Embarcadero Technologies Announces Record Second-quarter Financial Results
Company Achieves 107 Percent Year-over-Year Revenue Growth While Sustaining Strong Operating Profitability
SAN FRANCISCO--(BUSINESS WIRE)--July 31, 2000-- Embarcadero Technologies, Inc. (Nasdaq:EMBT - news), a leading provider of database lifecycle management solutions, today announced financial results for the second quarter ended June 30, 2000.
Revenues for the second quarter of 2000 increased 107 percent to $9.1 million from $4.4 million for the same period last year. Pro forma net income, which excludes deferred stock-based compensation expense, reached $2.0 million or $0.08 per share on a fully diluted basis, which exceeded the First Call consensus estimate of $0.03 per share. For the corresponding quarter in 1999, pro forma net income was $1.7 million or $0.08 per share.
``Our second quarter results demonstrate our progress in establishing Embarcadero Technologies as the leader in database lifecycle management solutions,'' said Stephen Wong, chairman and CEO. ``Rising corporate interest in e-business initiatives continues to spur strong demand for all of our products. We're also pleased that we met key profit objectives for the quarter while continuing to build our sales and distribution capabilities domestically and abroad.'' In the quarter, license revenues rose 100 percent to $6.3 million from $3.2 million one year ago. Maintenance revenues grew 125 percent to $2.7 million from $1.2 million for the same quarter last year. Excluding deferred stock-based compensation expense, operating income increased 66 percent to $2.9 million and the operating margin was 32 percent. Including $2.0 million in deferred stock-based compensation expense, the actual net loss was $20,000 or $0.00 (break-even) per share for the quarter.
Quarterly net income and earnings per share have been adversely affected by a $1.3 million increase in the company's taxes. In order to facilitate its initial public offering, the company converted from a subchapter S corporation to a C corporation. As a C corporation, the company now incurs federal and state income tax liabilities, which in prior years was paid by the shareholders of the S corporation.
About Embarcadero Technologies
Embarcadero Technologies, Inc. (Nasdaq: EMBT - news), is a leading provider of software solutions that simplify building and managing e-business applications and their underlying databases. Thousands of major companies, including 85 percent of the Fortune 100, have licensed Embarcadero products to maximize the design, development and administration of their mission-critical database applications. The trademarks of the award winning Embarcadero solutions are ease of use and quick time to productivity. Embarcadero's revenues have grown over 100 percent in each of the last two years and the company has been profitable since 1995. |
