Versant Announces Quarterly Net Income of $0.5 Million
February 24 2010 - 8:10AM
Versant Corporation (Nasdaq:VSNT), an industry leader in
specialized data management, today announced its financial results
for its first fiscal quarter ended January 31, 2010.
For the quarter, Versant reported revenues of $4.5 million from
its operations compared to $5.6 million for the same quarter of the
last fiscal year.
The 21% decrease in revenues for the quarter as compared to the
same quarter of last fiscal year was primarily attributable to a
24% decrease in license revenues and also to a 14% decrease in
maintenance revenues relative to the same period in the prior
fiscal year. In the quarter ended January 31, 2010 there were
generally smaller license transactions compared to the first
quarter of fiscal 2009, although one customer accounted for 13% of
total revenues in the quarter, whereas no customer accounted for
more than 10% of total revenues in the quarter ended January 31,
2009.
Net income for the quarter was $0.5 million and diluted net
income per share was $0.14, compared to net income of $1.6 million
and diluted net income per share of $0.42 for the first quarter of
fiscal 2009.
Versant also reported a decrease in cash and cash equivalents of
approximately $0.7 million during the quarter. The decrease
was primarily a result of the increase in trade accounts receivable
of $1.3 million and the expenditure of $0.7 million to repurchase
shares of our common stock under the stock repurchase program, and
was partially offset by an increase in deferred revenues of $0.7
million.
The provision for income taxes for the quarter includes
adjustments for taxable gains from U.S. denominated currencies held
by our German operations as a result of the strengthening of the
U.S. dollar against the euro, and to a lesser extent, foreign
withholding taxes on sales transactions for certain countries in
the Asia Pacific region.
Under the Company's current stock repurchase program, in which
the Company is authorized to repurchase up to $5.0 million worth of
its outstanding common shares, Versant has acquired 49,542 of its
common shares in the open market for a total price of approximately
$0.7 million, or an average purchase price of $15.03 per share,
leaving a balance of approximately $4.3 million in funds available
for future repurchases of stock under this program until its
expiration on October 31, 2010.
"In the current quarter revenues increased by approximately 8%
over the preceding quarter," said Jochen Witte, CEO of Versant
Corporation. "Income from operations also grew 22% compared to the
preceding quarter despite our increased spending levels in sales
and marketing. We view this as a possible signal of stabilization,
although the software market certainly remains very difficult to
forecast in the current economic environment."
About Versant Corporation
Versant Corporation (Nasdaq:VSNT) is an industry leader in
specialized data management software, which helps companies to
handle complex information in environments that have high
performance and high availability requirements. Using the Versant
Object Database, 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 Ericsson, Verizon, Siemens, US Government,
and Financial Times. For more information, call 650-232-2400
or visit 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 the statements in this press
release regarding possible stabilization in the general economy and
in the software markets. These forward-looking statements are
based on our assessment of the general economic environment in
fiscal 2010 which may prove to be incorrect. Investors are
cautioned that any such forward-looking statements are not
guarantees of Versant's future performance or other matters and
involve very significant risks and uncertainties.
There are many important factors and risks that could cause our
actual results to differ materially from those anticipated in the
forward-looking statements. These factors, risks and uncertainties
include, without limitation: the impact, severity and duration of
the current downturn in the global economy, which may reduce our
customers' revenues and profits and thus dissuade them from making
strategic capital purchase decisions for our products and services
or delay such decisions; our inability to achieve revenue
expectations or projected net income levels as a result of the
foregoing factors or delays in the sales cycle for our products and
services, failures to close key sales transactions, failure of
customers to renew maintenance agreements; changing market demands
or perceptions of our products and technologies; the impact of
actions of our competitors or new technologies; our failure to
retain existing customers or to develop and retain significant new
customers, including customers in new markets; the fact that our
results of operations are highly dependent on sales of our Versant
Object Database product; the performance of our resellers; the
possibility that value added resellers may not remain committed to
our software or that their sales activity may not keep pace with
their historical results; the timing of larger customer
transactions, which may tend to result in significant variations in
quarterly revenues and operating results; potential reductions in
the prices we charge for our products and services due to
competitive conditions or the general economic downturn; changes in
currency exchange rates; the Company's ability to successfully
manage its costs and operations, its ability to effectively utilize
any increases in its sales and marketing expense and to maintain
its cash flows and adequate working capital; and any failure of our
efforts to capitalize on our db4o database business or to
ultimately make that business profitable. 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 fiscal year ended October 31, 2009, its
reports on Form 10-Q and its reports on Form 8-K.
Versant is a registered trademark or trademark of Versant
Corporation in the United States and/or other countries.
Conference Call Information
Versant will host a teleconference today to discuss the above
after markets close. The details for the call are as follows:
Date:
|
Wednesday, February 24, 2010
|
Time:
|
1:30 PM Pacific (4:30 PM Eastern)
|
Dial-in number U.S.:
|
1-888-846-5003
|
International:
|
1-480-629-9856
|
Conference ID:
|
4236224
|
Internet Simulcast*:
|
http://viavid.net/dce.aspx?sid=00007140
|
*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
Versant Corporation at (650) 232-2416.
A replay of the conference call will be available until March 3,
2010.
|
Replay number U.S.:
|
1-800-406-7325
|
International Replay number:
|
1-303-590-3030
|
Replay Pass Code**:
|
4236224
|
** Enter the playback pass code to access the
replay.
|
VERSANT CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(in thousands, except for share amounts)
|
(unaudited)
|
|
|
|
|
January 31,
|
October 31,
|
|
2010
|
2009
|
ASSETS
|
|
|
Current assets:
|
|
|
Cash and cash equivalents
|
$ 27,099
|
$ 27,812
|
Trade accounts receivable, net of allowance for doubtful
accounts of $8
and $36 at January 31, 2010 and October 31, 2009,
respectively
|
3,553
|
2,251
|
Deferred income taxes
|
879
|
939
|
Other current assets
|
609
|
633
|
Total current assets
|
32,140
|
31,635
|
|
|
|
Property and equipment, net
|
490
|
488
|
Goodwill
|
8,499
|
8,410
|
Intangible assets, net
|
725
|
802
|
Other assets
|
38
|
38
|
Total assets
|
$ 41,892
|
$ 41,373
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
Accounts payable
|
$ 273
|
$ 154
|
Accrued liabilities
|
1,068
|
1,215
|
Deferred revenues
|
4,128
|
3,475
|
Total current liabilities
|
5,469
|
4,844
|
|
|
|
Deferred revenues
|
180
|
177
|
Other long-term liabilities
|
107
|
95
|
Total liabilities
|
5,756
|
5,116
|
|
|
|
Stockholders' equity:
|
|
|
Common stock, no par value, 7,500,000 shares authorized,
3,511,974 shares issued and outstanding at January 31, 2010,
and 3,552,946 shares issued and outstanding at October 31,
2009
|
95,389
|
95,730
|
Accumulated other comprehensive income, net
|
149
|
434
|
Accumulated deficit
|
(59,402)
|
(59,907)
|
Total stockholders' equity
|
36,136
|
36,257
|
Total liabilities and stockholders' equity
|
$ 41,892
|
$ 41,373
|
VERSANT CORPORATION AND SUBSIDIARIES
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(in thousands, except for per share amounts)
|
(unaudited)
|
|
|
|
|
Three Months Ended
|
|
January 31,
|
January 31,
|
|
2010
|
2009
|
|
|
|
Revenues:
|
|
|
License
|
$ 2,459
|
$ 3,243
|
Maintenance
|
1,984
|
2,314
|
Professional services
|
12
|
62
|
Total revenues
|
4,455
|
5,619
|
|
|
|
Cost of revenues:
|
|
|
License
|
81
|
65
|
Amortization of intangible assets
|
77
|
93
|
Maintenance
|
390
|
383
|
Professional services
|
10
|
36
|
Total cost of revenues
|
558
|
577
|
|
|
|
Gross profit
|
3,897
|
5,042
|
|
|
|
Operating expenses:
|
|
|
Sales and marketing
|
1,186
|
1,186
|
Research and development
|
1,044
|
993
|
General and administrative
|
923
|
1,187
|
Restructuring
|
43
|
--
|
Total operating expenses
|
3,196
|
3,366
|
|
|
|
Income from operations
|
701
|
1,676
|
Interest and other income, net
|
10
|
154
|
Income before provision for income taxes
|
711
|
1,830
|
Provision for income taxes
|
206
|
268
|
|
|
|
Net income
|
$ 505
|
$ 1,562
|
|
|
|
Net income per share:
|
|
|
Basic
|
$ 0.14
|
$ 0.42
|
Diluted
|
$ 0.14
|
$ 0.42
|
|
|
|
Shares used in per share calculation:
|
|
|
Basic
|
3,537
|
3,723
|
Diluted
|
3,575
|
3,760
|
CONTACT: Versant Corporation
Jerry Wong, Chief Financial Officer
1-800-VERSANT
650-232-2400
Versant (NASDAQ:VSNT)
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