VERITAS Software Reports Record Financial Results; Merged Company Positioned as Industry Leader Second Quarter Revenue Increases 62% to $28.9 Million.MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--July 16, 1997--VERITAS Software Corporation (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :VRTS VRTS Veritas Software (stock symbol) VRTS Verification Requirements Tracking System ), a leading supplier of enterprise storage management solutions, today reported its financial results for the period ending June June: see month. 30, 1997. Revenue for the second quarter of fiscal 1997 increased 62 percent to a record $28.9 million, up from $17.9 million in the same period last year. License revenue increased 60 percent to $23.2 million, compared with $14.5 million a year ago. Net loss for the quarter was $1.7 million, or $0.08 per share. Excluding a non-recurring charge of $8.5 million for the April 1997 merger-related costs, net income was a record $6.1 million, up from $3.8 million for the same period a year ago, excluding a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. charge to income of $2.2 million related to the purchase of ACSC ACSC Automobile Club of Southern California (AAA) ACSC Australian Computer Science Conference ACSC Air Command & Staff College ACSC Association of Carolina Shag Clubs ACSC Area of Critical State Concern (Florida) . Pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma fully taxed earnings per share for the quarter were $0.22, compared to $0.13 last year, excluding these one-time charges. For the first half of 1997, revenue increased 64 percent to $54.5 million, up from $33.2 million in the same period last year. Net income and income per share were $3.7 million and $0.17 per share, respectively. Excluding the charges associated with this year's merger and last years purchase, net income was $11.4 million, or $0.53 per share, up from $6.5 million, or $0.32 per share, for the same period last year. "Our second quarter results reflect the increasing strong demand for VERITAS' software products," said VERITAS President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Mark Leslie The creator of this article, or someone who has substantially contributed to it, may have a conflict of interest regarding its subject matter. It may require cleanup to comply with Wikipedia's content policies, particularly neutral point of view. . "The strategic merger with OpenVision Technologies has positioned the combined company as the global leader in end-to-end end-to-end a pattern of anastomosis in which severed ends are matched and united, in contrast with other patterns such as end-to-side or side-to-side. Usually applied to anastomosis of the intestine. enterprise storage management." "We are pleased with the continued proliferation proliferation /pro·lif·er·a·tion/ (pro-lif?er-a´shun) the reproduction or multiplication of similar forms, especially of cells.prolif´erativeprolif´erous pro·lif·er·a·tion n. of VERITAS products within large enterprises worldwide," continued Leslie Leslie (Gaelic, derived from a surname meaning 'garden of hollies,'grey fortress, or'garden by the pool')[1] can refer to any of the following: Places in Scotland:
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , Lockheed, Motorola, TRW TRW The Real World (TV reality show) TRW The Right Way TRW Tactical Reconnaissance Wing TRW The Retriever Weekly (University of Maryland, Baltimore, MD) TRW Thompson Ramo Wooldridge Inc , and US West." On April 25, 1997, VERITAS Software Veritas Software Corp. was an international software company that was founded in 1983 as Tolerant Systems, renamed Veritas Software Corp. in 1989, and merged with Symantec in 2005. It was headquartered in Mountain View, California. Corporation completed the merger with OpenVision Technologies, Inc. in a tax-free, pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. stock transaction, whereby all OpenVision products, services, and technology research became part of the resulting VERITAS in exchange for 7.5 million shares of VERITAS stock. As announced today, the Board of Directors has declared a three-for-two stock split of its outstanding common stock in the form of a stock dividend. The record date will be August 28, 1997 and the payment date will be September 12, 1997. About VERITAS VERITAS Software designs, develops and markets enterprise storage management and high availability Also called "RAS" (reliability, availability, serviceability) or "fault resilient," it refers to a multiprocessing system that can quickly recover from a failure. There may be a minute or two of downtime while one system switches over to another, but processing will continue. products that manage both on-line and off-line data for business-critical computing computing - computer systems. The products are designed to improve system performance, availability and manageability man·age·a·ble adj. That can be managed or controlled: manageable problems. man while reducing the cost of administration. VERITAS products are delivered through a worldwide direct sales force and a network of resellers and OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and partners in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe and the Pacific Rim Pacific Rim, term used to describe the nations bordering the Pacific Ocean and the island countries situated in it. In the post–World War II era, the Pacific Rim has become an increasingly important and interconnected economic region. . The company's world headquarters is located at 1600 Plymouth Street, Mountain View, CA 94043. Telephone 415-335-8000. Fax 415-335-8050. Email vx-sales@veritas.com. WWW WWW or W3: see World Wide Web. (World Wide Web) The common host name for a Web server. The "www-dot" prefix on Web addresses is widely used to provide a recognizable way of identifying a Web site. site: http://www.veritas.com/ This press release may include estimates and forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. written in the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. . These forward looking statements involve a number of risks and uncertainties including the timely development and market acceptance of products and VERITAS ability to appropriately distribute its products, that could cause actual results that the Company achieves to differ materially from such forward looking statements. For more information regarding potential risks see the "Risk Factors" section of our most recent reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and 10-Q on file with the SEC. -0-
VERITAS SOFTWARE CORPORATION
STATEMENT OF OPERATIONS
UNAUDITED
(In thousands, except per share data)
Three Months Ended
June 30,
---------------------------
1997 1996
------------- ------------
Revenue:
User license fees $ 23,164 $ 14,476
Services 4,364 2,982
Porting and source fees 1,406 432
Total revenue 28,934 17,890
Operating expenses:
Cost of revenue 3,344 1,613
Sales and marketing 10,356 6,323
Product development 6,512 4,610
General and administrative 2,080 1,652
Merger related costs 8,490 --
In-process research and development -- 2,200
-------- --------
-------- --------
Total operating expenses 30,782 16,398
-------- --------
Operating income (loss) (1,848) 1,492
Interest and other income, net 835 487
-------- --------
Income (loss) before taxes (1,013) 1,979
Provision for income taxes 669 418
-------- --------
Net income (loss) $ (1,682) $ 1,561
========
Net income (loss) per share $ (0.08) $ 0.08
========
========
Shares used in per share computation 20,219 20,607
======== ========
Six Months Ended
June 30,
--------------------------
1997 1996
------------ ------------
Revenue:
User license fees $ 43,687 $ 26,757
Services 8,036 5,649
Porting and source fees 2,821 782
-------- --------
-------- --------
Total revenue 54,544 33,188
Operating expenses:
Cost of revenue 6,114 3,124
Sales and marketing 19,618 11,951
Product development 12,306 8,148
General and administrative 4,215 3,210
Merger related costs 8,490 --
In-process research and development -- 2,200
-------- --------
-------- --------
Total operating expenses 50,743 28,633
-------- --------
Operating income (loss) 3,801 4,555
Interest and other income, net 1,670 664
-------- --------
Income (loss) before taxes 5,471 5,219
Provision for income taxes 1,736 809
======== --------
Net income (loss) $ 3,735 $ 4,410
======== ========
Net income (loss) per share $ 0.17 $ 0.22
======== ========
======== ========
Shares used in per share computation 21,646 20,156
======== ========
VERITAS SOFTWARE CORPORATION
PRO FORMA EARNINGS EXCLUSIVE OF ONE-TIME CHARGES
UNAUDITED
(In thousands, except per share data)
Three Months Ended
June 30,
---------------------------
1997(A) 1996(B)
------------- ------------
Total revenue $28,934 $17,890
Pro forma operating income 6,642 3,692
Pro forma income before taxes 7,477 4,179
Pro forma net income $ 6,131 $ 3,761
Pro forma net income per share $ 0.28 $ 0.18
Shares used in per share computation 21,688 20,607
Six Months Ended
June 30,
--------------------------
1997(A) 1996(B)
------------ ------------
Total revenue $54,544 $33,188
Pro forma operating income 12,291 6,755
Pro forma income before taxes 13,961 7,419
Pro forma net income $11,448 $ 6,455
Pro forma net income per share $ 0.53 $ 0.32
Shares used in per share computation 21,646 20,156
(A) Excludes the write-off of $8.5 million for one-time charges
related to the merger with
OpenVision Technologies, Inc.
(B) Excludes the write-off of $2.2 million for the purchase
of ACSC.
VERITAS Software Corporation
BALANCE SHEETS
UNAUDITED
(in thousands)
June 30, December 31,
1997 1996
------------------ --------------------
ASSETS
Current assets:
Cash, cash equivalents and
short-term investments $68,448 $67,556
Accounts receivable, net 26,938 15,971
Prepaid expenses and other
current assets 2,003 1,987
-------------- --------------------
Total current assets 97,389 85,514
Property and equipment, net 8,327 6,247
Other assets 1,228 1,213
============== ====================
$106,944 $92,974
================ ====================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and
other accrued liabilities $2,055 $1,780
Accrued compensation 4,709 3,201
Accrued other 7,941 12,474
Deferred revenue 10,476 8,096
-------------- ------------------
Total current liabilities 25,181 25,551
Note payable - 463
Deferred rent 981 1,005
Total stockholders' equity 80,782 65,955
============== ==================
$106,944 $92,974
============== ==================
CONTACT: Veritas Software Corporation Ken Lonchar, 415/526-2501 Marge Duncan, 415/526-2508 |
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