Wind River Reports Second Quarter Net Income of $0.14 Per Share on Revenues of $22
Million; Quarterly Revenues Up 47%, Net Income up 85%
BusinessWire, Wednesday, August 20, 1997 at 18:18
ALAMEDA, Calif.--(BUSINESS WIRE)--Aug. 20, 1997--Wind River
Systems, Inc. (NASDAQ:WIND) the leading provider of real-time
operating systems, integrated software development tools and
engineering services for embedded applications, reported operating
results for the second quarter ended July 31, 1997.
Revenues for the second quarter were $22,000,000, an increase of
47% from the $15,000,000 reported in the second quarter of the
previous year. Net income for the quarter was $3,870,000 compared to
net income of $2,090,000 for the corresponding quarter of the
previous year, an increase of 85%. Earnings per share grew from
$0.08 in the second quarter of last year to $0.14 this year, an
increase of 75%. Weighted average shares outstanding, used in the
computation of earnings per share for the current quarter and the
corresponding quarter of the previous year, were 28,373,000 and
24,728,000, respectively.
Total revenues for the first half of fiscal 1998 of $40,400,000
represents a 46% increase from revenues of $27,600,000 in the first
half of fiscal 1997. Net income for the first half of this fiscal
year was $6,820,000 compared to $3,560,000 for the same period last
year, an increase of 92%.
"This has been a very exciting and productive quarter for Wind
River," said Ron Abelmann, president and CEO of Wind River Systems.
"Our order growth has been outstanding and the second release of our
Tornado tool suite has been extremely well accepted, bringing our
current Tornado(tm) user base to over 13,000. Furthermore, we have
again met our key revenue and profitability objectives," continued
Abelmann.
Significant events during the quarter
The second quarter featured design wins across a variety of
industries. In June, Wind River announced a corporate-wide strategic
technology agreement with Adobe Systems, Inc. (NASDAQ:ADBE) whereby
Tornado will become the standard platform for all Adobe
PostScript-based printers and other embedded systems.
In early July, millions worldwide celebrated the success of NASA's
Mars Pathfinder mission, which is controlled by Wind River's
VxWorks(r) real-time operating system. NASA's Johnson Space Center
further endorsed the reliability of Wind River technology in mission-
critical applications by choosing Tornado as the development
environment for the x38 program -- essentially a lifeboat for the
emerging space station.
During the quarter Wind River announced its fully integrated
Embedded Internet(tm) product suite, bringing the advantages of the
Internet to embedded computers such as smart phones, network
computers, network printers, cable modems and switches. With the
addition of the Tornado for Embedded Internet suite, Wind River
becomes the first vendor to provide a common technology to build and
deploy products throughout the Internet, including its
infrastructure, servers and smart appliances. The Company also
announced a scalable enhanced TCP/IP network stack to help developers
build next-generation datacom and telecom products more quickly.
Shortly after quarter-end, Digital Equipment and Wind River
jointly announced that Wind River will support Digital's StrongARM
processor for the I2O initiative. Further endorsement of Wind River
products came from the United States Postal Service who will be using
Wind River technology as an integral part of their new Small Facility
OCR Mail Sort System. InterWAVE Communications, a developer of
microcellular systems for wireless communications, chose Wind River's
industry-leading network performance as the basis for their Global
System for Mobile Communications (GSM) system products. In Asia,
Korean Airlines chose Wind River technology as a basis for a major
subway simulation application.
Wind River Systems, Inc.
Wind River Systems, Inc. is the leading provider of real-time
operating systems, integrated software development tools, and
engineering services for embedded applications in the Internet,
telecommunications and datacommunications, office automation,
networking, computer peripherals, medical, automotive, industrial,
aerospace, and multimedia markets. Through the industry's most
comprehensive product line and customer support, Wind River enables
customers to enjoy rapid time to market and standardize their designs
across products. Incorporated in 1983, Wind River is headquartered
in Alameda, California, with operations in Canada, the United
Kingdom, France, Germany, Sweden, Italy, Israel, Japan and Korea, and
representation worldwide.
Except for the historical information contained herein, this news
release contains forward-looking statements that involve risks and
uncertainties, including but not limited to timely development,
acceptance and pricing of new products, the impact of competitive
products and pricing, and other risks detailed in the Company's most
recent Annual Report on Form 10-K filed with the SEC.
Tornado and Embedded Internet are trademarks and VxWorks, Wind
River Systems, and the Wind River Systems logo are registered
trademarks of Wind River Systems, Inc. Tornado patent pending. All
other names mentioned are trademarks, registered trademarks, or
service marks of their respective companies.
*T
WIND RIVER SYSTEMS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except per share amounts)
(unaudited)
July 31, Jan. 31,
1997 1997
ASSETS
Current assets:
Cash and cash equivalents $ 150,153 $ 9,848
Short-term investments 20,641 46,895
Accounts receivable, net of allowances
of $1,164 and $1,204 12,544 13,296
Prepaid and other current assets 5,631 4,780
Total current assets 188,969 74,819
Investments 70,692 43,004
Equipment and furniture, net of
accumulated depreciation of $8,924 and
$7,328 11,521 8,426
Capitalized software costs, net of
accumulated amortization of $2,682 and $2,382 1,263 828
Deposits and other assets 7,228 1,584
Total assets $279,673 $128,661
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,204 1,340
Accrued liabilities 6,269 5,530
Accrued compensation 4,449 4,391
Income taxes payable 3,408 1,941
Deferred revenue 11,423 6,271
Total current liabilities 27,753 19,473
Long-term debt 140,000 --
Deferred rent 117 127
Total liabilities 167,870 19,600
Minority interest in consolidated subsidiary 304 312
Stockholders' equity:
Common stock, par value $.001, 75,000
shares authorized 25,802 and 25,382 shares
issued, and 25,489 and 25,269 shares
outstanding 26 25
Additional paid in capital 92,112 89,890
Cumulative translation adjustments (630) (310)
Unrealized loss on securities (494) (353)
Retained earnings 29,438 22,618
Less treasury stock, 313 and 113 shares,
at cost (8,953) (3,121)
Total stockholders' equity 111,499 108,749
Total liabilities and stockholders'
equity $279,673 $128,661
WIND RIVER SYSTEMS, INC.
CONSOLIDATED INCOME STATEMENTS
(In thousands, except per share amounts)
Three months ended Six months ended
July 31, July 31,
1997 1996 1997 1996
(unaudited) (unaudited)
Revenues:
Products $15,926 $10,700 $29,183 $19,231
Services 6,074 4,300 11,217 8,369
Total revenues 22,000 15,000 40,400 27,600
Cost of revenues:
Products 1,601 1,246 3,007 2,335
Services 2,362 1,744 4,300 3,305
Total cost of
revenues 3,963 2,990 7,307 5,640
Gross profit 18,037 12,010 33,093 21,960
Operating expenses:
Sales and
marketing 8,346 5,767 15,601 10,906
Product
development 3,005 1,913 5,439 3,508
General and
administrative 1,565 1,133 3,102 2,151
Total operating
expenses 12,916 8,813 24,142 16,565
Operating
income 5,121 3,197 8,951 5,395
Other income
(expense):
Interest income 890 255 1,698 445
Minority interest
in consolidated
subsidiary 36 (62) 8 (60)
Total other income 926 193 1,706 385
Income before
income taxes 6,047 3,390 10,657 5,780
Provision for
income taxes 2,177 1,300 3,837 2,220
Net income $ 3,870 $ 2,090 $ 6,820 $3,560
Net income per
share $ 0.14 $ 0.08 $ 0.24 $ 0.15
Weighted average
common and
common equivalent
shares 28,373 24,728 28,174 24,385
*T
CONTACT: Wind River Systems, Inc.
Richard Kraber, 510/748-4100
De Anna Mekwunye, 510/749-2577
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: COMED COMPUTERS/ELECTRONICS
INTERACTIVE/MULTIMEDIA/INTERNET EARNINGS
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