VERITAS Software Reports Record Financial Results and Stock Split
First Quarter Net Income Increased 67% to $9.1 Million
Board Declares Three-for-Two Stock Split
MOUNTAIN VIEW, Calif., April 15, 1998 - VERITAS Software Corporation
(Nasdaq:VRTS), the leading provider of end-to-end storage management
software, today announced record first quarter financial results for the
period ending March 31, 1998.
For the first quarter, diluted earnings per share on an as-reported basis
increased by 59% to $0.27 compared with $0.17 for the same period last
year.ÿ Most importantly, diluted earnings per share for the quarter on a
fully taxed basis increased 62% to $0.21 from $0.13 in 1997.ÿ The Company
generated an operating margin of 25% during the first quarter.
Revenue increased by 53%, while net income for the period rose 67% to $9.1
million from $5.4 million for the same period in fiscal year 1997.ÿ The
Company reported revenue of $39.1 million compared to last year's revenue
of $25.6 million for the same period, including license growth of 50%
during the quarter.
First quarter revenue displayed a sequential increase of 9% from the fourth
quarter of 1997.ÿÿ The Company produced $15 million in positive cash flow
during the quarter ending March, and had over $200 million in cash and
short term investments at March 31, 1998.
"This quarter has been a great start to the new fiscal year," stated Mark
Leslie, President and Chief Executive Officer.ÿ "We had excellent growth in
both revenue and profits on both a year-over-year and sequential basis."
"During the quarter, the Company enjoyed robust revenue growth across all
business segments and geographies, enhancing our competitive position.ÿ In
addition to strong OEM performance, the telecommunications and financial
services industries -- where availability and reliability of data is
essential -- continue to adopt and proliferate the VERITAS solution to
support their business-critical systems," said Leslie.
"VERITAS has experienced increased business momentum over the past few
quarters along with growing profits and a strong balance sheet.
Consequently, the Board of Directors has approved a three-for-two stock
split.ÿ This stock split represents a broadened opportunity for
stockholders to participate in the financial success of the Company,"
Leslie concluded.
The Board of Directors has declared a three-for-two stock split of
Company's outstanding common stock.ÿ The stock split will be effected in
the form of a stock dividend and will entitle each stockholder of record on
May 4, 1998 to receive one additional share for every two shares of common
stock held on the record date.ÿ The payment date will be May 20, 1998.
There are currently approximately 31.1 million shares of VRTS common stock
outstanding, and this number will increase to approximately 46.7 million
following the stock split.ÿ The Company will pay cash in lieu of fractional
shares.
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.ÿ These forward-looking statements
involve a number of risks and uncertainties, including the timing and level
of sales by the Company's OEMs, timely development and market acceptance of
products and VERITAS' ability to distribute its products, that could cause
actual results that the Company achieves to differ materially from such
forward-looking statements.ÿ 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.
VERITAS and the VERITAS logo are registered trademarks of VERITAS Software
Corporation in the United States and other countries.
Contacts:
Ken Lonchar Marge Duncan
VP & Chief Financial Officer Director, Investor Relations
(650) 526 2501 (650) 526 2508
kenl@veritas.com marge@veritas.com |
