REDWOOD CITY, Calif., Aug. 28, 2007 (PRIME NEWSWIRE) -- Versant Corporation (Nasdaq:VSNT), an industry leader in specialized data management, today announced its financial results for the third fiscal quarter ended July 31, 2007.
For the quarter, Versant reported revenues of $5.2 million from its continuing operations, compared to $3.8 million for the comparable period last year, representing an increase of approximately 40%. License revenues increased 51% from $1.9 million in the third quarter of 2006 to $2.9 million in the third quarter of 2007. Maintenance revenues increased 29% from $1.7 million in the third quarter of 2006 to $2.2 million in the third quarter of 2007.
Net income for the quarter was $1.9 million and diluted net income per share was $0.52, compared to net income of $1.0 million and diluted net income per share of $0.28 for the comparable period last year.
Versant also reported an increase in cash and cash equivalents of approximately $0.5 million during the quarter, resulting in a cash and cash equivalents balance of approximately $14.5 million as of July 31, 2007. The increase in cash and cash equivalents was less than net income primarily due to an increase in accounts receivable, as much of the quarter's sales occurred in the last half of the quarter.
One customer accounted for approximately 20% of the total revenues (and approximately 35% of license revenues) in the third quarter of 2007.
"This quarter was stronger than anticipated. The increase in license revenues was primarily a result of an unanticipated one-time deployment license order from one of our independent software vendors (ISVs) in the telecommunications sector. Maintenance revenues also increased partially as a result of several new maintenance agreements closed during the quarter," said Jochen Witte, Versant's CEO.
Based on the first three quarters' performance in fiscal 2007, Versant is raising its guidance for fiscal 2007. The Company expects total revenue for full year fiscal 2007 to be in the range of $19.6 million to $20.1 million. For fiscal 2007, the Company estimates net income to be in the range of $6.7 million to $7.0 million, resulting in estimated diluted net income per share between approximately $1.79 and $1.87 for fiscal 2007.
About Versant Corporation
Versant Corporation (Nasdaq:VSNT) is an industry leader in specialized data management software. Using Versant's solutions, customers can reduce 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 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 our expected revenue growth and anticipated range of net income and diluted net income per share 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 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; legal and potential other 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, its Quarterly Reports on Form 10-Q for the quarters ending January 31, 2007 and April 30, 2007 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: Tuesday, August 28, 2007 Time: 1:30 PM Pacific (4:30 PM Eastern) Dial-in number U.S.: 1-888-562-3654 International: 1-973-582-2703 Conference ID: 9164267 Internet Simulcast*: http://viavid.net/dce.aspx?sid=0000448A *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 September 4, 2007
Replay number U.S.: 1-877-519-4471 International Replay number: 1-973-341-3080 Replay Pass Code**: 9164267 ** Enter the playback pass code to access the replay VERSANT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) July 31, October 31, 2007 2006 --------- --------- ASSETS Current assets: Cash and cash equivalents $ 14,492 $ 8,231 Trade accounts receivable, net of allowance for doubtful accounts of $70 and $62 at July 31, 2007 and October 31, 2006, respectively 3,605 2,885 Other current assets 812 782 --------- --------- Total current assets 18,909 11,898 Property and equipment, net 774 385 Goodwill 6,720 6,720 Intangible assets, net 960 1,196 Other assets 105 62 --------- --------- Total assets $ 27,468 $ 20,261 ========= ========= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 257 $ 154 Accrued liabilities 2,477 2,363 Deferred revenues 3,718 3,083 Deferred rent 5 99 --------- --------- Total current liabilities 6,457 5,699 Deferred revenues 649 742 Deferred rent 32 -- Long-term capital lease obligations 7 28 --------- --------- Total liabilities 7,145 6,469 --------- --------- Stockholders' equity: Common stock, no par value 95,806 95,089 Accumulated other comprehensive income, net 789 521 Accumulated deficit (76,272) (81,818) --------- --------- Total stockholders' equity 20,323 13,792 --------- --------- Total liabilities and stockholders' equity $ 27,468 $ 20,261 ========= ========= VERSANT CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except for per share amounts) (unaudited) Three Months Ended Nine Months Ended ----------------- ----------------- July 31, July 31, July 31, July 31, 2007 2006 2007 2006 ------- ------- ------- ------- Revenues: License $ 2,925 $ 1,934 $ 9,373 $ 6,192 Maintenance 2,225 1,730 6,019 4,820 Professional services 98 91 197 1,148 ------- ------- ------- ------- Total revenues 5,248 3,755 15,589 12,160 ------- ------- ------- ------- Cost of revenues: License 73 43 215 205 Amortization of intangible assets 79 79 237 237 Maintenance 377 330 1,153 1,059 Professional services 33 84 93 709 ------- ------- ------- ------- Total cost of revenues 562 536 1,698 2,210 ------- ------- ------- ------- Gross profit 4,686 3,219 13,891 9,950 ------- ------- ------- ------- Operating expenses: Sales and marketing 877 669 2,511 2,380 Research and development 785 723 2,497 2,294 General and administrative 1,039 860 3,342 2,783 Restructuring -- -- -- 218 ------- ------- ------- ------- Total operating expenses 2,701 2,252 8,350 7,675 ------- ------- ------- ------- Income from operations 1,985 967 5,541 2,275 Outside shareholders' income from Variable Interest Entity -- -- -- 138 Interest and other income, net 116 43 358 90 Gain on disposal of Variable Interest Entity -- -- -- 131 ------- ------- ------- ------- Income from continuing operations before taxes 2,101 1,010 5,899 2,634 Net provision for income taxes 228 93 585 275 ------- ------- ------- ------- Net income from continuing operations 1,873 917 5,314 2,359 Gain from sale of discontinued operations, net of income taxes -- -- -- 468 Net income from discontinued operations, net of income taxes 61 91 232 113 ------- ------- ------- ------- Net income $ 1,934 $ 1,008 $ 5,546 $ 2,940 ======= ======= ======= ======= Basic income per share: Net income from continuing operations $ 0.51 $ 0.25 $ 1.47 $ 0.66 Net income from discontinued operations, net of income tax $ 0.02 $ 0.03 $ 0.06 $ 0.16 ------- ------- ------- ------- Net income per share, basic $ 0.53 $ 0.28 $ 1.53 $ 0.82 ======= ======= ======= ======= Diluted income per share: Net income from continuing operations $ 0.50 $ 0.25 $ 1.44 $ 0.66 Net income from discontinued operations, net of income tax $ 0.02 $ 0.03 $ 0.06 $ 0.16 ------- ------- ------- ------- Net income per share, diluted $ 0.52 $ 0.28 $ 1.50 $ 0.82 ======= ======= ======= ======= Shares used in per share calculation: Basic 3,648 3,573 3,624 3,564 Diluted 3,734 3,579 3,696 3,573 Non-cash stock-based compensation included in the above expenses: Cost of revenues $ 16 $ 6 $ 45 $ 31 Sales and marketing $ 24 $ 11 $ 64 $ 31 Research and development $ 9 $ 21 $ 28 $ 58 General and administrative $ 52 $ 21 $ 133 $ 60