<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             WASHINGTON, D.C. 20549

                            ------------------------

                                   FORM 10-Q

               QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

               FOR THE QUARTERLY PERIOD ENDED: DECEMBER 30, 2000

                       COMMISSION FILE NUMBER: 000-30027

                            ------------------------

                              MOLDFLOW CORPORATION

             (Exact name of registrant as specified in its charter)

<TABLE>
<S>                                            <C>
               DELAWARE                                     04-3406763
     (State or other jurisdiction                        (I.R.S. Employer
   of incorporation or organization)                  Identification Number)
</TABLE>

                    430 BOSTON POST ROAD, WAYLAND, MA 01778
          (Address of principal executive offices, including zip code)

                                 (508) 358-5848
              (Registrant's telephone number, including area code)

                            ------------------------

    Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. YES /X/  No / /

    There were 10,070,863 shares of our common stock, par value $0.01,
outstanding on February 5, 2001.

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
                              MOLDFLOW CORPORATION
                                   FORM 10-Q
                    FOR THE QUARTER ENDED DECEMBER 30, 2000
                               TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                          PAGE NUMBER
                                                                          -----------
<S>         <C>                                                           <C>
Part I  FINANCIAL INFORMATION
Item 1.     Financial Statements
            Condensed Consolidated Balance Sheet as of December 30 and
              June 30, 2000.............................................       3
            Condensed Consolidated Statement of Income for the three
              months ended December 30 and January 1, 2000 and for the
              six months ended December 30 and January 1, 2000..........       4
            Condensed Consolidated Statement of Cash Flows for the six
              months ended December 30 and January 1, 2000..............       5
            Notes to Condensed Consolidated Financial Statements........       6
Item 2.     Management's Discussion and Analysis of Financial Condition       11
              and Results of Operations.................................
            Quantitative and Qualitative Disclosures About Market
Item 3.       Risk......................................................      21

Part II OTHER INFORMATION
Item 1.     Legal Proceedings...........................................      22
Item 2.     Changes in Securities and Use of Proceeds...................      22
Item 4.     Submission of Matters to a Vote of Securities Holders.......      22
Item 6.     Exhibits and Reports on Form 8-K............................      22
Signatures  ............................................................      23
</TABLE>

                                       2
<PAGE>
                         PART I.  FINANCIAL INFORMATION

ITEM 1.  FINANCIAL STATEMENTS

                              MOLDFLOW CORPORATION

                      CONDENSED CONSOLIDATED BALANCE SHEET

                                 (IN THOUSANDS)

                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                              DECEMBER 30,   JUNE 30,
                                                                  2000         2000
                                                              ------------   --------
<S>                                                           <C>            <C>
ASSETS
Current assets:
  Cash and cash equivalents.................................     $31,672     $27,259
  Marketable securities.....................................      14,876       8,452
  Accounts receivable, net..................................       8,030       5,972
  Prepaid expenses and other current assets.................       2,515       1,946
                                                                 -------     -------
      Total current assets..................................      57,093      43,629
Fixed assets, net...........................................       4,348       4,864
Intangible assets, net......................................       1,747       1,994
Goodwill, net...............................................       6,384       6,628
Other assets................................................         280         208
                                                                 -------     -------
      Total assets..........................................     $69,852     $57,323
                                                                 =======     =======

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Current debt obligations..................................     $    26     $    68
  Accounts payable..........................................       1,846       1,203
  Accrued expenses..........................................       6,270       6,264
  Deferred revenue..........................................       4,895       5,103
                                                                 -------     -------
      Total current liabilities.............................      13,037      12,638
Long-term debt, net of current portion......................         242         852
Other long-term liabilities.................................          61          55
                                                                 -------     -------
      Total liabilities.....................................      13,340      13,545
                                                                 -------     -------
Stockholders' equity:
  Common stock..............................................         101          93
  Additional paid-in capital................................      62,309      49,482
  Deferred stock compensation...............................         (38)        (47)
  Notes receivable from stockholders........................         (53)       (210)
  Accumulated deficit.......................................      (6,437)     (8,260)
  Accumulated other comprehensive income....................         630       2,720
                                                                 -------     -------
      Total stockholders' equity............................      56,512      43,778
                                                                 -------     -------
      Total liabilities and stockholders' equity............     $69,852     $57,323
                                                                 =======     =======
</TABLE>

   The accompanying notes are an integral part of the condensed consolidated
                             financial statements.

                                       3
<PAGE>
                              MOLDFLOW CORPORATION

                   CONDENSED CONSOLIDATED STATEMENT OF INCOME

                     (IN THOUSANDS, EXCEPT PER SHARE DATA)

                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                     THREE MONTHS ENDED           SIX MONTHS ENDED
                                                  -------------------------   -------------------------
                                                  DECEMBER 30,   JANUARY 1,   DECEMBER 30,   JANUARY 1,
                                                      2000          2000          2000          2000
                                                  ------------   ----------   ------------   ----------
<S>                                               <C>            <C>          <C>            <C>
Revenue:
  Software licenses.............................     $ 6,728       $ 3,828       $11,950       $ 6,651
  Services......................................       3,690         2,495         7,292         4,853
                                                     -------       -------       -------       -------
      Total revenue.............................      10,418         6,323        19,242        11,504
                                                     -------       -------       -------       -------

Costs and expenses:
  Cost of software licenses revenue.............         420           153           761           322
  Cost of services revenue......................         396           255           739           491
  Research and development......................       1,592           874         3,179         1,709
  Selling and marketing.........................       4,650         3,113         8,941         5,811
  General and administrative....................       1,690         1,201         3,075         2,277
  Litigation....................................          --           250            --           530
  Amortization of goodwill and other intangible
    assets......................................         392            --           759            --
                                                     -------       -------       -------       -------
      Total operating expenses..................       9,140         5,846        17,454        11,140
                                                     -------       -------       -------       -------

Income from operations..........................       1,278           477         1,788           364

Interest income (expense), net..................         588           (38)          960           (39)
Other income (loss), net........................          27           (30)           62           (64)
                                                     -------       -------       -------       -------
      Income before income taxes................       1,893           409         2,810           261

Provision (benefit) for income taxes............         605            45           987          (172)
                                                     -------       -------       -------       -------
      Net income................................     $ 1,288       $   364       $ 1,823       $   433
                                                     =======       =======       =======       =======

Net income per common share:
      Basic.....................................     $  0.14       $  0.96       $  0.20       $  1.19
      Diluted...................................     $  0.13       $  0.06       $  0.19       $  0.07

Shares used in computing net income per common
  share:
      Basic.....................................       9,371           378         9,279           365
      Diluted...................................       9,904         6,325         9,801         6,308
</TABLE>

   The accompanying notes are an integral part of the condensed consolidated
                             financial statements.

                                       4
<PAGE>
                              MOLDFLOW CORPORATION

                 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

                                 (IN THOUSANDS)

                                  (UNAUDITED)

<TABLE>
<CAPTION>
                                                                  SIX MONTHS ENDED
                                                              -------------------------
                                                              DECEMBER 30,   JANUARY 1,
                                                                  2000          2000
                                                              ------------   ----------
<S>                                                           <C>            <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net income................................................    $  1,823       $   433
  Adjustments to reconcile to net cash provided by operating
    activities:
    Loss on disposal of fixed assets........................           7             8
    Depreciation and amortization...........................       1,279           417
    Provisions for doubtful accounts........................          26             7
    Foreign exchange losses (gains).........................         (58)           56
    Changes in assets and liabilities:
      Accounts receivable...................................      (2,067)          (23)
      Prepaid expenses and other current assets.............        (390)         (382)
      Other assets..........................................          29            67
      Accounts payable......................................         602          (208)
      Accrued expenses......................................         917            24
      Deferred revenue......................................        (191)         (189)
                                                                --------       -------
        Net cash provided by operating activities...........       1,977           210
                                                                --------       -------

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchases of fixed assets.................................      (1,300)         (391)
  Investment in marketable securities.......................      (9,171)           --
  Additional C-Mold acquisition costs.......................        (269)           --
  Proceeds from fixed asset disposals.......................       1,126             4
                                                                --------       -------
        Net cash used in investing activities...............      (9,614)         (387)
                                                                --------       -------

CASH FLOWS FROM FINANCING ACTIVITIES:
  Proceeds from repayment of notes receivable from
    stockholders............................................         173            --
  Borrowings on bank notes payable..........................           5         1,000
  Payments on bank notes payable............................        (629)         (803)
  Payments on capital lease obligations.....................          (9)          (78)
  Proceeds from issuance of common stock....................      12,828            15
                                                                --------       -------
        Net cash provided by financing activities...........      12,368           134
                                                                --------       -------

Effect of exchange rate changes on cash and cash
  equivalents...............................................        (318)          131
                                                                --------       -------

NET INCREASE IN CASH AND CASH EQUIVALENTS...................       4,413            88
Cash and cash equivalents, beginning of period..............      27,259         1,240
                                                                --------       -------
Cash and cash equivalents, end of period....................    $ 31,672       $ 1,328
                                                                ========       =======
</TABLE>

   The accompanying notes are an integral part of the condensed consolidated
                             financial statements.

                                       5
<PAGE>
                              MOLDFLOW CORPORATION

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.  BASIS OF PRESENTATION AND NATURE OF BUSINESS

    Moldflow Corporation ("Moldflow" or the "Company") was incorporated in
Delaware, USA in January 1997 as the successor corporation to Moldflow
International Pty. Ltd., an Australian corporation. The Company was formed to
design, develop, manufacture and market computer software applications for the
design, engineering and manufacture of injection molded plastic parts and, as
such, revenues are derived from the plastic design and manufacturing industry.
The Company sells its products primarily to customers in the United States,
Europe, Asia and Australia.

    The accompanying unaudited condensed consolidated financial statements
include the accounts of Moldflow Corporation and its wholly owned subsidiaries.
The condensed consolidated financial statements have been prepared by the
Company in accordance with the rules and regulations of the Securities and
Exchange Commission ("SEC") regarding interim financial reporting. Accordingly,
they do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements and should be
read in conjunction with the audited consolidated financial statements and notes
thereto for the year ended June 30, 2000 included in the Company's Annual Report
on Form 10-K, as amended. The June 30, 2000 condensed consolidated balance sheet
was derived from the Company's audited consolidated financial statements. In the
opinion of management, the accompanying unaudited consolidated financial
statements contain all adjustments, consisting only of those of a normal
recurring nature, necessary for a fair presentation of results for the interim
periods presented. The results of operations for the three month and six month
periods ended December 30, 2000 are not necessarily indicative of the results to
be expected for any future period or the full fiscal year.

    The Company's fiscal year end is June 30. During the fiscal year, the
Company follows a schedule in which each interim quarterly period ends on the
Saturday of the thirteenth full week of the reporting period.

2.  NET INCOME PER COMMON SHARE

    The Company computes net income per common share in accordance with
Statement of Financial Accounting Standards ("SFAS") No. 128, "Earnings Per
Share," and SEC Staff Accounting Bulletin No. 98 ("SAB 98"). Under the
provisions of SFAS 128 and SAB 98, basic earnings per common share is computed
by dividing net income available to common stockholders by the weighted-average
number of common shares outstanding. Diluted earnings per common share is
computed by dividing net income by the weighted-average number of common shares
outstanding and, when dilutive, all potential common equivalent shares
outstanding including convertible preferred stock, restricted stock, options and
warrants. The dilutive effect of options and warrants to purchase common stock
is determined

                                       6
<PAGE>
                              MOLDFLOW CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

under the treasury stock method using the average fair value of common stock for
the period. The following table presents the calculation for both basic and
diluted net income per common share:

<TABLE>
<CAPTION>
                                                           THREE MONTHS ENDED           SIX MONTHS ENDED
                                                        -------------------------   -------------------------
                                                        DECEMBER 30,   JANUARY 1,   DECEMBER 30,   JANUARY 1,
                                                            2000          2000          2000          2000
                                                        ------------   ----------   ------------   ----------
                                                                (IN THOUSANDS, EXCEPT PER SHARE DATA)
<S>                                                     <C>            <C>          <C>            <C>
Net income............................................     $1,288        $  364        $1,823        $  433
                                                           ======        ======        ======        ======
Weighted average shares used in computing net income
  per common share--basic.............................      9,371           378         9,279           365
                                                           ------        ------        ------        ------
Effect of dilutive securities:
  Restricted stock....................................         75           178            87           189
  Stock options and warrants..........................        458           280           435           265
  Convertible preferred stock.........................         --         5,489            --         5,489
                                                           ------        ------        ------        ------
      Dilutive potential common shares................        533         5,947           522         5,943
                                                           ------        ------        ------        ------
Weighted average shares used in computing net income
  per common share--diluted...........................      9,904         6,325         9,801         6,308
                                                           ======        ======        ======        ======
Net income per common share--basic....................     $ 0.14        $ 0.96        $ 0.20        $ 1.19
Net income per common share--diluted..................     $ 0.13        $ 0.06        $ 0.19        $ 0.07
</TABLE>

3.  DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES

    During the first quarter of fiscal 2001, the Company adopted SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities" ("SFAS
No. 133"). SFAS No. 133 requires that all derivative financial instruments are
recorded on the balance sheet at their fair value. Changes in the fair value of
these derivatives are recorded each period in current earnings or other
comprehensive income, depending on whether the instrument is designated as part
of a hedge transaction and, if it is, the type of hedge transaction.

    The Company hedges a portion of its forecasted foreign currency denominated
intercompany sales and a portion of its foreign currency denominated
intercompany research and development payments over a period of up to twelve
months using currency options. These derivatives have been designated as
cash-flow hedges and, as such, the effective portion of the change in their fair
value is recorded as a component of accumulated other comprehensive income until
the underlying forecasted transaction occurs. Once the underlying forecasted
transaction is realized, the appropriate gain or loss from the derivative is
reclassified from other accumulated comprehensive income to current earnings as
a component of other income and expenses.

    At the inception of the hedge transaction and on a quarterly basis, the
Company assesses whether the derivatives that are used in hedging transactions
are highly effective in offsetting the changes in cash flows of the hedged
items. The Company assesses the hedge effectiveness of its currency options
based on changes in the instruments' intrinsic value, which is the value of the
option attributable to the difference between the spot exchange rate and the
option strike exchange rate. Management expects that at the hedge's inception
and through the date of the forecasted sales and research and development
payments, the hedge will be effective since the critical terms of the option
contracts match those of the anticipated transactions. Changes to the time value
of the option, which is defined as the total fair value of the option as
determined through dealer quotes less the intrinsic value, is deemed to be an
ineffective portion of the hedge and is recorded to current earnings as a
component of other income and expenses. If the Company determines that a cash
flow hedge is no longer probable of occurring or that the hedged instrument is
no longer effective, the Company discontinues hedge accounting for the affected
portion of the forecasted transaction, and any unrealized gain or loss on the
contract is recognized in current earnings as a component of other income and
expenses.

                                       7
<PAGE>
                              MOLDFLOW CORPORATION

              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

    At December 30, 2000, currency options designated as hedging instruments
with notional amounts of $4,267,000, $2,905,000 and $1,973,000 to exchange
Euros, Yen and Australian dollars for U.S. dollars, respectively, were
outstanding. The fair value of the outstanding options as of December 30, 2000
was $218,000, which has been included in other current assets. Unrealized gains
were $65,000 at December 30, 2000, which the Company expects to affect earnings
over the next twelve months. During the three months ended December 30, 2000, a
net loss of $37,000 related to these hedges was recorded as a component of other
income and expenses. The charge represented recognition of the ineffective
portion of the Company's outstanding options of $89,000, net of gains of $52,000
on options that were settled during the period. During the six months ended
December 30, 2000, a net loss of $120,000 related to these hedges was recorded
as a component of other income and expenses. The charge represented recognition
of the ineffective portion of the Company's outstanding options of $205,000, net
of gains of $85,000 on options that were settled during the period.

4.  ACQUISITION OF C-MOLD

    On April 13, 2000, the Company acquired Advanced CAE Technology, Inc., which
had been conducting business as C-Mold, for $11.3 million in cash. The
acquisition was accounted for using the purchase method of accounting, and the
results of C-Mold have been included in the Company's consolidated financial
statements since the date of acquisition. During the six months ended
December 30, 2000, certain other preacquisition contingencies were resolved that
resulted in a $392,000 increase in the consideration paid for C-Mold, which was
recorded as an increase to goodwill.

    On November 10, 2000, the Company sold its facility in Louisville, Kentucky,
which had been acquired as part of the Company's purchase of C-Mold, for
proceeds of $1.2 million. As such, the realized gain of $123,000 has been
recorded as a reduction to goodwill. In connection with the sale, the Company
retired the outstanding mortgage debt on the property, which was $604,000.

    As of December 30, 2000, the carrying value of goodwill was $6.4 million,
net of accumulated amortization of $719,000.

5.  EXIT COSTS

    In June 2000, the Company recorded a charge of $70,000 related to exit costs
incurred in the relocation of its corporate headquarters to Wayland,
Massachusetts. The amount was recorded as a nonrecurring charge in the Company's
consolidated statement of income for the year ended June 30, 2000, with a
related amount included in accrued expenses as of June 30, 2000. During the six
months ended December 30, 2000, cash paid against this accrual was $70,000,
eliminating the remaining accrual.

6.  COMMON STOCK

    On December 12, 2000, the Company completed a public offering of 2,305,000
shares of common stock, of which 1,730,000 shares were sold by certain selling
shareholders and 575,000 shares were issued by the Company. The proceeds to the
Company, net of underwriting discount and costs of the offering, were
$9.7 million. The Company did not receive any of the proceeds from the sale of
shares by the selling shareholders.

    On December 19, 2000, the underwriters of the public offering exercised
their option to purchase an additional 345,750 shares of common stock, of which
170,000 were issued by the Company. The proceeds to the Company, net of
underwriting discount, were $3.1 million.

                                       8
<PAGE>
                              MOLDFLOW CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

7.  COMPREHENSIVE INCOME

    Comprehensive income is comprised of net income and other comprehensive
income. Other comprehensive income includes certain changes in equity that are
excluded from net income, such as cumulative foreign currency translation
adjustments. Other comprehensive income for the three month and six month
periods ended December 30, 2000 includes unrealized gains and losses on the
intrinsic value of the Company's hedging instruments and an unrealized loss on
the Company's marketable securities, resulting primarily from its minority
investment in an Indian software company. It is management's opinion that the
remaining unrealized gain on this investment, which is included as a component
of accumulated other comprehensive income, is subject to a number of risks,
including the risk that the investee company's financial results may result in a
further decrease in its share price, there may not be an active trading market
for the remaining shares, currency fluctuation, foreign exchange controls
imposed by foreign governments, and other potential risks that may cause this
gain to never be fully realized. The following table presents the calculation of
comprehensive income:

<TABLE>
<CAPTION>
                                                     THREE MONTHS ENDED           SIX MONTHS ENDED
                                                  -------------------------   -------------------------
                                                  DECEMBER 30,   JANUARY 1,   DECEMBER 30,   JANUARY 1,
                                                      2000          2000          2000          2000
                                                  ------------   ----------   ------------   ----------
                                                                      (IN THOUSANDS)
<S>                                               <C>            <C>          <C>            <C>
Net income......................................     $ 1,288       $  364        $ 1,823       $   433
                                                     -------       ------        -------       -------

Other comprehensive income (loss):
    Changes in fair value of marketable
      securities, net of related tax effect.....        (817)          --         (1,778)           --
    Changes in value of financial instruments
      designated as hedges......................         (42)          --             65            --
    Foreign currency translation adjustment.....          95          (37)          (377)           35
                                                     -------       ------        -------       -------

    Other comprehensive income (loss)...........        (764)         (37)        (2,090)           35
                                                     -------       ------        -------       -------
Comprehensive income (loss).....................     $   524       $  327        $  (267)      $   468
                                                     =======       ======        =======       =======
</TABLE>

                                       9
<PAGE>
                              MOLDFLOW CORPORATION

        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

8.  SEGMENT AND GEOGRAPHIC INFORMATION

    The following table presents the Company's revenues and net fixed assets by
geographic segment:

<TABLE>
<CAPTION>
                                                     THREE MONTHS ENDED           SIX MONTHS ENDED
                                                  -------------------------   -------------------------
                                                  DECEMBER 30,   JANUARY 1,   DECEMBER 30,   JANUARY 1,
                                                      2000          2000          2000          2000
                                                  ------------   ----------   ------------   ----------
                                                                      (IN THOUSANDS)
<S>                                               <C>            <C>          <C>            <C>
REVENUE FROM UNAFFILIATED CUSTOMERS:
Asia/Australia
  Software licenses.............................     $ 2,341       $1,062        $ 4,021       $ 1,871
  Services......................................       1,021          666          1,938         1,317
                                                     -------       ------        -------       -------
    Total Asia/Australia........................       3,362        1,728          5,959         3,188
                                                     -------       ------        -------       -------
USA
  Software licenses.............................       2,172        1,347          3,462         2,040
  Services......................................       1,430          833          2,971         1,646
                                                     -------       ------        -------       -------
    Total USA...................................       3,602        2,180          6,433         3,686
                                                     -------       ------        -------       -------
Europe
  Software licenses.............................       2,215        1,419          4,467         2,740
  Services......................................       1,239          996          2,383         1,890
                                                     -------       ------        -------       -------
    Total Europe................................       3,454        2,415          6,850         4,630
                                                     -------       ------        -------       -------
Consolidated
  Software licenses.............................       6,728        3,828         11,950         6,651
  Services......................................       3,690        2,495          7,292         4,853
                                                     -------       ------        -------       -------
    Total consolidated..........................     $10,418       $6,323        $19,242       $11,504
                                                     =======       ======        =======       =======

FIXED ASSETS, NET (AS OF PERIOD END):
  Asia/Australia................................     $ 2,618       $2,429
  USA...........................................       1,292          247
  Europe........................................         438          350
                                                     -------       ------
    Total consolidated..........................     $ 4,348       $3,026
                                                     =======       ======
</TABLE>

9.  SUBSEQUENT EVENTS

    On February 12, 2001, the Company entered into a definitive agreement to
acquire all of the outstanding shares of Branden Technologies, Inc. The proposed
purchase price is $3.5 million in cash, including the retirement of
approximately $1.0 million of outstanding debt of Branden and excluding
transaction costs. The transaction is expected to be completed during the third
fiscal quarter of 2001.

    In January 2001, the Company completed the restructuring of its working
capital credit line with a U.S. bank resulting in an increase in the available
borrowings to $5.0 million. Borrowings under the credit facility bear interest
at the prime rate. The line is subject to an annual fee equal to one quarter of
one percent of the maximum available borrowings. In connection with this
arrangement, the bank relinquished its security interest over all of the
Company's assets except for $5.0 million of cash, which is to be deposited with
the bank and which may be invested by the Company in interest bearing
securities. In addition, other elements of credit support, including a standby
letter of credit from an Australian bank and the guarantees of certain
subsidiaries of the Company, were released.

    In connection with the release of the standby letter of credit from the
Australian bank, the Company restructured the available credit line from the
Australian lender, resulting in a decrease of the total available credit from
$1.0 million to $0.4 million and the elimination of certain borrowing costs. The
Australian credit facility continues to be secured by the real estate and other
assets of a subsidiary of the company. All other material terms remain
unchanged.

                                       10
<PAGE>
ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
  OF OPERATIONS

FORWARD-LOOKING STATEMENTS

    This Quarterly Report on Form 10-Q contains forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933, as amended, and
21E of the Securities Exchange Act of 1934, as amended. You can identify these
statements by forward-looking words such as "may," "will," "expect,"
"anticipate," "believe," "estimate," and "continue" or similar words. You should
read statements that contain these words carefully because they discuss our
future expectations, contain projections of our future results of operations or
of our financial condition, or state other "forward-looking" information. We
believe that it is important to communicate our future expectations to our
investors. However, there may be events in the future that we are not able to
accurately predict or control and that may cause our actual results to differ
materially from the expectations we describe in our forward-looking statements.
Investors are cautioned that all forward-looking statements involve risks and
uncertainties, and actual results may differ materially from those discussed as
a result of various factors, including those factors described in "Important
Factors That May Affect Future Results" beginning on page 16. Readers should not
place undue reliance on our forward-looking statements.

BUSINESS OVERVIEW

    Our primary business is the development, sale and support of software
applications for the design and manufacture of plastic injection molded parts.
Our products allow a product designer or engineer to simulate the manufacture of
a plastic part to determine and maintain the optimal part design and
manufacturing conditions throughout the manufacturing process.

    We develop software products internally and through cooperative research
relationships with a number of public and private educational and research
organizations around the world. Prior to June 1997, our products consisted
solely of our Moldflow Plastics Insight (MPI) series for in-depth mold design.
Since then, we have introduced two additional product lines. Our Moldflow
Plastics Adviser (MPA) series for part design and high-level mold design was
introduced in fiscal 1997 and our Moldflow Plastics Xpert (MPX) series for
production set-up and production monitoring was introduced in fiscal 1999. We
have also introduced additional modules of our MPI product series since
June 1997. In fiscal 2000 we introduced plasticszone.com, a business and
productivity website for professionals working with injection molded plastics.
The plasticszone.com site currently offers five zones, including one which
provides our customers with access to our IMPA product, the application service
provider (ASP) version of MPA. In addition, we recently introduced IMPX, a
browser-based production monitoring system that enables MPX customers to view
production data remotely over corporate intranets.

    We sell our products and services internationally through our direct sales
operations in fourteen countries. We also sell through a network of distributors
and value-added resellers, and through distribution arrangements with developers
of other design software products.

    We generate revenue from two principal sources:

    - license fees for our packaged software products, and

    - services revenue derived from maintenance and support services related to
      our software products, consulting, training and materials testing.

    In April 2000, we acquired Advanced CAE Technologies, Inc. which had been
conducting business as "C-Mold." The acquisition was accounted for as a
purchase. Accordingly, the operating results of C-Mold have been included in our
results of operations from the date of acquisition.

                                       11
<PAGE>
RESULTS OF OPERATIONS

    The following table sets forth statement of operations data for the periods
indicated as a percentage of total revenues:

<TABLE>
<CAPTION>
                                                          THREE MONTHS ENDED           SIX MONTHS ENDED
                                                       -------------------------   -------------------------
                                                       DECEMBER 30,   JANUARY 1,   DECEMBER 30,   JANUARY 1,
                                                           2000          2000          2000          2000
                                                       ------------   ----------   ------------   ----------
<S>                                                    <C>            <C>          <C>            <C>
Revenue:
  Software licenses..................................       64.6%         60.5%         62.1%         57.8%
  Services...........................................       35.4          39.5          37.9          42.2
                                                           -----         -----         -----         -----
      Total revenue..................................      100.0%        100.0%        100.0%        100.0%
                                                           =====         =====         =====         =====

Costs and expenses:
  Cost of software licenses revenue..................        4.0%          2.4%          4.0%          2.8%
  Cost of services revenue...........................        3.8           4.0           3.8           4.3
  Research and development...........................       15.3          13.8          16.5          14.9
  Selling and marketing..............................       44.6          49.2          46.5          50.5
  General and administrative.........................       16.2          19.0          16.0          19.8
  Litigation.........................................         --           4.0            --           4.6
  Amortization of goodwill and other intangible
    assets...........................................        3.8            --           3.9            --
                                                           -----         -----         -----         -----
      Total operating expenses.......................       87.7          92.4          90.7          96.9
                                                           -----         -----         -----         -----

Income from operations...............................       12.3           7.6           9.3           3.1
Investment income (expense), net.....................        5.6          (0.6)          5.0          (0.3)
Other income (loss), net.............................        0.3          (0.5)          0.2          (0.5)
                                                           -----         -----         -----         -----
      Income before income taxes.....................       18.2           6.5          14.5           2.3
Provision (benefit) for income taxes.................        5.8           0.7           5.1          (1.5)
                                                           -----         -----         -----         -----
      Net income.....................................       12.4%          5.8%          9.4%          3.8%
                                                           =====         =====         =====         =====
</TABLE>

THREE MONTHS ENDED DECEMBER 30, 2000 COMPARED TO THREE MONTHS ENDED JANUARY 1,
  2000

    REVENUE.  Total revenue increased by 65%, or $4.1 million, to $10.4 million
for the three months ended December 30, 2000, from $6.3 million for the three
months ended January 1, 2000. In the same period, software licenses revenue
increased by 76%, or $2.9 million, to $6.7 million. The increase in software
licenses revenue was primarily attributable to an increase in our direct sales
force and increased sales, particularly in Japan and North America. To a lesser
extent, the increase was attributable to our acquisition of C-Mold. Revenue from
software licenses accounted for 65% of total revenue during the three months
ended December 30, 2000 compared to 61% during the three months ended
January 1, 2000. Services revenue increased by 48%, or $1.2 million, to
$3.7 million for the three months ended December 30, 2000 from $2.5 million for
the three months ended January 1, 2000. This increase was due primarily to an
increase in the amount of revenue derived from maintenance and support contracts
resulting from the growth in our software licenses revenue and our
installed-user base in fiscal year 2000, in part resulting from our acquisition
of C-Mold. No customer accounted for more than 10% of the total revenue during
the three months ended December 30, 2000 and January 1, 2000.

    COST OF REVENUE.  The cost of software licenses revenue increased 175%, or
$267,000, to $420,000 for the three months ended December 30, 2000 from $153,000
for the three months ended January 1, 2000. This increase was primarily
attributable to increased sales of MPX and to royalty fees. The cost of services
revenue increased 55%, or $141,000, from $255,000 for the three months ended
January 1, 2000 to $396,000 for the three months ended December 30, 2000. This
increase resulted from increased personnel and travel costs, primarily related
to our acquisition of C-Mold.

                                       12
<PAGE>
    RESEARCH AND DEVELOPMENT.  Research and development expenses increased 82%,
or $718,000, to $1.6 million for the three months ended December 30, 2000 from
$874,000 for the three months ended January 1, 2000. This increase was
attributable to increased personnel costs, primarily related to the addition of
research and development personnel in connection with our acquisition of C-Mold.

    SELLING AND MARKETING.  Selling and marketing expenses increased 49%, or
$1.5 million, to $4.7 million for the three months ended December 30, 2000 from
$3.1 million for the three months ended January 1, 2000. This increase was due
principally to the increase in the direct sales force and sales management, an
increase in sales commission expense and additional spending for promotional
activities.

    GENERAL AND ADMINISTRATIVE.  General and administrative expenses increased
41%, or $489,000, to $1.7 million for the three months ended December 30, 2000
from $1.2 million for the three months ended January 1, 2000. This resulted from
additional personnel costs, travel expenses, premiums for director and officer
liability insurance and an increase in professional fees.

    LITIGATION.  The litigation expenses incurred for the three months ended
January 1, 2000 amounted to $250,000 and consisted of legal costs to pursue our
claims against C-Mold regarding theft of our trade secrets and to defend against
counterclaims. The litigation was suspended during the third quarter of fiscal
2000, and upon the closing of our acquisition of C-Mold, all related claims were
dismissed. There were no litigation expenses incurred in the three months ended
December 30, 2000.

    AMORTIZATION OF GOODWILL AND OTHER INTANGIBLE ASSETS.  These costs represent
the amortization of intangible assets recorded in connection with our
acquisition of C-Mold, including goodwill, developed technology, assembled
workforce and protective covenants. Amortization for the three months ended
December 30, 2000 was $392,000; there was no amortization incurred in the three
months ended January 1, 2000.

    INTEREST INCOME (EXPENSE), NET.  Interest income (expense), net increased to
income of $588,000 in the three months ended December 30, 2000 from an expense
of $38,000 for the three months ended January 1, 2000. The change was primarily
the result of interest earned on the investment of the unused portion of the
proceeds from our initial public offering of common stock in March 2000, and, to
a lesser extent, the investment of proceeds of the follow-on offering completed
in December 2000.

    OTHER INCOME (LOSS), NET.  Other income (loss), net increased to income of
$27,000 in the three months ended December 30, 2000 from a loss of $30,000 for
the three months ended January 1, 2000. The change was based primarily on
foreign currency movements that result in realized and unrealized exchange gains
and losses on intercompany account balances and the recognized gains and losses
on our foreign exchange hedging instruments.

    PROVISION FOR INCOME TAXES.  The provision for income taxes increased to
$605,000 in the three months ended December 30, 2000 from $45,000 for the three
months ended January 1, 2000. Our effective income tax rate was 32% in the three
months ended December 30, 2000 and 11% in the corresponding period of the prior
year. The lower tax rate in fiscal 2000 was primarily the result of the use of
net operating loss carryforwards.

SIX MONTHS ENDED DECEMBER 30, 2000 COMPARED TO SIX MONTHS ENDED JANUARY 1, 2000

    REVENUE.  Total revenue increased by 67%, or $7.7 million, to $19.2 million
for the six months ended December 30, 2000, from $11.5 million for the six
months ended January 1, 2000. In the same period, software licenses revenue
increased by 80%, or $5.3 million, to $12.0 million. The increase in software
licenses revenue was primarily attributable to an increase in our direct sales
force, particularly in Japan, and to a lesser extent, the increase was
attributable to our acquisition of C-Mold. Revenue from software licenses
accounted for 62% of total revenue during the six months ended December 30,

                                       13
<PAGE>
2000 compared to 58% during the six months ended January 1, 2000. Services
revenue increased by 50%, or $2.4 million, to $7.3 million for the six months
ended December 30, 2000 from $4.9 million for the six months ended January 1,
2000. This increase was due primarily to an increase in the amount of revenue
derived from maintenance and support contracts resulting from the growth in our
software licenses revenue and our installed-user base in fiscal year 2000, in
part resulting from our acquisition of C-Mold. No customer accounted for more
than 10% of the total revenue during the six months ended December 30, 2000 and
January 1, 2000.

    COST OF REVENUE.  The cost of software licenses revenue increased 136%, or
$439,000, to $761,000 for the six months ended December 30, 2000 from $322,000
for the six months ended January 1, 2000. This increase was primarily
attributable to increased sales of MPX, royalty fees and increased freight and
distribution costs. The cost of services revenue increased 51%, or $248,000,
from $491,000 for the six months ended January 1, 2000 to $739,000 for the six
months ended December 30, 2000. This increase resulted from increased personnel
costs, primarily related to our acquisition of C-Mold.

    RESEARCH AND DEVELOPMENT.  Research and development expenses increased 86%,
or $1.5 million to $3.2 million for the six months ended December 30, 2000 from
$1.7 million for the six months ended January 1, 2000. This increase was
attributable to increased personnel costs, primarily related to the addition of
research and development personnel in connection with our acquisition of C-Mold.

    SELLING AND MARKETING.  Selling and marketing expenses increased 54%, or
$3.1 million, to $8.9 million for the six months ended December 30, 2000 from
$5.8 million for the six months ended January 1, 2000. This increase was due
principally to the increase in the direct sales force and sales management, an
increase in sales commission expense and additional spending for promotional
activities.

    GENERAL AND ADMINISTRATIVE.  General and administrative expenses increased
35%, or $798,000, to $3.1 million for the six months ended December 30, 2000
from $2.3 million for the six months ended January 1, 2000. This resulted from
additional personnel costs and an increase in professional fees.

    LITIGATION.  The litigation expenses incurred for the six months ended
January 1, 2000 amounted to $530,000 and consisted of legal costs to pursue our
claims against C-Mold regarding theft of our trade secrets and to defend against
counterclaims. There were no litigation expenses incurred in the six months
ended December 30, 2000.

    AMORTIZATION OF GOODWILL AND OTHER INTANGIBLE ASSETS.  These costs represent
the amortization of intangible assets recorded in connection with our
acquisition of C-Mold, including goodwill, developed technology, assembled
workforce and protective covenants. Amortization for the six months ended
December 30, 2000 was $759,000; there was no amortization incurred in the six
months ended January 1, 2000.

    INTEREST INCOME (EXPENSE), NET.  Interest income (expense), net increased to
income of $1.0 million in the six months ended December 30, 2000 from an expense
of $39,000 for the six months ended January 1, 2000. The change was primarily
the result of interest earned on the investment of the unused portion of the
proceeds from our initial public offering of common stock in March 2000, and, to
a lesser extent, the investment of proceeds of the follow-on offering completed
in December 2000.

    OTHER INCOME (LOSS), NET.  Other income (loss), net increased to income of
$62,000 in the six months ended December 30, 2000 from a loss of $64,000 for the
six months ended January 1, 2000. The change was based primarily on foreign
currency movements that result in realized and unrealized exchange gains on
intercompany account balances and the recognized gains and losses on our foreign
exchange hedging instruments.

    PROVISION (BENEFIT) FOR INCOME TAXES.  The provision for income taxes
increased to $1.0 million in the six months ended December 30, 2000 from a
benefit of $172,000 for the six months ended January 1, 2000. The benefit in the
prior year was impacted by the receipt of a rebate of tax in Germany of
$201,000.

                                       14
<PAGE>
LIQUIDITY AND CAPITAL RESOURCES

    Historically, we have financed our operations and met our capital
expenditure requirements primarily through sales of our capital stock,
stockholder loans, funds generated from operations and borrowings from lending
institutions. In March 2000, we completed our initial public offering of common
stock. In December 2000, we completed a second offering of common stock, raising
$12.8 million net of offering costs. As of December 30, 2000, our primary
sources of liquidity consisted of our total cash and cash equivalents balance of
$31.7 million and our marketable securities balance of $14.9 million. In
January 2001, we completed the restructuring of our working capital credit line,
resulting in an available credit facility of $5.0 million which is secured by
$5.0 million of cash held in interest bearing securities with the bank. Our
marketable securities balance at December 30, 2000 included $756,000 related to
our minority investment in a publicly traded Indian software company which is
recorded at market value at the end of each reporting period. This value has
been subject to significant fluctuation in the past.

    Net cash provided by operating activities was $2.0 million for the six
months ended December 30, 2000. During the corresponding period ended
January 1, 2000, net cash of $210,000 was generated by operating activities.
Cash was provided by operations in the current reporting period primarily
through increases in net income, non-cash charges, accounts payable and accrued
expenses, offset by a decrease in deferred maintenance and support contracts
revenue and an increase in accounts receivable. Cash was generated by operations
in the corresponding period ended January 1, 2000 through increases in net
income and non-cash charges, offset by a reduction in accounts payable and
deferred maintenance revenues and increases in prepaid expenses and other
current assets.

    Net cash used in investing activities was $9.6 million for the six months
ended December 30, 2000 and $387,000 for the six months ended January 1, 2000.
Net cash used in investing activities reflected primarily the transfer of cash
into marketable securities and the purchase of fixed assets during the six
months ended December 30, 2000 offset by the proceeds from the sale of disposed
assets. Net cash used for investing activities for the corresponding period in
fiscal 2000 reflected amounts used for purchases of fixed assets.

    Net cash provided by financing activities was $12.4 million and $134,000 for
the six months ended December 30, 2000 and the six months ended January 1, 2000.
Net cash provided by financing activities in the six months ended December 30,
2000 reflected primarily the net proceeds of our second public offering of
common stock and the exercise of employee stock options, offset by the repayment
of debt obligations primarily related to the retirement of mortgage debt. For
the six months ended January 1, 2000, net cash provided reflected primarily
borrowings on bank notes payable, offset by payments on debt obligations.

    We believe that our current cash, cash equivalents, marketable securities
and available lines of credit will be sufficient to meet our anticipated cash
needs for working capital and capital expenditures for at least the next twelve
months following the date of this Quarterly Report. On a long-term basis or to
complete acquisitions in the short term, we may require additional external
financing through credit facilities, sales of additional equity or other
financing vehicles. There can be no assurance that such financing can be
obtained on favorable terms, if at all.

RECENT ACCOUNTING PRONOUNCEMENTS

    In March 2000, the Financial Accounting Standards Board issued FASB
Interpretation No. 44 ("FIN No. 44"), "Accounting for Certain Transactions
involving Stock Compensation-An Interpretation of APB Opinion No. 25." FIN
No. 44 addresses the application of APB Opinion No. 25 and among other issues
clarifies the following: the definition of an employee for purposes of applying
APB Opinion No. 25; the criteria for determining whether a plan qualifies as a
noncompensatory plan; the accounting consequence of various modifications to the
terms of previously fixed stock options or

                                       15
<PAGE>
awards; and the accounting for an exchange of stock compensation awards in a
business combination. FIN No. 44 became effective July 1, 2000, but certain
conclusions in FIN No. 44 cover specific events that occurred after either
December 15, 1998 or January 12, 2000. The Company's adoption of FIN No. 44 did
not have a material impact on the Company's financial position or results of
operations.

    In December 1999, the Securities and Exchange Commission ("SEC") issued
Staff Accounting Bulletin No. 101 ("SAB 101") "Revenue Recognition in Financial
Statements." This statement was amended by the issuance of SAB 101B, "Second
Amendment: Revenue Recognition in Financial Statements," which delayed the
implementation date of SAB 101 until the fourth fiscal quarter of fiscal years
beginning after December 15, 1999. SAB 101 summarizes the SEC's views in
applying generally accepted accounting principles to selected revenue
recognition issues in financial statements. The Company does not expect the
adoption of SAB 101 to have a material impact on its financial position and
results of operations.

    In June 1998, the Financial Accounting Standards Board issued SFAS No. 133,
"Accounting for Derivative Instruments and Hedging Activities" ("SFAS 133").
SFAS 133 establishes accounting and reporting standards for derivative
instruments, including certain derivative instruments embedded in other
contracts, and for hedging activities. SFAS 133, as amended by SFAS 137, is
effective for all quarters of all years beginning after June 15, 2000. In fiscal
2001, the Company began to engage in hedging activities and as such adopted the
accounting and reporting requirements of SFAS 133 from the beginning of the
fiscal year.

EUROPEAN UNION CURRENCY CONVERSION

    On January 1, 1999, eleven member nations of the European Economic and
Monetary Union began using a common currency, the Euro. For a three-year
transition period ending June 30, 2002, both the Euro and each of the currencies
for such member countries will remain in circulation. After June 30, 2002, the
Euro will be the sole legal tender for those countries. The adoption of the Euro
will affect many financial systems and business applications as the commerce of
those countries may be transacted both in the Euro and the existing national
currency during the transition period. Significant portions of our revenue have
been historically generated in Europe. Of the eleven countries currently using
the Euro, we have subsidiary operations in France, Germany, Ireland, Italy, the
Netherlands and Spain. We have assessed the potential impact of the Euro
conversion in a number of areas, particularly on our pricing and other marketing
strategies. Although we do not currently expect that the conversion, either
during or after the transition period, will have an adverse effect on our
operations or financial condition, there can be no assurance that it will not
have some unexpected adverse impact.

IMPACT OF INFLATION

    We believe that our revenue and results of operations have not been
significantly impacted by inflation during the past three fiscal years.

IMPORTANT FACTORS THAT MAY AFFECT FUTURE RESULTS

    IF WE EXPERIENCE DELAYS IN INTRODUCING NEW PRODUCTS OR IF OUR EXISTING OR
NEW PRODUCTS DO NOT ACHIEVE MARKET ACCEPTANCE, WE MAY LOSE REVENUE.

    Our industry is characterized by:

    - rapid technological advances,

    - evolving industry standards,

    - changes in end-user requirements,

    - intense competition,

                                       16
<PAGE>
    - technically complex products,

    - frequent new product introductions, and

    - evolving offerings by product manufacturers.

    We believe our future success will depend, in part, on our ability to
anticipate or adapt to these factors and to offer on a timely basis products
that meet customer demands. For example, the introduction of new products and
services embodying new technologies and the emergence of new industry standards
can render our existing products obsolete. The development of new or enhanced
products is a complex and uncertain process requiring the anticipation of
technological and market trends. We may experience design, manufacturing,
marketing and other difficulties that could delay or prevent our development,
introduction or marketing of new products and enhancements and result in
unexpected expenses.

    Our growth and profitability also will depend upon our ability to expand the
use and market penetration of our existing product lines as well as new products
we introduce. Market acceptance of our products will depend in part on our
ability to demonstrate the cost-effectiveness, ease of use and technological
advantages of our products over competing products.

    BECAUSE WE DO NOT HAVE EXTENSIVE EXPERIENCE DEVELOPING INTERNET-ENABLED
PRODUCTS, WE MAY INCUR SIGNIFICANT COSTS DEVELOPING INTERNET-ENABLED PRODUCTS
AND MAY NOT BE ABLE TO DEVELOP THESE PRODUCTS.

    Our business strategy includes providing additional Internet-related
functions to our products to exploit the trend toward worldwide collaborative
product development and manufacturing and to explore new pricing and packaging
strategies made possible by the Internet. We have limited experience in
developing and marketing Internet-enabled products. We may incur significant
costs developing Internet-enabled products and may be unable to capitalize on
the rapid transformation of the Internet as a computing platform, communications
vehicle and distribution channel.

    WE MAY EXPERIENCE DIFFICULTY ACHIEVING SALES TARGETS, MAKING TIMELY PRODUCT
RELEASES OR OTHERWISE OPERATING OUR BUSINESS IF WE ARE UNABLE TO ATTRACT OR
RETAIN KEY PERSONNEL.

    In order to grow our business, we will have to hire additional employees in
various countries. Our future success, therefore, will depend, in part, on
attracting and retaining additional qualified management, sales, marketing and
technical personnel. Most of our sales come from our direct sales force, located
around the world. Failure to attract, train, retain and effectively deploy our
sales personnel will have an adverse effect on our business. We do not know
whether we will be successful in hiring or retaining qualified personnel.
Competition for personnel throughout the software industry and in the
geographies in which we operate, is intense.

    IF WE BECOME SUBJECT TO INTELLECTUAL PROPERTY INFRINGEMENT CLAIMS, WE COULD
INCUR SIGNIFICANT EXPENSES AND WE COULD BE PREVENTED FROM OFFERING SPECIFIC
PRODUCTS OR SERVICES.

    Our products include proprietary intellectual property. We may become
subject to claims that we infringe on the proprietary rights of others. In the
United States, a significant number of software and business method patents have
been issued over the past decade and the holders of these patents have been
actively seeking out potential infringers. If any element of our products or
services violates third-party proprietary rights, we might not be able to obtain
licenses on commercially reasonable terms to continue offering our products or
services without substantial re-engineering and any effort to undertake such
re-engineering might not be successful. In addition, any claim of infringement
could cause us to incur substantial costs defending against the claim, even if
the claim is invalid, and could distract our management from our business. Any
judgment against us could require us to pay substantial damages and could also
include an injunction or other court order that could prevent us from offering
our products and services.

                                       17
<PAGE>
    WE MAY LOSE SALES TO COMPETITORS IF WE ARE UNABLE TO PROTECT IMPORTANT
INTELLECTUAL PROPERTY.

    Our ability to compete effectively against other companies in our industry
will depend, in part, on our ability to protect our current and future
proprietary technology through a combination of patent, copyright, trademark,
trade secret and unfair competition laws. We may be unable to maintain the
proprietary nature of our technology. While we have attempted to safeguard and
maintain our proprietary rights, we do not know whether we have been or will be
completely successful in doing so. We face the following risks in protecting our
intellectual property:

    - we cannot be certain that our pending United States and foreign patent
      applications will result in issued patents or that the claims allowed are
      or will be sufficiently broad to protect our technology.

    - third parties may design around our patented technologies or seek to
      challenge or invalidate our patented technologies.

    - the contractual provisions that we rely on, in part, to protect our trade
      secrets and proprietary knowledge may be breached, and we may not have
      adequate remedies for any breach and our trade secrets and proprietary
      information may be disclosed to the public.

    - our trade secrets may also become known without breach of such agreements
      or may be independently developed by competitors, and

    - foreign countries, including some of those in which we do business, may
      reduce or limit the protection of our intellectual property rights.

    OUR FINANCIAL CONDITION OR RESULTS OF OPERATIONS MAY BE ADVERSELY AFFECTED
BY INTERNATIONAL BUSINESS RISKS.

    The majority of our employees, including sales, support and research and
development personnel, are located outside of the United States. Conducting
business outside of the United States is subject to numerous risks, including:

    - decreased liquidity resulting from longer accounts receivable collection
      cycles typical of foreign countries,

    - decreased revenue on foreign sales resulting from possible foreign
      currency exchange and conversion issues,

    - lower productivity resulting from difficulties managing our sales, support
      and research and development operations across many countries,

    - lost revenue resulting from difficulties associated with enforcing
      agreements and collecting receivables through foreign legal systems,

    - lost revenue resulting from the imposition by foreign governments of trade
      protection measures, and

    - higher cost of sales resulting from import or export licensing
      requirements.

    THE ACQUISITION OF C-MOLD, THE PENDING ACQUISITION OF BRANDEN TECHNOLOGIES
AND FUTURE ACQUISITIONS AND STRATEGIC RELATIONSHIPS MAY RESULT IN LOST REVENUE
CAUSED BY BUSINESS DISRUPTIONS AND MISSED OPPORTUNITIES CAUSED BY THE
DISTRACTION OF OUR MANAGEMENT.

    If we are unable to effectively integrate both Branden's and C-Mold's
products, personnel and systems, our business and operating results will likely
suffer. The C-Mold integration is requiring time and focus by our management
team. Following the closing of the Branden transaction, additional integration
issues will arise which will require additional time and focus of our management
team. Further, we cannot guarantee that we will realize any of the benefits or
strategic objectives we were seeking in acquiring C-Mold or Branden.

                                       18
<PAGE>
    Additionally, we intend to engage in other acquisitions and strategic
relationships in the future. We may not be able to identify suitable acquisition
candidates, and, if we do identify suitable candidates, we may not be able to
make such acquisitions on commercially acceptable terms or at all. We may expend
time and resources seeking to acquire other companies and such acquisitions may
not occur. If we acquire another company, we will only receive the anticipated
benefits if we successfully integrate the acquired business into our existing
business in a timely and non-disruptive manner. We may have to devote a
significant amount of time and management and financial resources to do so. Even
with this investment of management and financial resources, an acquisition may
not produce the revenues, earnings or business synergies that we anticipated. If
we fail to integrate the acquired business effectively or if key employees of
that business leave, the anticipated benefits of the acquisition would be
jeopardized. The time, capital, management and other resources spent on an
acquisition that failed to meet our expectations could cause our business and
financial condition to be materially and adversely affected. In addition,
acquisitions can involve non-recurring charges and amortization of significant
amounts of goodwill and other acquired intangible assets that could adversely
affect our results of operations.

    WE HAVE MORE LIMITED FINANCIAL AND OTHER RESOURCES THAN MANY OF OUR
COMPETITORS AND POTENTIAL COMPETITORS AND WE MAY BE UNABLE TO COMPETE
SUCCESSFULLY AGAINST THEM.

    We operate in a highly competitive environment and may not be able to
successfully compete. Companies in our industry and entities in similar
industries could decide to focus on the development of software solutions for
the design, analysis and manufacturing of injection molded plastic parts.
Similarly, there are many companies that focus on producing products that attach
to or operate in conjunction with injection molding machines to monitor and
control the plastic manufacturing process. Many of these entities have
substantially greater financial, research and development, manufacturing and
marketing resources than we do. Increased competition may result in price
reductions, reduced profitability and loss of market share.

    OUR QUARTERLY OPERATING RESULTS ARE SUBJECT TO SIGNIFICANT FLUCTUATIONS AND
AS A RESULT PERIOD-TO-PERIOD COMPARISONS OF OUR RESULTS OF OPERATIONS ARE NOT
NECESSARILY MEANINGFUL AND SHOULD NOT BE RELIED UPON AS INDICATORS OF FUTURE
PERFORMANCE.

    We have experienced significant fluctuations in our results of operations on
a quarterly basis. In particular, we have historically experienced lower or
relatively unchanged revenue in our first fiscal quarter as compared with the
preceding quarter as a result of seasonal factors. We expect to continue to
experience significant fluctuations in our future quarterly results of
operations due to a variety of factors, many of which are outside of our
control, including:

    - seasonal slowdowns, in particular, in our first fiscal quarter, in many of
      the markets in which we sell our products,

    - the timing and magnitude of capital expenditures, including costs relating
      to the expansion of our operations and infrastructure,

    - introductions of new services or enhancements by us and our competitors,

    - changes in our and our competitors' pricing policies,

    - currency fluctuations, and

    - timing and integration of acquisitions.

    WE MAY HAVE DIFFICULTY MANAGING THE EXPANSION OF OUR OPERATIONS, WHICH COULD
RESULT IN DAMAGE TO CUSTOMER RELATIONSHIPS OR DELAYED BILLING OR COLLECTION OF
REVENUE.

    The implementation of our business strategy could result in a period of
rapid growth in the number of our employees and the scope of our operations. In
addition, in connection with the

                                       19
<PAGE>
acquisition of C-Mold, we have expanded the number of employees and facilities.
Completion of the Branden transaction will also result in additional employees
and facilities. Rapid expansion could place a significant strain on our senior
management team and our operational, financial and other resources as we attempt
to expand our operations in multiple locations around the world. We may have
difficulty effectively managing the budgeting, forecasting, global hiring and
other business control issues presented by such a rapid expansion. This could,
among other things, adversely affect our relationships with our customers and
result in delays in billing and collections of revenue from our customers and
increased costs.

    IF WE ARE UNABLE TO MAINTAIN AND LEVERAGE OUR STRATEGIC ALLIANCES, WE MAY BE
UNABLE TO GROW AS PLANNED.

    We are, and will continue to be, dependent to some extent on distribution
arrangements and strategic partnerships with third-parties because we sell a
portion of our products through these third parties. In addition, we may sell
other products, including our Internet products through third-party distributors
or web platform operators in the future. These third parties may not fulfill
their agreements with us. In particular, third-party distributors or web
platform operators may breach or terminate their distribution agreements with us
or fail to devote sufficient time and resources to successfully commercialize,
or increase sales of, our products. As a result, our revenues from these
arrangements depend, in part, on third parties' sales of our products.

    DISRUPTION OF OPERATIONS AT OUR DEVELOPMENT FACILITIES COULD INTERFERE WITH
OUR PRODUCT DEVELOPMENT AND PRODUCTION CYCLES.

    A significant portion of our computer equipment, source code and personnel,
including critical resources dedicated to research and development, is presently
located at operating facilities in Australia, the United States and the United
Kingdom. The occurrence of a natural disaster or other unanticipated catastrophe
at any of these facilities could cause interruptions in our operations and
services. Extensive or multiple interruptions in our operations at any of these
facilities could severely disrupt our product development.

    OUR MOLDFLOW PLASTICS XPERT (MPX) PRODUCT LINE, AND OTHER PRODUCTS THAT WE
ACQUIRE OR DEVELOP, MAY LEAD TO PRODUCT LIABILITY CLAIMS AGAINST US.

    We have designed our Moldflow Plastics Xpert (MPX) product line to be
installed directly on our customers' injection molding machines and to
automatically adjust the operation of these machines. As a result, it is
possible that our customers may claim that our product interfered with the
proper operation of their machines and may seek reimbursement for consequential
and other damages from us. Although we expressly disclaim any liability for
consequential or other damages in connection with our sale of the MPX product,
this disclaimer may not protect us from claims for damages from our customers
and these claims may adversely affect our relationships with our customers or
our reputation generally. In addition, our insurance coverage limits may not be
adequate to protect us against any product liability claims that arise. This
insurance is expensive and may not be available on acceptable terms, or at all.
As we acquire or develop additional products that are similar to MPX, including
the products manufactured and sold by Branden, this risk will increase.

                                       20
<PAGE>
    OUR STOCK PRICE IS HIGHLY VOLATILE AND COULD EXPERIENCE SUBSTANTIAL DECLINES
AND OUR MANAGEMENT'S ATTENTION MAY BE DIVERTED FROM MORE PRODUCTIVE TASKS.

    The stock market has, from time to time, experienced extreme price and
volume fluctuations. Many factors may cause the market price for our common
stock to decline, perhaps substantially, including:

    - a decrease in the demand for our common stock,

    - revenues and operating results failing to meet the expectations of
      securities analysts or investors in any quarter,

    - downward revisions in securities analysts' estimates or changes in general
      market conditions,

    - technological innovations by competitors or in competing technologies,

    - investor perception of our industry or our prospects, and

    - general technology or economic trends.

    In the past, companies that have experienced volatility in the market price
of their stock have been the subject of securities class action litigation. We
may be involved in securities class action litigation in the future. Such
litigation often results in substantial costs and a diversion of management's
attention and resources and could harm our business, financial condition and
results of operations.

ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

    We develop our products in research centers in Australia, the United Kingdom
and the United States. We sell our products globally through our direct sales
force and indirect distributor channels. As a result, our financial results are
affected by factors such as changes in foreign currency exchange rates and weak
economic conditions in foreign markets. In the future, we expect to increase our
international operations in our existing markets and in geographic locations
where we do not have any operations now.

    We collect amounts representing a substantial portion of our revenues and
pay amounts representing a substantial portion of our operating expenses in
foreign currencies. As a result, changes in currency exchange rates from time to
time may affect our operating results. We have begun to engage in hedging
transactions designed to reduce our exposure to changes in currency exchange
rates. We cannot assure you, however, that any efforts we make to hedge our
exposure to currency exchange rate changes will be successful.

                                       21
<PAGE>
                           PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

    From time to time, we may be involved in various claims and legal
proceedings arising in the ordinary course of business. We are not currently a
party to any such claims or proceedings which, if decided adversely to us, would
either individually or in the aggregate have a material adverse effect on our
business, financial condition or results of operations.

ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS

USE OF PROCEEDS FROM REGISTERED SECURITIES

    The effective date of the Securities Act registration statement for which
the use of proceeds information is being disclosed was March 27, 2000, and the
Commission file number assigned to the registration statement is 333-95289. The
use of proceeds of our initial public offering has not changed from that
reported in our quarterly report on Form 10-Q for the period ended April 1,
2000.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

    On December 12, 2000, the Company held a Special Meeting of Stockholders.
The stockholders voted, either in person or by proxy, to elect three Class I
Directors for three-year terms. The results of the stockholder vote were as
follows:

<TABLE>
<CAPTION>
NAME OF DIRECTOR                                  FOR      AGAINST    WITHHELD
----------------                               ---------   --------   ---------
<S>                                            <C>         <C>        <C>
Mr. Robert P. Schechter                        7,665,716   199,790        0
Mr. A. Roland Thomas                           7,663,322   202,184        0
Mr. Charles D. Yie                             7,664,721   200,785        0
</TABLE>

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

<TABLE>
<S>    <C>
(a.)   Exhibits:

10.44  Loan and Security Agreement between Moldflow Corporation and
       Silicon Valley Bank, dated as of December 27, 2000.

(b.)   Reports on Form 8-K
</TABLE>

None.

                                       22
<PAGE>
                                   SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.

<TABLE>
<S>                                                    <C>  <C>
                                                       MOLDFLOW CORPORATION

                                                       By:            /s/ MARC J. L. DULUDE
                                                            -----------------------------------------
                                                                        Marc J. L. Dulude
                                                              PRESIDENT AND CHIEF EXECUTIVE OFFICER

                                                       MOLDFLOW CORPORATION

                                                       By:            /s/ SUZANNE E. ROGERS
                                                            -----------------------------------------
                                                                        Suzanne E. Rogers
                                                                  VICE PRESIDENT OF FINANCE AND
                                                                          ADMINISTRATION
                                                                   AND CHIEF FINANCIAL OFFICER
                                                                  (PRINCIPAL FINANCIAL OFFICER)

Date: February 12, 2001
</TABLE>

                                       23