Versant Corporation (Nasdaq:VSNT), an industry leader in
specialized data management, today revised its previous guidance
for its fiscal year ending October 31, 2010 and provided
preliminary estimates of the results of its second fiscal quarter.
For fiscal year 2010, the Company now expects revenues of
between $15.5 million and $16.5 million (compared to the previous
fiscal 2010 revenue guidance of $18.2 million) and income from
operations of between $1.0 million to $1.7 million (compared to the
previous fiscal 2010 guidance of $2.8 million).
The Company currently expects that, for its second fiscal
quarter ended April 30, 2010, revenues will be approximately $3.5
million with income from operations at break-even. Actual
results for the second quarter will be announced in a separate,
future press release.
The projected decrease in revenues for fiscal year 2010 is
attributable to lower support and maintenance revenues, and to a
somewhat lesser extent, lower license revenues for the remainder of
the fiscal year. The decrease in support and maintenance
revenues is a result of the lack of substantive back maintenance
revenue transactions projected in fiscal year 2010 (compared to
fiscal 2009 when the Company recognized approximately $0.7 million
in back maintenance revenues) and a current trend of customers
electing less expensive support and maintenance options. The
projected decrease in license revenues is largely due to
anticipated delays in closing license transactions currently in our
sales pipeline.
"Several of our customers elected less expensive support
programs, which we believe was done as a cost control measure in
response to current economic conditions. However, the
renewals for standard support and maintenance from our customer
base continue at a very high level, " said Jochen Witte, CEO of
Versant Corporation. "During the quarter, we focused some of
our sales efforts towards closing a significant license
transaction. Although the transaction did not close, we
anticipate that discussions will continue with the other party with
the possibility of finalizing the arrangement later in our fiscal
year."
The Company plans to continue its stock repurchase program under
which it is authorized to repurchase up to $5.0 million worth of
its outstanding common shares from time to time on the open market,
in block trades or otherwise.
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, U.S.
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 (i) the Company's estimate of its revenues and
income from operations for its full fiscal year ending October 31,
2010, (ii) the Company's expectations for its revenues and income
from operations for its second quarter ended April 30, 2010, (iii)
the Company's expectations regarding the closing of potential
license transactions in future periods of fiscal year 2010,
including a potentially significant license transaction referred to
above in this press release, (iv) possible delays in other license
transactions in the fiscal year ending October 31, 2010 and (v) the
Company's plans to continue its existing stock repurchase
program. These forward-looking statements are based on our
assessment of trends in our business and customer base, and our
experiences with existing and potential customers, as well as the
general economic environment in fiscal 2010, and 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 or to renew them at
premium pricing levels; 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 carry out sales
and marketing initiatives 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:
May 6, 2010
Time: 2:00
PM Pacific (5:00 PM Eastern)
Dial-in number
U.S.: 1-888-549-7704
International:
1-480-629-9857
Conference ID:
4297500
Internet Simulcast*:
http://viavid.net/dce.aspx?sid=00007516
*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 May 13,
2010.
Replay number
U.S.:
1-800-406-7325
International Replay number:
1-303-590-3030
Replay Pass
Code**:
4297500
** Enter the playback pass code to access the
replay
CONTACT: Versant Corporation
Jerry Wong, Chief Financial Officer
1-800-VERSANT
650-232-2400
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