With the first anniversary of its $7.2 million cash purchase of American MSI Corp. fast approaching, Moldflow Corp. said integration of the firms is progressing well, as the Wayland, Mass.-based plastics software vendor prepares to launch a hardware production facility in Europe.
``We're going to start manufacturing in Ireland'' by mid-2005, said Tim Triplett, executive vice president and general manager of Moldflow's recently created Manufacturing Solutions group. Production will begin slowly in Cork, Ireland, with just five to 10 employees at first, Triplett said at K 2004, held Oct. 20-27 in Dusseldorf.
Acquiring hardware maker MSI allowed Moldflow to operate all its products off a single platform, and the firm is busy doing that integration now, Triplett said. The Irish facility will make the hot-runner process controls for which American MSI was best known, as well as components for some of Moldflow's Shotscope process-monitoring and Celltrack production-monitoring systems, among other products, he said.
Triplett, former chairman and chief executive officer of Moorpark, Calif.-based American MSI, said Moldflow has longer-term aspirations to manufacture in Asia, but nothing is imminent. Currently, he said, the firm splits its sales fairly evenly between the Americas, Asia and the Europe/Mideast/Africa region, with Japan being one of its strongest markets. Moldflow began in Australia, but shifted its headquarters to the Boston area in 1996.
Meanwhile, after incorporating MSI's results, Moldflow reported that annual sales for its fiscal year ended June 30 rose by a third, to $48.7 million from $36.6 million the previous year. Net profit hit $2.63 million, up sharply from a $118,000 loss a year earlier. The firm, which employs more than 300 worldwide, attributed the sales jump to strong growth in its Design Analysis Solutions unit, coupled with positive exchange rates from the strengthening euro and Japanese yen, and from sales generated by the acquired American MSI operations.
The strong trend continued in its most recent quarter, with profit of $1.75 million on sales of nearly $14 million for the three months ended Sept. 25.
Meantime, Triplett emphasized recent product introductions such as the Version 5.0 upgrade of Moldflow Plastics Insight, a design analysis tool, the new Celltrack Version 2.0 for real-time production management and the latest version of its Shotscope software.
Separately, Chairman Marc Dulude announced his Nov. 18 resignation. He was formerly Moldflow president and CEO.