HERE IT IS
ALAMEDA, Calif.--(BUSINESS WIRE)--Feb. 25, 1999--Wind River Systems, Inc. (Nasdaq:WIND), the leading provider of real-time operating systems, integrated software development tools and engineering services for embedded applications, reported operating results for the fourth quarter and fiscal year ended January 31, 1999.
Total revenues for the fourth quarter were $38.2 million, a 36% increase from revenues of $28.0 million reported in the same period of fiscal 1998. Operating profit in the fourth quarter was $12.0 million compared to an operating loss of $6.1 million in the corresponding quarter of last year. Excluding one-time pre-tax charges of $15.2 million ($13.4 million after-tax) incurred in the fourth quarter of fiscal year 1998, operating income increased 32%. Net income for the fourth quarter was $8.5 million, an increase of 38%, compared to the fourth quarter of fiscal year 1998, when excluding the one-time charges. On a pro forma basis, diluted earnings per share of $0.20 grew 33% from $0.15 earned in the same period in fiscal 1998. All diluted earnings per share numbers have been adjusted to reflect a 3-for-2 stock split on February 4, 1999.
Total revenues for the fiscal year ended January 31, 1999 were $129.4 million, a 40% increase over revenues of $92.4 million reported for fiscal year 1998. Operating profit for the fiscal year ended January 31, 1999 of $37.1 million increased from $10.1 million when compared to fiscal year 1998. Excluding the one-time charges in fiscal 1998, operating income increased 47%. Net income for the fiscal year ended January 31, 1999 increased 43% at $26.1 million compared to $18.2 million in the prior year, when excluding the one-time charges. On a pro forma basis, for the fiscal year ended January 31, 1999, diluted earnings per share of $0.61 grew 42% from the $0.43 earned in the prior year.
"Wind River has continued its excellent growth. For the twentieth consecutive quarter we have exceeded or been in the range of the financial market's estimates." said Ron Abelmann, president and chief executive officer. "Our 40% revenue growth of $37 million, underscores our continued and substantial gain in market share. With the largest repertoire of new products ever introduced by the company rolling out in the first quarter, we are optimistic about continuing our market share growth in the new fiscal year," Abelmann continued. Significant Events of the Quarter
On the first day of the quarter, Wind River introduced a compelling new product: Tornado(TM) for Managed Switches (TMS). Targeted at manufacturers of Ethernet switches and IP routers, TMS provides a complete embedded networking software solution. Early reaction has been enthusiastic and brisk; initial customers include not only major network equipment manufacturers, but also several manufacturers of switching chipsets, who have licensed TMS for their reference designs and are funding Wind River's porting efforts.
Wind River software continues to play a critical role in the exploration of space. Stardust, the first NASA mission dedicated to exploring a comet, launched shortly after the close of the quarter. Wind River's VxWorks(R) operating system is responsible for Stardust's flight trajectory and path, the collection of interstellar dust and cometary material, the journey back to Earth, and the safe landing of the return capsule on the salt flats of western Utah in January of 2006. VxWorks has also been selected for several other NASA missions, including Deep Space One and the Mars Polar Lander.
Longtime Wind River customer Real Time Logic, Inc. (RT Logic) recently chose VxWorks to build the telemetry and commanding systems for use with the Global Positioning System (GPS) satellites. Five ground stations located in various parts of the world will use VxWorks to communicate with the GPS satellites, sending commands as well as receiving state-of-health telemetry information. RT Logic also chose Wind River software to build test systems to fully exercise the telemetry and commanding functions for one of the world's largest commercial satellite producers.
Wind River continues to demonstrate its leadership in the digital imaging market. Among the Tornado and VxWorks-based projects announced during the quarter were Hewlett-Packard's new 9100C Digital Sender office communication device, Kyocera Corporation's complete line of environment-friendly Ecosys printers, and a variety of personal and business laser printers, enterprise-wide digital copiers, and consumer digital still cameras from Minolta.
Other interesting products announced in the last twelve months built around Tornado and VxWorks included a new slot machine game from Sigma Game, Inc. that also uses a high-performance database management system from Wind River partner Raima Corporation; and the palm-sized telephone and Internet Information Appliance from Mitsubishi, called the Internet Paldio.
Shortly after the end of the quarter, Wind River announced Personal JWorks(TM) and the WindPower(TM) TurboJ Compiler -- the industry's first complete Java solution for embedded applications with design requirements of a small memory footprint and high performance. In addition to the next generation GTECH lottery terminals launched earlier this year, Wind River's Java support continues to play a role in a variety of interesting applications including a home and business automation system designed and produced by Holland-based Syntens New Technologies and Tektronix's newest oscilloscopes.
Wind River Systems, Inc.
Wind River Systems, Inc., an ISO 9001 registered company, is the leading provider of integrated software development tools for real-time embedded applications in the Internet, telecommunications, data communications, office automation, networking, computer peripherals, medical, automotive, industrial, aerospace and multimedia markets. Through the industry's most comprehensive product line and customer support, Wind River enables customers to develop and reuse application software across a variety of products and platforms, shortening development cycles and improving time-to-market. Incorporated in 1983, Wind River is headquartered in Alameda, Calif., with representation worldwide.
Except for the historical information contained herein, this news release contains forward-looking statements, including those relating to 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 1998 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: Tornado, VxWorks, Wind River Systems and the Wind River Systems logo 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.
Wind River Systems, Inc.
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(unaudited)
Three months ended Year ended
January 31, January 31,
1999 1998 1999 1998
------ -------- -------- --------
Revenues:
Products $ 28,859 $ 20,995 $ 96,446 $ 67,110
Services 9,341 7,005 32,954 25,290
------- ------ ------- ------
Total revenues 38,200 28,000 129,400 92,400
------ ------ ------- ------
Cost of revenues:
Products 2,371 1,674 8,760 6,245
Services 3,561 2,669 12,941 9,633
------- ------ ------- ------
Total cost of revenues 5,932 4,343 21,701 15,878
------- ------ ------- ------
Gross margin 32,268 23,657 107,699 76,522
------- ------ ------- ------
Operating expenses:
Selling and marketing 12,912 9,312 45,308 33,066
Product development
and engineering 5,128 3,654 17,638 11,970
General and
administrative 2,225 1,628 7,664 6,261
In-process research
and development -- 15,159 -- 15,159
------- -------- -------- --------
Total operating expenses 20,265 29,753 70,610 66,456
------- -------- -------- --------
Operating income 12,003 (6,096) 37,089 10,066
Interest income
and other, net 1,309 662 4,709 3,298
------ -------- -------- --------
Income before
income taxes 13,312 (5,434) 41,798 13,364
Provision for
income taxes 4,792 1,726 15,747 8,494
====== ======== ======== ========
Net income 8,520 $ (7,160) $ 26,051 $ 4,870
====== ======== ======== ========
Net income per share:
Basic 0.21 $ (0.19) $ 0.66 $ 0.13
Diluted 0.20 $ (0.19) $ 0.61 $ 0.12
Shares used in per
share calculation
Basic 40,109 38,396 39,536 38,184
Diluted 43,047 38,396 42,502 42,230
Net income per share and shares used in per share calculation
have been adjusted to reflect a 3-for-2 stock split on February 4,
1999.
Wind River Systems, Inc.
Condensed Consolidated Balance Sheets
(in thousands, except per share amount)
(unaudited)
January 31, January 31,
1999 1998
ASSETS
Current assets:
Cash and cash
equivalents $ 42,514 $100,633
Short-term investments 9,143 61,107
Accounts receivable,
net of allowances
of $1,550 and $1,460 30,375 18,076
Prepaid and other
current assets 10,598 5,210
-------- --------
Total current assets 92,630 185,026
Investments 155,618 60,329
Property and equipment,
net of accumulated
depreciation of
$15,594 and $10,962 31,350 24,496
Other assets 13,021 15,447
Restricted cash 34,157 2,510
======== ========
Total assets $326,776 $287,808
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,389 $ 3,806
Accrued liabilities 10,005 9,733
Accrued compensation 5,950 5,441
Income taxes payable 405 1,415
Deferred revenue 17,062 15,027
-------- --------
Total current liabilities 36,811 35,422
Convertible subordinated notes 140,000 140,000
-------- --------
Total liabilities 176,811 175,422
-------- --------
Minority interest
in consolidated subsidiary 551 400
-------- --------
Stockholders' equity:
Common stock, par value $.001,
125,000 shares authorized,
41,718 and 39,250 shares issued;
40,606 and 38,535
shares outstanding 28 26
Additional paid in capital 124,618 101,154
Treasury stock, 1,112 and
715 shares, at cost (25,491) (15,485)
Cumulative translation adjustments (1,543) (1,700)
Unrealized gain (loss) on investments (612) 503
Retained earnings 52,414 27,488
--------- ---------
Total stockholders' equity 149,414 111,986
========= =========
Total liabilities
and stockholders' equity $ 326,776 $ 287,808
========= =========
CONTACT: Wind River Systems
Richard Kraber, 510/749-2181 (CFO)
De Anna Mekwunye, 510/749-2577 (IR) |
