Q4 2004 MatrixOne Inc. Earnings Conference Call - Part 1.

(From Fair Disclosure Wire)

OPERATOR: Good evening, ladies and gentlemen. And welcome to the MatrixOne fourth quarter earnings release conference call. At this time all participants are in a listen-only mode. Later, we will conduct a question-and-answer session, and instructions will follow at that time. During the Q&A portion of today's call, we ask participants to limit themselves to one question and one follow-up question. If anyone should require assistance during the call, please press star, then 0 on your touch-tone phone. As a reminder, ladies and gentlemen, this conference call is being recorded.

I would now like to introduce your host for today's call, Brian Norris, Director of Investor Relations for MatrixOne. Please go ahead, sir. BRIAN NORRIS, DIRECTOR OF INVESTOR RELATIONS, MATRIXONE INC.: Thank you, Lori. Good evening, and thank you for joining us on our fourth quarter earnings release conference call. With me on the call this evening is Mark O'Connell, our President and Chief Executive Officer; and Moe Castonguay, our Senior Vice President and Chief Financial Officer.

Earlier today we issued a press release which outlined our fourth quarter operating results. In a moment I will turn the call over to Moe, who will review these results, and then Mark, who will share his thoughts on the business.

I will take I a moment to review the Safe Harbor statement under the Private Securities Litigation Reform Act of 1995. Forward-looking statements made during this call are not promises or guarantees and are subjects to risks and uncertainties that could cause our actual results to differ materially from those anticipated. We caution you not to place undue reliance upon any such forward-looking statements which speak only as the date made.

Forward-looking statements will include, without limitation, any statement relating to future events; conditions; or circumstances; or using words such as will, believe, anticipate, expect, could, may, estimate, project, plan, predict, or intend. Such statements may relate to, among other things, our ability to take advantage of market opportunities and our position in the market, our growth prospects, our plans, objectives, and expected financial operating results, the long-term growth prospects of the PLM market or the benefits of our products to be realized by our customers. Such statements may also relate to the acquisition and integration of Synchronicity; the potential advantages and market opportunity for any combined MatrixOne and Synchronicity products and solutions; the expected synergies related to the acquisition of Synchronicity; any impact of the Synchronicity acquisition on our plans, objectives and expected operating results.

The risks and uncertainties that may affect forward-looking statements include, among others, risks related to our ability to successfully consummate the acquisition and complete the integration of Synchronicity; our ability to achieve expected synergies from the acquisition; difficulty developing new products, including new combined MatrixOne and Synchronicity products; poor product sales; long sale cycles; difficulty in relationships with vendors and partners; higher risk in international operations; difficulty in consummating and assimilating future acquisitions; and difficult managing rapid growth; as well as increased competition. For a more detailed discussion of the risks and uncertainties of our business please refer to our periodic reports filed with the Securities and Exchange Commission including our annual report of Form10-K for the fiscal year ended June 28th, 2003, and our quarterly report on Form 10-Q for the quarter end 2004.

A webcast replay of this evening's conference call, along with the related press release and accompanying financial operating statistics is accessible from our IR website at www.matrixone.com/investor.

At this time I'd like to turn the call over to Moe. MOE CASTONGUAY, CFO, SVP OF FINANCE AND ADMINISTRATION, MATRIXONE INC.: Thanks, Brian. Good evening, everyone. We are pleased to report for the third consecutive quarter we met or exceeded management's guidance and analyst's mean estimates for software…