Versant Announces Record Quarterly Net Income of $1.7 Million
2 March 2007
Versant Corporation (Nasdaq: VSNT), an industry leader in specialized data management, today announced its financial results for the first fiscal quarter ended January 31, 2007.
For the quarter, Versant reported revenues of $5.2 million from its continuing operations, compared to $4.6 million for the comparable period last year, representing an increase of approximately 11%. Net income for the quarter was $1.7 million and diluted net income per share was $0.47, compared to net income of $0.8 million and diluted net income per share of $0.22 for the comparable period last year.
Versant also reported an increase in cash and cash equivalents of approximately $2.4 million during the quarter, resulting in a cash and cash equivalents balance of approximately $10.6 million as of January 31, 2007.
Additionally, Versant reported an increase in current deferred revenues of approximately $1.0 million, representing an increase of 33% from the prior quarter. This increase in deferred revenues resulted from closing several new maintenance agreements as well as the renewal of maintenance agreements by existing customers.
"Our first quarter is typically our strongest quarter, and we are very satisfied with the results of this quarter. Versant recorded license revenues of $3.2 million, representing growth of 26% over the same period last year. The increase in license revenues contributed significantly to an excellent gross profit margin of 89% of total revenues, which helped drive net income to new record quarterly levels," said Jochen Witte, Versant's CEO.
"I feel very comfortable regarding our guidance of income from continuing operations before taxes of between $4.4 million and $4.6 million for fiscal year 2007," added Mr. Witte.
About Versant Corporation
Versant Corporation is an industry leader in specialized data management software. Using Versant's solutions, 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, Sagem, the US Government, and Financial Times. For more information, call 510-789-1500 or visit http://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 our anticipated range of income from continuing operations before taxes for fiscal year 2007. Investors are cautioned that any such forward-looking statements are not guarantees of Versant's future performance and involve 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: our inability to achieve revenue expectations or projected net income levels as a result of delays in the sales cycle for our products and services or failures to close key sales transactions; changing market demands or perceptions of our products and technologies; failure to develop new customers; the fact that our results of operations are highly dependent on sales of our Versant Object Database product; the possibility that we become an "accelerated filer" under SEC Rules in fiscal 2007, which would accelerate our obligation to comply with the internal controls requirements of Section 404 of the Sarbanes-Oxley Act, and cause us to incur substantial additional operating expenses in fiscal 2007; the possibility that the amount of future contingent earn-out payments from the sale of our WebSphere consulting practice assets will fall below our estimates; the performance of our resellers; the possibility that existing value added resellers may not remain committed to our software or that their sales activity may not keep pace with their historical results; potential reductions in the prices we charge for our products and services due to competitive conditions; the uncertainty as to the impact and duration of the current market reductions in corporate IT spending; legal costs and potential costs associated with a pending litigation in which one of our customers is seeking indemnification from the Company for alleged infringement of intellectual property rights asserted by a third party; and the Company's ability to successfully manage its costs and operations and maintain adequate working capital. 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 year ending October 31, 2006.
NOTE: 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: Tuesday, February 27, 2007
Time: 1:30 PM Pacific (4:30 PM Eastern)
Dial-in number US: 1-800-936-9754
International: 1-973-935-2048
Conference ID: 8481368
Internet Simulcast*: http://viavid.net/dce.aspx?sid=00003B9A
*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 510-789-1577.
A replay of the conference call will be available until March 6, 2007
Replay number US: 1-877-519-4471
International Replay number: 1-973-341-3080
Replay Pass Code**: 8481368
** Enter the playback pass code to access the replay
VERSANT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
January 31, October 31,
2007 2006
----------- -----------
ASSETS
Current assets:
Cash and cash equivalents $10,642 $8,231
Trade accounts receivable, net of allowance
for doubtful accounts of $61 and $62 at
January 31, 2007 and October 31, 2006,
respectively 3,175 2,885
Other current assets 807 782
----------- -----------
Total current assets 14,624 11,898
Property and equipment, net 513 385
Goodwill 6,720 6,720
Intangible assets, net 1,117 1,196
Other assets 64 62
----------- -----------
Total assets $23,038 $20,261
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 334 $154
Accrued liabilities 2,134 2,363
Deferred revenues 4,105 3,083
Deferred rent 61 99
----------- -----------
Total current liabilities 6,634 5,699
Deferred revenues 698 742
Long-term capital lease obligations 24 28
----------- -----------
Total liabilities 7,356 6,469
----------- -----------
Stockholders' equity:
Common stock, no par value 95,252 95,089
Other comprehensive income, net 541 521
Accumulated deficit (80,111) (81,818)
----------- -----------
Total stockholders' equity 15,682 13,792
----------- -----------
Total liabilities and stockholders' equity $23,038 $20,261
=========== ===========
VERSANT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
Three Months Ended
--------------------------
January 31, January 31,
2007 2006
----------- -----------
Revenues:
License $3,164 $2,513
Maintenance 1,917 1,633
Professional services 70 479
----------- -----------
Total revenues 5,151 4,625
Cost of revenues:
License 47 105
Amortization of intangible assets 79 79
Maintenance 405 383
Professional services 41 333
----------- -----------
Total cost of revenues 572 900
Gross profit 4,579 3,725
----------- -----------
Operating expenses:
Sales and marketing 760 946
Research and development 891 869
General and administrative 1,209 1,053
Restructuring - 134
----------- -----------
Total operating expenses 2,860 3,002
Income from operations 1,719 723
Outside shareholders' income from VIE - 137
Other income, net 101 12
----------- -----------
Income from continuing operations before taxes 1,820 872
Net provision for income taxes 203 83
----------- -----------
Net income from continuing operations 1,617 789
Net income (loss) from discontinued
operations, net of income tax 90 (13)
----------- -----------
Net income $1,707 $776
=========== ===========
Basic income (loss) per share:
Net income from continuing operations
attributable to common shareholders $0.45 $0.23
Net income (loss) from discontinued
operations, net of income tax $0.02 $(0.01)
----------- -----------
Net income attributable to common
shareholders $0.47 $0.22
Diluted income (loss) per share:
Net income from continuing operations
attributable to common shareholders $0.45 $0.23
Net income (loss) from discontinued
operations, net of income tax $0.02 $(0.01)
----------- -----------
Net income attributable to common shareholders $0.47 $0.22
Shares used in per share calculation:
Basic 3,606 3,559
Diluted 3,657 3,569
Non-cash stock-based compensation included
in the above expenses:
Cost of revenues $13 $11
Sales and marketing 19 8
Research and development 11 17
General and administrative 39 21
----------- -----------
Total $82 $57
=========== ===========
Source: prnewswire
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