WIND--Wind River Systems Reports Third Quarter Revenues of $114.8 Million
Record Revenue for Q3
Operating Margins Continue to Improve
ALAMEDA, Calif.--(BUSINESS WIRE)--Nov. 29, 2000--Wind River Systems, Inc. (Nasdaq:WIND - news), a leading provider of software and services for smart devices in the Internet Age, reported its third quarter fiscal 2001 operating results for the period ended October 31, 2000.
Total revenues for the third quarter were $114.8 million, a 37% increase from revenues of $83.8 million reported in the same period of fiscal year 2000 and 13% higher than Q2. Operating income (excluding non-operating charges) was $10.9 million or 9.5% of revenue compared to $6.5 million or 6.5% of revenue in the second fiscal quarter this year, and $13.2 million or 15.8% of revenue for the third quarter last year. Net income (excluding non-operating charges) was $9.7 million or $0.12 per diluted share compared to $7.7 million or $0.10 per diluted share in the second fiscal quarter, and $9.9 million or $0.15 per diluted share for the third quarter last year. Non-operating charges include costs associated with various acquisitions and the amortization of goodwill, purchased technology, and other intangibles.
``I am extremely pleased with our results in the third quarter,'' said Tom St. Dennis, president and CEO of Wind River. ``We executed well on both our financial and strategic goals, including on-target revenue growth, improved operating margins and continued progress on the integration of our acquired companies.''
Revenues for the first nine months of fiscal 2001 were $307.7 million, a 37% increase from revenues of $224.8 million reported in the same period of fiscal 2000. Excluding non-operating charges, operating income was $20.8 million compared to $30.0 million for the corresponding period in fiscal 2000. Excluding non-operating charges, net income was $25.2 million, compared to net income of $23.7 million for the first nine months of fiscal 2000.
For the third quarter of fiscal year 2001, on an as-reported basis, including $28.4 million of amortization of goodwill, purchased technology and other intangibles and $0.1 million of acquisition related charges, net loss was $16.0 million or a loss of $0.22 per diluted share compared to a net income of $6.2 million or $0.09 per diluted share for the same period in the prior year.
For the first nine months of fiscal year 2001, on an as-reported basis, including $64.8 million of amortization of goodwill, purchased technology and other intangibles and $31.8 million of acquisition related charges, net loss was $65.8 million or a loss of $0.92 per diluted share compared to net income of $11.5 million or $0.18 per diluted share for the same period in the prior year.
Q3 FY 2001 Highlights
During the quarter, Wind River announced the acquisitions of Rapid Logic, which gives Wind River a wider range of integrated, embedded technologies for network infrastructure equipment, as well as ICESoft and the Dragonfly development team. The Company created closer ties to chip manufacturers with Centers of Excellence for Intel's XScale and StrongARM micro-architectures. Wind River also announced an agreement with Xilinx to proliferate field upgradable embedded systems. Product announcements in the quarter included: VxWorks® AE, Tornado® for Intelligent I/O 2.0, Tornado for Managed Switches 2.0, BlueThunder(TM) and StormPad(TM) for Internet appliance development, the OSEK product line for automotive, and new WindNet(TM) ATM/MPLS networking protocol suites. Lastly, Wind River successfully completed its recruitment search for a new chief financial officer with the appointment of Mike Zellner as vice president and CFO.
Q4 FY 2001 Outlook
The following statements are forward-looking and actual results may differ materially. Please consult page 3 of this press release for a description of certain risk factors and Wind River's SEC reports for a complete description of risks. In response to SEC Regulation FD (Fair Disclosure), the Company plans to disseminate its quarterly business outlook, based on current expectations, in conjunction with its quarterly earnings releases and conference calls. The Company does not plan to provide any further material guidance on analysts' financial models beyond the information provided in its quarterly earnings release and conference call.
Mike Zellner, vice president and CFO for Wind River, said ``We believe that we remain on track to achieve our stated goal of 38% revenue growth for this fiscal year, and we believe that we are also on track for $130 million in revenue and approximately $0.18 earnings per diluted share (excluding non-operating charges) for fiscal Q4.''
Conference Call
Management will host a conference call at 2:00 p.m. Pacific Time on November 29, 2000 to discuss the Q3 results and the outlook for the near term. You may listen to the conference call by calling 800-863-4938 in the U.S. (706-634-7025 internationally). You may also listen to our live webcast at www.windriver.com. A replay will be available beginning at approximately 6:00 p.m. Pacific Time on November 29, 2000 through 11:59 p.m. on December 6, 2000. To listen to the replay, please call 800-642-1687 in the U.S. (706-645-9291 internationally) and enter the conference I.D. number 808885.
About Wind River
Wind River, www.windriver.com, is a worldwide leader in embedded software and services for creating connected smart devices. 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, digital consumer electronics, networking, medical, computer peripherals, automotive, industrial automation and control, and aerospace/defense markets. Wind River is how smart things think. Founded in 1983, Wind River is headquartered in Alameda, California, with operations in sixteen 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, the potential slow down in funding for newer customers (``start-ups''), 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, BlueThunder, StormPad, and WindNet 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. |
