Wind River Sys (WIND) 38 1/4 -3 7/8: Reports Q3 earnings of $0.12 a share, $0.02 better than the First Call consensus of $0.10, vs year-ago earnings of $0.15; revenues rose 37.0% to $114.84 mln from a year-ago of $83.84 mln; see press release.
From Briefing.com
Conference call at wrs.com at 5:00 PM est
Wind River Systems Reports Third Quarter Revenues of $114.8 Million; Record Revenue for Q3; Operating
Margins Continue to Improve
Business Wire - November 29, 2000 16:04
ALAMEDA, Calif.--(BUSINESS WIRE)--Nov. 29, 2000--Wind River Systems, Inc. (Nasdaq:WIND), a leading provider of software and services for smart devices in the Internet
Age, reported its third quarter fiscal 2001 operating results for the period ended October 31, 2000.
Total revenues for the third quarter were $114.8 million, a 37% increase from revenues of $83.8 million reported in the same period of fiscal year 2000 and 13% higher than Q2.
Operating income (excluding non-operating charges) was $10.9 million or 9.5% of revenue compared to $6.5 million or 6.5% of revenue in the second fiscal quarter this year, and $13.2
million or 15.8% of revenue for the third quarter last year. Net income (excluding non-operating charges) was $9.7 million or $0.12 per diluted share compared to $7.7 million or $0.10
per diluted share in the second fiscal quarter, and $9.9 million or $0.15 per diluted share for the third quarter last year. Non-operating charges include costs associated with various
acquisitions and the amortization of goodwill, purchased technology, and other intangibles.
"I am extremely pleased with our results in the third quarter," said Tom St. Dennis, president and CEO of Wind River. "We executed well on both our financial and strategic goals,
including on-target revenue growth, improved operating margins and continued progress on the integration of our acquired companies."
Revenues for the first nine months of fiscal 2001 were $307.7 million, a 37% increase from revenues of $224.8 million reported in the same period of fiscal 2000. Excluding non-operating
charges, operating income was $20.8 million compared to $30.0 million for the corresponding period in fiscal 2000. Excluding non-operating charges, net income was $25.2 million,
compared to net income of $23.7 million for the first nine months of fiscal 2000.
For the third quarter of fiscal year 2001, on an as-reported basis, including $28.4 million of amortization of goodwill, purchased technology and other intangibles and $0.1 million of
acquisition related charges, net loss was $16.0 million or a loss of $0.22 per diluted share compared to a net income of $6.2 million or $0.09 per diluted share for the same period in the
prior year.
For the first nine months of fiscal year 2001, on an as-reported basis, including $64.8 million of amortization of goodwill, purchased technology and other intangibles and $31.8 million of
acquisition related charges, net loss was $65.8 million or a loss of $0.92 per diluted share compared to net income of $11.5 million or $0.18 per diluted share for the same period in the
prior year.
Q3 FY 2001 Highlights
During the quarter, Wind River announced the acquisitions of Rapid Logic, which gives Wind River a wider range of integrated, embedded technologies for network infrastructure
equipment, as well as ICESoft and the Dragonfly development team. The Company created closer ties to chip manufacturers with Centers of Excellence for Intel's XScale and
StrongARM micro-architectures. Wind River also announced an agreement with Xilinx to proliferate field upgradable embedded systems. Product announcements in the quarter included:
VxWorks(R) AE, Tornado(R) for Intelligent I/O 2.0, Tornado for Managed Switches 2.0, BlueThunder(TM) and StormPad(TM) for Internet appliance development, the OSEK product
line for automotive, and new WindNet(TM) ATM/MPLS networking protocol suites. Lastly, Wind River successfully completed its recruitment search for a new chief financial officer with
the appointment of Mike Zellner as vice president and CFO.
Q4 FY 2001 Outlook
The following statements are forward-looking and actual results may differ materially. Please consult page 3 of this press release for a description of certain risk factors and Wind River's
SEC reports for a complete description of risks. In response to SEC Regulation FD (Fair Disclosure), the Company plans to disseminate its quarterly business outlook, based on current
expectations, in conjunction with its quarterly earnings releases and conference calls. The Company does not plan to provide any further material guidance on analysts' financial models
beyond the information provided in its quarterly earnings release and conference call.
Mike Zellner, vice president and CFO for Wind River, said "We believe that we remain on track to achieve our stated goal of 38% revenue growth for this fiscal year, and we believe that
we are also on track for $130 million in revenue and approximately $0.18 earnings per diluted share (excluding non-operating charges) for fiscal Q4."
Conference Call
Management will host a conference call at 2:00 p.m. Pacific Time on November 29, 2000 to discuss the Q3 results and the outlook for the near term. You may listen to the conference call
by calling 800-863-4938 in the U.S. (706-634-7025 internationally). You may also listen to our live webcast at www.windriver.com. A replay will be available beginning at approximately
6:00 p.m. Pacific Time on November 29, 2000 through 11:59 p.m. on December 6, 2000. To listen to the replay, please call 800-642-1687 in the U.S. (706-645-9291 internationally)
and enter the conference I.D. number 808885.
About Wind River
Wind River, www.windriver.com, is a worldwide leader in embedded software and services for creating connected smart devices. Wind River provides software development tools,
real-time operating systems, and advanced connectivity for use in products throughout the Internet, telecommunications and data communications, digital imaging, digital consumer
electronics, networking, medical, computer peripherals, automotive, industrial automation and control, and aerospace/defense markets. Wind River is how smart things think. Founded in
1983, Wind River is headquartered in Alameda, California, with operations in sixteen countries worldwide.
Except for the historical information contained herein, this news release contains forward-looking statements, including those relating to acquisition and integration costs, 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, the potential slow
down in funding for newer customers ("start-ups"), and other risk factors detailed in the company's 2000 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: Wind River Systems, the Wind River Systems logo, VxWorks, Tornado, BlueThunder, StormPad, and WindNet 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 or organizations.
Wind River Systems, Inc.
Pro Forma Condensed Consolidated Statements of Income(1)(2)
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
October 31, October 31,
2000 1999 2000 1999
-------- -------- -------- --------
Revenues:
Products $ 82,621 $ 56,143 $213,685 $147,049
Services 32,217 27,698 94,052 77,798
-------- -------- -------- --------
Total revenues 114,838 83,841 307,737 224,847
-------- -------- -------- --------
Cost of revenues:
Products 9,250 6,277 26,374 19,466
Services 16,573 10,853 45,729 30,901
-------- -------- -------- --------
Total cost of
revenues 25,823 17,130 72,103 50,367
-------- -------- -------- --------
Gross profit 89,015 66,711 235,634 174,480
-------- -------- -------- --------
Operating expenses:
Selling and marketing 45,246 31,305 125,452 85,676
Product development
and engineering 22,357 14,506 59,814 38,747
General and
administrative 10,547 7,652 29,587 20,093
-------- -------- -------- --------
Total operating
expenses 78,150 53,463 214,853 144,516
-------- -------- -------- --------
Income from
operations 10,865 13,248 20,781 29,964
Interest income and
other, net 4,690 1,998 19,574 6,975
-------- -------- -------- --------
Income before provision
for income taxes 15,555 15,246 40,355 36,939
Provision for income
taxes 5,833 5,392 15,133 13,248
-------- -------- -------- --------
Net income $ 9,722 $ 9,854 $ 25,222 $ 23,691
======== ======== ======== ========
Net income per share:
Basic $ 0.13 $ 0.16 $ 0.35 $ 0.38
Diluted $ 0.12 $ 0.15 $ 0.33 $ 0.36
Shares used in
per share calculation:
Basic 74,195 63,477 71,230 62,631
Diluted 79,236 65,976 76,659 65,538
1. The above Pro Forma Condensed Consolidated Statements of Income for
the third quarter of fiscal 2001 have been adjusted to exclude charges
of $100,000 in acquisition charges associated with the purchase of
ICESoft and $28.4 million of amortization of goodwill and purchased
intangibles.
The third quarter of fiscal 2000 was adjusted to exclude amortization
of goodwill and purchased intangibles of $2.5 million and acquisition
charges of $1.7 million associated with the purchase of Software
Development Systems, Inc. Also excluded was $1.3 million associated
with hiring our new Chief Executive Officer.
2. The Pro Forma Condensed Consolidated Statements of Income for the
first two quarters of fiscal 2001 have been adjusted to exclude
charges of $31.7 million in acquisition charges associated with the
integration of Integrated Systems, Inc., Embedded Support Tools Corp.,
and AudeSi Technologies, and $36.3 million of amortization of goodwill
and purchased intangibles.
The first two quarters of fiscal 2000 were adjusted to exclude
amortization of goodwill and purchased intangibles of $1.0 million,
acquisition-related and other charges of $7.6 million, and $500,000
related to the write-off of an investment in Xact. Also excluded was
$1.2 million incurred for the retirement package of the former Chief
Executive Officer.
Wind River Systems, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
(unaudited)
Three months ended Nine months ended
October 31, October 31,
2000 1999 2000 1999
-------- -------- -------- --------
Revenues:
Products $ 82,621 $ 56,143 $213,685 $147,049
Services 32,217 27,698 94,052 77,798
-------- -------- -------- --------
Total revenues 114,838 83,841 307,737 224,847
-------- -------- -------- --------
Cost of revenues:
Products 9,250 6,277 26,374 19,466
Services 16,573 10,853 45,729 30,901
-------- -------- -------- --------
Total cost of
revenues 25,823 17,130 72,103 50,367
-------- -------- -------- --------
Gross profit 89,015 66,711 235,634 174,480
-------- -------- -------- --------
Operating expenses:
Selling and marketing 45,246 31,305 125,452 85,676
Product development
and engineering 22,357 14,506 59,814 38,747
General and
administrative 10,547 8,937 29,587 22,565
Amortization of
intangibles 28,449 2,527 64,780 3,573
Acquisition-related
and other 100 1,740 31,848 9,296
-------- -------- -------- --------
Total operating
expenses 106,699 59,015 311,481 159,857
-------- -------- -------- --------
Income (loss) from
operations (17,684) 7,696 (75,847) 14,623
Interest income and
other, net 4,690 1,998 19,574 6,475
-------- -------- -------- --------
Income (loss) before
provision for
income taxes (12,994) 9,694 (56,273) 21,098
Provision for
income taxes 3,000 3,495 9,500 9,587
-------- -------- -------- --------
Net income (loss) $(15,994) $ 6,199 $(65,773) $ 11,511
======== ======== ======== ========
Net income (loss)
per share:
Basic $ (0.22) $ 0.10 $ (0.92) $ 0.18
Diluted $ (0.22) $ 0.09 $ (0.92) $ 0.18
Shares used in
per share calculation:
Basic 74,195 63,477 71,230 62,631
Diluted 74,195 65,976 71,230 65,538
Wind River Systems, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share amount)
October 31, January 31,
2000 2000
(unaudited)
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 85,621 $ 77,929
Short-term investments 48,036 28,683
Accounts receivable, net 102,992 79,586
Prepaid and other current assets 41,902 35,375
--------- ---------
Total current assets 278,551 221,573
Investments 137,479 205,945
Property and equipment, net 63,893 56,331
Intangibles 437,848 35,728
Other assets 18,564 9,769
Restricted cash 56,494 39,744
--------- ---------
Total assets $ 992,829 $ 569,090
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 14,811 $ 10,551
Line of credit 6,504 5,094
Accrued liabilities 30,095 22,287
Accrued compensation 29,068 17,910
Income taxes payable 19,884 9,581
Deferred revenue 54,930 49,401
--------- ---------
Total current liabilities 155,292 114,824
Deferred taxes payable 5,869 11,574
Long-term debt 140,047 140,598
--------- ---------
Total liabilities 301,208 266,996
--------- ---------
Minority interest in
consolidated subsidiary 98 878
--------- ---------
Stockholders' equity:
Common stock 76 66
Additional paid in capital 693,877 216,149
Loan to stockholder (2,009) (1,900)
Treasury stock, at cost (29,488) (29,488)
Accumulated other comprehensive
income (loss) (5,050) 16,499
Retained earnings 34,117 99,890
--------- ---------
Total stockholders' equity 691,523 301,216
--------- ---------
Total liabilities and
stockholders' equity $ 992,829 $ 569,090
========= =========
CONTACT: Wind River Systems
Mike Zellner, 510/749-2750, Chief Financial Officer
mike.zellner@windriver.com
Jordan Brysk, 510/749-2496, Investor Relations
jordan.brysk@windriver.com
windriver.com |
