Thursday June 1, 4:08 pm Eastern Time
Company Press Release
Wind River Systems Reports First Quarter
Revenues Of $91.6 Million
ALAMEDA, Calif.--(BUSINESS WIRE)--June 1, 2000--Wind River Systems, Inc. (Nasdaq:WIND - news), a leading
provider of software and services for smart devices in the Internet Age, reported its first quarter results for the period
ended April 30, 2000. Total revenues for the first quarter were $91.6 million, a 34% increase from revenues of $68.3
million reported in the same period of fiscal year 2000.
Excluding non-operating charges related to the acquisitions of Integrated Systems, Inc. (ISI) and Embedded Support
Tools Corporation (EST) and to the amortization of goodwill, purchased technology and other intangibles, operating
income was $3.4 million or 4% of revenue compared to $8.5 million or 13% for the same period last year. Excluding
non-operating charges, net income was $7.8 million or $0.11 per diluted share compared to $7.0 million or $0.11 per
diluted share for the first quarter last year. Net income for the quarter included pre-tax gains of $6.4 million from the sale
of investments in Liberate Technologies, Inc. and e-Sim, Ltd.
On an as-reported basis, including $9.6 million of amortization of goodwill, purchased technology and other intangibles
and $30.7 million of acquisition related charges, net loss was $32.4 million or a loss of $0.48 per diluted share for the first
quarter of fiscal year 2001, compared to actual net income of $6.4 million or $0.10 per diluted share for the same period
last year.
``I'm pleased with how well the company performed in Q1, the first quarter of combined operations with ISI and EST,''
said Tom St. Dennis, president and CEO of Wind River. ``We closed two major acquisitions and announced a third,
merged sales forces and development teams, announced our roadmap for the convergence of our flagship pSOS© and
VxWorks© real time operating systems (RTOS), and simultaneously accelerated growth. We have sustained our
momentum from Q4, and are on track to achieve our product development and corporate objectives for fiscal 2001.''
Q1 FY 2001 Highlights
During the quarter, Wind River completed the acquisitions of ISI and EST. The company also announced a definitive
agreement to acquire AudeSi Technologies, and completed that acquisition just after the close of the quarter.
A validation of the Center of Excellence initiative, which was introduced in September of 1999, came with the announced
availability of the Tornado© II platform on Intel's Pentium III processor, concurrent with Intel's announcement of the
Pentium III architecture.
Wind River had over 800 design wins in the first quarter. One interesting example was goReader's unique university
e-book, which replaces a backpack full of heavy books, and runs the VxWorks RTOS using Personal JWorks(TM)
technology. Other design wins and follow-on purchases from customers in networking, consumer electronics, and
transportation/defense/industrial applications included projects for Boeing, Hitachi, Hewlett-Packard Company, Jet
Propulsion Laboratory, MUSIC Semiconductors, NASA, PMC-Sierra, Richard HIRSCHMANN GmbH& Co., Sony
Corporation, Sun Microsystems, Inc., TiVo, Inc., and Zhone Technologies, to name a few.
Finally, several customers successfully brought their Wind River-based designs to market, including the Ceiva Internet
picture frame, Pingtel's xpressa VoIP phone, and Telestream's ClipExpress digital media delivery solution.
Conference Call Management will host a conference call at 2:00 p.m. Pacific Standard Time on June 1, 2000 to discuss
these results. You may listen to the conference call by calling 800-863-4938 in the U.S. and 706-634-7025
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 June 1, 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. 532626.
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, partnerships with customers 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 2000 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.
Note to Editors: 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.
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Wind River Systems, Inc.
Pro Forma Condensed Consolidated Statements of Income(1)
(in thousands, except per share amounts)
(Unaudited)
Three months ended
April 30,
2000 1999
--------------- --------------
Revenues:
Products $63,258 $42,928
Services 28,380 25,354
------- -------
Total revenues 91,638 68,282
------- -------
Cost of revenues:
Products 9,158 5,675
Services 13,008 9,801
------- -------
Total cost
of revenues 22,166 15,476
------- -------
Gross profit 69,472 52,806
------- -------
Operating expenses:
Selling and marketing 38,232 26,224
Product development
and engineering 18,261 11,632
General and administrative 9,599 6,411
------- -------
Total operating expenses 66,092 44,267
------- -------
Income from operations 3,380 8,539
Interest income and
other, net 9,171 2,416
------- -------
Income before provision
for income taxes 12,551 10,955
Provision for income taxes 4,705 3,905
------- -------
Net income $ 7,846 $ 7,050
======= =======
Net income per share:
Basic $ 0.12 $ 0.11
Diluted $ 0.11 $ 0.11
Shares used in per
share calculation
Basic 66,939 62,162
Diluted 73,073 65,557
(1) The above Pro Forma Condensed Consolidated Statements of Income
for the first quarter of fiscal 2001 have been adjusted to
exclude charges of $30.7 million in acquisition-related and other
charges associated with the acquisition and integration of
Integrated Systems, Inc and Embedded Support Tools Corporation
and $9.6 million of amortization of goodwill, purchased
technology and other intangibles.
The first quarter of fiscal 2000 was adjusted to exclude
amortization of goodwill, purchased technology and other
intangibles of $283,000, acquisition-related charges of $302,000
and $500,000 related to the write-off of an investment in Xact.
Wind River Systems, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
Three months ended
April 30,
2000 1999
--------------- -----------
Revenues:
Products $ 63,258 $ 42,928
Services 28,380 25,354
--------- ---------
Total revenues 91,638 68,282
--------- ---------
Cost of revenues:
Products 9,158 5,675
Services 13,008 9,801
--------- ---------
Total cost of revenues 22,166 15,476
--------- ---------
Gross profit 69,472 52,806
--------- ---------
Operating expenses:
Selling and marketing 38,232 26,224
Product development
and engineering 18,261 11,632
General and
administrative 9,599 6,411
Amortization of
intangibles 9,580 283
Acquisition-related
and other 30,699 302
--------- ---------
Total operating
expenses 106,371 44,852
--------- ---------
Income (loss)
from operations (36,899) 7,954
Interest income and
other, net 9,171 1,916
--------- ---------
Income (loss) before
provision for income
taxes (27,728) 9,870
Provision for income taxes 4,705 3,489
--------- ---------
Net income (loss) $ (32,433) $ 6,381
========= =========
Net income (loss) per share:
Basic $ (0.48) $ 0.10
Diluted $ (0.48) $ 0.10
Shares used in per
share calculation
Basic 66,939 62,162
Diluted 66,939 65,557
Wind River Systems, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
April 30, January 31,
2000 2000
--------- ---------
ASSETS
Current assets:
Cash and cash
equivalents $ 87,227 $ 77,929
Short-term investments 39,663 25,711
Accounts receivable,
net 81,353 79,586
Prepaid and other
current assets 40,096 35,375
-------- --------
Total current assets 248,339 218,601
Investments 168,281 208,917
Property and equipment,
net 58,289 56,331
Intangibles 363,301 35,728
Other assets 9,701 9,769
Restricted cash 41,844 39,744
-------- --------
Total assets $889,755 $569,090
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 26,449 $ 10,551
Line of credit -- 5,094
---------
Accrued liabilities 28,280 22,287
Accrued compensation 20,871 17,910
Income taxes payable 13,234 9,581
Deferred revenue 55,712 49,401
--------- ---------
Total current liabilities 144,546 114,824
Deferred taxes payable 20,617 11,574
Long-term debt 140,515 140,598
--------- ---------
Total liabilities 305,678 266,996
--------- ---------
Minority interest in
consolidated subsidiary 712 878
--------- ---------
Stockholders' equity:
Common stock 72 66
Additional paid in
capital 552,031 216,149
Loan to stockholder (3,081) (1,900)
Treasury stock, at cost (29,488) (29,488)
Accumulated other
comprehensive income (loss) (3,626) 16,499
Retained earnings 67,457 99,890
--------- ---------
Total stockholders' equity 583,365 301,216
--------- ---------
Total liabilities and
stockholders' equity $ 889,755 $ 569,090
========= =========
Contact:
Wind River Systems, Inc.
Richard Kraber, 510/749-2181
richard.kraber@windriver.com
De Anna Mekwunye, 510/749-2172
deanna.mekwunye@windriver.com
windriver.com |
