Versant Announces Positive Net Income for First Quarter 2005 Other
Highlights Include Positive Operating Cash Flow and Record First
Quarter Revenues FREMONT, Calif., March 9 /PRNewswire-FirstCall/ --
Versant Corporation (NASDAQ:VSNT), today announced its results for
the first quarter of fiscal year 2005 ended January 31, 2005. For
the first quarter ended January 31, 2005, Versant reported total
revenues of $6.6 million. License revenues for the first quarter
were $3.5 million, representing 19% growth over the previous
quarter. Services revenues for the first quarter were $3.1 million.
Net income for the first quarter of 2005 was $345,000, or $0.01 per
share with a positive cash flow from operations. "Starting the year
strongly is always important, and beginning 2005 with a record Q1
revenues puts us right where we wanted to be," said Nick Ordon,
Versant's president and chief executive officer. "There is some
seasonality to our business, but setting early momentum gives a
solid start toward the business and strategic goals for the year."
"The early release of Versant Open Access .NET during the quarter
combined with the newly-signed partnership with Microsoft is a
strategic milestone, and represents a significant step for
Versant," said Ordon. "This product expands Versant's access to the
Microsoft development community. We already have several key
customers in the evaluation phase with this product."
Comparatively, revenues for Q1 2005 were up 6% over Q4 2004.
Operating expenses for Q1 2005 decreased by 45% from Q4 2004, or by
10% when the Q4 2004 restructuring charges are excluded. Net income
per share for Q1 2005 was $0.01 per share compared to a net loss of
$0.12 per share for Q4 2004. Key Highlights -- Strongest Q1
revenues in the company's history -- Positive net income and cash
flow from operations for Q1, driven by high license revenue mix --
Solid follow-on orders from Ericsson, Nortel, Vignette, and
PeopleSoft -- Early release of Versant Open Access .NET and
membership in the Microsoft Visual Studio Industry Partners (VSIP)
program Operating Results Outlook The following statements are
projections and forward-looking statements that are based on
management's estimates as of March 9, 2005. Ordon said, "We
currently estimate revenue growth for the second quarter of 2005,
over the same quarter of 2004. Revenue is expected to be in the
range of $5.3 to $6.0 million with an estimated EPS in the range of
a loss of $0.02 per share to break-even while generating positive
cash flow throughout the range. Looking at the full fiscal year
2005, we expect growth in revenues over 2004 and to generate
positive net income and positive cash flow." About Versant
Corporation Versant Corporation is an industry leader in
specialized data management and open data access software. Using
Versant's solutions, customers cut hardware costs, speed and
simplify development, significantly reduce administration costs and
deliver products with a strong competitive edge. Versant's
solutions are deployed in a wide array of industries including
telecommunications, financial services, transportation,
manufacturing, and defense. With over 50,000 installations, Versant
has been a highly reliable partner for over 15 years for Global
2000 companies such as British Airways, US Government, Financial
Times, IBM, and MCI. For more information, call 510-789-1500 or
visit http://www.versant.com/. Forward Looking Statements Involve
Risks and Uncertainties This press release contains 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, and
is subject to the safe harbor created by those sections. These
forward-looking statements include: statements regarding forecasts
of ranges for Versant's estimated revenues and earnings per share
for the second fiscal quarter of 2005; statements regarding
Versant's expectations for revenue growth, positive income and
positive cash flow in fiscal 2005; statements regarding Versant
having an solid start for its fiscal year performance; expectations
of additional business from existing resellers; the impact of
Versant's Open Access for .NET combined with the newly signed
partnership with Microsoft; and the broadening of markets beyond
traditional areas. Investors are cautioned that any such
forward-looking statements are not guarantees of future performance
and these forward-looking statements involve significant risks and
uncertainties, there are important factors that could cause our
actual results to differ materially from those in the forward-
looking statements. These risk and uncertainties include, without
limitation; the inability to achieve revenue expectations as a
result of delays in the sales cycle for our products and services,
changing markets demands and the performance of our resellers; the
possibility that existing value added resellers may not remain
committed to our software or that their sales activity may not keep
pace with their historical results; that future sales levels will
not meet expectations or may be delayed; the potential short-term
impact to revenues as a result of changes in field operations; the
possibility that additional integration actions may be necessary
with respect to the merger with Poet which may increase our
operating expenses or other costs and adversely affect our
operating results; the uncertainty as to the impact and duration of
the current market reductions in corporate IT spending; the
possibility that additional restructuring actions may be required;
and the company's ability to successfully manage its costs and
operations and maintain its working capital. The forward-looking
statements contained in this press release are made only as of the
date of this press release, and the Company assumes no obligation
to publicly update any forward-looking statement. Investors are
cautioned not to place undue reliance on forward-looking
statements. Additional information concerning factors that could
cause results to differ can be found in the Company's filings with
the Securities and Exchange Commission, including without
limitation the Company's most recent Annual Report on Form 10-K for
the year ending October 31, 2004 and its Quarterly Reports on Form
10-Q for the quarters ending January 31, 2004, April 30, 2004, and
July 31, 2004, and its reports on Form 8-K. NOTE: Versant is either
a registered trademark or trademark of Versant Corporation in the
United States and/or other countries. All other products are a
registered trademark or trademark of their respective company in
the United States and/or other countries. Conference Call
Information Versant will host a teleconference to discuss Q1 2005
results today after markets close. The details for the earnings
call are as follows: Date: Wednesday, March 9, 2005 Time: 1:30 PM
Pacific (4:30 PM Eastern) Dial-in number: 1-800-247-9979
International: 1-973-935-2401 Internet Simulcast:*
http://www.viavid.net/detailpage.aspx?sid=00002335 *Windows Media
Player needed for simulcast. Simulcast is voice only. Dial in 5-10
minutes prior to the start time. An operator will request your name
and organization and ask you to wait until the call begins. If you
have any difficulty connecting, please call the Liolios Group at
949-574-3860. A replay of the conference call will be available
until March 16, 2005** Replay number: 1-877-519-4471 International
Replay number: 1-973-341-3080 Internet Simulcast:
http://www.viavid.net/detailpage.aspx?sid=00002335 ** Enter the
playback pass code 5782569 to access the replay VERSANT CORPORATION
AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in
thousands, except for par value) January 31, October 31, 2005 2004
--------- --------- ASSETS (unaudited) Current assets: Cash and
cash equivalents $3,554 $3,313 Restricted cash 320 320 Trade
accounts receivable, net 5,388 5,121 Other current assets 536 823
--------- --------- Total current assets 9,798 9,577 Property and
equipment, net 676 742 Goodwill 16,945 16,895 Intangible assets,
net 4,600 4,770 Other assets 383 561 --------- --------- Total
assets $32,402 $32,545 ========= ========= LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $775
$839 Accrued liabilities 3,840 4,307 Deferred revenue 3,268 3,027
Deferred rent 102 93 --------- --------- Total current liabilities
7,985 8,266 Long term restructuring accrual 952 1,120 Deferred
revenue 19 43 Deferred rent 203 237 --------- --------- Total
liabilities 9,159 9,666 --------- --------- Stockholders' equity:
Common stock, $0.00 par value 94,103 94,021 Deferred stock-based
compensation (120) (146) Accumulated other comprehensive income 480
569 Accumulated deficit (71,220) (71,565) --------- --------- Total
stockholders' equity 23,243 22,879 --------- --------- Total
liabilities and stockholders' equity $32,402 $32,545 =========
========= VERSANT CORPORATION AND SUBSIDIARIES CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS (in thousands) (unaudited)
Three Months Ended --------------------------------------------
January 31, October 31, January 31, 2005 2004 2004 ------------
------------ ------------ Revenues: License $3,491 $2,924 $3,082
Maintenance 1,592 1,727 1,591 Professional services 1,526 1,579
1,693 ------------ ------------ ------------ Total revenues 6,609
6,230 6,366 Cost of revenues: License 56 51 47 Amortization of
acquired technology 195 224 24 Maintenance 418 308 339 Professional
services 1,501 1,502 1,476 ------------ ------------ ------------
Total cost of revenues 2,170 2,085 1,886 Gross profit 4,439 4,145
4,480 ------------ ------------ ------------ Operating expenses:
Sales and marketing 1,729 2,001 2,164 Research and development
1,079 1,377 961 General and administrative 1,322 1,261 807
Restructuring charges -- 2,857 -- ------------ ------------
------------ Total operating expenses 4,130 7,496 3,932 Income
(loss) from operations 309 (3,351) 548 ------------ ------------
------------ Other income (loss), net 81 (161) 97 ------------
------------ ------------ Income (loss) before provision for income
taxes 390 (3,512) 645 Provision for income taxes 45 20 40
------------ ------------ ------------ Net income (loss) from
continuing operations $345 $(3,532) $605 ------------ ------------
------------ Loss from discontinued operations, net of income tax
-- (181) -- Loss from the sale of discontinued operations, net of
income tax -- (309) -- ------------ ------------ ------------ Net
income (loss) $345 $(4,022) $605 ============ ============
============ Net income (loss) per share: Basic $0.01 $(0.12) $0.04
Diluted $0.01 $(0.12) $0.03 Shares used in per share calculation:
Basic 34,772 34,689 14,743 Diluted 35,195 34,689 17,967 VERSANT
CORPORATION AND SUBSIDIARIES GUIDANCE FOR QUARTER ENDING APRIL 30,
2005 (in thousands, except per share amounts) Low High --------
-------- Revenues $5,300 $6,000 Net income (loss) $(600) $15 Net
income (loss) per share $(0.02) $-- DATASOURCE: Versant Corporation
CONTACT: Lee McGrath, Chief Financial Officer of Versant
Corporation, 1-800-VERSANT, or +1-510-789-1500, or ; or investors,
Scott Liolios of Liolios Group, Inc., +1-949-574-3860, or , for
Versant Corporation Web site: http://www.versant.com/
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