LGTO - Amazing numbers, 71% growth in revenue, 92% growth in EPS. Also beat the wisper number. This and the stock is selling at a huge discount to its growth rate and peers.
Wednesday April 21, 4:02 pm Eastern Time
Company Press Release
Legato Announces Record First Quarter 1999 Results: Revenue Grows 70%
Earnings Per Share Increase 92%
PALO ALTO, Calif.--(BUSINESS WIRE)--April 21, 1999--Legato Systems, Inc. (Nasdaq:LGTO - news), the leader in enterprise storage management, today announced record financial results for its first quarter of fiscal 1999. The company achieved record revenue of $48.3 million, an increase of 70% over last year's first quarter revenue of $28.4 million. Net income grew 95% to $10.1 million, from $5.2 million for the same period in fiscal year 1998.
The company enjoyed further operating margin expansion to 31.1% for the first quarter compared with 26% for the same period last year. Diluted earnings per share for the quarter nearly doubled to $0.25 from $0.13 for the same period last year.
''The momentum of the company has never been stronger, and our growth reflects broad customer acceptance,'' said Louis C. Cole, Legato's president and chief executive officer. ''Sustained growth in worldwide sales, coupled with the expanding breadth and depth of our product offering, puts Legato in a powerful position to take full advantage of the opportunities in this rapidly expanding storage management market. We also demonstrated our commitment to the emerging Storage Area Networking marketplace by announcing and delivering the industry's first serverless solution for SANs, along with innovative software products in the areas of backup, high availability, and clustering,'' Cole concluded.
''Our recently completed first quarter was the strongest quarter in company history,'' commented Stephen C. Wise, chief financial officer. ''License revenue was up sharply in the quarter to $35.5 million, and service and support revenue more than doubled, growing to $12.8 million compared with $6.1 million recorded in the first quarter of 1998. We're very pleased with the success we're having in all of our markets worldwide, with well-balanced growth across all major product lines and channel segments,'' concluded Wise.
In separately released communications, the company announced that it had successfully completed the acquisitions of Intelliguard Software and FullTime Software, which closed on April 1, 1999 and April 19, 1999, respectively.
This announcement may contain forward-looking statements that involve risks and uncertainties. The Company's actual results may differ materially from the results described in such statements. Factors that might cause such a difference include, but are not limited to, fluctuations in quarterly operating results, product concentration, competition, rapid technological change, management of an expanding company, and those other factors discussed in the ''Risk Factors'' section of the Company's Report on Form 10-K, as amended, and filed with the Securities and Exchange Commission on March 4, 1999, copies of which are available on request from the Company.
About Legato Systems
Legato Systems, Inc. develops, markets and supports an integrated set of enterprise storage management software products for heterogeneous, client/server computing environments. The company's solutions are selected by large customers around the world because of their reliability, platform-independence and ability to seamlessly integrate with existing computing environments. The company's storage management software has become the recognized de-facto standard with the largest installed base representing over 40,000 customers. Twenty four of the world's largest system and applications vendors have chosen Legato's software as their preferred storage management solution for their customers, including Banyan, BMC Software, Compaq/Digital, Compaq/Tandem, Data General, Fujitsu/Amdahl, Fujitsu/ICL, Groupe Bull, Hewlett-Packard, Hitachi, Informix, NEC, Netscape, Network Appliance, Nihon-Unisys, Oracle, Siemens Nixdorf, Silicon Graphics, Sony and Sun Microsystems. The company's NetWorker, BusinesSuite, SmartMedia, and GEMS products are also licensed, resold, or endorsed by other major vendors, including Computer Associates, IBM/Tivoli, Microsoft Corporation, MTI, Novell, and SAP.
Note to Editors: Legato NetWorker is a registered trademark, and NetWorker Archive, NetWorker HSM, ClientPak, SmartClient, SmartMedia, StorSuite, BusinesSuite, Power Edition, Legato GEMS, and OpenTape are trademarks of Legato Systems, Inc. in the U.S. and/or other countries. All other product, trademark, company, or service names mentioned herein are the property of their respective owners.
The following condensed consolidated financial statements have been restated to reflect the Company's acquisition of Software Moguls, Inc., completed August 6, 1998, and accounted for as pooling-of-interests.
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