WIND ( $15 uncng) EPS -$4.59 Meets Revised Revenue and Earnings Per Share Guidance
siliconinvestor.com
ALAMEDA, Calif.--(BUSINESS WIRE)--Aug. 16, 2001--Wind River Systems, Inc. (Nasdaq:WIND - news), a leading provider of software and services for connected smart devices, reported its second quarter fiscal 2002 operating results for the period ended July 31, 2001. Total revenues for the second quarter were $80.2 million, a 21% decrease from revenues of $101.3 million reported in the same period of fiscal year 2001. Operating loss for the quarter (excluding non-operating charges) was $12.0 million as compared with operating income of $6.5 million in the second quarter last year. Net loss (excluding non-operating charges) was $6.5 million or $0.08 per share as compared with net income of $7.7 million or $0.10 per diluted share in the second quarter last year.
``While it is disappointing to report a loss this quarter, we are aggressively managing through the difficult business environment,'' said Mike Zellner, vice president and chief financial officer of Wind River. ``We are committed to returning the company back to a profitable state in the near-term as well as strengthening our position for long-term growth and improving operating margins.''
On an as-reported basis, including $24.3 million of amortization of goodwill and purchased intangibles, restructuring charges of $28.6 million and a write-down of $225.4 million in goodwill and other intangible assets resulting from an asset impairment review the company announced in May, net loss was $281.6 million or $3.64 per share for the second quarter of fiscal year 2002, compared to actual net loss of $17.3 million or $0.24 per diluted share for the same period last year.
Q2 FY 2002 Highlights
``I continue to remain optimistic about Wind River's long-term growth prospects. We are looking at this environment as an opportunity to actively grow our market share by positioning Wind River as the most comprehensive strategic partner for our customers. This quarter we continued investing in the development of solution-level products, strengthening our partnerships, and focusing on improving our customer support efforts,'' said Tom St. Dennis, president and chief executive officer of Wind River. ``This focus will help us grow even faster when our customers resume their product development activities.''
During the quarter, Wind River announced two additions to its expanding line of solution-level products with the introduction of Tornado® for Industrial Automation and Tornado for Intelligent Network Acceleration (TINA). In addition, Tornado for Managed Switches reached its 100th order in the second quarter. TMS customers include Cisco, LSI Logic, Music Semiconductors, Motorola, Clarent Corporation, Nishan Systems, and Fujitsu Limited.
``Through our dedication to customer satisfaction, Wind River generated the vast majority of its business in the second quarter from repeat customers. These customers include Motorola, Lucent, Cisco, Siemens, Alcatel, ST Microelectronics, Nortel, Raytheon, Intel and Lockheed Martin, among others. We will continue to focus our efforts on providing quality products and quality support as we streamline our operations,'' said, St. Dennis.
Q3 FY 2002 Outlook
The following statements are forward-looking and actual results may differ materially. Please consult the safe-harbor statement at the end 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.
Wind River is providing the following details regarding the fiscal third quarter outlook:
Wind River expects Q3 FY2002 revenue to be flat to up 5% from Q2 revenue.
Operating expenses are expected to be in a range of $65 million to $67 million.
Other income is expected to contribute approximately $2.0 million.
Provision for income taxes is expected to be approximately 37.5% of pre-tax income.
Basic and fully-diluted share counts are expected to be approximately 78 million and 80 million shares, respectively.
Earnings per share (excluding non-operating charges) are expected to be in the range of a $0.02 loss to break-even.
Days Sales Outstanding (DSO) are expected to come in at a range of 85-95 days for Q3 FY2002.
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