A look back at Verity's last financial report. They continue to show strong growth and profitibility. Current trading at a PE of 18 with projected growth of 20-30% makes Verity a bargain.
Verity Reports Record Fourth Quarter and Fiscal Year-End Results
siliconinvestor.com
Financial Highlights - Revenue up 8% over prior quarter, to a record $41.2 million - Net income for the quarter was a record $9.2 million on a fully taxed basis - EPS for the quarter was $0.25 on a fully taxed, fully diluted basis - 13th consecutive profitable quarter, 12th quarter with record revenue - Revenue up 51% over prior year, to a record $145.0 million Strategic Highlights - Signed significant deals during the quarter including JP Morgan, Chase, Schering-Plough, U.S. General Services Administration, Verizon - Expanded sales relationships with AT&T Wireless, Lotus, SAP and others during the quarter - Extended global coverage by establishing presence in Brazil, Mexico, Singapore, South Africa and Sweden - Continued leadership in its OEM market segment
SUNNYVALE, Calif., Jun 20, 2001 /PRNewswire via COMTEX/ -- Verity, Inc. (Nasdaq: VRTY chart, msgs), a leading provider of infrastructure software powering enterprise and e-commerce portals as well as e-business applications, today reported financial results for its fourth quarter and fiscal year ended May 31, 2001. Verity's revenues for its fourth quarter were a record $41.2 million. Software product revenues, which represented 77% of total revenues for the quarter, were also a record, totaling $31.6 million. Net income for the quarter on a fully taxed basis was a record $9.2 million, or $0.25 per diluted share.
"Verity's global team achieved outstanding success in a difficult economic environment," said Gary J. Sbona, Verity's chairman and chief executive officer. "Throughout fiscal 2001, Verity demonstrated outstanding performance in the crucial areas that define a company, including financial, operations and product development. This translated into results that advanced Verity's leadership in business portal infrastructure software."
During the fourth quarter, Verity realized significant sales from major airlines, financial services, governmental agencies, healthcare, pharmaceutical, professional services, publishing, and telecommunications companies such as AT&T Wireless, Baxter Healthcare, JP Morgan Chase, U.S. Department of State, U.S. General Services Administration, Deloitte-Touche, HSBC, MTVi, McKinsey & Co., Panasonic, Schering-Plough, Standard Chartered Bank, Steelcase, Tellabs, Universal Music, Verizon, and Williams Group. In addition, the company's position as a leading supplier of search-related technology for the world's largest software vendors continued. New or extended OEM relationships achieved during the period included Cadence, Documentum, Lotus, Open Market, SAP, Sun Microsystems, and Sybase.
Record Fiscal 2001 Performance
For the fiscal year ended May 31, 2001, total revenues were a record $145.0 million, up 51% from last year, and software product revenues of $108.7 million were up 56% from last year. Beginning this fiscal year, Verity's financial results have been reported on a fully taxed basis. Net income for fiscal 2001 was a record $33.8 million, or $0.92 per diluted share. For the same period last year, Verity's pro-forma net income was $19.3 million, or $0.55 per share, on a comparable fully taxed basis. Net income on a comparable fully taxed basis increased 75% over the same period last year.
Business Outlook: Strong Growth for Fiscal 2002
Despite difficult worldwide market and economic conditions, Verity projects increased revenue in fiscal 2002. Verity projects annual revenue growth for fiscal 2002 to be in the range of 25 percent to 30 percent, or revenues between $181 million and $189 million. Based on this level of revenue, Verity projects net income for FY 2002 to be in the range of $33 million to $39 million. Verity projects earnings per share for FY 2002 to be in the range of $0.85 to $1.00 per share on a fully taxed/fully diluted basis.
Based on current economic conditions, Verity is projecting first quarter 2002 revenues between $34 million and $36 million, an increase of about 9 percent to 15 percent from the same quarter last year. Verity projects first quarter earnings per share, on a fully taxed/fully diluted basis, to be between $0.11 and $0.14 per share. |
