Verity Announces Third Consecutive Record Quarter
Business Wire - December 15, 1998 16:21
SUNNYVALE, Calif.--(BUSINESS WIRE)--Dec. 15, 1998--Verity, Inc. (Nasdaq: VRTY), a recognized leading provider of knowledge retrieval solutions for the enterprise and Internet, today reported financial results for its second fiscal quarter ended November 30, 1998. Verity's revenues and net income for the quarter were both at record levels for the third consecutive quarter.
Revenues for the second fiscal quarter were $15.2 million, representing a 15% increase over the $13.2 million in revenues for the previous quarter ended August 31, 1998. Software product revenues, which represented 76% of total revenues for the second quarter, were $11.5 million, which equate to a 16% increase from the $9.9 million for the previous fiscal quarter. Compared to the same period last year, second quarter revenues were up 66% from $9.2 million; software product revenues were up 72% from $6.7 million.
Verity saw significant sales activity in its key markets, including Intranet information access solutions for leading consulting, consumer product, pharmaceutical, healthcare, aerospace, high technology and telecommunications companies. Additionally, the Company had significant sales activity with government agencies, online publishers and e-commerce sites, and developed new strategic OEM resale agreements, including one with IBM for Verity's high performance K2 search system.
Net income grew by 92% between the first and second quarters of fiscal 1999. Net income for the second quarter was $2.4 million, or $0.18 per share, compared with net income of $1.2 million, or $0.10 per share for the previous quarter ended August 31, 1998. One year ago, Verity reported a net loss of $7.2 million, or $0.64 per share, for its second quarter, which included a restructuring charge of $3.0 million.
For the six months ended November 30, 1998, total revenues were $28.4 million, representing a 96% increase over the total six-month revenues of $14.5 million in the prior fiscal year. Net income for the six months ended November 30, 1998 was $3.6 million, or $0.28 per share, compared with a six-month loss (prior to the restructuring write-off) of $13.9 million, or $1.25 per share, in the prior fiscal year.
"Q2 of fiscal 1999 was our fifth consecutive quarter of increased revenues and operational improvements and our third straight quarter of record revenues and profitability," said Gary J. Sbona, President and CEO of Verity. "One of the things that we've seen during the past year is that the corporate Intranet is no longer viewed as simply an interesting experiment. It is now considered a mission-critical part of the business. A number of our sales involved supplying Intranet Portal products: essential components helping our customers organize and navigate the information on their corporate Intranets. We will continue to focus on this market, as well as the market for top-tier e-commerce solutions, such as our high-performance K2 search engine."
About Verity
Verity is a leading provider of knowledge retrieval solutions for corporate intranets, online publishers and e-commerce providers, OEMs and independent software vendors. Verity's product suite enables organizations to turn corporate intranets into powerful knowledge bases. By providing critical components of corporate Intranet portals, Verity makes business information accessible and reusable across the enterprise. Verity's leadership has been recognized by numerous organizations, most recently by Delphi Consulting, which gave Verity the Market Recognition Award based on a survey of 600 corporate users.
Verity's comprehensive and integrated product family enables enterprise-wide document indexing, classification, search and retrieval, personalized information dissemination, and hybrid online and CD publishing all from the same underlying Verity collections. Verity's KeyView products enable viewing of source documents stored in more than 200 formats.
Verity's products are used by more than 1,000 corporations, government agencies, on-line service providers, Internet publishers and software developers worldwide. Verity partners include Adobe Systems, AT&T, CNET, Cisco, Compaq, Dow Jones, Ernst & Young, Financial Times, IBM, Informix, Lotus, NEC, Netscape Communications, NewsEDGE Corporation, SAP, Siemens Nixdorf, Sybase, Tandem and Time Warner's Pathfinder.
This press release contains forward-looking statements relating to management's efforts to achieve improved operations and results. If Company management is unable to manage effectively the Company's operations, identify opportunities in a timely fashion, and effectively evaluate and manage the Company's business and competitive position, the Company's results of operations and financial condition will be materially and adversely affected. Other risks relating to the Company are as set forth in the Company's Form 10-K and Form 10-Q's 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 the Verity logo are registered trademarks of Verity, Inc. All other trademarks are the property of their respective owners.
|
