ATRS Antares Pharma Inc

SALT LAKE CITY, Oct. 24 /PRNewswire-FirstCall/ -- Altiris, Inc. (NASDAQ:ATRS), a pioneer of IT lifecycle management solutions that reduce the total cost of owning information technology, today announced financial results for the third quarter ended September 30, 2005. For the third quarter, the Company reported total revenue of $48.8 million, an increase of 20 percent over $40.7 million reported in the third quarter of 2004. Net income was $132,000, or $0.00 per diluted share, including charges of $2.3 million for the amortization of acquired intellectual property, $997,000 for amortization of intangible assets, $2.7 million in stock-based compensation and $2.0 million in restructuring charges. This compares to net income of $3.4 million, or $0.12 per diluted share, reported in the third quarter of 2004, which includes $1.3 million for the amortization of acquired intellectual property, $687,000 for amortization of intangible assets, and $153,000 in stock-based compensation. On a Non-GAAP basis, the Company reported net income of $5.4 million, or $0.19 per diluted share, for the third quarter of 2005, excluding the above-mentioned charges and applying a tax rate of 35 percent. This compares to Non-GAAP net income of $5.2 million, or $0.19 per share, reported in the same period of last year. "We are pleased with our financial results and execution across our business in the quarter," commented Greg Butterfield, chairman and CEO of Altiris. "In addition to exceeding our guidance, we reported growth in both license and service revenue and successfully implemented our restructuring efforts, realizing meaningful cost savings and significantly improving operating margins. "Our year over year quarterly growth is the result of increased activity across our customer base as well as continued strength in revenue through our OEM partners and our VAR and systems integrator channels. We continued to win competitively with customers as the result of our integrated approach to total lifecycle management and showed good traction with some of our new solutions, most notably our security offerings. We remained focused on delivering innovative solutions and continued to deliver quality new and updated products to the market. "We recently completed our ManageFusion(TM) conference in Orlando where we had more than 800 attendees and 250 customer one-on-one meetings. We believe that the energy around Altiris and our solutions were amply evident at this event and are encouraged by the growing level of interest and acceptance of Altiris across the industry. As we look ahead and with our restructuring activities nearing completion, we believe we are well positioned for a strong future and confident in our ability to continue to execute effectively," concluded Butterfield. Earnings Call Information Altiris, Inc. will broadcast a conference call discussing the company's third quarter results on Monday, October 24 beginning at 5:00 p.m. Eastern Time. A live Webcast of the call will be available from the Investor Relations section of the company's corporate website at http://phx.corporate-ir.net/phoenix.zhtml?c=131071&p=irol-irhome. For those unable to listen to the live Webcast, a replay of the call will also be available on the Altiris Website, or by dialing 800-405-2236 and entering passcode 11041490. Non-GAAP Financial Measures In this earnings release and during our earnings conference call and Webcast as described above, we use or plan to discuss certain Non-GAAP financial measures. Generally, a Non-GAAP financial measure is a numerical measure of a company's performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. A reconciliation between Non-GAAP and GAAP measures can be found in the accompanying tables and on the Investor Relations Section of our website at http://www.altiris.com/. We believe that, while these Non-GAAP measures are not a substitute for GAAP results, they provide a basis for evaluating the Company's cash requirements for ongoing operating activities. These Non-GAAP measures have been reconciled to the nearest GAAP measure as required under SEC rules. We compute Non-GAAP net income by adjusting GAAP net income before taxes for amortization of acquisition-related intellectual property, amortization of other acquired intangible assets such as customer lists and work force, restructuring charges and stock-based compensation. In addition, we used a Non-GAAP tax rate of 35 percent for the second quarters of 2005 and 2004. About Altiris Altiris, Inc. is a pioneer of IT lifecycle management software that allows IT organizations to easily manage, secure and service desktops, notebooks, thin clients, handhelds, industry-standard servers, and heterogeneous software including Windows, Linux and UNIX. Altiris automates and simplifies IT projects throughout the life of an asset to reduce the cost and complexity of management. Altiris client and mobile, server, security and IT asset management solutions natively integrate via a common Web-based console and repository. For more information, visit http://www.altiris.com/. Altiris is a registered trademark of Altiris, Inc. in the U.S. and in other countries. ManageFusion is a trademark of Altiris, Inc. in the U.S. and in other countries. Note on Forward-Looking Statements This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including but not limited to, statements regarding the growing level of interest in, and acceptance of, Altiris and our product solutions, our position in the market and our confidence in our ability to continue to execute effectively. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ, including, but not limited to, changes in economic conditions generally or technology spending in particular, our failure to expand our customer base, deterioration of our relationships with Dell, HP, Fujitsu Siemens Computers, Microsoft and other OEMs and strategic partners, our inability to develop and expand our VAR and systems integrator channels, our inability to compete effectively in an increasingly competitive market, factors affecting our ability to continue to realize the anticipated cost savings and efficiencies from the adjustments made to our operating model, our inability to align our expenses with anticipated revenues and Company strategy, our inability to achieve the anticipated benefits of recently acquired businesses, fluctuations in our future quarterly revenue and operating results, slower than expected closure rates on larger transactions, our inability to manage expenses, disruptions in our business and operations as a result of acquisitions, difficulties and delays in product development, the length and complexity of our product sales cycle, reduced market acceptance of our products and services, our failure to continue to meet the sophisticated and changing needs of our customers, risks inherent in doing business internationally, our inability to implement and maintain adequate internal systems and effective internal control over financial reporting, changes in relevant accounting standards and securities laws and regulations, and such other risks as identified in our Quarterly Report on Form 10-Q for the period ended June 30, 2005 as filed with the Securities and Exchange Commission and all subsequent filings, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. Altiris assumes no obligation and does not intend to update these forward-looking statements. Altiris, Inc. Consolidated Statements of Operations (Unaudited) (in 000's, except per share data) Three Months Ended Nine Months Ended September 30 September 30 2005 2004 2005 2004 Revenue: Software $26,170 $24,768 $80,951 $75,046 Services 22,605 15,928 61,088 43,085 Total revenue 48,775 40,696 142,039 118,131 Cost of revenue: Software 315 292 578 839 Amortization of acquired intellectual properties 2,294 1,341 6,713 3,409 Services 6,577 5,587 19,263 14,779 Total cost of revenue 9,186 7,220 26,554 19,027 Gross profit 39,589 33,476 115,485 99,104 Operating expenses: Sales and marketing 19,602 15,921 57,991 46,361 Research and development 9,919 7,916 30,060 23,573 General and administrative 4,869 3,600 16,251 10,184 Amortization of intangible assets 997 687 3,014 2,032 Restructuring charge 2,019 -- 2,019 -- Write-off of in-process research and development -- -- 1,600 -- Stock-based compensation 2,699 153 4,794 456 Total operating expenses 40,105 28,277 115,729 82,606 Income (loss) from operations (516) 5,199 (244) 16,498 Other income, net 764 622 11,018 1,034 Income before income taxes 248 5,821 10,774 17,532 Provision for income taxes (116) (2,432) (4,011) (7,356) Net income $132 $3,389 $6,763 $10,176 Basic net income per share $0.00 $0.13 $0.25 $0.39 Diluted net income per share $0.00 $0.12 $0.24 $0.37 Basic shares 27,705 26,695 27,482 26,385 Diluted shares 28,288 27,840 28,451 27,591 Non-GAAP ADJUSTMENTS GAAP income before income taxes $248 $5,821 $10,774 $17,532 Add back: Amortization of acquired intellectual properties 2,294 1,341 6,713 3,409 Amortization of intangible assets 997 687 3,014 2,032 Write-off of in-process research and development -- -- 1,600 -- Restructuring charge 2,019 -- 2,019 -- Symantec litigation settlement -- -- (10,000) -- Stock-based compensation 2,699 153 4,794 456 Non-GAAP income before income taxes 8,257 8,002 18,914 23,429 Non-GAAP provision for income taxes (35%) (2,890) (2,801) (6,620) (8,200) Non-GAAP net income $5,367 $5,201 $12,294 $15,229 Non-GAAP net income per share: Basic $0.19 $0.19 $0.45 $0.58 Diluted $0.19 $0.19 $0.43 $0.55 Shares used to compute Non-GAAP net income per share: Basic 27,705 26,695 27,482 26,385 Diluted 28,288 27,840 28,451 27,591 Altiris, Inc. Consolidated Balance Sheets (Unaudited) (in 000's) September 30, 2005 December 31, 2004 ASSETS Current assets: Cash and marketable securities $144,092 $183,447 Accounts receivable, net 38,762 40,056 Prepaid expenses and other current assets 3,174 4,171 Deferred tax asset 1,000 1,757 Total current assets 187,028 229,431 Property and equipment, net 6,851 5,713 Intangible assets, net 37,053 26,516 Goodwill 67,504 16,425 Other assets 289 157 Total Assets $298,725 $278,242 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of capital lease obligations $1,466 $994 Accounts payable 1,621 2,661 Accrued salaries and benefits 11,414 12,106 Other accrued expenses 5,882 13,951 Deferred revenue 45,414 38,007 Total current liabilities 65,797 67,719 Capital lease obligations, net of current portion 1,687 871 Other accrued expenses, non-current 57 -- Deferred tax liability, non-current 1,984 2,755 Deferred revenue, non-current 4,613 4,689 Total liabilities 74,138 76,034 Stockholders' equity: Common stock 3 3 Additional paid in capital 215,850 194,789 Deferred compensation (4,877) (255) Accumulated other comprehensive income (380) 444 Retained earnings 13,991 7,227 Total stockholders' equity 224,587 202,208 Total liabilities and stockholders' equity $298,725 $278,242 DATASOURCE: Altiris, Inc. CONTACT: Susan Richards of Altiris, Inc., +1-801-805-2783, ; or Investors, Erica Abrams, , or Vanessa Lehr, , both of The Blueshirt Group, +1-415-217-7722, for Altiris, Inc. Web site: http://www.altiris.com/

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