Versant Object Technology Reports Third Quarter Revenues up 94% and $.07 E.P.S.MENLO PARK Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , Calif.--(BUSINESS WIRE)--Oct. 24, 1996--Versant Object Technology (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 :VSNT) announced today the results for its third quarter and nine months ended Sept. 30, 1996. Revenues for the third quarter of 1996 were $5 million, a 94 percent increase over revenues of $2.6 million during the same period of 1995. Third quarter net income increased to $606,000, or 12 percent of revenues, compared to a loss of $532,000 for the same quarter of the prior year. Net income per share was $.07 on 8.8 million shares outstanding. "These results provide strong validation See validate. validation - The stage in the software life-cycle at the end of the development process where software is evaluated to ensure that it complies with the requirements. of our capacity to execute in the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. and Internet markets where we compete," said David Banks David Banks (born 24 September 1951 in Hull, England) is a British actor. His television roles include EastEnders and Brookside and also he was the Cyberleader in the science fiction series Doctor Who , 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. . "We closed new business with world leaders For a list of heads of state, see . World leaders is a MMORPG. The game involves creating a state, joining an alliance and going into war. It is mostly played by players from Israel, China, USA, Britain, Brazil and Saudi-Arabia. like Motorola, Deutsche Telecom and France Telecom while expanding sales to existing customers like LDDS See WorldCom. Worldcom, Lucent Technologies and British Telecom The telephone and communications carrier that provides services in Great Britain and Northern Ireland. It used to be a division of the British Post Office, but was privatized in 1984 under Margaret Thatcher's administration. . "In the Internet space, we captured one of the most important design wins to date in the industry--the contract for Spyglass to embed em·bed also im·bed v. em·bed·ded, em·bed·ding, em·beds v.tr. 1. To fix firmly in a surrounding mass: embed a post in concrete; fossils embedded in shale. Versant technology in their next-generation of Web servers for resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. through its network of over 120 Original Equipment Manufacturers (OEMs)," said Banks. For the nine months ending Sept. 30, 1996, the company's revenues grew 55 percent to $12.8 million, up from $8.3 million in the same period last year. Net income was $715,000 for the first nine months of 1996 compared with a loss of $1,343,000 for the comparable period in 1995. International revenues increased substantially, growing from $750,000 in the third quarter of 1995 to $2.3 million for the same period this year, a 207 percent increase. This included a $1.4 million order received from Versant Europe, an independent European owned distributor, for resale to a major European customer. License revenues increased 92 percent and service revenues increased 97 percent from the third quarter of 1995 to the third quarter of 1996. License revenues accounted for 61 percent of total revenues for the third quarter versus 62 percent for the third quarter of 1995. Cost of license revenues declined from 10 percent of license revenues in the third quarter of 1995 to 9 percent in 1996. Cost of service revenue declined from 70 percent of service revenue in the third quarter of 1995 to 50 percent in 1996, mainly due to the increased use of internal personnel to satisfy customers' consulting requirements as well as increased maintenance revenue without a corresponding increase in the cost of providing maintenance. During September Versant learned that MCI Communications This article is about MCI before it merged with WorldCom. For other uses, see MCI. MCI Communications was an American telecommunications company that was instrumental in legal and regulatory changes that led to the breakup of the AT&T monopoly of American telephony and , a major Versant customer, had initiated a business re-evaluation of its new Horizon customer billing system and replaced the project manager. Due to this re-evaluation, Versant did not recognize license revenue in the third quarter for licenses previously ordered by MCI (1) (Media Control Interface) A high-level programming interface from Microsoft and IBM for controlling multimedia devices. It provides commands and functions to open, play and close the device. (2) (Microwave Communications Inc. under the Horizon contract. Versant expects that when the reevaluation is complete, MCI will continue with the Horizon project and Versant will remain a primary software supplier, although there can be no assurance that this will occur. As of Sept. 30, 1996, accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying has increased $827,000 from June 30, 1996 primarily due to delays in payment by MCI related to its reevaluation of the Horizon project. Versant is working closely with MCI to resolve these payment delays. The statements contained in this release that are not historical facts, including, without limitation, the statements related to Versant's expectations regarding its relationship with MCI, are 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. subject to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. created by the Securities Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Actual results, performance or developments could differ materially from those expressed or implied by such forward-looking statements as a result of known and unknown risks, uncertainties and other factors including those identified in the company's public offering prospectus dated July 18, 1996, and those described from time to time in the company's other filings with the Securities and Exchange Commission, press releases and other communications. About Versant Object Technology Versant Object Technology is a leading provider of object database management systems for multi-user, distributed environments. Versant offers a complete product line including the VERSANT ODBMS (Object DataBase Management System) See object database. , the VERSANT Fault Tolerant The ability to continue non-stop when a hardware failure occurs. A fault-tolerant system is designed from the ground up for reliability by building multiples of all critical components, such as CPUs, memories, disks and power supplies into the same computer. Server, programming language interfaces to both C++ and Smalltalk, ODBC-based legacy data integration, and a family of customer support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services . Additional information about Versant and its products may be obtained from the Company's SEC filings, visiting the company's Web site at http://www.versant.com and by contacting the company directly. -0-
Versant Object Technology Corp.
Condensed Statements of Operations
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
1996 1995 1996 1995
Revenue:
License $ 3,053 $ 1,588 $ 8,024 $ 5,126
Services 1,929 977 4,752 3,143
Total revenue 4,982 2,565 12,776 8,269
Cost of revenue:
License 278 154 769 857
Services 965 679 2,155 1,656
Total cost of
revenue 1,243 833 2,924 2,513
Gross profit 3,739 1,732 9,852 5,756
Operating expenses:
Marketing and sales 1,987 1,547 5,842 4,563
Research and development 928 478 2,450 1,471
General and administrative 409 247 995 1,067
Total operating expenses 3,324 2,272 9,287 7,101
Income (loss)
from operations 415 (540) 565 (1,345)
Interest income
and other, net 256 12 238 69
Foreign tax expense (2) (4) (13) (67)
Income (loss) before taxes 669 (532) 790 (1,343)
Provision for income taxes 63 -- 75 --
Net income (loss) $ 606 $ (532) $ 715 $(1,343)
Net income (loss)
per share $ 0.07 $(0.09) $ 0.10 $ (0.23)
Weighted average
common and common
equivalent shares 8,831 5,976 7,273 5,822
Versant Object Technology Corp.
Condensed Balance Sheets
(in thousands)
Sept. 30, Dec. 31,
1996 1995
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 2,476 $ 1,281
Short-term investments 12,741 --
Accounts receivable, net 6,492 4,025
Other current assets 375 561
Total current assets 22,084 5,867
Property and equipment, net 553 365
Long-term deposits 72 91
$ 22,709 $ 6,323
Liabilities and Shareholders' Equity
Current liabilities:
Current portion of
capitalized lease
obligations $ 101 $ 27
Accounts payable 281 193
Accrued liabilities 1,996 2,235
Deferred revenue 1,537 1,864
Deferred income taxes 75 --
Total current liabilities 3,990 4,319
Long-term liabilities,
net of current portion:
Capitalized lease obligations 173 74
Deferred rent -- 39
Total long-term liabilities 173 113
Shareholders' equity:
Preferred stock and warrants -- 4,429
Common stock 40,857 20,488
Accumulated deficit (22,311) (23,026)
Total shareholders' equity 18,546 1,891
$ 22,709 $ 6,323
CONTACT: Versant Object Technology Rick Kadet, 415/329-7528 Rickk@versant.com or The Horn Group Shannon Hall, 415/579-6400 shall@horngroup.com |
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