Intergraph reports Third Quarter 2006 financial results

Intergraph reports Third Quarter 2006 financial results

SHARE

Huntsville, USA, 25 October 2006 – Intergraph Corporation, a global provider of spatial information management (SIM) software, today announced financial results for its third quarter ended September 30, 2006. Revenue for the quarter was $156.9 million, an increase of 4.7% from the $149.9 million reported in the third quarter of 2005. For the nine months ended September 30, 2006, revenue was $448.6 million, an increase of 3.9% from the $431.7 million reported in the same period of 2005.

Operating income for the quarter was $19.9 million, or 12.7% of revenue, compared to $6.4 million, or 4.3% of revenue, reported in the third quarter of 2005. The Company reported restructuring charges of $5.3 million in the third quarter of 2005, resulting in operating income before restructuring (a non-GAAP measure) of $11.7 million, or 7.8% of revenue. For the nine months ended September 30, 2006, operating income was $38.1 million, or 8.5% of revenue, compared to $22.1 million, or 5.1% of revenue, reported in the same period of 2005.

The Company reported restructuring charges of $10.4 million and $9.0 million in the nine months ended September 30, 2006 and 2005, respectively. For the nine months ended September 30, 2006, operating income before restructuring (a non-GAAP measure) was $48.5 million, or 10.8% of revenue, compared to $31.1 million, or 7.2% of revenue, reported in the same period of 2005.

Net income for the quarter was $20.6 million, or $0.69 per diluted share, compared to $13.8 million, or $0.44 per diluted share, reported in the third quarter of 2005. Net income includes approximately ($0.2) million and $5.6 million of after-tax intellectual property income (expense), net of all fees and expenses, in the third quarter of 2006 and 2005, respectively.

During the third quarter of 2006, Intergraph reported income tax benefits that it now expects to realize in the amount of $8.4 million, or $0.28 per diluted share. For the nine months ended September 30, 2006, net income was $51.4 million, or $1.68 per diluted share, compared to $103.3 million, or $3.24 per diluted share, for the same period of 2005. Net income includes approximately $15.0 million and $86.4 million of after-tax intellectual property income, net of all fees and expenses, in the first nine months of 2006 and 2005, respectively.

“We are pleased with our third quarter and year-to-date 2006 financial results,” said R. Halsey Wise, Intergraph President & CEO. “Our recent operating performance underscores the progress of Intergraph’s business transformation and value creation efforts over the past several years.”