Wind River Reports Strong First Quarter Fiscal Year 2006 Results
Wednesday May 25, 4:01 pm ET
- Reported revenue increased 17% year-over-year to $61.8 million
- Total deferred revenue grew $5.7 million to end at $82.8 million
- Non-GAAP earnings per share of $0.03 and GAAP earnings per share of $0.02
- Non-GAAP cash flow from operations of approximately $11.4 million, excluding restructuring related payments of $211,000; GAAP cash flow from operations of approximately $11.2 million
- Reduced outstanding debt by repurchasing $20 million of convertible subordinated debt
ALAMEDA, Calif., May 25 /PRNewswire-FirstCall/ -- Wind River Systems, Inc. (Nasdaq: WIND - News), the global leader in Device Software Optimization (DSO), today reported its first quarter fiscal year 2006 operating results.
(Logo: newscom.com )
Total revenue for the first quarter ended April 30, 2005 was $61.8 million, a 17% increase compared to revenues of $52.8 million for the first quarter ended April 30, 2004.
"We are succeeding in driving the market shift to device software optimization and the result is high-quality growth," stated Ken Klein, president, chief executive officer and chairman of Wind River.
Generally accepted accounting principles (GAAP) net income for the first quarter of fiscal year 2006 was $1.9 million, or earnings per share of $0.02 compared to net loss of $3.8 million, or net loss per share of $0.05 for the first quarter of fiscal year 2005.
Non-GAAP net income for the first quarter of fiscal year 2006 was $2.4 million, compared to non-GAAP net loss of $1.9 million for the first quarter of fiscal year 2005. Non-GAAP net income per share was $0.03 for the first quarter of fiscal year 2006, compared to non-GAAP net loss per share of $0.02 for the first quarter of fiscal year 2005.
"We made progress against all of our key financial metrics-growing reported revenue and deferred revenue, as well as delivering strong earnings per share and operational cash flow," said Mike Zellner, chief financial officer. "We strengthened our balance sheet by repurchasing an additional $20 million of our convertible debt, ending the quarter with $55 million remaining outstanding."
Company Highlights
-- Wind River delivered its tenth consecutive quarter of growth in
subscription revenue.
-- On May 23rd, the company made several key announcements at its first
Annual Worldwide Users Conference. The following announcements were
made:
* Three foundational technology announcements, including Workbench
2.3, VxWorks 6.1-based platforms and Linux 2.6-based platforms
* Two vertical market solution announcements, including new
industry-specific platforms, services practices, extended hardware
and software partnerships and reference design platforms
You may download the above releases by going to the following URL: windriver.com. These products are scheduled for general market availability in June 2005.
Financial Outlook
The following statements regarding our outlook for the second quarter of fiscal year 2006, fiscal year 2006, and other statements in this press release are forward-looking and actual results may differ materially. Please consult the safe-harbor statement at the end of this press release for a description of certain risk factors and Wind River's SEC reports for a more comprehensive description of risks that may impact actual results. In response to SEC Regulation Fair Disclosure (Reg FD), Wind River plans to discuss its business outlook, based on current expectations, in conjunction with its quarterly earnings releases and conference calls. Wind River does not plan to provide any further financial guidance beyond the information provided in its quarterly earnings release and conference call.
For Q2 Fiscal Year 2006, Wind River expects:
-- Revenue to be between $64 million and $65 million.
-- Earnings per share to be between $0.04 and $0.05 on a GAAP basis.
-- Earnings per share to be between $0.05 and $0.06 on a Non-GAAP basis.
For Fiscal Year 2006, Wind River expects:
-- Revenue to be between $267 million and $270 million.
-- Earnings per share to be between $0.26 and $0.28 on a GAAP basis.
-- Earnings per share to be between $0.28 and $0.30 on a Non-GAAP basis.
Wind River provides non-GAAP net income, net loss, net income per share, net loss per share data and cash flow from operations as an alternative for understanding the company's operating results. Non-GAAP data is not in accordance with, or a substitute for GAAP and may be materially different from non-GAAP measures used by other companies. Non-GAAP net income, net loss, net income per share and net loss per share for the three-month period ended April 30, 2005 and 2004 were computed by adjusting GAAP net income, net loss, net income per share and net loss per share data to exclude amortization of purchased and other intangibles, gain on investments and technology, restructuring charges, realized loss on repurchase of bonds and payroll tax on stock option exercises. The non-GAAP earnings per share forecast for the three-month period ending July 31, 2005 and the twelve-month period ending January 31, 2006 was computed by adjusting GAAP earnings per share to exclude potential restructuring charges and the potential impact of amortization associated with the acquisition of certain assets in the fiscal fourth quarter. Consistent with prior quarters, Wind River applies the same tax charge to its GAAP and non-GAAP results. Wind River provides a reconciliation of its GAAP and non-GAAP net income, net loss, net income per share and net loss per share data for the three-month period ended April 30, 2005 and 2004 on page four of this release. Wind River's management refers to these non-GAAP measures in making operating decisions because they provide meaningful information regarding Wind River's operational performance. For example, the non-GAAP results are an indication of Wind River's baseline performance before gains, losses or other charges that are considered by management to be outside of the company's core business segment operational results. In addition, these non-GAAP financial measures facilitate management's internal comparisons to Wind River's historical operating results and comparisons to competitors' operating results. Wind River includes these non-GAAP financial measures in its earnings announcement because the company believes they are useful to investors in allowing for greater transparency to the supplemental information used by management in its financial and operational decision-making. |
