VERITAS (meets ests) Software Reports Second Quarter Results; Revenue $365 Million for the
Quarter
Pro forma Earnings Per Share at $0.14
MOUNTAIN VIEW, Calif., July 16 /PRNewswire-FirstCall/ --
VERITAS Software Corporation (Nasdaq: VRTS) today announced financial results
for its second quarter ended June 30, 2002. The Company achieved second
quarter revenue of $365 million, compared to revenue of $370 million for the
quarter ended March 31, 2002. Diluted pro forma net income per share for the
second quarter was $0.14, compared to $0.16 for the prior quarter.
On an as-reported basis, including non-cash charges for purchase
accounting adjustments of $35 million and losses on strategic investments of
$15 million, the Company reported net income for the quarter ended June 30,
2002 of $26 million, or $0.06 per share, diluted. As a consequence of adopting
the Statement of Financial Accounting Standards 142 as of January 1, 2002, the
non-cash charges related to amortization of goodwill and other intangibles
decreased $204 million in the quarter ended June 30, 2002 as compared to the
quarter ended June 30, 2001.
"Our second quarter performance reflects VERITAS Software's competitive
strength and resilience as we deliver solid revenue and earnings results,
focus on execution, and continue to play a leadership role in the storage
market," said Gary Bloom, chairman, president and CEO, VERITAS Software.
"While we continue to position the Company to emerge stronger as the economic
uncertainty eases and IT spending improves, we remain cautious in our near-
term outlook. Our expectations are for third quarter revenue to be in the
range of $350-$370 million and pro forma earnings per share to be in the
range of $0.11-$0.13, based on an operating margin of 21%-23%. For the fourth
quarter, we expect some seasonal improvement resulting in modest revenue
growth from the third quarter and similar operating margins."
"In addition to our market leadership, we are also very pleased with the
strength of our balance sheet," said Ken Lonchar, executive vice president and
chief financial officer, VERITAS Software. "In the second quarter, we
generated $146 million in cash from operating activities, increasing our cash
and short-term investment balance to a record $2 billion."
During the quarter, the company announced the following initiatives that
further position the company as the leading storage software supplier and
leverages VERITAS Software's unique position as a pure-play storage software
provider:
-- VERITAS Adaptive Software Architecture, a new cross-platform software
and services model that significantly improves IT responsiveness to
changes in business and technology and leverages the deep partnerships
that help provide heterogeneous support to a broad range of
applications and devices.
-- VERITAS Powered and VERITAS Enabled programs. VERITAS Powered is a
strategic initiative to extend VERITAS Software's storage intelligence
to next-generation storage networking hardware platforms by drawing on
our deeply rooted industry partnerships. The VERITAS Enabled program
is an industry-wide partner program designed to simplify the management
of complex, multi-platform and multi-vendor storage environments
through cooperative support, deep technology integration and a
commitment to standards. Thirty-eight partners, including every major
storage vendor, have joined the VERITAS Enabled program.
-- VERITAS' storage management software suite is now available on IBM
AIX(R), with full support for IBM AIX 5L. This gives VERITAS the
broadest platform support in the industry, offering standard storage
software across all major open operating system platforms, including
Solaris, HP-UX, Linux, Windows and AIX
The pro forma statements of operations are intended to present the
Company's operating results excluding purchase accounting adjustments and
other non-recurring items. The purchase accounting adjustments include
amortization of developed technology, amortization of goodwill and other
intangibles, and related adjustments for income tax provisions. These pro
forma statements of operations are not in accordance with, or an alternative
for, generally accepted accounting principles and may be different from pro
forma measures used by other companies.
The Company will hold a conference call today at 2:00 p.m. Pacific Time,
5:00 p.m. Eastern Time, to review second quarter results and business outlook.
The conference call will be available to all investors. The telephone dial-in
number for listen-only access to the live call is 913-981-5581. A live web
cast will also be available at www.veritas.com. In addition, a telephonic
replay will be available on Tuesday, July 16 at 4:00 pm, Pacific Time through
July 23, 2002, 10:00 pm, Pacific Time, by dialing 719-457-0820, replay code:
582965.
About VERITAS Software
With 5,700 employees in 36 countries and revenue of $1.5 billion in 2001,
VERITAS Software ranks among the top 10 software companies in the world.
VERITAS Software is the world's leading storage software company, providing
data protection, storage management, high availability and disaster recovery
software to 86 percent of the Fortune 500. VERITAS Software's corporate
headquarters is located at 350 Ellis Street, Mountain View, CA, 94043, tel:
650-527-8000, fax: 650-527-8050, e- |
