ATRS Antares Pharma Inc

Altiris Reports Strong Third Quarter 2003 Financial Results SALT LAKE CITY, Oct. 27 /PRNewswire-FirstCall/ -- Altiris, Inc. , a leader in systems management solutions that reduce the total cost of owning information technology (IT), today announced financial results for the three and nine-month periods ended September 30, 2003. For the three-month period, the Company reported total revenue of $25.4 million, an increase of 59% over the third quarter of 2002, and 11% over the second quarter of 2003. The Company reported net income of $3.8 million, or $0.15 per diluted share, which compares to a net loss of $359,000, or $0.02 per diluted share, reported in the third quarter of 2002, and net income of $3.3 million, or $0.15 per diluted share, reported in the second quarter of 2003. On a pro forma basis, the Company reported net income of $3.5 million, or $0.14 per diluted share, for the third quarter of 2003, excluding non-cash charges of $169,000 related to amortization of acquired intellectual property and $321,000 in stock-based compensation, offset by applying a normalized estimated effective tax rate of 38%. This compares to pro forma net income of $552,000, or $0.03 per diluted share, reported in the third quarter of 2002, and pro forma net income of $2.6 million, or $0.11 per diluted share, reported in the second quarter of 2003. License revenue increased 59% over the third quarter of 2002 and 10% over the second quarter of 2003, to $16.6 million. Service revenue increased 59% over the third quarter of 2002 and 13% over the second quarter of 2003, to $8.8 million. The Company generated $10.9 million in cash and closed the quarter with $151.6 million in cash and marketable securities. "We are pleased to announce another quarter of strong results in all aspects of our business," commented Greg Butterfield, president and chief executive officer of Altiris. "In the third quarter, we experienced solid sales activity across all channels and geographies, closing 42 transactions over $100,000. Through our OEM channel, we were effective at winning a number of significant, competitive deals involving many of our client, server and asset management solutions. In addition, our customers' heightened need for patch management drove additional interest in Altiris' client and server management offerings that uniquely combine patch management and recovery and roll-back capabilities, and are a natural fit with our full range of IT lifecycle management solutions. "Looking ahead, we expect to continue to redefine lifecycle management as we extend our leadership in client management to the server and asset management businesses and broaden our product and service offerings in order to meet the evolving needs of our customers. We are confident in our market position and believe that the breadth and depth in our range of solutions positions us for continued growth and leadership in the systems management market," concluded Butterfield. For the nine-month period ended September 30, 2003, the Company reported revenue of $69.0 million, an increase of 54% over $44.7 million reported for the same period of 2002. In addition, the Company reported net income for common shares, based on generally accepted accounting principals in the United States of America (GAAP), of $9.6 million, or $0.42 per diluted share, as compared to a GAAP net loss for common shares of $15.5 million, or $1.10 per diluted share, for the same period of 2002. On a pro forma basis, the Company reported net income of $8.0 million, or $0.35 per diluted share, as compared to net income of $1.6 million, or $0.08 per diluted share, reported for the same period of last year. Pro forma net income in 2003 excludes $1.5 million in non-cash charges related to the amortization of acquired intellectual property and stock-based compensation. For 2002, pro forma net income excludes $3.6 million in non-cash charges related to the amortization of acquired intellectual property and stock-based compensation and $13.8 million in deemed dividends attributable to preferred stockholders. Earnings Call Information Altiris, Inc. will broadcast a conference call discussing the company's third quarter results on Monday, October 27, 2003 starting at 5:00 p.m. Eastern Time. A live webcast of the call will be available on the Investor Relations section of the company's web site at http://www.altiris.com/company/investor /. 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 556060. Pro Forma Financial Measures In this earnings release and during our earnings conference call and webcast to be broadcast on October 27, 2003 as described above, we use or plan to discuss certain pro forma financial measures, which may be considered 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, or GAAP. A reconciliation between pro forma and GAAP measures can be found in the accompanying tables and on the Investor Relations section of our website at http://www.altiris.com/company/investor /. We believe that, while these pro forma measures are not a substitute for GAAP results, they provide the best basis for evaluating the Company's cash performance for ongoing operating activities. These pro forma measures have been reconciled to the nearest GAAP measure as is required under SEC rules regarding the use of non-GAAP financial measures. We compute pro forma net income by adjusting GAAP net income for amortization of acquisition-related intellectual property, intellectual property, amortization of other acquired intangible assets such as customer lists and work force, stock-based compensation and deemed dividends attributable to preferred stockholders. About Altiris Altiris, Inc. is a leading provider of software products and services that enable organizations to manage IT assets throughout their lifecycles. Our comprehensive client management, server provisioning and asset management suites are designed to address the challenges that IT professionals face in deploying, migrating, backing up and restoring software settings on multiple hardware devices; provisioning and managing servers; tracking performance and diagnostic metrics for hardware and software; taking inventory of existing IT assets; and facilitating problem resolution for hardware or software failures. We believe that the comprehensive functionality of our products, combined with their ease of use, allows an organization to lower its total cost of ownership. For more information, visit http://www.altiris.com/ . 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 our advancing our leadership in IT lifecycle management, our long- term market position, and our market opportunity and performance expectations. These forward-looking statements involve certain risks and uncertainties that could cause actual results to differ, including, but not limited to, our limited operating history, fluctuations in our future quarterly operating results, any deterioration of our relationships with HP, Dell, Microsoft and other OEMs, VARs, systems integrators, and direct sales channels, our inability to compete effectively in the market, a general downturn in economic conditions, adverse changes in IT spending trends, our failure to expand our distribution channels and customer base, the length and complexity of our product sales cycle, increased competition, difficulties and delays in product development, 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, and such other risks as identified in our quarterly report on Form 10-Q for the period ended June 30, 2003, as filed with the Securities and Exchange Commission and all subsequent filings, including registration statements, 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. (Table to follow) Altiris is a registered trademark of Altiris, Inc. in the U.S. and in other countries. Altiris, Inc. Consolidated Statements of Operations (Unaudited) (in 000's, except per share data) Three Months Ended Nine Months Ended September 30 September 30 2003 2002 2003 2002 Revenue: Software $16,598 $10,452 $44,459 $26,186 Services 8,756 5,522 24,554 18,554 Total revenue 25,354 15,974 69,013 44,740 Cost of revenue: Software 445 263 794 739 Amortization of acquired IP 169 245 466 1,644 Services 2,597 1,151 7,441 5,571 Total cost of revenue 3,211 1,659 8,701 7,954 Gross profit 22,143 14,315 60,312 36,786 Operating expenses: Sales and marketing 9,677 7,651 27,004 19,920 Research and development 6,176 4,353 17,446 11,610 General and administrative 1,759 1,833 5,593 5,033 Amortization of intangible assets -- -- 41 25 Stock-based compensation 321 665 985 1,965 Total operating expenses 17,933 14,502 51,069 38,553 Income (loss) from operations 4,210 (187) 9,243 (1,767) Other income (expense), net 958 167 2,171 641 Income (loss) before income taxes 5,168 (20) 11,414 (1,126) Provision for income taxes (1,320) (339) (1,784) (582) Net income (loss) $3,848 $(359) $9,630 $(1,708) Dividends related to preferred shares -- -- -- (13,781) Net income (loss) for common shares $3,848 $(359) $9,630 $(15,489) Basic net income (loss) per share $0.16 $(0.02) $0.44 $(1.10) Diluted net income (loss) per share $0.15 $(0.02) $0.42 $(1.10) Basic shares 23,556 19,685 21,788 14,042 Diluted shares 24,976 19,685 23,063 14,042 PRO FORMA ADJUSTMENTS GAAP income (loss) before income taxes $5,168 $(20) $11,414 $(1,126) Add back: Amortization of acquired IP 169 245 466 1,644 Amortization of intangible assets -- -- 41 25 Stock-based compensation 321 665 985 1,965 Pro forma income before income taxes 5,658 890 12,906 2,508 Pro forma provision for income taxes (38%) (2,150) (338) (4,904) (953) Pro forma net income $3,508 $552 $8,002 $1,555 Pro forma net income per share: Basic $0.15 $0.03 $0.37 $0.11 Diluted $0.14 $0.03 $0.35 $0.08 Shares used to compute pro forma net income per share: Basic 23,556 19,685 21,788 14,042 Diluted 24,976 21,276 23,063 18,689 Altiris, Inc. Consolidated Balance Sheets (in 000's) September 30, 2003 December 31, 2002 ASSETS (Unaudited) Current assets: Cash and marketable securities $151,562 $72,931 Accounts receivable, net 19,617 11,856 Prepaid expenses and other current assets 2,035 1,069 Total current assets 173,214 85,856 Property and equipment, net 3,310 3,035 Intangible assets, net 338 849 Other assets 96 93 Total Assets $176,958 $89,833 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current portion of capital lease obligations 972 871 Current portion of note payable -- 144 Accounts payable 1,764 1,311 Accrued salaries and benefits 3,453 3,232 Other accrued expenses 2,154 3,599 Deferred revenue 16,612 11,346 Total current liabilities 24,955 20,503 Capital lease obligations, net of current portion 678 780 Deferred revenue, non-current 4,073 2,632 Total liabilities 29,706 23,915 Stockholders' equity: Common stock 3 2 Additional paid in capital 162,230 91,659 Deferred compensation (1,238) (2,311) Accumulated other comprehensive income 142 83 Accumulated deficit (13,885) (23,515) Total stockholders' equity 147,252 65,918 Total liabilities and stockholders' equity $176,958 $89,833 DATASOURCE: Altiris, Inc. CONTACT: Susan Richards of Altiris Inc., +1-801-805-2783, ; or Investors, Erica Abrams, , or Annie Palmore, , both of the blueshirt group, +1-415-217-7722, for Altiris Web site: http://www.altiris.com/company/investor Web site: http://www.altiris.com/

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