Versant Corporation (Nasdaq:VSNT), an industry leader in
specialized data management software, today announced its financial
results for its second quarter ended April 30, 2010.
For the quarter, Versant reported revenues of $3.5 million
compared to $4.0 million for the same quarter of the last fiscal
year.
The 11% decrease in revenues for the quarter as compared to the
same quarter of last fiscal year was primarily attributable to a
12% decrease in license revenues and an 8% decrease in maintenance
revenues in the quarter relative to the same period in the prior
fiscal year. The Company previously provided reasons for the
decrease in revenues for its second quarter ended April 30, 2010
and revised guidance for fiscal 2010 in its press release of May 6,
2010. In the quarter ended April 30, 2010, two customers accounted
for 29% of total revenues in the quarter, whereas no customer
accounted for more than 10% of total revenues in the quarter ended
April 30, 2009.
Net income for the quarter was $0.1 million and diluted net
income per share was $0.03, compared to net income of $0.8 million
and diluted net income per share of $0.21 for the second quarter of
fiscal 2009.
Versant also reported an increase in cash and cash equivalents
of approximately $0.8 million during the quarter. The increase
was primarily a result of the decrease in trade accounts receivable
of $1.6 million, offset by a decrease in deferred revenues of $0.5
million and the expenditure of $0.4 million to repurchase shares of
our common stock under the stock repurchase program.
The provision for income taxes for the quarter includes
adjustments for the strengthening of the US dollar against the euro
that resulted in taxable gains from US denominated currencies held
by our German operations, and to a lesser extent, foreign
withholding taxes on sales transactions in certain countries in the
Asia Pacific region.
Under the Company's current stock repurchase program, Versant is
authorized to expend up to $5.0 million to repurchase outstanding
common shares. During the quarter ended April 30, 2010,
Versant acquired 26,517 shares in open market purchases at an
average price of $14.46 per share and from May 1 to May 21, 2010,
the Company acquired an additional 25,814 shares in open market
purchases at an average purchase price of $12.12 per
share. From inception of the program in December 2009 through
May 21, 2010, the Company has acquired a total of 101,873 common
shares at a total price of approximately $1.4 million, or an
average purchase price of $14.14 per share, leaving a balance of
approximately $3.6 million available for future repurchases of
stock under this program until its currently anticipated expiration
on October 31, 2010.
"Despite a very challenging quarter on the top line and
increased spending levels in sales and marketing in order to better
position the Company for future growth, Versant achieved another
profitable quarter from its operations, its 19th sequential quarter
of such uninterrupted profitability," said Jochen Witte, CEO of
Versant Corporation.
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, and Financial
Times, as well as the US Government. 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 the reference to the Company's revised guidance
in its press release of May 6, 2010, and the Company's current
expectation that its existing stock repurchase program (which can
be earlier terminated) will expire in October 2010. These
forward-looking statements are based on our assessment of current
trends in our business, 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 or events to differ materially from those
anticipated in the forward-looking statements. Additional
information concerning factors that could cause results to differ
can be found in the Company's press release of May 6, 2010
regarding preliminary results for the quarter ended April 30, 2010
and revised guidance for fiscal 2010, and 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.
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: |
Thursday, May 27, 2010 |
Time: |
1:30 PM Pacific (4:30 PM Eastern) |
Dial-in number US: |
1-877-941-8416 |
International: |
1-480-629-9808 |
Conference ID: |
4306267 |
Internet Simulcast*: |
http://viavid.net/dce.aspx?sid=000075FA |
|
*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 June 3,
2010.
Replay number US: |
1-800-406-7325 |
International Replay number: |
1-303-590-3030 |
Replay Pass Code**: |
4306267 |
|
** Enter the playback pass code to access the
replay. |
VERSANT
CORPORATION AND SUBSIDIARIES |
CONDENSED
CONSOLIDATED BALANCE SHEETS |
(in thousands, except for share
amounts) |
(unaudited) |
|
|
|
|
|
|
|
April 30, 2010 |
October 31,
2009 |
ASSETS |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 27,902 |
$ 27,812 |
Trade accounts receivable, net of
allowance for doubtful accounts of $5 and $36 at April 30, 2010 and
October 31, 2009, respectively |
1,991 |
2,251 |
Deferred income taxes |
839 |
939 |
Other current assets |
508 |
633 |
Total current assets |
31,240 |
31,635 |
|
|
|
Property and equipment, net |
540 |
488 |
Goodwill |
8,499 |
8,410 |
Intangible assets, net |
648 |
802 |
Other assets |
38 |
38 |
Total assets |
$ 40,965 |
$ 41,373 |
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$ 279 |
$ 154 |
Accrued liabilities |
871 |
1,215 |
Deferred revenues |
3,675 |
3,475 |
Total current liabilities |
4,825 |
4,844 |
|
|
|
Deferred revenues |
120 |
177 |
Other long-term liabilities |
103 |
95 |
Total liabilities |
5,048 |
5,116 |
|
|
|
Stockholders' equity: |
|
|
Common stock, no par value, 7,500,000
shares authorized, 3,487,401 shares issued and outstanding at April
30, 2010, and 3,552,946 shares issued and outstanding at October
31, 2009 |
95,284 |
95,730 |
Accumulated other comprehensive income
(loss), net |
(63) |
434 |
Accumulated deficit |
(59,304) |
(59,907) |
Total stockholders' equity |
35,917 |
36,257 |
Total liabilities and stockholders'
equity |
$ 40,965 |
$ 41,373 |
|
VERSANT CORPORATION AND
SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
(in thousands, except for per
share amounts) |
(unaudited) |
|
|
|
|
|
|
Three
Months Ended |
Six Months
Ended |
|
April 30, 2010 |
April 30, 2009 |
April 30, 2010 |
April 30, 2009 |
|
|
|
|
|
Revenues: |
|
|
|
|
License |
$ 1,694 |
$ 1,931 |
$ 4,154 |
$ 5,173 |
Maintenance |
1,793 |
1,957 |
3,777 |
4,272 |
Professional services |
28 |
71 |
40 |
133 |
Total revenues |
3,515 |
3,959 |
7,971 |
9,578 |
|
|
|
|
|
Cost of revenues: |
|
|
|
|
License |
75 |
57 |
156 |
122 |
Amortization of intangible assets |
77 |
108 |
154 |
201 |
Maintenance |
366 |
333 |
756 |
716 |
Professional services |
21 |
34 |
31 |
70 |
Total cost of revenues |
539 |
532 |
1,097 |
1,109 |
|
|
|
|
|
Gross profit |
2,976 |
3,427 |
6,874 |
8,469 |
|
|
|
|
|
Operating expenses: |
|
|
|
|
Sales and marketing |
1,135 |
811 |
2,321 |
1,997 |
Research and development |
944 |
980 |
1,988 |
1,974 |
General and administrative |
751 |
818 |
1,675 |
2,004 |
Restructuring |
(4) |
-- |
39 |
-- |
Total operating expenses |
2,826 |
2,609 |
6,023 |
5,975 |
|
|
|
|
|
Income from operations |
150 |
818 |
851 |
2,494 |
Interest and other income, net |
82 |
102 |
92 |
256 |
Income before provision for income
taxes |
232 |
920 |
943 |
2,750 |
Provision for income taxes |
134 |
144 |
340 |
412 |
|
|
|
|
|
Net income |
$ 98 |
$ 776 |
$ 603 |
$ 2,338 |
|
|
|
|
|
Net income per share: |
|
|
|
|
Basic |
$ 0.03 |
$ 0.21 |
$ 0.17 |
$ 0.63 |
Diluted |
$ 0.03 |
$ 0.21 |
$ 0.17 |
$ 0.63 |
|
|
|
|
|
Shares used in per share
calculation: |
|
|
|
|
Basic |
3,493 |
3,645 |
3,515 |
3,684 |
Diluted |
3,535 |
3,681 |
3,555 |
3,720 |
CONTACT: Versant Corporation
Jerry Wong, Chief Financial Officer
1-800-VERSANT
650-232-2400
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