MOUNTAIN VIEW, Calif., Oct. 21 /PRNewswire-FirstCall/ --
VERITAS Software Corporation (NASDAQ:VRTS) today announced financial results
for its third quarter ended September 30, 2002. The Company achieved third
quarter revenue of $366 million, compared to revenue of $365 million for the
quarter ended June 30, 2002 and revenue of $340 million for the same period a
year ago.
Pro forma diluted earnings per share for the third quarter was $0.14,
compared to $0.14 for the prior quarter and $0.12 for the same period a year
ago. Pro forma diluted earnings per share do not include the effect of
purchase accounting adjustments, other non-recurring charges and related
adjustments for income tax provisions. Purchase accounting adjustments
include non-cash items such as amortization of developed technology,
amortization of goodwill and other intangibles.
GAAP net income for the quarter ended September 30, 2002 was $36 million,
or $0.09 per share, diluted, compared with $26 million, or $0.06 per share,
diluted, in the prior quarter and a loss of $162 million, or ($0.40) per share
for the quarter ended September 30, 2001. As a consequence of adopting the
Statement of Financial Accounting Standards 142 as of January 1, 2002, the
non-cash charges related to amortization of goodwill and other intangibles
decreased $204 million in the quarter ended September 30, 2002 as compared to
the quarter ended September 30, 2001.
"We are pleased with our performance this quarter given the ongoing
challenges of reduced IT spending patterns," said Gary Bloom, chairman,
president and CEO, VERITAS Software. "Our results are a reflection of our
ability to execute against our business model and how well it aligns with the
trends in the storage industry. Our commitment to providing software solutions
that enable our customers to better manage today's complex, heterogeneous IT
environments has enabled us to outperform our competition and maintain a
strong competitive advantage."
"Our balance sheet remains strong, as we exited the quarter with a record
$2.1 billion in cash and investments, and generated approximately $100 million
in cash from operating activities during the quarter," said Bloom. "In
addition, we continue to manage our costs very tightly, and maintained an
operating margin of 23%."
The company expects the selling climate for the fourth quarter to be
similar to the past few quarters, with some sequential revenue growth due to
the normal seasonal nature of the sales model. The company believes the
current First Call revenue consensus of $377 million is a reasonable target.
Based on the previously provided operating margin guidance of 21% to 23%,
fourth quarter pro-forma earnings per share is expected to be in the range of
$0.12 to $0.14. Looking to calendar year 2003, the company expects to follow
the seasonal patterns typical of the software industry, with a sequential
decline from the fourth quarter, 2002 to the first quarter, 2003, followed by
modest improvements in the second half of the year.
The pro forma statements of operations are intended to present the
Company's operating results excluding purchase accounting adjustments and
other non-recurring items. These pro forma statements of operations are not in
accordance with, or an alternative for, generally accepted accounting
principles and may be different from pro forma measures used by other
companies.
The Company will hold a conference call today at 2:00 p.m. Pacific Time,
5:00 p.m. Eastern Time, to review the results and business outlook. The
conference call will be available to all investors. The telephone dial-in
number for listen-only access to the live call is 913-981-5581. A live web
cast will also be available at www.veritas.com, Investor section. In addition,
a telephonic replay will be available on Monday, October 21 at 4:00 pm,
Pacific Time through October 28, 2002, 10:00 pm, Pacific Time, by dialing
719-457-0820, replay code: 440826. |
