REDWOOD CITY, Calif., Feb. 24, 2009 (GLOBE NEWSWIRE) -- Versant Corporation (Nasdaq:VSNT), an industry leader in specialized data management, today announced its financial results for its first fiscal quarter ended January 31, 2009.

For the quarter, Versant reported revenues of $5.6 million from its continuing operations, compared to $6.3 million for the same quarter last year, representing a decrease of approximately 11%. This decrease was attributable to a strengthening of the USD against the Euro and to a decrease in license revenues for the quarter compared to the same quarter in the prior fiscal year. No customer accounted for more than 10% of total revenues in the quarter ended January 31, 2009, whereas one customer contributed approximately 23% of total revenues in the quarter ended January 31, 2008.

Net income for the quarter was $1.6 million and diluted net income per share was $0.42, compared to net income of $2.6 million and diluted net income per share of $0.69 for the first quarter of fiscal 2008. Net income for the quarter was negatively affected by reduced revenues in the quarter as well as a non recurring employment separation expense of approximately $275,000.

Versant also reported a decrease in cash and cash equivalents of approximately $2.5 million during the quarter. This decrease was primarily a result of our cash acquisition of db4o for $2.1 million, the expenditure of $1.1 million to repurchase shares of our common stock under the stock repurchase program we announced in December 2008, and an increase in trade accounts receivable of $2.7 million, offset partially by an increase in deferred revenues of $1.2 million.

Since announcement of the stock repurchase program, Versant has acquired 76,692 common shares on the open market for approximately $1.1 million at an average purchase price of $14.39 per share, leaving approximately $3.9 million in authorized funds available for future repurchases of stock under this program.

"Despite the continued challenging economic environment, we are pleased with our revenue performance in the current quarter. We were able to accomplish solid revenue levels without depending on large transactions. We completed our acquisition of db4o during the quarter and have made significant progress with its integration," 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, Sagem, 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 may contain 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 may include the statement in this press release regarding the amount of funds available for the future repurchase of shares of our common stock under our stock repurchase program announced in December 2008, which may be terminated at any time at Versant's discretion.

There are many important factors and risks that could cause our actual results to differ materially from those anticipated in the forward-looking statements or otherwise be adversely affected. These factors, risks and uncertainties include, without limitation: the impact of the current downturn in the global economy, which may reduce our customers' revenues and profits and thus dissuade them from making strategic capital purchase decisions for our products and services; our inability to achieve revenue expectations or projected net income levels as a result of the foregoing factors or 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 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; the timing of larger customer transactions, which may tend to result in significant variations in quarterly revenues and operating results; potential reductions in the prices we charge for our products and services due to competitive conditions or the general economic downturn; changes in currency exchange rates; the Company's ability to successfully manage its costs and operations and maintain adequate working capital; any failure of our efforts to capitalize on the recently acquired db4o database business or to ultimately make that business profitable; Mr. Witte's ability to successfully perform the dual roles of Chief Executive Officer and Executive VP Field Operations until the Company hires a new sales executive; and, the use of our cash to repurchase shares of our stock under our stock repurchase program announced in December 2008 or the termination of that program. 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, 2008, 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 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 24, 2009
 Time:                   1:30 PM Pacific (4:30 PM Eastern)
 Dial-in number U.S.:    1-800-762-9058
 International:          1-480-629-1990
 Conference ID:          3992517
 Internet Simulcast*:    http://viavid.net/dce.aspx?sid=00005E25

 *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 March 3, 2009.

 Replay number U.S.:            1-800-406-7325
 International Replay number:   1-303-590-3030
 Replay Pass Code**:            3992517

 **  Enter the playback pass code to access the replay
 

                 VERSANT CORPORATION AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED BALANCE SHEETS
                            (in thousands)
                              (unaudited)

                                          January 31,      October 31,
                                             2009             2008
                                          -----------      -----------
 ASSETS
 Current assets:
   Cash and cash equivalents               $  24,753        $  27,234
   Trade accounts receivable,
    net of allowance for
    doubtful accounts of $83
    and $16 at January 31, 2009
    and October 31, 2008,
    respectively                               5,486            2,801
   Other current assets                          379              399
                                         -----------      -----------
     Total current assets                     30,618           30,434

 Property and equipment, net                     613              670
 Goodwill                                      8,298            6,720
 Intangible assets, net                        1,083              565
 Other assets                                    113              172
                                         -----------      -----------
     Total assets                         $  40,725        $  38,561
                                         ===========      ===========

 LIABILITIES AND STOCKHOLDERS'
  EQUITY

 Current liabilities:
   Accounts payable                       $      549       $      371
   Accrued liabilities                         1,572            1,525
   Deferred revenues                           4,283            3,120
   Deferred rent                                  19               17
                                         -----------      -----------
     Total current liabilities                 6,423            5,033

 Deferred revenues                               360              317
 Deferred rent                                     7               13
 Other long-term liabilities                      44               44
                                         -----------      -----------
     Total liabilities                         6,834            5,407
                                         -----------      -----------

 Stockholders' equity:
   Common stock, no par value,
    7,500,000 shares authorized,
    3,759,135 shares issued and
    3,682,443 shares outstanding
    at January 31, 2009, and
    3,746,581 shares issued and
    outstanding at October 31,
    2008                                      98,065           97,717
    Treasury stock at cost,
     76,692 shares at January
     31, 2009                                 (1,107)              --
   Accumulated other
    comprehensive income, net                    117              183
   Accumulated deficit                       (63,184)         (64,746)
                                         -----------      -----------
     Total stockholders' equity               33,891           33,154
                                         -----------      -----------
     Total liabilities and
      stockholders' equity                 $  40,725        $  38,561
                                         ===========      ===========

                 VERSANT CORPORATION AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
             (in thousands, except for per share amounts)
                              (unaudited)

                                                Three Months Ended
                                            --------------------------
                                            January 31,     January 31,
                                               2009            2008
                                            ----------      ----------

 Revenues:
   License                                   $  3,243        $  3,962
   Maintenance                                  2,314           2,230
   Professional services                           62              92
                                            ----------      ----------
     Total revenues                             5,619           6,284
                                            ----------      ----------

 Cost of revenues:
   License                                         65              80
   Amortization of intangible assets               93              79
   Maintenance                                    383             384
   Professional services                           36              27
                                            ----------      ----------
     Total cost of revenues                       577             570
                                            ----------      ----------

     Gross profit                               5,042           5,714
                                            ----------      ----------

 Operating expenses:
   Sales and marketing                          1,186             841
   Research and development                       993           1,054
   General and administrative                   1,187           1,086
                                            ----------      ----------
     Total operating expenses                   3,366           2,981
                                            ----------      ----------

   Income from operations                       1,676           2,733
    Interest and other income, net                154             201
                                            ----------      ----------
   Income from continuing operations
    before taxes                                1,830           2,934
   Provision for income taxes                     268             411
                                            ----------      ----------
   Net income from continuing
    operations                                  1,562           2,523

   Net income from discontinued
    operations, net of income taxes                --              82
                                            ----------      ----------
   Net income                                $  1,562        $  2,605
                                            ==========      ==========

 Basic income per share:
   Net income from continuing
    operations                               $   0.42        $   0.69
   Earnings from discontinued
    operations, net of income tax            $     --        $   0.02
                                            ----------      ----------
   Net income per share, basic               $   0.42        $   0.71

 Diluted income per share:
   Net income from continuing
    operations                               $   0.42        $   0.67
   Earnings from discontinued
    operations, net of income tax            $     --        $   0.02
                                            ----------      ----------
   Net income per share, diluted             $   0.42        $   0.69

 Shares used in per share calculation:
   Basic                                        3,723           3,680
   Diluted                                      3,760           3,761

 Non-cash stock-based compensation
   included in the above expenses:
   Cost of revenues                          $     10        $     13
   Sales and marketing                       $     40        $     49
   Research and development                  $     44        $     39
   General and administrative                $    139        $     91

CONTACT:  Versant Corporation
          Jerry Wong, Chief Financial Officer
          1-800-VERSANT
          650-232-2400