Exhibit 99.1
Versant Contact:
Jerry Wong
Chief Financial Officer
Versant Corporation
1-800-VERSANT
650-232-2400
Versant Announces Quarterly Net Income of $0.1 Million
Revenues of $3.4 million for Q3 2010
Redwood City, California, August 25, 2010 - Versant Corporation (NASDAQ:VSNT), an industry leader in specialized data management software, today announced its financial results for its third quarter ended July 31, 2010.
For the quarter, Versant reported revenues of $3.4 million compared to $4.4 million for the same quarter of the last fiscal year.
The 23% decrease in revenues for the quarter was primarily attributable to a 25% decrease in maintenance revenues and a 19% decrease in license revenues relative to the same period in the prior fiscal year. The decrease in maintenance revenues reflected the lack of a significant back maintenance transaction in the third quarter of fiscal 2010 compared to the third quarter of fiscal 2009 and customers electing less expensive support and maintenance options. The decrease in license revenues was primarily a result of fewer large license transactions in the current quarter compared to the same period of the prior fiscal year. In the quarter ended July 31, 2010, one customer accounted for 15% of total revenues in the quarter, whereas no customer accounted for more than 10% of total revenues in the quarter ended July 31, 2009.
Net income for the quarter was $0.1 million and diluted net income per share was $0.04, compared to net income of $0.9 million and diluted net income per share of $0.25 for the third quarter of fiscal 2009.
Versant also reported a decrease in cash and cash equivalents of approximately $2.4 million during the quarter, which was primarily a result of expenditures of approximately $2.5 million to repurchase shares of our common stock under the stock repurchase program.
Under the Company’s current stock repurchase program, Versant is authorized to expend up to $5.0 million to repurchase outstanding common shares. During the quarter ended July 31, 2010, Versant acquired approximately 221,000 shares in block trades and in open market purchases at an average price of $11.28 per share. From inception of the current repurchase
program in December 2009 through July 31, 2010, the Company has acquired a total of 296,778 common shares at a total price of approximately $3.6 million, or an average purchase price of $12.19 per share, leaving a balance of approximately $1.4 million available for future repurchases of stock under this program until its currently anticipated expiration on October 31, 2010.
Jochen Witte, Versant Corporation’s CEO, stated “While we would have liked a stronger quarter, our overall revenues were relatively stable compared to revenues of $3.5 million in the preceding quarter and we are also pleased to announce China Telecom as our first customer in the People’s Republic of China. Despite our increased spending levels in sales and marketing in order to better position the Company for future growth, Versant achieved another profitable quarter from its operations, its 20th sequential quarter of such uninterrupted profitability.”
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, Siemens, and Financial Times, as well as the US Government. 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 statement in this press release regarding the Company’s current expectation that its existing stock repurchase program (which can be earlier terminated) will expire in October 2010 and the statement regarding the Company’s objective of better positioning itself for future growth by increasing its sales and marketing expenses, which may or may not result in future growth. These forward-looking statements are based on our assessment of current trends in our business, as well as the general economic environment in fiscal 2010, and may prove to be incorrect. Investors are cautioned that any such forward-looking statements are not guarantees of Versant’s future performance or other matters and involve very significant risks and uncertainties.
There are many important factors and risks that could cause our actual results or events to differ materially from those anticipated in the forward-looking statements. Additional information concerning factors that could cause results to differ can be found in the Company’s press release of May 6, 2010 regarding preliminary results for the quarter ended April 30, 2010 and revised guidance for fiscal 2010, and 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 fiscal year ended October 31, 2009, 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.
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: | Wednesday, August 25, 2010 |
Time: | 1:30 PM Pacific (4:30 PM Eastern) |
Dial-in number US: | 1-877-941-4774 |
International: | 1-480-629-9760 |
Conference ID: | 4350894 |
Internet Simulcast*: | http://viavid.net/dce.aspx?sid=000079E3 |
| *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 1, 2010.
Replay number US: | 1-877-870-5176 |
International Replay number: | 1-858-384-5517 |
Replay Pass Code**: | 4350894 |
| ** Enter the playback pass code to access the replay. |
VERSANT CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except for share amounts)
(unaudited)
|
| July 31, |
| October 31, |
| ||
|
| 2010 |
| 2009 |
| ||
ASSETS |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 25,464 |
| $ | 27,812 |
|
Trade accounts receivable, net of allowance for doubtful accounts of $15 and $36 at July 31, 2010 and October 31, 2009, respectively |
| 1,625 |
| 2,251 |
| ||
Deferred income taxes |
| 827 |
| 939 |
| ||
Other current assets |
| 363 |
| 633 |
| ||
Total current assets |
| 28,279 |
| 31,635 |
| ||
|
|
|
|
|
| ||
Property and equipment, net |
| 647 |
| 488 |
| ||
Goodwill |
| 8,589 |
| 8,410 |
| ||
Intangible assets, net |
| 572 |
| 802 |
| ||
Other assets |
| 38 |
| 38 |
| ||
Total assets |
| $ | 38,125 |
| $ | 41,373 |
|
|
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|
| ||
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
| ||
|
|
|
|
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| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable |
| $ | 155 |
| $ | 154 |
|
Accrued liabilities |
| 782 |
| 1,215 |
| ||
Deferred revenues |
| 3,182 |
| 3,475 |
| ||
Total current liabilities |
| 4,119 |
| 4,844 |
| ||
|
|
|
|
|
| ||
Deferred revenues |
| 69 |
| 177 |
| ||
Other long-term liabilities |
| 131 |
| 95 |
| ||
Total liabilities |
| 4,319 |
| 5,116 |
| ||
|
|
|
|
|
| ||
Stockholders’ equity: |
|
|
|
|
| ||
Common stock, no par value, 7,500,000 shares authorized, 3,272,448 shares issued and outstanding at July 31, 2010, and 3,552,946 shares issued and outstanding at October 31, 2009 |
| 93,095 |
| 95,730 |
| ||
Accumulated other comprehensive income (loss), net |
| (115 | ) | 434 |
| ||
Accumulated deficit |
| (59,174 | ) | (59,907 | ) | ||
Total stockholders’ equity |
| 33,806 |
| 36,257 |
| ||
Total liabilities and stockholders’ equity |
| $ | 38,125 |
| $ | 41,373 |
|
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, |
| ||||
|
| 2010 |
| 2009 |
| 2010 |
| 2009 |
| ||||
|
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Revenues: |
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License |
| $ | 1,634 |
| $ | 2,025 |
| $ | 5,787 |
| $ | 7,198 |
|
Maintenance |
| 1,757 |
| 2,345 |
| 5,534 |
| 6,617 |
| ||||
Professional services |
| 33 |
| 63 |
| 73 |
| 196 |
| ||||
Total revenues |
| 3,424 |
| 4,433 |
| 11,394 |
| 14,011 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Cost of revenues: |
|
|
|
|
|
|
|
|
| ||||
License |
| 60 |
| 84 |
| 216 |
| 206 |
| ||||
Amortization of intangible assets |
| 76 |
| 96 |
| 230 |
| 296 |
| ||||
Maintenance |
| 342 |
| 364 |
| 1,098 |
| 1,080 |
| ||||
Professional services |
| 17 |
| 29 |
| 48 |
| 100 |
| ||||
Total cost of revenues |
| 495 |
| 573 |
| 1,592 |
| 1,682 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Gross profit |
| 2,929 |
| 3,860 |
| 9,802 |
| 12,329 |
| ||||
|
|
|
|
|
|
|
|
|
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Operating expenses: |
|
|
|
|
|
|
|
|
| ||||
Sales and marketing |
| 1,150 |
| 1,049 |
| 3,471 |
| 3,046 |
| ||||
Research and development |
| 824 |
| 1,022 |
| 2,812 |
| 2,996 |
| ||||
General and administrative |
| 759 |
| 813 |
| 2,434 |
| 2,817 |
| ||||
Restructuring |
| — |
| — |
| 39 |
| — |
| ||||
Total operating expenses |
| 2,733 |
| 2,884 |
| 8,756 |
| 8,859 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Income from operations |
| 196 |
| 976 |
| 1,046 |
| 3,470 |
| ||||
Interest and other income (expenses), net |
| 48 |
| (24 | ) | 141 |
| 232 |
| ||||
Income before provision for income taxes |
| 244 |
| 952 |
| 1,187 |
| 3,702 |
| ||||
Provision for income taxes |
| 114 |
| 61 |
| 454 |
| 473 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Net income |
| $ | 130 |
| $ | 891 |
| $ | 733 |
| $ | 3,229 |
|
|
|
|
|
|
|
|
|
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Net income per share: |
|
|
|
|
|
|
|
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| ||||
Basic |
| $ | 0.04 |
| $ | 0.25 |
| $ | 0.21 |
| $ | 0.89 |
|
Diluted |
| $ | 0.04 |
| $ | 0.25 |
| $ | 0.21 |
| $ | 0.88 |
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Shares used in per share calculation: |
|
|
|
|
|
|
|
|
| ||||
Basic |
| 3,375 |
| 3,574 |
| 3,468 |
| 3,648 |
| ||||
Diluted |
| 3,403 |
| 3,609 |
| 3,504 |
| 3,683 |
|