecycle Management (PLM) software, services and systems needed by manufacturers of any size and in any industry, and now in all our world regions. This IBM business partner expansion program is ahead of schedule. "High performance MSC.Linux related business from traditional and new markets in Q3 resulted in $1.4 million of revenue, pushing the year to date number just over $2.4 million. "The AES integration process is going according to plan and has already uncovered a significant number of opportunities where our software and systems products will support our growth strategy. This fact is supported by an incremental pipeline growth of $100 million." Outlook Based on current visibility, the Company expects to be able to achieve 45-50 percent revenue growth in the fourth quarter, and EPS of between $0.20 and $0.25. Although less clear, the Company also currently expects to be able to achieve 35-40 percent annual revenue growth in FY 2002. For further information visit www.mscsoftware.com