I feel like an IDIOT guys. VRTY preannounces...Sounds like they missed. Reminds me what my mom said "Don't Fight the Trend."
Verity announces preliminary third quarter results
Business Wire - March 05, 1997 23:39
SUNNYVALE, Calif.--(BUSINESS WIRE)--March 5, 1997--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 third fiscal quarter ended February 28, 1997, and that it expected to report revenues for the quarter of approximately $11.1 million and a net loss of approximately $800,000, or $0.07 per share, prior to giving effect to its merger with Cognisoft Corporation.
As previously announced, the Company expects to write-off expenses related to the Cognisoft merger in the amount of approximately $10.0 million, or $0.93 per share. Therefore, the total loss expected to be reported for the quarter is approximately $10.8 million, or $1.00 per share.
The anticipated third quarter revenues would represent an increase of approximately 39% over the $8.0 million in revenues for the same quarter of the prior year, and a decrease of approximately 4% compared to $11.6 million in revenues for the previous quarter, which was the second quarter of the company's fiscal year. For the nine months ended February 28, 1997, total revenues are expected to be approximately $31.5 million, which would be an increase of 52% over the total nine-month revenues of $20.7 million in the prior fiscal year.
The anticipated third quarter net loss (prior to the write-off of approximately $10.0 million related to the Cognisoft merger) would compare to net income of $112,000, or $0.01 per share, for the same quarter of the prior year, and net income of $222,000, or $0.02 per share, for the previous quarter. For the nine months ended February 28, 1997, the anticipated net loss (prior to the Cognisoft-related write-off) is expected to be approximately $1.9 million, or $0.17 per share, compared with a nine-month net loss of $1.3 million, or $0.18 per share, in the prior fiscal year.
Software product revenues are expected to be approximately $9.1 million, which would represent an increase of approximately 43% over the $6.4 million in software product revenues for the same quarter of
the prior year, and a decrease of approximately 6% compared to the $9.7 million in software product revenues for the previous quarter.
Sales of products to one customer accounted for approximately 14% of revenues for the third quarter. For the nine months ended February 28, 1997, software product revenues are expected to be approximately $26.1
million, which would be an increase of 62% over the $16.2 million in the comparable prior period.
The Company expects that operating expenses for the third quarter will be increased from the previous quarter as a percentage of revenues, due principally to the write-off of in-process research and development expenses in connection with the Cognisoft merger in January 1997.
"While we recorded the second highest quarterly revenues in our history, surpassed only by last quarters revenues, we are disappointed that our 4% sequential decline in revenues kept us from generating an
operating profit during the quarter. Verity has generated over 55% of its revenues from new customers so far this fiscal year, and an even greater percentage in the third quarter," said Philippe Courtot, chairman and CEO of Verity.
During its third quarter, Verity added several new customers in the Tools product category, including Lava Systems, 3Soft, Nortel and Meta Group. In the Applications product category, Verity added over 50 new
customers, including C/NET, Citicorp, Lehman Brothers, New Century Network, Inquiry.com, and Merrill Lynch.
Verity anticipates releasing its more detailed financial statements for the third quarter on March 19, 1997.
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
third quarter. 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 third quarter. Other risks relating to the Company are as set forth in the
Company's 10-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.
Note to Editors: Verity and SEARCH97 are Trademarks of Verity Inc. in the United States and other
countries. All other trademarks are the property of their respective holders.
CONTACT: Verity, Inc.
Don McCauley, 408/542-2055
don@verity.com
or
Marguerite Padovani, 408/542-2224
mpadovan@verity.com
REPEATS: New York 212-752-9600 or 800-221-2462; Boston 617-236-4266 or
800-225-2030; SF 415-986-4422 or 800-227-0845; LA 310-820-9473
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