Earnings release for RAPT...sorry about the format...EPS is at $0.08 per share or $0.01 about street estimate. Overall is good. Revenue is still increasing. I will post cash flow statement as soon as they are available.
WALTHAM, Mass., July 22 /PRNewswire/ -- Raptor Systems, Inc.
(Nasdaq: RAPT) today announced that its revenues for the second quarter ended
June 30, 1997 were $6,649,000, an increase of 129% over revenues of
$2,907,000 for the same period in 1996 and an increase of 18% over revenues of
$5,640,000 in the first quarter of 1997. Net income for the second quarter of
1997 would be $1,156,000 or $.08 per share, excluding a one-time charge, an
increase of 671% over net income of $150,000 for the same period in 1996 and
an increase of 35% over net income of $857,000 in the first quarter of 1997.
The one-time charge for purchased in-process technology was $6,522,000
(equal to $4,239,000 or $.32 per share after taxes) and is related to the
previously announced acquisition of a perpetual license to Axcess technology
from Open Market, Inc. (Nasdaq: OMKT), including the underlying products.
This relationship positions Raptor as the first and only network security
company with the ability to let customers control network connections as well
as information access. In the second half of this year, Raptor will introduce
the first of its intranet products from this acquisition.
"We are pleased with these financial results," said Shaun McConnon,
Raptor's President and Chief Executive Officer. "Our operating margins
continue to grow, from 11% in the first quarter of 1997 to 16% for the second
quarter, before the one-time charge. We are well on our way to making our
goal of 20% operating profit. During the second quarter our business in North
America was particularly strong, showing 27% growth in quarterly sales, in
part due to our recently established relationships with North America's
largest master resellers: Ingram Micro, MicroAge, Tech Data and Access
Graphics. These master resellers accounted for about 7% of the quarter's
revenues, opening up an entirely new channel for our business," said McConnon.
"Another factor contributing to our growth was building our leadership
position as the number one Windows NT firewall provider. We sold 1,158 NT
firewalls in this quarter, which was 60% of our product revenue. According to
a recent International Data Corporation report entitled The Worldwide Firewall
Market, 1996-2001, Raptor was the leading provider of Windows NT-based
firewalls in 1996," said McConnon.
"Raptor is redefining network security beyond firewalls to include access
control. Building upon our Five Domain infrastructure, Raptor anticipates
releasing products throughout the remainder of the year including single sign
on for web based applications, additional content scanning technology and
integration with public key infrastructure. Raptor's goal is to address the
business to business market requirements as well as allowing corporations to
utilize Intranet applications much more securely. Raptor's enhanced Mobile
remote access technology and the recently acquired access control technology
from Open Market are bringing Raptor beyond the firewall market to the next
generation of integrated security products," said McConnon.
"During the second quarter, Raptor entered into key strategic
relationships with Lucent Technologies (NYSE: LU) and Nippon Telegraph and
Telephone ("NTT") the world's largest telecommunications service provider, and
V-ONE Corporation (Nasdaq: VONE)," said McConnon. "These relationships along
with new product offerings, such as Raptor-Axcess and NewsNOT, should allow
Raptor to continue the momentum generated over the past year and a half. The
balance sheet is strong; we continue to generate positive cash flow and the
days sales outstanding decreased to 67 days from 69 days in the first quarter
of 1997," said McConnon.
Raptor Systems, Inc., headquartered in Waltham, Massachusetts, is a
leading developer of network security software products that provide
comprehensive, enterprise-wide security for organizational networks. Raptor's
award-winning and NCSA-certified products protect corporate databases and
networks in government, health care, pharmaceutical, education, utility,
telecommunications, technology, manufacturing, and financial services sites
worldwide. Raptor has numerous strategic relationships with world-class
companies such as Compaq Computer, Hewlett-Packard, Lucent Technologies,
Marubeni, NTT, Siemens-Nixdorf, Sprint and V-ONE.
The company notes that each of the above forward-looking statements is
subject to change, based on various important factors, including, without
limitation, changes in the market, new products and announcements from other
companies, potential delays in product releases, changes in pricing,
technology, and competition from larger, more established competitors.
Additional information on the factors that could affect the
company's financial results is included in the company's prospectus, its
annual report on Form 10-K, its quarterly reports on Form 10-Q, and other
documents filed with the Securities and Exchange Commission.
Product and security information can be accessed via Raptor's World Wide
Web site at raptor.com. Raptor's latest news releases are
available at no charge by dialing 800-758-5804, ext. 110041 or at
prnewswire.com on the Internet. The common stock of Raptor Systems
is publicly traded on The Nasdaq Stock Market under the symbol "RAPT".
Financial Information:
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS:
Three Months Ended Six Months Ended
June 30, June 30,
(unaudited, 000's omitted )
1997 1996 1997 1996
Revenue $6,649 $2,907 $12,289 $4,975
Cost of revenue 547 209 903 361
Gross margin 6,102 2,698 11,386 4,614
Operating expenses:
Selling and
marketing 3,125 1,944 5,965 3,541
Research and
development 943 884 1,882 1,451
General and
administrative 981 421 1,878 971
Purchased in-
process technology
(1) 6,522 --- 6,522 ---
Total operating
expenses 11,571 3,249 16,247 5,963
Operating income
(loss) (5,469) (551) (4,861) (1,349)
Interest income,
net 725 701 1,435 1,070
Income (loss)
before income
taxes (4,744) 150 (3,426) (279)
Provision (benefit)
for income taxes (1,660) --- (1,199) ---
Net income (loss) $(3,084) $150 $(2,227) $(279)
Net income (loss)
per common and
common equivalent
share (2) $(.23) $.01 $(.17) $(.03)
Weighted average
common and common
equivalent shares
outstanding 13,329,529 14,892,762 13,266,913 10,113,104
NOTE(1): Represents a $6,522,000 (equal to $4,239,000 or $.32 per share
after tax) non-recurring charge for purchased in-process technology in
connection with the Open Market license agreement.
(2): Earnings per share calculated as if the Open Market agreement had not
been entered into would have been $.08 and $.13, on net income of $1,156,000
and $2,013,000 for the three and six month periods ended June 30, 1997,
respectively. Fully diluted common and common equivalent shares outstanding
would have been 14,961,354 and 15,010,007 for the three and six month periods
ended June 30, 1997, respectively.
Selected Consolidated Balance Sheet Data :
June 30 December 31,
1997 1996
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $31,723,687 $37,567,372
Marketable securities 18,711,417 15,396,866
Accounts receivable, net 4,931,652 4,048,456
Other current assets 2,963,083 733,507
Total current assets 58,329,839 57,746,201
Net property and equipment 1,655,606 1,401,447
Equity investments 4,039,953 4,036,001
Total assets $64,025,398 $63,183,649
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities 6,689,755 4,055,884
Total stockholders' equity 57,335,643 59,127,765
Total liabilities and stockholders'
equity $64,025,398 $63,183,649
SOURCE Raptor Systems, Inc.
CONTACT: Investors: John Ingalls, Chief Financial Officer of Raptor
Systems, 617-487-7700, ext. 213 |
