VERITAS SOFTWARE REPORTS RECORD FINANCIAL RESULTS;
THIRD QUARTER REVENUE INCREASES 74% TO $30.8 MILLION
MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Oct. 16, 1997--VERITAS
Software Corporation (NASDAQ:VRTS.O), a leading supplier of enterprise
storage management solutions, today announced record quarterly
financial results for the period ending September 30, 1997.
For the third quarter, the company reported revenue of $30.8
million, an increase of 74% over last year's third quarter revenue of
$17.7 million. License revenues increased by 67% while net income
for the period rose to $6.8 million from $3.2 million for the same
period in fiscal year 1996. Earnings per share were $0.20 compared
to earnings per share of $0.10 for the third quarter 1996. Fully
taxed earnings per share for the quarter were $0.16 compared to $0.07
for the same period last year.
For the first nine months of the fiscal year, the company
reported revenue of $85.4 million, an increase of 68% over the $50.9
million reported in the same period last year. Net income was $10.5
million, or $0.32 per share, up from $7.7 million, or $0.25 per
share, for the first nine months of the last fiscal year.
"Our outstanding performance for the quarter can be attributed to
accelerating license revenue and expanding operating margins," said
Mark Leslie, President and Chief Executive Officer of VERITAS.
"Revenue growth during the quarter was driven primarily by our
storage products which displayed an impressive 82% year-over-year
growth."
During the quarter, VERITAS completed numerous sales transactions
in a wide variety of business segments worldwide. In North America
new customers included Bureau of Land Management, Bristol Myers,
Parke Davis, and Wisconsin Electric, while internationally,
Lufthansia, British Airways and Krediet Bank of Belgium were added.
"We continue to attract major, national and global corporations in
all segments, and these entities are all selecting VERITAS to support
their business-critical systems," Leslie added.
On October 14, the Company completed its $100 million offering of
Convertible Subordinated Notes.
About VERITAS
VERITAS Software designs, develops and markets enterprise storage
management and high availability products that manage both on-line
and off-line data for business-critical computing systems. The
products are designed to improve system performance, availability and
manageability while reducing the cost of administration. VERITAS
products are delivered through a worldwide direct sales force and a
network of resellers and OEM partners in North America, Europe and
the Pacific Rim. The Company's world headquarters is located at 1600
Plymouth Street, Mountain View, CA 94043. Telephone 650/335-8000.
Fax: 650/335-8050. Email: vx-sales@veritas.com . WWW site:
veritas.com.
This press release may include estimates and forward-looking
statements within the meaning of Section 27A of the Securities Act of
1933 and 21E of the Securities and Exchange Act of 1934. These
forward-looking statements involve a number of risks and
uncertainties, including the timely development and market acceptance
of products and VERITAS' ability to appropriately distribute its
products, that could cause actual results that the Company achieves
to differ materially from such forward-looking statements. For more
information regarding potential risks see the "Risk Factors" section
of our most recent reports on Form 10-K and Form 10-Q on file with
the SEC.
NOTE TO EDITORS: VERITAS and the VERITAS logo are registered
trademarks of VERITAS Software Corporation.
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VERITAS SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
UNAUDITED
(In thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------------------------
1997 1996 1997 1996
------- ------- ------- -------
Net revenue
License $24,027 $14,415 $67,719 $41,712
Service 5,612 3,120 13,648 8,769
Porting 1,182 171 3,998 413
------- ------- ------- -------
Total net revenue 30,821 17,706 85,365 50,894
Cost of revenue
License 1,142 828 2,819 2,166
Service 2,074 969 4,904 2,591
Porting 1,163 214 2,770 378
------- ------- ------- -------
Total cost of revenue 4,379 2,011 10,493 5,135
Gross profit 26,442 15,695 74,872 45,759
Operating expenses
Selling and marketing 10,711 6,288 30,328 18,239
Research and development 6,430 4,975 18,736 13,123
General and administrative 1,889 1,663 6,104 4,873
In-process research
and development -- -- -- 2,200
Merger related costs -- -- 8,490 --
------- ------- ------- -------
Total operating expenses 19,030 12,926 63,658 38,435
Income from operations 7,412 2,769 11,214 7,324
Other income, net 902 960 2,572 1,624
------- ------- ------- -------
Income before income taxes 8,314 3,729 13,786 8,948
------- ------- ------- -------
Provision for income taxes 1,580 479 3,315 1,288
------- ------- ------- -------
Net income $ 6,734 $ 3,250 $10,471 $ 7,660
======= ======= ======= =======
Net income per share $ 0.20 $ 0.10 $ 0.32 $ 0.25
======= ======= ======= =======
Shares used in per
share calculations 33,435 31,727 32,793 30,731
VERITAS SOFTWARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(in thousands)
September 30, December 31,
1997 1996
---------------------------
Assets
Cash and short-term investments $ 75,984 $ 67,556
Accounts receivable, net 30,552 15,971
Other current assets 2,871 1,987
-------- --------
Total current assets 109,407 85,514
Property and equipment, net 9,241 6,247
Other assets 670 1,213
-------- --------
Total assets $119,318 $ 92,974
======== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 1,852 $ 1,780
Accrued compensation and benefits 5,340 3,201
Other accrued liabilities 7,789 12,474
Deferred revenue 13,653 8,096
-------- --------
Total current liabilities 28,634 25,551
Non-current liabilities 946 1,468
Stockholders' equity 89,738 65,955
-------- --------
Total liabilities and stockholders' equity $119,318 $ 92,974
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CONTACT: VERITAS Software Corporation
Ken Lonchar, 650/526-2501
Chief Financial Officer
kenl@veritas.com
or
Marge Duncan, 650/526-2508
Director of Investor Relations
marge@veritas.com |
