Rich ; if they did miss the number by a penny (Here's the report)
was that worth the drop that this stock took?
Wind River Reports First Quarter Revenues of $32.6 Million
ALAMEDA, Calif.--(BUSINESS WIRE)--May 20, 1999--Wind River
Systems, Inc. (Nasdaq:WIND), the world leader in embedded development
software and engineering services for the post-PC era, reported
operating results for the first quarter ended April 30, 1999.
Total revenues for the first quarter were $32.6 million, a 23%
increase from revenues of $26.4 million reported in the same period of
fiscal 1999. Operating income in the first quarter was $6.4 million,
compared to $6.3 million for the corresponding period in fiscal year
1999. Net income, including one-time charges, for the first quarter of
fiscal year 2000 was $4.2 million, compared to net income of $4.4
million for the first quarter of fiscal year 1999.
As announced on April 7, 1999, Wind River Systems purchased
certain assets of Xact, Inc. As part of this acquisition, Wind River
Systems hired the Xact employee team and incurred pre-tax charges of
approximately $800,000 related to the impairment of previous
investments and distribution arrangements with Xact. The one-time
charges are included in other income.
For the first quarter, diluted earnings per share of $0.10
decreased from $0.11 earned in the same period in fiscal 1999.
Excluding the pre-tax charges associated with the Xact transaction,
Wind River Systems would have earned $0.11 per diluted share. All
diluted earnings per share numbers have been adjusted to reflect a
3-for-2 stock split on February 4, 1999.
"Given the quarter reset that we made in early April, I am happy
that we met the revised revenue and earnings goals," stated Ronald A.
Abelmann, president and CEO. "Our acquisition of the assets of Xact
and the successful recruitment of its engineering team, combined with
the production release of Tornado(TM) II, should provide an excellent
baseline for continued growth through the year," added Abelmann.
"Shortly after the close of the quarter, we began shipping
Tornado II, the first major upgrade to our award-winning development
environment for embedded software. As the embedded industry becomes
more mainstream and post-PC era takes hold, new developers are
entering our market with a different set of expectations. The
ease-of-use in Tornado II will fuel innovation and accelerate the
introduction of new products," said Jerry Fiddler, chairman and
co-founder of Wind River Systems.
Other Highlights of the Quarter
Wind River technology is being used in many of today's most
innovative products. During the quarter Wind River software could be
found in throughout the Internet, in infrastructure technology and
connected devices.
Products in the Internet infrastructure based on Tornado and
VxWorks(R) include Broadband Access Systems' Cuda 12000 IP access
switch which was selected as the best new product in the WAN and
remote-access equipment category at the recent NetWorld + InterOp
tradeshow. Crossroads Systems, Inc., also chose Wind River's software
for the development of its next generation storage networking
solution. Crossroads Systems has become the defacto standard in
storage routing and is at the forefront of the future integration of
networks and storage solutions that will deliver startling advances in
the way that data is stored, retrieved and managed.
On the Internet appliance side, Tadpole Technology Plc announced
that it is using VxWorks and Wind River's Java solution, Personal
JWorks(TM)for its new Internet appliance, the Tadpole-CartesiaJ-Slate.
This device is a unique, Java-based mobile information system that
allows utility workers to retrieve and update on-line information
while in the field.
Telestream'ClipMail Pro allows digital master quality video,
audio, and timecode to be sent and received over existing data
networks. ClipMail Pro which is based on Tornado and the Company's
Zinc(R) graphics software, won the "Editor's Pick of Show" at the 1999
National Association of Broadcasters exhibition.
Traditional embedded markets like medical equipment continue to
take advantage of Wind River technology. The Cardiac Rhythm Management
Division of St. Jude Medical chose Wind River software to develop its
state-of-the-art APS3500 programmer, a user-friendly GUI-based system
used to program implantable pacemakers. Wind River's integrated
development environment enabled St. Jude to move to a
competitively-priced commercial RTOS and development tools from a
single source.
Wind River Systems, Inc.
An ISO 9001 registered company, Wind River Systems, Inc., is the
leading provider of integrated software development tools for
real-time embedded applications in the Internet, telecommunications,
data communications, office automation, networking, computer
peripherals, medical, automotive, industrial, aerospace/defense and
multimedia markets.
Through the industry's most comprehensive and technically
advanced product line, Wind River enables over 30,000 developers
worldwide to develop and reuse application software across a variety
of products and platforms, giving developers and original equipment
manufacturers (OEMs) competitive advantage through shortened
development cycles and improved time-to-market. Incorporated in 1983,
Wind River is headquartered in Alameda and has over 320 partners
worldwide.
Except for the historical information contained herein, this news
release contains forward-looking statements, including those relating
to contemplated product offerings and market share, that involve risks
and uncertainties that could cause actual results to differ materially
from those contemplated herein. Factors that could cause or contribute
to such differences include but are not limited to timely development,
acceptance and pricing of new products, the impact of competitive
products and pricing, and other risk factors detailed in the company's
1999 Annual Report on Form 10-K and other periodic filings with the
Securities and Exchange Commission. The Company undertakes no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events, or otherwise.
Note to Editors: Tornado, VxWorks, Wind River Systems, Personal
JWorks, Zinc and the Wind River Systems logo are trademarks or
registered trademarks of Wind River Systems, Inc. All other names
mentioned are trademarks, registered trademarks or service marks of
their respective companies.
Wind River Systems, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
Three months ended
April 30,
1999 1998
------- -------
Revenues:
Products $22,708 $19,322
Services 9,892 7,078
------- -------
Total revenues 32,600 26,400
------- -------
Cost of revenues:
Products 1,713 1,968
Services 4,198 2,821
------- -------
Total cost of revenues 5,911 4,789
------- -------
Gross profit 26,689 21,611
------- -------
Operating expenses:
Selling and marketing 12,286 9,876
Product development and engineering 5,731 3,774
General and administrative 2,236 1,704
------- -------
Total operating expenses 20,253 15,354
------- -------
Income from operations 6,436 6,257
Interest income and other, net 211 948
------- -------
Income before provision for income taxes 6,647 7,205
Provision for income taxes 2,493 2,770
------- -------
Net income $ 4,154 $ 4,435
======= =======
Net income per share:
Basic $ 0.10 $ 0.11
Diluted $ 0.10 $ 0.11
Shares used in per share calculation
Basic 40,535 38,796
Diluted 42,586 41,968
Net income per share and shares used in per share calculation have
been adjusted to reflect a 3-for-2 stock split on February 4, 1999.
Wind River Systems, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share amount)
(unaudited)
April 30, January 31,
1999 1999
------- -------
ASSETS
Current assets:
Cash and cash equivalents $ 67,567 $ 42,514
Short-term investments 5,407 9,143
Accounts receivable, net 24,575 30,375
Prepaid and other current assets 12,135 10,598
--------- ---------
Total current assets 109,684 92,630
Investments 139,587 155,618
Property and equipment, net 32,690 31,350
Other assets 12,754 13,021
Restricted cash 36,044 34,157
--------- ---------
Total assets $ 330,759 $ 326,776
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 4,199 $ 3,389
Accrued liabilities 11,739 10,005
Accrued compensation 6,473 5,950
Income taxes payable 2,330 405
Deferred revenue 16,605 17,062
--------- ---------
Total current liabilities 41,346 36,811
Convertible subordinated notes 140,000 140,000
--------- ---------
Total liabilities 181,346 176,811
--------- ---------
Minority interest in consolidated
subsidiary 700 551
--------- ---------
Stockholders' equity:
Common stock 41 41
Additional paid in capital 124,780 124,605
Treasury stock, at cost (29,488) (25,491)
Accumulated other comprehensive loss (3,188) (2,155)
Retained earnings 56,568 52,414
--------- ---------
Total stockholders' equity 148,713 149,414
--------- ---------
Total liabilities and
stockholders' equity $ 330,759 $ 326,776
========= =========
CONTACT:
Wind River Systems
Richard Kraber, 510/749-2181
De Anna Mekwunye, 510/749-2577
KEYWORD: CALIFORNIA
BW0282 MAY 20,1999
15:21 PACIFIC
18:21 EASTERN
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