Serena Software (SRNAE) 8-K Serena Software Reports Fourth Quarter and Fiscal 2007 Results

Exhibit 99.1

Serena media and investor contact:

Robert Pender

Chief Financial Officer

Serena Software

650-522-6604

bpender@serena.com

SERENA SOFTWARE REPORTS FOURTH QUARTER AND FISCAL 2007 RESULTS

Company announces intent to amend Credit Agreement

San Mateo, CA–March 22, 2007– Serena Software, Inc. today announced results for the fourth quarter and fiscal year ending January 31, 2007.

Total revenue was $76.5 million in the fourth quarter of fiscal year 2007 and represented a 9% increase over total revenue in the fourth quarter of fiscal year 2006. Software license revenue was $30.5 million, maintenance revenue was $37.0 million and service revenue was $9.0 million for the fourth quarter of fiscal year 2007. For fiscal year 2007, total revenue was $255.3 million, software license revenue was $86.5 million, maintenance revenue was $134.6 million, and service revenue was $34.2 million. Excluded from revenue is $1.5 million and $12.5 million of maintenance revenue written down in the purchase accounting for our merger with Spyglass Merger Corporation, an affiliate of Silver Lake Partners, for the fourth quarter and full fiscal year of 2007, respectively.

Net (loss) income computed in accordance with generally accepted accounting principles (“GAAP”) for fiscal year 2007 was $(57.2) million compared to $35.3 million in fiscal year 2006. Included in the fiscal year 2007 results were $43.8 million of transaction costs related to the merger transaction involving Silver Lake Partners.

Adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) for the fourth quarter of fiscal year 2007 increased 32% to $34.5 million from $26.0 million in the fourth quarter of fiscal year 2006. Adjusted EBITDA for fiscal year 2007 increased 12% to $103.3 million from $92.0 million for fiscal year 2006.

Adjusted EBITDA excludes amortization of intangible assets and charges relating to the purchase accounting adjustments for the merger transaction involving Silver Lake Partners, stock-based compensation, depreciation, amortization of acquired technology and other intangible assets, restructuring, acquisition and other charges, and acquired in-process research and development. Adjusted EBITDA also excludes the revenue impact of the deferred maintenance write-down to fair value. A reconciliation of Adjusted EBITDA to GAAP financial results is included in this press release.

Total cash and equivalents as of January 31, 2007 was $68.5 million and total deferred revenue was $78.4 million.

Serena also announced today that it expects to amend its existing credit agreement in order to reduce the interest rate on the term loan. The amendment will require the approval of certain term loan lenders in accordance with the terms of the credit agreement.

FORWARD-LOOKING STATEMENTS:This press release contains statements regarding our intent to amend our senior secured credit agreement, which may be considered forward-looking within the meaning of the U.S. federal securities laws. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from results expressed or implied in this press release. Such risk factors include our ability to obtain approval of the requisite term loan lenders in accordance with the terms of the credit agreement, market fluctuations in interest rates and other risk factors contained in our Form 10-Q for the quarter ended October 31, 2006. Actual results may differ materially from those contained in the forward-looking statements in this press release. Additional information concerning these and other risk factors is contained in the Risk Factors section of our Form 10-Q for the quarter ended October 31, 2006. We assume no obligation to update any forward-looking information contained in this press release.

NON-GAAP FINANCIAL INFORMATION: Serena’s management evaluates and makes operating decisions using various operating measures, including earnings before interest, taxes and amortization (EBITA). Serena’s management uses EBITA as a supplemental financial measure in evaluating the performance of Serena’s business, making forecasting, budgeting and operating decisions and establishing operating targets, budgets and performance-based compensation arrangements. In addition, our lenders use similar operating measures to evaluate our operating performance and compliance with certain financial covenants. One such measure used by our lenders is Adjusted EBITDA, which is calculated in accordance with the debt covenants under our credit agreement. Adjusted EBITDA differs from GAAP operating income in that it excludes amortization of acquired technology and intangible assets, write down of maintenance revenue and acquired in-process research and development and other charges relating to purchase accounting adjustments from our merger with Spyglass Merger Corporation and our acquisition of Pacific Edge Software, Inc.; restructuring, acquisition and other charges; stock based compensation under SFAS 123R; and depreciation. Adjusted EBITDA is not an alternative to operating income as calculated in accordance with GAAP. Lenders and investors should not rely on the use of Adjusted EBITDA as a substitute for any GAAP financial measure. In addition, our calculation of Adjusted EBITDA may or may not be consistent with that of other companies. Lenders and investors are encouraged to review the reconciliations to the comparable GAAP financial measures that are included below and not to rely on any single financial measure to evaluate our business.

About Serena Software, Inc.

Serena Software provides software and services to more than 15,000 organizations around the world—including 96 of the Fortune 100 and 90 of the Global 100. Recognized by IDC as the largest software provider focused exclusively on change, Serena offers a new approach to change that enables businesses to efficiently, consistently, and successfully control change across the enterprise. Serena helps companies capitalize on change to achieve transformative business results. Serena, a portfolio company of Silver Lake Partners, has more than 800 employees worldwide and is headquartered in San Mateo, California, with offices throughout the U.S., Europe, and Asia Pacific. For more information, please visit www.serena.com.

– FINANCIAL TABLES TO FOLLOW –

SERENA Software, Inc.

Condensed Consolidated Statements of Operations

(In thousands)

(Unaudited)

	Three Months Ended January 31,						Year Ended January 31,
	2007			2006			2007			2006
Revenue:
Software licenses	$	30,512		$	27,044		$	86,520		$	90,554
Maintenance		37,059			34,639			134,605			136,009
Professional services		8,963			8,454			34,166			29,209
Total revenue		76,534			70,137			255,291			255,772
Cost of revenue:
Software licenses		834			843			2,735			3,211
Maintenance		3,496			3,197			13,662			13,225
Professional services		8,041			7,472			31,758			26,628
Amortization of acquired technology		13,944			4,153			37,853			16,921
Total cost of revenue		26,315			15,665			86,008			59,985
Gross profit		50,219			54,472			169,283			195,787
Operating expenses:
Sales and marketing		18,173			20,784			72,396			74,196
Research and development		9,097			8,449			35,803			34,678
General and administrative		1,237			4,890			18,684			18,868
Amortization of intangible assets		9,203			2,560			33,639			10,516
Acquired in-process research and development		—			—			4,100			—
Restructuring, acquisition and other charges		625			5,946			43,729			6,462
Total operating expenses		38,335			42,629			208,351			144,720
Operating income (loss)		11,884			11,843			(39,068	)		51,067
Interest income		493			2,005			3,996			6,203
Interest expense		(12,600	)		(825	)		(45,417	)		(3,300	)
Fair market value adjustment to the interest rate swap		1,448			—			(1,154	)		—
Amortization of debt issuance costs		(450	)		(335	)		(3,563	)		(1,340	)
Income (loss) before income taxes		775			12,688			(85,206	)		52,630
Income tax (benefit) expense		(4,405	)		4,587			(27,994	)		17,363
Net income (loss)	$	5,180		$	8,101		$	(57,212	)	$	35,267

Serena Software, Inc.

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

	January 31, 2007		January 31, 2006
Assets
Current assets
Cash and cash equivalents	$	68,455	$	148,401
Restricted cash		—		3,260
Short-term investments		12		60,837
Accounts receivable, net		40,894		35,464
Deferred taxes		10,593		8,658
Prepaid expenses and other current assets		5,051		4,638
Total current assets		125,005		261,258
Long-term investments		—		13,626
Property and equipment, net		6,931		5,927
Goodwill, net		801,770		297,775
Other intangible assets, net		402,688		87,359
Other assets		11,053		2,689
Total assets	$	1,347,447	$	668,634
Liabilities and Stockholders’ Equity
Current liabilities:
Short-term debt and current portion of long term debt	$	30,000	$	—
Accounts payable		2,268		2,551
Income taxes payable		11,828		13,961
Accrued expenses		30,259		25,835
Accrued interest on term loan and subordinated notes		9,910		413
Deferred revenue		61,642		64,138
Total current liabilities		145,907		106,898
Deferred revenue, net of current portion		16,759		10,608
Long-term liabilities		1,906		1,953
Deferred taxes		151,250		27,976
Term loan		345,000		—
Senior subordinated notes		200,000		—
Convertible subordinated notes		5		220,000
Total liabilities		860,827		367,435
Stockholders’ equity:
Total stockholders’ equity		486,620		301,199
Total liabilities and stockholders’ equity	$	1,347,447	$	668,634

The following table reconciles GAAP operating income/loss to Adjusted EBITDA:

	Three Months Ended January 31,					Year Ended January 31,
	2007			2006		2007			2006
GAAP operating income (loss):	$	11,884		$	11,843	$	(39,068	)	$	51,067
Amortization of acquired technology		13,944			4,153		37,853			16,921
Amortization of intangible assets		9,203			2,560		33,639			10,516
Writedown of maintenance revenue		1,467			229		12,485			2,430
Acquired in-process research and development		—			—		4,100			—
Restructuring, acquisition and other charges		625			5,946		43,729			6,462
Stock-based compensation		(3,498	)		594		7,549			1,777
Depreciation		856			700		2,999			2,799
Adjusted EBITDA	$	34,481		$	26,025	$	103,286		$	91,972

# # #