Exhibit 99.01
Versant Contact:
Jerry Wong
Chief Financial Officer
Versant Corporation
1-800-VERSANT
650-232-2400
Versant Announces Record Quarterly Net Income of $2.6 Million
Quarterly revenues grow 22% over last year
Record quarterly diluted net income per share of $0.69
Redwood City, California, February 26, 2008 - Versant Corporation (NASDAQ:VSNT), an industry leader in specialized data management, today announced its financial results for the first fiscal quarter ended January 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 22%. This increase was driven primarily by license revenues, which grew by approximately 25% from $3.2 million in the first quarter of 2007 to $4.0 million in the first quarter of 2008. Additionally, maintenance revenues for the first quarter of 2008 increased by 16% over maintenance revenues for the comparable quarter in 2007. One Asia Pacific telecommunications customer contributed approximately 23% of total revenues (and approximately 35% of license revenues) in the first quarter of 2008.
Net income for the quarter was a record $2.6 million and diluted net income per share was $0.69, compared to net income of $1.7 million and diluted net income per share of $0.47 for the first quarter of fiscal 2007.
Versant also reported an increase in cash and cash equivalents of approximately $2.2 million during the quarter, resulting in a cash and cash equivalents balance of approximately $21.3 million at January 31, 2008.
“Based on our solid license and moderate maintenance revenue growth, this quarter has provided Versant a good jump start for fiscal 2008. We are not prepared at this early stage of our fiscal year to increase our prior guidance regarding fiscal 2008, particularly given the business uncertainties arising from currently difficult general economic conditions”, said Jochen Witte, Versant’s CEO.
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, US 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 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 current views regarding the impact of our operating results for the first quarter of fiscal 2008 on our operating results for fiscal 2008 or our ability to achieve our previous guidance for fiscal year 2008. Investors are cautioned that any such forward-looking statements are not guarantees of Versant’s future performance 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; legal and potential other costs and payments, such as settlements, associated with a pending litigation in which one of our customers is seeking indemnification from the Company for alleged infringement of intellectual property rights asserted by a third party; 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; 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 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 26, 2008 |
Time: | | 1:30 PM Pacific (4:30 PM Eastern) |
Dial-in number US: | | 1-800-762-8908 |
International: | | 1-480-629-9572 |
Conference ID: | | 3847959 |
Internet Simulcast*: | | http://viavid.net/dce.aspx?sid=00004C06 |
| | *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 4, 2008.
Replay number US: | | 1-800-406-7325 |
International Replay number: | | 1-303-590-3030 |
Replay Pass Code**: | | 3847959 |
| ** Enter the playback pass code to access the replay |
VERSANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in thousands)
(unaudited)
| | January 31, | | January 31, | |
| | 2008 | | 2007 | |
ASSETS | | | | | |
Current assets: | | | | | |
Cash and cash equivalents | | $ | 21,291 | | $ | 19,086 | |
Trade accounts receivable, net of allowance for doubtful accounts of $28 and $68 at January 31, 2008 and October 31, 2007, respectively | | 3,411 | | 2,330 | |
Other current assets | | 585 | | 506 | |
Total current assets | | 25,287 | | 21,922 | |
| | | | | |
Property and equipment, net | | 787 | | 835 | |
Goodwill | | 6,720 | | 6,720 | |
Intangible assets, net | | 802 | | 881 | |
Other assets | | 110 | | 108 | |
Total assets | | $ | 33,706 | | $ | 30,466 | |
| | | | | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | | | | | |
| | | | | |
Current liabilities: | | | | | |
Accounts payable | | $ | 221 | | $ | 157 | |
Accrued liabilities | | 2,059 | | 2,756 | |
Deferred revenues | | 4,448 | | 3,707 | |
Deferred rent | | 9 | | 7 | |
Total current liabilities | | 6,737 | | 6,627 | |
| | | | | |
Deferred revenues | | 560 | | 641 | |
Deferred rent | | 26 | | 29 | |
Other long-term liabilities | | 51 | | 4 | |
Total liabilities | | 7,374 | | 7,301 | |
| | | | | |
Stockholders’ equity: | | | | | |
Common stock, no par value, 7,500,000 shares authorized, 3,693,235 and 3,671,924 shares issued and outstanding as of January 31, 2008 and October 31, 2007, respectively | | 96,405 | | 96,004 | |
Accumulated other comprehensive income, net | | 1,557 | | 1,346 | |
Accumulated deficit | | (71,630 | ) | (74,185 | ) |
Total stockholders’ equity | | 26,332 | | 23,165 | |
Total liabilities and stockholders’ equity | | $ | 33,706 | | $ | 30,466 | |
VERSANT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
| | Three Months Ended | |
| | January 31, | | January 31, | |
| | 2008 | | 2007 | |
| | | | | |
Revenues: | | | | | |
License | | $ | 3,962 | | $ | 3,164 | |
Maintenance | | 2,230 | | 1,917 | |
Professional services | | 92 | | 70 | |
Total revenues | | 6,284 | | 5,151 | |
| | | | | |
Cost of revenues: | | | | | |
License | | 80 | | 47 | |
Amortization of intangible assets | | 79 | | 79 | |
Maintenance | | 384 | | 405 | |
Professional services | | 27 | | 41 | |
Total cost of revenues | | 570 | | 572 | |
| | | | | |
Gross profit | | 5,714 | | 4,579 | |
| | | | | |
Operating expenses: | | | | | |
Sales and marketing | | 841 | | 760 | |
Research and development | | 1,054 | | 891 | |
General and administrative | | 1,086 | | 1,209 | |
Total operating expenses | | 2,981 | | 2,860 | |
| | | | | |
Income from operations | | 2,733 | | 1,719 | |
Interest and other income, net | | 201 | | 101 | |
Income from continuing operations before taxes | | 2,934 | | 1,820 | |
Provision for income taxes | | 411 | | 203 | |
Net income from continuing operations | | 2,523 | | 1,617 | |
Net income from discontinued operations, net of income taxes | | 82 | | 90 | |
Net income | | $ | 2,605 | | $ | 1,707 | |
| | | | | |
Basic income per share: | | | | | |
Net income from continuing operations | | $ | 0.69 | | $ | 0.45 | |
Earnings from discontinued operations, net of income tax | | $ | 0.02 | | $ | 0.02 | |
Net income per share, basic | | $ | 0.71 | | $ | 0.47 | |
| | | | | |
Diluted income per share: | | | | | |
Net income from continuing operations | | $ | 0.67 | | $ | 0.45 | |
Earnings from discontinued operations, net of income tax | | $ | 0.02 | | $ | 0.02 | |
Net income per share, diluted | | $ | 0.69 | | $ | 0.47 | |
| | | | | |
Shares used in per share calculation: | | | | | |
Basic | | 3,680 | | 3,606 | |
Diluted | | 3,761 | | 3,657 | |
| | | | | |
Non-cash stock-based compensation included in the above expenses: | | | | | |
Cost of revenues | | $ | 13 | | $ | 13 | |
Sales and marketing | | $ | 49 | | $ | 19 | |
Research and development | | $ | 39 | | $ | 11 | |
General and administrative | | $ | 91 | | $ | 39 | |
