To everyone who follow the thread. Here is the news.
2Q earning 0.02 vs -0.08 last year same period. Beat First Call consensus estimate of -0.06 by 8 cents. Please read the following for details.
Verity Announces Preliminary Second Quarter Results
PR Newswire, Thursday, December 05, 1996 at 22:20
SUNNYVALE, Calif., Dec. 5 /PRNewswire/ -- Verity, Inc. (Nasdaq: VRTY), a
leading provider of search and retrieval applications for the enterprise and
Internet, today announced that it had completed a preliminary review of its
results for its second fiscal quarter ended on November 30, 1996, and that it
expected to report record revenues for the quarter of approximately $11.6
million and net income of approximately $200,000, or approximately $0.02 per
share.
The anticipated second quarter revenues would represent an increase of
approximately 62% over $7.2 million in revenues for the same quarter of the
prior year, and an increase of approximately 32% compared to $8.8 million in
revenues for the previous quarter, which was the first quarter of the
company's fiscal year.
The anticipated second quarter net income would compare to a net loss of
($338,000), or ($0.08) per share, for the same quarter of the prior year, and
a net loss of ($1.3) million, or ($0.12) per share, for the previous quarter.
Software product revenues are expected to be approximately $9.7 million, which
would represent an increase of 75% over the $5.6 million in software product
revenues for the same quarter of the prior year, and an increase of
approximately 35% compared to the $7.2 million in software product revenues
for the previous quarter.
Sales of products to Cisco Systems, Inc. accounted for approximately 33%
of the Company's revenues for the second quarter, as compared to 20% for the
second quarter of the prior year. Sales of products to Cisco for the first
two quarters of this year have accounted for approximately 20% of revenues, as
compared to 11% for the first two quarters of fiscal 1996.
The Company expects that operating expenses for the second quarter will be
decreased from the previous quarter as a percentage of revenues, due generally
to higher revenues levels. Research and development expense will also be less
as a percentage of revenues due to the capitalization of approximately
$800,000 of software development costs, as required under generally accepted
accounting principles, in connection with a number of products included in the
Company's new SEARCH'97 product line. In prior periods, the Company had not
capitalized any software development costs since such costs had not been
significant.
"We are quite pleased with our financial results for the quarter," said
Philippe Courtot, Chairman and CEO of Verity. "As we have stated previously,
we are very confident in the fundamentals of our business and the potential
opportunities of the emerging market for our products. We are also quite
pleased that the continued execution of our strategy led to new or expanded
alliances and further growth in our European business."
"Again this quarter, we established alliances with many new partners and
large corporate customers, including ABC Capital Cities, Allaire, Amoco,
Ascend, Corning, Cox Interactive Media, Eaton, Eli Lilly, Government
Communications Headquarters (U.K.), Hitachi, Inference, KPMG, L'Oreal, NASD,
Nationwide Insurance, NYNEX, The Money Store, TRW, Simon & Schuster, Symantec,
Weyerhaeuser, Whirlpool, and Xerox."
"Finally, we are also very excited about our forthcoming SEARCH'97 product
line which brings significant value to our customers and has already received
very favorable reviews, both from the media and our beta customers," he said.
Verity anticipates releasing its more detailed financial statements for
the second quarter on December 17, 1996.
About Verity
Verity Inc. was founded in April 1988 and is headquartered in Sunnyvale,
Calif. Verity develops and markets software tools and applications for
searching, retrieving and filtering information across the Internet,
enterprise and CD-ROMs. Verity's products have been licensed to corporations,
government agencies, on-line service providers, Internet publishers and
developers worldwide. Verity partners include Adobe Systems, AT&T WorldNet,
Dow Jones, Hitachi, Individual Inc., Informix Software, Lotus Development
Corp., Netscape Communications, PC DOCS, SAP, SCO, Sybase Inc., WavePhore and
many others.
This press release contains forward-looking statements relating to the
Company's estimated results for its second quarter and its SEARCH'97 products
under development, including the estimated dates of commercial availability.
The estimated results are subject to change based upon adjustments, if any, of
reserves, revenues and expense levels and other provisions in connection with
the preparation of the Company's final financial statements for the second
quarter. The successful development and release dates for the SEARCH'97
products are subject to potential delay and other risks inherent to software
development such as development or testing difficulties, feature changes,
software errors, shortages of appropriately skilled software engineers and
product management problems. Other risks relating to the Company are as set
forth in the Company's 1O-K and 10-Q forms as filed with the Securities and
Exchange Commission.
For more information contact Verity at info@verity.com or at the World
Wide Web site verity.com or by calling 408-541-1500.
Verity and SEARCH'97 are Trademarks of Verity Inc. in the United States
and other countries. All other trademarks are the property of their
respective holders.
SOURCE Verity, Inc.
-0- 12/05/96
/CONTACT: Don McCauley, Chief Financial Officer of Verity, 408-542-2055,
or don@verity.com/ |
