Thanks to all of you for your interest in Vitria Technology. We've had some confusion in the markets this
morning over our earnings versus analyst estimates, caused by a new calculation methodology used by the
analysts. The attached press release, which just hit the wire, explains.
Alex Osadzinski, VP Marketing, Vitria Technology Inc
(408) 212-2260, alexo@vitria.com
NEWS ALERT
VITRIA EARNINGS CLARIFICATION: RECORD RESULTS BEAT ESTIMATES
New Analyst Reporting Methodology Caused Confusion
SUNNYVALE, CA, October 22, 1999 ? Vitria Technology, Inc. (Nasdaq:VITR), is releasing a clarification
regarding the comparison between its reported earnings for the quarter and the consensus estimates reported
by the financial analysts that follow the company.
In its third quarter 1999 earnings announcement, released yesterday, Vitria reported a net loss for the third
quarter of $2.8 million, or $0.18 per share, excluding a $1.4 million non-cash charge relating to stock
compensation. The analysts? consensus reported on First Call was a loss of $0.16 per share, which led some
observers to erroneously conclude that Vitria had missed analyst estimates. The analyst number was
calculated differently from the reported earnings, using a newly-adopted fully-taxed convention. Calculating
Vitria?s earnings on the same basis, to provide an apples-to-apples comparison, yields a loss of $0.11 per
share. This beats analysts? estimates by $0.05 per share.
Yesterday, Vitria Technology Inc announced record revenues of $7.8 million for the third quarter ended
September 30, 1999, an increase of 283% over the same quarter a year ago. For the nine months ended
September 30, 1999, the company had revenues of $19.3 million, a 415% year-over-year increase. |
