August 23, 2007
SEC questions Moldflow's cashflow
By Matthew L. Brown
Moldflow Corp. of Framingham said fourth quarter results it reported today would be preliminary until the company answers some questions from the U.S. Securities and Exchange Commission.
The company, which makes computer hardware and software for plastics manufacturers, reported net income of $571,000 for its fourth quarter, compared to a loss of $440,000 for the fourth quarter of 2006.
The company reported revenue of $15 million for the quarter, compared to $12.8 million for the same period a year ago.
The company said it received a comment letter from the SEC in December regarding the way Moldflow determines the value of its maintenance contracts. The SEC wants to know how the company determines what portion of the revenue from those contracts is reported during current periods, and which portion should be reported as revenue over the length of the contract, the company said.
The company said it is in the process of responding to the SEC's comment letter, but it won't consider its results final until it files its annual report.
The company, which makes computer hardware and software for plastics manufacturers, reported net income of $571,000 for its fourth quarter, compared to a loss of $440,000 for the fourth quarter of 2006.
The company reported revenue of $15 million for the quarter, compared to $12.8 million for the same period a year ago.
The company said it received a comment letter from the SEC in December regarding the way Moldflow determines the value of its maintenance contracts. The SEC wants to know how the company determines what portion of the revenue from those contracts is reported during current periods, and which portion should be reported as revenue over the length of the contract, the company said.
The company said it is in the process of responding to the SEC's comment letter, but it won't consider its results final until it files its annual report.
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