Wind River Systems Reports Fourth Quarter Revenues Of $53.4 Million
BUSINESS WIRE - March 02, 2000 16:16
ALAMEDA, Calif., Mar 2, 2000 (BUSINESS WIRE) -- Wind River Systems, Inc. (Nasdaq:WIND), a leading provider of software and services for smart devices in the Internet Age, reported operating results for the fourth quarter and fiscal year ended January 31, 2000. Management will host a conference call at 2:00 p.m. Pacific Standard Time on March 2, 2000, to discuss the results. You may listen to the conference call by calling 888-593-6346 in the U.S. and 706-634-2373 internationally. You may also listen in live via our webcast at www.windriver.com. A replay of the conference call will be available after 5:30 p.m. Pacific Standard Time on March 2, 2000. You may listen to the replay of the conference call by calling 800-642-1687 in the U.S. and 706-645-9291 internationally and enter the conference I.D. 819189.
Total revenues for the fourth quarter were $53.4 million, a 36% increase from revenues of $39.2 million reported in the same period of fiscal year 1999. Excluding the charges incurred in connection with the implementation of an enterprise resource planning (ERP) system, the costs related to the integration of Integrated Systems, Inc. and the amortization of goodwill, operating income in the fourth quarter was $11.8 million compared to $11.9 million for the corresponding period in fiscal year 1999. Also excluding these charges, net income was $8.9 million, compared to net income of $8.5 million for the fourth quarter of fiscal year 1999 and diluted earnings per share was $0.19 for the fourth quarters in both fiscal year 2000 and fiscal year 1999.
"I am extremely pleased with what we were able to accomplish in Q4," said Tom St. Dennis, president and CEO of Wind River. "I am grateful to our employees for embracing all of our corporate initiatives with such enthusiasm. During the quarter, we announced the most significant merger in our industry's history, increased our investment in R&D, established an aggressive program to protect our intellectual property and completed a conversion to a modern ERP system. We have exceeded our revenue goals even with the potential distraction of the merger - a powerful validation from our customers that we are on the right track and our organization is focused."
Revenues for fiscal year 2000 were $171.1 million, a 30% increase from revenues of $131.9 million in fiscal year 1999. Excluding the charges mentioned above, as well as $5.8 million related to charges excluded in previously reported quarters, operating income for fiscal year 2000 was $37.2 million, compared to $37.4 million for fiscal year 1999. Also excluding these charges, net income was $27.2 million or $0.61 per diluted share, compared to net income of $26.1 million or $0.60 per diluted share for fiscal year 1999.
"It has been an incredible and invigorating year and Wind River is today a very different company than we were at the beginning of 1999," said Jerry Fiddler, chairman and co-founder of Wind River. "We have a new CEO, new organizational structure, important new products, we've broken ground on two more new buildings, and we have a far greater set of core competencies resulting from our acquisitions of Xact and RouterWare. Now that we have completed our merger with ISI, we have the critical mass to lead the era of Internet computing and the expanding world of connected, smart devices."
On an as-reported basis, operating income for the fourth quarter was $10.6 million, compared to $11.7 million for the corresponding period in fiscal year 1999. Net income for the fourth quarter was $8.1 million or $0.17 per diluted share, compared to net income of $8.4 million or $0.19 per diluted share for the corresponding period of fiscal year 1999. During the fourth quarter, Wind River incurred charges of $817,000 in connection with the implementation of our ERP system, $205,000 related to the integration of Integrated Systems, Inc. and $207,000 of goodwill amortization.
On an as-reported basis, operating income for fiscal year 2000 was $30.6 million, compared to $36.6 million for fiscal year 1999. Net income was $22.5 million or $0.50 per diluted share, compared to net income of $25.6 million or $0.58 per diluted share for fiscal 1999.
About Wind River Systems, Inc.
Wind River Systems, Inc., windriver.com, is a worldwide leader in embedded software. Wind River provides software development tools, real-time operating systems, and advanced connectivity for use in products throughout the Internet, telecommunications and data communications, digital imaging, networking, medical, computer peripherals, automotive, and aerospace/defense markets. Wind River is how smart things think. Founded in 1983, Wind River is headquartered in Alameda, California, with operations in fifteen countries worldwide.
Except for the historical information contained herein, this news release contains forward-looking statements, including those relating to acquisition and integration costs, contemplated product offerings and market share that involve risks and uncertainties that could cause actual results to differ materially from those contemplated herein. Factors that could cause or contribute to such differences include but are not limited to timely development, acceptance and pricing of new products, the impact of competitive products and pricing, and other risk factors detailed in the company's 1999 Annual Report on Form 10-K and other periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.
Wind River Systems, the Wind River Systems logo, VxWorks, Tornado, pSOS, and pRISM are trademarks or registered trademarks of Wind River Systems, Inc. All other names mentioned are trademarks, registered trademarks or service marks of their respective companies or organizations.
Wind River Systems, Inc. Pro Forma Condensed Consolidated Statements of Income(1) (in thousands, except per share amounts)
Three months ended Twelve months ended
January 31, January 31,
2000 1999 2000 1999
---- ---- ---- ----
Revenues:
Products $ 40,885 $ 29,725 $125,529 $ 98,844
Services 12,544 9,452 45,581 33,058
-------- -------- -------- --------
Total revenues 53,429 39,177 171,110 131,902
-------- -------- -------- --------
Cost of revenues:
Products 3,926 2,237 11,124 8,224
Services 6,395 3,576 20,508 12,999
-------- -------- -------- --------
Total cost
of revenues 10,321 5,813 31,632 21,223
-------- -------- -------- --------
Gross profit 43,108 33,364 139,478 110,679
-------- -------- -------- --------
Operating expenses:
Selling and marketing 18,476 13,156 60,962 45,968
Product development
and engineering 8,290 5,518 29,659 19,147
General and
administrative 4,522 2,771 11,700 8,174
-------- -------- -------- --------
Total operating
expenses 31,288 21,445 102,321 73,289
-------- -------- -------- --------
Income from
operations 11,820 11,919 37,157 37,390
Interest income
and other, net 2,373 1,397 6,439 4,801
-------- -------- -------- --------
Income before
provision for
income taxes 14,193 13,316 43,596 42,191
Provision for
income taxes 5,323 4,822 16,350 16,087
-------- -------- -------- --------
Net income $ 8,870 $ 8,494 $ 27,246 $ 26,104
======== ======== ======== ========
Net income per share:
Basic $ 0.21 $ 0.21 $ 0.65 $ 0.65
Diluted $ 0.19 $ 0.19 $ 0.61 $ 0.60
Shares used in per
share calculation
Basic 42,207 40,840 41,674 40,267
Diluted 47,416 44,391 44,778 43,843
1. The above Pro Forma Condensed Consolidated Statements of Income
for the fourth quarter of fiscal 2000 have been adjusted to
exclude charges of $817,000 related to the implementation of an
enterprise resource planning system, $205,000 in connection with
the integration of Integrated Systems, Inc and $207,000 of
amortization of goodwill. Pro forma amounts for the twelve months
of fiscal year 2000 further exclude charges during the first
quarter of $802,000 incurred with hiring of Xact employees and
the write-off of an investment in and distribution agreement with
Xact and $195,000 of amortization of goodwill; during the second
quarter of $1.2 million incurred for the retirement package of
the chief executive officer, $929,000 for the transaction costs
associated with the acquisition of RouterWare, Inc. and $207,000
of amortization of goodwill; and during the third quarter of $1.3
million in connection with hiring our new chief executive
officer, $975,000 related to the implementation of an enterprise
resource planning system and $207,000 of amortization of
goodwill.
The fourth quarter of fiscal 1999 and the twelve months of fiscal
1999 were adjusted to exclude amortization of goodwill of
$195,000 and $780,000, respectively.
Wind River Systems, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
Three months ended Twelve months ended
January 31, January 31,
2000 1999 2000 1999
---- ---- ---- ----
Revenues:
Products $ 40,885 $ 29,725 $125,529 $ 98,844
Services 12,544 9,452 45,581 33,058
-------- -------- -------- --------
Total revenues 53,429 39,177 171,110 131,902
-------- -------- -------- --------
Cost of revenues:
Products 4,094 2,405 11,796 8,896
Services 6,395 3,576 20,508 12,999
-------- -------- -------- --------
Total cost of revenues 10,489 5,981 32,304 21,895
-------- -------- -------- --------
Gross profit 42,940 33,196 138,806 110,007
-------- -------- -------- --------
Operating expenses:
Selling and marketing 18,476 13,156 60,962 45,968
Product development
and engineering 8,290 5,518 29,659 19,147
General and
administrative 5,583 2,798 17,544 8,282
-------- -------- -------- --------
Total operating
expenses 32,349 21,472 108,165 73,397
-------- -------- -------- --------
Income from
operations 10,591 11,724 30,641 36,610
Interest income
and other, net 2,373 1,397 5,939 4,801
-------- -------- -------- --------
Income before
provision for
income taxes 12,964 13,121 36,580 41,411
Provision for
income taxes 4,897 4,751 14,109 15,788
-------- -------- -------- --------
Net income $ 8,067 $ 8,370 $ 22,471 $ 25,623
======== ======== ======== ========
Net income per share:
Basic $ 0.19 $ 0.20 $ 0.54 $ 0.64
Diluted $ 0.17 $ 0.19 $ 0.50 $ 0.58
Shares used in per
share calculation
Basic 42,207 40,840 41,674 40,267
Diluted 47,416 44,391 44,778 43,843
Wind River Systems, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share amount)
Jan. 31, Jan. 31,
2000 1999
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 58,621 $ 42,837
Short-term investments 25,383 11,043
Accounts receivable, net 48,621 30,926
Prepaid and other current assets 21,893 10,598
--------- ---------
Total current assets 154,518 95,404
Investments 184,572 158,628
Property and equipment, net 35,755 31,513
Other assets 8,621 10,011
Restricted cash 39,744 34,157
--------- ---------
Total assets $ 423,210 $ 329,713
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,393 $ 3,472
Line of credit 5,094 --
Accrued liabilities 11,059 10,005
Accrued compensation 10,335 6,030
Income taxes payable 9,862 445
Deferred revenue 24,476 17,318
--------- ---------
Total current liabilities 67,219 37,270
Deferred taxes payable 12,408 --
Convertible subordinated notes 140,000 140,000
--------- ---------
Total liabilities 219,627 177,270
--------- ---------
Minority interest in
consolidated subsidiary 878 551
--------- ---------
Stockholders' equity:
Common stock 43 42
Additional paid in capital 138,815 126,855
Treasury stock, at cost (29,488) (25,491)
Accumulated other comprehensive
income (loss) 18,300 (2,155)
Retained earnings 75,035 52,641
--------- ---------
Total stockholders' equity 202,705 151,892
--------- ---------
Total liabilities and
stockholders' equity $ 423,210 $ 329,713 |
