Momentum on the revenue side continues to grow, though profitability remains elusive:
Opsware Inc. Non-EDS Revenue Grows 103%
Tuesday March 6, 7:30 am ET
Expects Total Revenue of $142-$147 Million in Fiscal 2008
-- Grows Non-EDS derived bookings 50% over Q4 last year
-- Earns Non-GAAP EPS of $0.03
-- Signs 84 new license deals; 4 deals greater than $1 million
-- Expects to grow Non-EDS derived bookings by at least 60%
SUNNYVALE, Calif.--(BUSINESS WIRE)--Opsware Inc. (NASDAQ:OPSW - News), the leading provider of Data Center Automation software, today reported results for its fourth quarter and full year ended January 31, 2007, highlighted by 103% year-over-year growth in non-EDS revenue and the strongest bookings quarter in company history.
Source: Opsware Inc.
Separately, the company announced the acquisition of privately held iConclude, the leader in IT process automation software.
Opsware Inc.'s net revenue for the fourth quarter ended January 31, 2007 totaled $29.6 million, up 59% from the same quarter last year.
Full year revenue totaled $101.7 million, up 67% from the prior year.
Non-EDS revenue totaled $24.1 million in the fourth quarter, an 81% increase over the same quarter last year. A chart depicting Opsware's historical non-EDS revenue growth is included in this release.
Full year non-EDS revenue totaled $80.6 million, up 103% from the prior year.
Non-EDS derived bookings (which equals net revenue, plus the sequential changes in deferred revenue and advances from customers, all excluding the impact of the EDS contract) totaled $26.7 million in the fourth quarter, up 50% from the same quarter last year and $4.3 million sequentially. A chart depicting Opsware's historical non-EDS derived bookings growth is included in this release.
Non-GAAP net income in the fourth quarter was $3.5 million or $0.03 per share, meeting the company's guidance.
GAAP net loss in the fourth quarter was $(1.7) million or $(0.02) per share. Non-GAAP net income in the fourth quarter excludes non-cash charges of approximately $1.1 million relating to previous acquisitions and $4.1 million of non-cash stock-based compensation. A reconciliation between net income (loss) on GAAP and non-GAAP bases is provided in a table immediately following the Condensed Consolidated Statements of Operations attached to this release.
"This was another great year for Opsware," said Ben Horowitz, president and CEO of Opsware Inc. "During FY '07 we grew our non-EDS revenue by more than 100%, doubled the number of new deals signed, crossed the $100 million revenue milestone, and in a year in which we grew our product suite from 2 to 6, achieved non-GAAP profitability for the year. We expect FY '08 to be even better, with non-EDS derived bookings growing even more than they did this year."
Financial Outlook
Management provides the following guidance for its first quarter ending April 30, 2007:
Net revenue is expected to total approximately $26 - 27 million.
Non-GAAP EPS is expected to be $(0.01 - 0.02).
Management provides the following guidance for its fiscal year ending January 31, 2008:
Non-EDS derived bookings growth is expected to be at least 60% compared to fiscal year 2007.
Net revenue is expected to total $142 - $147 million.
Non-GAAP operating margin is expected to be 5 - 8%.
Non-GAAP EPS is expected to be $0.09 - 0.13.
The company guidance for its fiscal year ending January 31, 2008 includes incremental revenue of $2 - 3 million, as well as the expense base acquired from the purchase of iConclude. The net effect of the transaction on non-GAAP EPS after considering acquired operating expenses, share issuance, and lower interest income is $(0.05) in fiscal 2008. The transaction is expected to be EPS accretive in fiscal 2009.
The company will provide additional detail on its financial results and outlook as well as the iConclude acquisition on the conference call referenced below.
About the Conference Call and Webcast
Opsware management will host a conference call today, March 6, 2007, beginning at 5:30 a.m. PT (8:30 a.m. ET) to discuss today's announcement. Interested parties may access the conference call by dialing (877) 502-9272. A live audio version and replay of the conference call will be available on the Investor Relations section of Opsware's web site at investor.opsware.com.
About Non-GAAP Financial Information
When used in connection with historical results or forward-looking guidance, non-GAAP net income, non-GAAP profitability, non-GAAP operating margin and non-GAAP EPS each exclude non-cash stock-based compensation expense and non-cash charges relating to past acquisitions. With respect to historical results, a reconciliation between both net income (loss) and net income (loss) per share on GAAP and non-GAAP bases is provided in a table immediately following the Condensed Consolidated Statement of Operations attached to this release. With respect to forward-looking guidance, a reconciliation between both operating margin and EPS on GAAP and non-GAAP bases has not been provided because each of operating margin and EPS on a GAAP basis depends in part upon the amount of stock based compensation expense, which expense is dependent upon our future stock price and other factors that cannot be determined at this time.
To supplement our consolidated financial statements presented on a GAAP basis, we believe that these non-GAAP measures better reflect our core operating results and thus are appropriate to enhance the overall understanding of our past financial performance and our prospects for the future. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of our underlying operational results and trends and our performance. Management uses these non-GAAP measures to evaluate its financial results, develop budgets and manage expenditures. The presentation of additional information is not meant to be considered in isolation or as a substitute for net loss or net loss per share prepared in accordance with GAAP.
<snip>
OPSWARE INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, unaudited)
January 31, 2007 January 31, 2006
---------------- ----------------
ASSETS
Current assets:
Cash and cash equivalents $ 90,940 $ 101,898
Accounts receivable, net 31,748 17,867
Prepaid expenses and other
current assets 6,431 6,546
---------------- ----------------
Total current assets 129,119 126,311
Property and equipment, net 5,898 3,944
Restricted cash 2,279 2,296
Prepaid rent 1,001 1,540
Other assets 797 380
Intangibles, net 9,705 7,613
Goodwill 33,246 27,668
---------------- ----------------
Total assets $ 182,045 $ 169,752
================ ================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,612 $ 1,217
Other accrued liabilities 17,174 11,389
Advances from customers -- 721
Deferred revenue, current
portion 28,924 29,473
Accrued restructuring costs,
current portion 345 298
Capital lease obligations,
current portion 19 14
---------------- ----------------
Total current liabilities 49,074 43,112
Capital lease obligations, net of
current portion 55 74
Deferred revenue, net of current
portion 1,323 1,838
Accrued restructuring costs, net of
current portion 817 1,190
---------------- ----------------
Total liabilities 51,269 46,214
---------------- ----------------
Stockholders' equity:
Common stock 102 100
Additional paid-in capital 630,282 609,455
Deferred stock compensation -- (2,606)
Accumulated deficit (499,339) (483,270)
Accumulated other comprehensive
loss (269) (141)
---------------- ----------------
Total stockholders' equity 130,776 123,538
---------------- ----------------
Total liabilities and
stockholders' equity $ 182,045 $ 169,752
================ ================
OPSWARE INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts, unaudited)
Three Months Ended Twelve Months Ended
January 31, January 31,
------------------ -------------------
2007 2006 2007 2006
--------- -------- --------- ---------
Revenue:
License revenue $ 21,012 $13,638 $ 71,582 $ 43,138
Services revenue 8,543 4,954 30,144 17,939
--------- -------- --------- ---------
Net revenue 29,555 18,592 101,726 61,077
--------- -------- --------- ---------
Cost and expenses:
Cost of license revenue 352 516 1,576 1,185
Cost of services revenue(a) 5,224 3,673 20,847 13,044
Cost of developed technology 761 412 2,346 1,640
Research and development(a) 8,176 6,151 31,315 23,149
Sales and marketing(a) 13,435 7,627 47,796 24,902
General and administrative(a) 4,423 3,987 17,346 12,338
Restructuring recoveries, net -- -- -- (18)
Amortization of other
acquisition-related
intangibles 338 327 1,330 1,302
In-process research and
development charges -- -- -- 1,190
--------- -------- --------- ---------
Total cost and expenses 32,709 22,693 122,556 78,732
--------- -------- --------- ---------
Loss from operations (3,154) (4,101) (20,830) (17,655)
Gain (loss) on sale of assets
and liabilities from the
Managed Services Business 329 (13) 329 (69)
Interest and other income, net 1,210 969 4,650 3,166
--------- -------- --------- ---------
Loss before income taxes (1,615) (3,145) (15,851) (14,558)
Provision for income taxes 95 173 218 193
--------- -------- --------- ---------
Net loss $ (1,710) $(3,318) $(16,069) $(14,751)
========= ======== ========= =========
Basic and diluted net loss per
share $ (0.02) $ (0.03) $ (0.16) $ (0.15)
========= ======== ========= =========
Shares used in computing basic
and diluted net loss per share 101,126 98,688 100,150 98,115
========= ======== ========= =========
-------------------------------
(a) Includes stock-based compensation expense of the following:
Cost of services revenue $ 402 $ 1 $ 1,499 $ 8
Research and development 1,337 420 5,195 1,270
Sales and marketing 1,309 190 5,127 364
General and administrative 1,053 552 4,208 455
--------- -------- --------- ---------
Total stock-based compensation
expense $ 4,101 $ 1,163 $ 16,029 $ 2,097
========= ======== ========= =========
A reconciliation between GAAP net loss and non-GAAP net income is as follows: (in thousands, except per share amounts, unaudited)
Three Months Twelve Months
Ended Ended
January 31, 2007 January 31, 2007
----------------- ------------------
GAAP net loss $ (1,710) $ (16,069)
Non-cash charge related to
equity transactions 4,101 16,029
Cost of developed technology 761 2,346
Amortization of other
acquisition-related
intangibles 338 1,330
----------------- ------------------
Non-GAAP net income $ 3,490 $ 3,636
================= ==================
GAAP diluted net loss per share $ (0.02) $ (0.16)
================= ==================
Non-GAAP diluted net income per
share $ 0.03 $ 0.03
----------------- ==================
Shares used in computing non-GAAP
diluted net income per share 107,899 106,534
================= ==================
MULTIMEDIA AVAILABLE: businesswire.com
Contact:
Opsware Inc.
Ken Tinsley, 408-212-5241
Investor Relations
ktinsley@opsware.com
or
Fleishman-Hillard for Opsware Inc.
Nina Oestlien, 415-318-4225
Public Relations
nina.oestlien@fleishman.com
--------------------------------------------------------------------------------
Source: Opsware Inc.
biz.yahoo.com |
