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Versant Announces Record Quarterly Net Income of $2.7 Million
Quarterly Revenues Grow 20% Over Last Year
Quarterly Diluted Net Income Per Share of $0.70
REDWOOD CITY, Calif., Aug. 26, 2008 (GLOBE NEWSWIRE) -- Versant Corporation (NasdaqGS:VSNT - News), an industry leader in specialized data management, today announced its financial results for the third fiscal quarter ended July 31, 2008. For the quarter, Versant reported revenues of $6.3 million from its continuing operations, compared to $5.2 million for the comparable period last year, representing an increase of approximately 20%. This increase was driven primarily by license revenues, which grew by approximately 35% from $2.9 million in the third quarter of 2007 to $3.9 million in the third quarter of 2008. Two telecommunications customers contributed approximately 33% of total revenues (and approximately 48% of license revenues) in the third quarter of 2008. European revenue for the quarter was approximately 69% of total revenue, which was higher than recent quarters. Due to such distribution of revenue, and the increase in the value of the euro to the dollar compared to the same period in fiscal 2007, approximately 58% of Versant's revenue growth in the third quarter of 2008 was due to currency changes. Net income for the quarter was $2.7 million and diluted net income per share was $0.70, compared to net income of $1.9 million and diluted net income per share of $0.52 for the third quarter of fiscal 2007. Versant also reported an increase in cash and cash equivalents of approximately $2.1 million during the quarter, resulting in a cash and cash equivalents balance of approximately $27.4 million at July 31, 2008. ``We are very satisfied with the results in our third fiscal quarter, which established another record quarterly net income milestone for the Company,'' said Jochen Witte, CEO of Versant Corporation. ``However, due to the strengthening of the U.S. dollar and the difficult economic environment in the U.S. and Europe, achieving our future goals will become more challenging.'' About Versant Corporation Versant Corporation (NasdaqGS:VSNT - News) 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, US Government, and Financial Times. For more information, call 650-232-2400 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 future operating results, current expectations regarding US Dollar / Euro exchange rate and the economic environments in the U.S. and Europe. Investors are cautioned that any such forward-looking statements are not guarantees of Versant's future performance or other matters 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 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; recent adverse changes in general economic conditions in the U.S. and abroad that may reduce our customers' revenues and profits and thus may disincent certain customers from making strategic capital purchase decisions for products and services such as those offered by Versant; changes in currency exchange rates; 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, 2007, 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, August 26, 2008 Time: 1:30 PM Pacific (4:30 PM Eastern) Dial-in number U.S.: 1-800-762-8908 International: 1-480-629-9041 Conference ID: 3912848 Internet Simulcast*: http://viavid.net/dce.aspx?sid=00005588 *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 2, 2008.
Replay number U.S.: 1-800-406-7325
International Replay number: 1-303-590-3030
Replay Pass Code**: 3912848
** Enter the playback pass code to
access the replay.
VERSANT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
July 31, Oct. 31,
2008 2007
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 27,407 $ 19,086
Trade accounts receivable, net of allowance for
doubtful accounts of $72 and $68 at July 31, 2008
and October 31, 2007, respectively 3,511 2,330
Other current assets 797 506
-------- --------
Total current assets 31,715 21,922
Property and equipment, net 787 835
Goodwill 6,720 6,720
Intangible assets, net 645 881
Other assets 201 108
-------- --------
Total assets $ 40,068 $ 30,466
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 363 $ 157
Accrued liabilities 2,663 2,756
Deferred revenues 3,933 3,707
Deferred rent 14 7
-------- --------
Total current liabilities 6,973 6,627
Deferred revenues 456 641
Deferred rent 19 29
Other long-term liabilities 53 4
-------- --------
Total liabilities 7,501 7,301
-------- --------
Stockholders' equity:
Common stock, no par value, 7,500,000 shares
authorized, 3,745,547 and 3,671,924 shares issued
and outstanding as of July 31, 2008 and
October 31, 2007, respectively 97,406 96,004
Accumulated other comprehensive income, net 2,140 1,346
Accumulated deficit (66,979) (74,185)
-------- --------
Total stockholders' equity 32,567 23,165
-------- --------
Total liabilities and stockholders' equity $ 40,068 $ 30,466
======== ========
VERSANT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except for per share amounts)
(unaudited)
Three Months Ended Nine Months Ended
------------------ ------------------
July 31, July 31, July 31, July 31,
2008 2007 2008 2007
-------- -------- -------- --------
Revenues:
License $ 3,943 $ 2,925 $ 12,330 $ 9,373
Maintenance 2,305 2,225 6,764 6,019
Professional services 52 98 211 197
-------- -------- -------- --------
Total revenues 6,300 5,248 19,305 15,589
-------- -------- -------- --------
Cost of revenues:
License 75 73 233 215
Amortization of intangible
assets 79 79 237 237
Maintenance 354 377 1,103 1,153
Professional services 18 33 74 93
-------- -------- -------- --------
Total cost of revenues 526 562 1,647 1,698
-------- -------- -------- --------
Gross profit 5,774 4,686 17,658 13,891
-------- -------- -------- --------
Operating expenses:
Sales and marketing 898 877 2,696 2,511
Research and development 1,003 785 3,159 2,497
General and administrative 1,181 1,039 4,244 3,342
-------- -------- -------- --------
Total operating expenses 3,082 2,701 10,099 8,350
-------- -------- -------- --------
Income from operations 2,692 1,985 7,559 5,541
Interest and other income, net 261 116 591 358
-------- -------- -------- --------
Income from continuing
operations before taxes 2,953 2,101 8,150 5,899
Provision for income taxes 295 228 992 585
-------- -------- -------- --------
Net income from continuing
operations 2,658 1,873 7,158 5,314
Net income from discontinued
operations, net of income
taxes -- 61 98 232
-------- -------- -------- --------
Net income $ 2,658 $ 1,934 $ 7,256 $ 5,546
======== ======== ======== ========
Basic income per share:
Net income from continuing
operations $ 0.71 $ 0.51 $ 1.93 $ 1.47
Earnings from discontinued
operations, net of income
tax $ -- $ 0.02 $ 0.03 $ 0.06
-------- -------- -------- --------
Net income per share, basic $ 0.71 $ 0.53 $ 1.96 $ 1.53
Diluted income per share:
Net income from continuing
operations $ 0.70 $ 0.50 $ 1.89 $ 1.44
Earnings from discontinued
operations, net of income
tax $ -- $ 0.02 $ 0.03 $ 0.06
-------- -------- -------- --------
Net income per share,
diluted $ 0.70 $ 0.52 $ 1.92 $ 1.50
Shares used in per share
calculation:
Basic 3,729 3,648 3,704 3,624
Diluted 3,806 3,734 3,781 3,696
Non-cash stock-based
compensation included in the
above expenses:
Cost of revenues $ 14 $ 16 $ 42 $ 45
Sales and marketing $ 51 $ 24 $ 153 $ 64
Research and development $ 43 $ 9 $ 124 $ 28
General and administrative $ 119 $ 52 $ 308 $ 133
Contact: Versant Corporation
Jerry Wong, Chief Financial Officer
1-800-VERSANT
650-232-2400
Source: Versant Corporation
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