Versant Announces Quarterly Net Income of $1.9 Million

Quarterly Revenues Grow 40 Percent Over Last Year


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


            

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