EMBARCADERO TECHNOLOGIES ANNOUNCES RECORD THIRD-QUARTER FINANCIAL RESULTS
Company Achieves 91% Revenue Growth and a 33% Pro Forma Operating Margin
San Francisco, CA – October 16, 2000 - Embarcadero Technologies, Inc. (Nasdaq: EMBT), a leading provider of database lifecycle management solutions, today announced financial results for the third fiscal quarter ended September 30, 2000.
Total revenues for the third quarter of 2000 increased 91 percent to $10.8 million from $5.7 million for the same period last year. Pro forma net income, which excludes deferred stock-based compensation expense, reached $2.7 million or $0.10 per share on a fully diluted basis, which exceeded the First Call consensus estimate of $0.06 per share. For the corresponding quarter in 1999, pro forma net income was $2.5 million or $0.12 per share.
“The third quarter marked another period of strong growth for the company,” said Stephen Wong, chairman and CEO. ”While the summer is normally a slower period for the industry, we booked record sales with all of our key products in the quarter and sequential revenue growth increased to 20%. We’re also pleased that profitability remained strong, as we achieved a 33% pro forma operating margin while continuing to invest for future growth.”
In the quarter, license revenues rose 86 percent to $7.6 million from $4.1 million in the corresponding quarter a year ago. Maintenance revenues grew 103 percent to $3.2 million from $1.6 million for the same quarter last year. Excluding deferred stock-based compensation expense, operating income increased 42 percent to $3.6 million and the operating margin was 33 percent. Including $2.0 million in deferred stock-based compensation expense, actual net income was $0.7 million or $0.02 per share on a fully diluted basis for the quarter.
Quarterly net income and earnings per share have been adversely affected by a $1.5 million increase versus the corresponding quarter a year ago in the company’s provision for taxes. In February 2000, the company converted from a S corporation to a C corporation effective as of January 1, 2000. As a C corporation, the company now incurs federal and state tax liabilities, which in prior years were paid by the shareholders of the S corporation.
About Embarcadero Technologies Embarcadero Technologies, Inc. (Nasdaq: EMBT), is a leading provider of software solutions that enable organizations to build, optimize and manage e-business applications and their underlying databases. Thousands of customers, including 85 percent of the Fortune 100, use Embarcadero products to design, develop and administer their mission-critical database applications. Embarcadero is based in San Francisco, CA. For more information, call 415-834-3131. |
