Altiris 8-K Altiris Reports Strong Financial Results for Third Quarter of 2005

Exhibit 99.1

Altiris Reports Strong Financial Results for Third Quarter of 2005

SALT LAKE CITY – October 24, 2005 – Altiris, Inc. (Nasdaq: ATRS), a pioneer of IT lifecycle management solutions that reduce the total cost of owning information technology, today announced financial results for the third quarter ended September 30, 2005.

For the third quarter, the Company reported total revenue of $48.8 million, an increase of 20 percent over $40.7 million reported in the third quarter of 2004. Net income was $132,000, or $0.00 per diluted share, including charges of $2.3 million for the amortization of acquired intellectual property, $997,000 for amortization of intangible assets, $2.7 million in stock-based compensation and $2.0 million in restructuring charges. This compares to net income of $3.4 million, or $0.12 per diluted share, reported in the third quarter of 2004, which includes $1.3 million for the amortization of acquired intellectual property, $687,000 for amortization of intangible assets, and $153,000 in stock-based compensation.

On a Non-GAAP basis, the Company reported net income of $5.4 million, or $0.19 per diluted share, for the third quarter of 2005, excluding the above-mentioned charges and applying a tax rate of 35 percent. This compares to Non-GAAP net income of $5.2 million, or $0.19 per share, reported in the same period of last year.

“We are pleased with our financial results and execution across our business in the quarter,” commented Greg Butterfield, chairman and CEO of Altiris. “In addition to exceeding our guidance, we reported growth in both license and service revenue and successfully implemented our restructuring efforts, realizing meaningful cost savings and significantly improving operating margins.

“Our year over year quarterly growth is the result of increased activity across our customer base as well as continued strength in revenue through our OEM partners and our VAR and systems integrator channels. We continued to win competitively with customers as the result of our integrated approach to total lifecycle management and showed good traction with some of our new solutions, most notably our security offerings. We remained focused on delivering innovative solutions and continued to deliver quality new and updated products to the market.

“We recently completed our ManageFusion^™ conference in Orlando where we had more than 800 attendees and 250 customer one-on-one meetings. We believe that the energy around Altiris and our solutions were amply evident at this event and are encouraged by the growing level of interest and acceptance of Altiris across the industry. As we look ahead and with our restructuring activities nearing completion, we believe we are well positioned for a stronger future and confident in our ability to continue to execute effectively,” concluded Butterfield.

Earnings Call Information

Altiris, Inc. will broadcast a conference call discussing the company’s third quarter results on Monday, October 24 beginning at 5:00 p.m. Eastern Time. A live Webcast of the call will be available from the Investor Relations section of the company’s corporate website athttp://phx.corporate-ir.net/phoenix.zhtml?c=131071&p=irol-irhome. For those unable to listen to the live Webcast, a replay of the call will also be available on the Altiris Website, or by dialing 800-405-2236 and entering passcode 11041490.

Non-GAAP Financial Measures

In this earnings release and during our earnings conference call and Webcast as described above, we use or plan to discuss certain Non-GAAP financial measures. Generally, a Non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. A reconciliation between Non-GAAP and GAAP measures can be found in the accompanying tables and on the Investor Relations Section of our website atwww.altiris.com. We believe that, while these Non-GAAP measures are not a substitute for GAAP results, they provide a basis for evaluating the Company’s cash requirements for ongoing operating activities. These Non-GAAP measures have been reconciled to the nearest GAAP measure as required under SEC rules. We compute Non-GAAP net income by adjusting GAAP net income before taxes for amortization of acquisition-related intellectual property, amortization of other acquired intangible assets such as customer lists and work force, restructuring charges and stock-based compensation. In addition, we used a Non-GAAP tax rate of 35 percent for the second quarters of 2005 and 2004.

About Altiris

Altiris, Inc. is a pioneer of IT lifecycle management software that allows IT organizations to easily manage, secure and service desktops, notebooks, thin clients, handhelds, industry-standard servers, and heterogeneous software including Windows, Linux and UNIX. Altiris automates and simplifies IT projects throughout the life of an asset to reduce the cost and complexity of management. Altiris client and mobile, server, security and IT asset management solutions natively integrate via a common Web-based console and repository. For more information, visitwww.altiris.com.

Altiris is a registered trademark of Altiris, Inc. in the U.S. and in other countries. ManageFusion is a trademark of Altiris, Inc. in the U.S. and in other countries.

Note on Forward-Looking Statements

This press release contains certain 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, including but not limited to, statements regarding the growing

level of interest in, and acceptance of, Altiris and our product solutions, our position in the market our confidence in our ability to continue to execute effectively. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ, including, but not limited to, changes in economic conditions generally or technology spending in particular, our failure to expend our customer base, deterioration of our relationships with Dell, HP, Fujitsu Siemens Computers, Microsoft and other OEMs and strategic partners, our inability to develop and expand our VAR and systems integrator channels, our inability to compete effectively in an increasingly competitive market, factors affecting our ability to continue to realize the anticipated cost savings and efficiencies from the adjustments made to our operating model, our inability to align our expenses with anticipated revenues and Company strategy, our inability to achieve the anticipated benefits of recently acquired businesses, fluctuations in our future quarterly revenue and operating results, slower than expected closure rates on larger transactions, our inability to manage expenses, disruptions in our business and operations as a result of acquisitions, difficulties and delays in product development, the length and complexity of our product sales cycle, reduced market acceptance of our products and services, our failure to continue to meet the sophisticated and changing needs of our customers, risks inherent in doing business internationally, our inability to implement and maintain adequate internal systems and effective internal control over financial reporting, changes in relevant accounting standards and securities laws and regulations, and such other risks as identified in our Quarterly Report on Form 10-Q for the period ended June 30, 2005 as filed with the Securities and Exchange Commission and all subsequent filings, which contain and identify important factors that could cause the actual results to differ materially from those contained in our projections or forward-looking statements. Altiris assumes no obligation and does not intend to update these forward-looking statements.

(TABLES TO FOLLOW)

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Altiris contact:	Investor contacts:
Susan Richards	Erica Abrams, Vanessa Lehr
Altiris Inc.	The Blueshirt Group for Altiris
801-805-2783	415-217-7722
srichards@altiris.com	erica@blueshirtgroup.com
	vanessa@blueshirtgroup.com

Altiris, Inc.

Consolidated Balance Sheets

(Unaudited)

(in 000’s)

	September 30, 2005			December 31, 2004
ASSETS
Current assets:
Cash and marketable securities	$	144,092		$	183,447
Accounts receivable, net		38,762			40,056
Prepaid expenses and other current assets		3,174			4,171
Deferred tax asset		1,000			1,757
Total current assets		187,028			229,431
Property and equipment, net		6,851			5,713
Intangible assets, net		37,053			26,516
Goodwill		67,504			16,425
Other assets		289			157
Total Assets	$	298,725		$	278,242
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of capital lease obligations	$	1,466		$	994
Accounts payable		1,621			2,661
Accrued salaries and benefits		11,414			12,106
Other accrued expenses		5,882			13,951
Deferred revenue		45,414			38,007
Total current liabilities		65,797			67,719
Capital lease obligations, net of current portion		1,687			871
Other accrued expenses, non-current		57			—
Deferred tax liability, non-current		1,984			2,755
Deferred revenue, non-current		4,613			4,689
Total liabilities		74,138			76,034
Stockholders’ equity:
Common stock		3			3
Additional paid in capital		215,850			194,789
Deferred compensation		(4,877	)		(255	)
Accumulated other comprehensive income		(380	)		444
Retained earnings		13,991			7,227
Total stockholders’ equity		224,587			202,208
Total liabilities and stockholders’ equity	$	298,725		$	278,242

Altiris, Inc.

Consolidated Statements of Operations

(Unaudited)

(in 000’s, except per share data)

	Three Months Ended September 30						Nine Months Ended September 30
	2005			2004			2005			2004
Revenue:
Software	$	26,170		$	24,768		$	80,951		$	75,046
Services		22,605			15,928			61,088			43,085
Total revenue		48,775			40,696			142,039			118,131
Cost of revenue:
Software		315			292			578			839
Amortization of acquired intellectual properties		2,294			1,341			6,713			3,409
Services		6,577			5,587			19,263			14,779
Total cost of revenue		9,186			7,220			26,554			19,027
Gross profit		39,589			33,476			115,485			99,104
Operating expenses:
Sales and marketing		19,602			15,921			57,991			46,361
Research and development		9,919			7,916			30,060			23,573
General and administrative		4,869			3,600			16,251			10,184
Amortization of intangible assets		997			687			3,014			2,032
Restructuring charge		2,019			—			2,019			—
Write-off of in-process research and development		—			—			1,600			—
Stock-based compensation		2,699			153			4,794			456
Total operating expenses		40,105			28,277			115,729			82,606
Income (loss) from operations		(516	)		5,199			(244	)		16,498
Other income, net		764			622			11,018			1,034
Income before income taxes		248			5,821			10,774			17,532
Provision for income taxes		(116	)		(2,432	)		(4,011	)		(7,356	)
Net income	$	132		$	3,389		$	6,763		$	10,176
Basic net income per share	$	0.00		$	0.13		$	0.25		$	0.39
Diluted net income per share	$	0.00		$	0.12		$	0.24		$	0.37
Basic shares		27,705			26,695			27,482			26,385
Diluted shares		28,288			27,840			28,451			27,591
Non-GAAP ADJUSTMENTS
GAAP income before income taxes	$	248		$	5,821		$	10,774		$	17,532
Add back:
Amortization of acquired intellectual properties		2,294			1,341			6,713			3,409
Amortization of intangible assets		997			687			3,014			2,032
Write-off of in-process research and development		—			—			1,600			—
Restructuring charge		2,019			—			2,019			—
Symantec litigation settlement		—			—			(10,000	)		—
Stock-based compensation		2,699			153			4,794			456
Non-GAAP income before income taxes		8,257			8,002			18,914			23,429
Non-GAAP provision for income taxes (35%)		(2,890	)		(2,801	)		(6,620	)		(8,200	)
Non-GAAP net income	$	5,367		$	5,201		$	12,294		$	15,229
Non-GAAP net income per share:
Basic	$	0.19		$	0.19		$	0.45		$	0.58
Diluted	$	0.19		$	0.19		$	0.43		$	0.55
Shares used to compute non-GAAP net income per share:
Basic		27,705			26,695			27,482			26,385
Diluted		28,288			27,840			28,451			27,591