REDWOOD CITY, Calif., May 27, 2010 (GLOBE NEWSWIRE) -- Versant Corporation (Nasdaq:VSNT), an industry leader in specialized data management software, today announced its financial results for its second quarter ended April 30, 2010.
For the quarter, Versant reported revenues of $3.5 million compared to $4.0 million for the same quarter of the last fiscal year.
The 11% decrease in revenues for the quarter as compared to the same quarter of last fiscal year was primarily attributable to a 12% decrease in license revenues and an 8% decrease in maintenance revenues in the quarter relative to the same period in the prior fiscal year. The Company previously provided reasons for the decrease in revenues for its second quarter ended April 30, 2010 and revised guidance for fiscal 2010 in its press release of May 6, 2010. In the quarter ended April 30, 2010, two customers accounted for 29% of total revenues in the quarter, whereas no customer accounted for more than 10% of total revenues in the quarter ended April 30, 2009.
Net income for the quarter was $0.1 million and diluted net income per share was $0.03, compared to net income of $0.8 million and diluted net income per share of $0.21 for the second quarter of fiscal 2009.
Versant also reported an increase in cash and cash equivalents of approximately $0.8 million during the quarter. The increase was primarily a result of the decrease in trade accounts receivable of $1.6 million, offset by a decrease in deferred revenues of $0.5 million and the expenditure of $0.4 million to repurchase shares of our common stock under the stock repurchase program.
The provision for income taxes for the quarter includes adjustments for the strengthening of the US dollar against the euro that resulted in taxable gains from US denominated currencies held by our German operations, and to a lesser extent, foreign withholding taxes on sales transactions in certain countries in the Asia Pacific region.
Under the Company's current stock repurchase program, Versant is authorized to expend up to $5.0 million to repurchase outstanding common shares. During the quarter ended April 30, 2010, Versant acquired 26,517 shares in open market purchases at an average price of $14.46 per share and from May 1 to May 21, 2010, the Company acquired an additional 25,814 shares in open market purchases at an average purchase price of $12.12 per share. From inception of the program in December 2009 through May 21, 2010, the Company has acquired a total of 101,873 common shares at a total price of approximately $1.4 million, or an average purchase price of $14.14 per share, leaving a balance of approximately $3.6 million available for future repurchases of stock under this program until its currently anticipated expiration on October 31, 2010.
"Despite a very challenging quarter on the top line and increased spending levels in sales and marketing in order to better position the Company for future growth, Versant achieved another profitable quarter from its operations, its 19th sequential quarter of such uninterrupted profitability," said Jochen Witte, CEO of Versant Corporation.
About Versant Corporation
Versant Corporation (Nasdaq:VSNT) is an industry leader in specialized data management software, which helps companies to handle complex information in environments that have high performance and high availability requirements. Using the Versant Object Database, 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, Siemens, and Financial Times, as well as the US Government. 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 the reference to the Company's revised guidance in its press release of May 6, 2010, and the Company's current expectation that its existing stock repurchase program (which can be earlier terminated) will expire in October 2010. These forward-looking statements are based on our assessment of current trends in our business, as well as the general economic environment in fiscal 2010, and may prove to be incorrect. Investors are cautioned that any such forward-looking statements are not guarantees of Versant's future performance or other matters and involve very significant risks and uncertainties.
There are many important factors and risks that could cause our actual results or events to differ materially from those anticipated in the forward-looking statements. Additional information concerning factors that could cause results to differ can be found in the Company's press release of May 6, 2010 regarding preliminary results for the quarter ended April 30, 2010 and revised guidance for fiscal 2010, and 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 fiscal year ended October 31, 2009, its reports on Form 10-Q and its reports on Form 8-K.
Versant is a registered trademark or trademark of Versant Corporation in the United States.
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: | Thursday, May 27, 2010 |
Time: | 1:30 PM Pacific (4:30 PM Eastern) |
Dial-in number US: | 1-877-941-8416 |
International: | 1-480-629-9808 |
Conference ID: | 4306267 |
Internet Simulcast*: | http://viavid.net/dce.aspx?sid=000075FA |
*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 June 3, 2010.
Replay number US: | 1-800-406-7325 |
International Replay number: | 1-303-590-3030 |
Replay Pass Code**: | 4306267 |
** Enter the playback pass code to access the replay. |
VERSANT CORPORATION AND SUBSIDIARIES | ||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||
(in thousands, except for share amounts) | ||
(unaudited) | ||
April 30, 2010 | October 31, 2009 | |
ASSETS | ||
Current assets: | ||
Cash and cash equivalents | $ 27,902 | $ 27,812 |
Trade accounts receivable, net of allowance for doubtful accounts of $5 and $36 at April 30, 2010 and October 31, 2009, respectively | 1,991 | 2,251 |
Deferred income taxes | 839 | 939 |
Other current assets | 508 | 633 |
Total current assets | 31,240 | 31,635 |
Property and equipment, net | 540 | 488 |
Goodwill | 8,499 | 8,410 |
Intangible assets, net | 648 | 802 |
Other assets | 38 | 38 |
Total assets | $ 40,965 | $ 41,373 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Current liabilities: | ||
Accounts payable | $ 279 | $ 154 |
Accrued liabilities | 871 | 1,215 |
Deferred revenues | 3,675 | 3,475 |
Total current liabilities | 4,825 | 4,844 |
Deferred revenues | 120 | 177 |
Other long-term liabilities | 103 | 95 |
Total liabilities | 5,048 | 5,116 |
Stockholders' equity: | ||
Common stock, no par value, 7,500,000 shares authorized, 3,487,401 shares issued and outstanding at April 30, 2010, and 3,552,946 shares issued and outstanding at October 31, 2009 | 95,284 | 95,730 |
Accumulated other comprehensive income (loss), net | (63) | 434 |
Accumulated deficit | (59,304) | (59,907) |
Total stockholders' equity | 35,917 | 36,257 |
Total liabilities and stockholders' equity | $ 40,965 | $ 41,373 |
VERSANT CORPORATION AND SUBSIDIARIES | ||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||
(in thousands, except for per share amounts) | ||||
(unaudited) | ||||
Three Months Ended | Six Months Ended | |||
April 30, 2010 |
April 30, 2009 |
April 30, 2010 |
April 30, 2009 |
|
Revenues: | ||||
License | $ 1,694 | $ 1,931 | $ 4,154 | $ 5,173 |
Maintenance | 1,793 | 1,957 | 3,777 | 4,272 |
Professional services | 28 | 71 | 40 | 133 |
Total revenues | 3,515 | 3,959 | 7,971 | 9,578 |
Cost of revenues: | ||||
License | 75 | 57 | 156 | 122 |
Amortization of intangible assets | 77 | 108 | 154 | 201 |
Maintenance | 366 | 333 | 756 | 716 |
Professional services | 21 | 34 | 31 | 70 |
Total cost of revenues | 539 | 532 | 1,097 | 1,109 |
Gross profit | 2,976 | 3,427 | 6,874 | 8,469 |
Operating expenses: | ||||
Sales and marketing | 1,135 | 811 | 2,321 | 1,997 |
Research and development | 944 | 980 | 1,988 | 1,974 |
General and administrative | 751 | 818 | 1,675 | 2,004 |
Restructuring | (4) | -- | 39 | -- |
Total operating expenses | 2,826 | 2,609 | 6,023 | 5,975 |
Income from operations | 150 | 818 | 851 | 2,494 |
Interest and other income, net | 82 | 102 | 92 | 256 |
Income before provision for income taxes | 232 | 920 | 943 | 2,750 |
Provision for income taxes | 134 | 144 | 340 | 412 |
Net income | $ 98 | $ 776 | $ 603 | $ 2,338 |
Net income per share: | ||||
Basic | $ 0.03 | $ 0.21 | $ 0.17 | $ 0.63 |
Diluted | $ 0.03 | $ 0.21 | $ 0.17 | $ 0.63 |
Shares used in per share calculation: | ||||
Basic | 3,493 | 3,645 | 3,515 | 3,684 |
Diluted | 3,535 | 3,681 | 3,555 | 3,720 |