EX-99.01 2 a07-22814_1ex99d01.htm EX-99.01

Exhibit 99.01

Versant Contact:

Jerry Wong

Chief Financial Officer

Versant Corporation

1-800-VERSANT

650-232-2400

Versant Announces Quarterly Net Income of $1.9 Million

Quarterly revenues grow 40% over last year

Redwood City, California, August 28, 2007 - Versant Corporation (NASDAQ:VSNT), an industry leader in specialized data management, today announced its financial results for the third fiscal quarter ended July 31, 2007.

For the quarter, Versant reported revenues of $5.2 million from its continuing operations, compared to $3.8 million for the comparable period last year, representing an increase of approximately 40%. License revenues increased 51% from $1.9 million in the third quarter of 2006 to $2.9 million in the third quarter of 2007.  Maintenance revenues increased 29% from $1.7 million in the third quarter of 2006 to $2.2 million in the third quarter of 2007.

Net income for the quarter was $1.9 million and diluted net income per share was $0.52, compared to net income of $1.0 million and diluted net income per share of $0.28 for the comparable period last year.

Versant also reported an increase in cash and cash equivalents of approximately $0.5 million during the quarter, resulting in a cash and cash equivalents balance of approximately $14.5 million as of July 31, 2007.   The increase in cash and cash equivalents was less than net income primarily due to an increase in accounts receivable, as much of the quarter’s sales occurred in the last half of the quarter.

One customer accounted for approximately 20% of the total revenues (and approximately 35% of license revenues) in the third quarter of 2007.

“This quarter was stronger than anticipated. The increase in license revenues was primarily a result of an unanticipated one-time deployment license order from one of our independent software vendors (ISVs) in the telecommunications sector.  Maintenance revenues also increased partially as a result of several new maintenance agreements closed during the quarter,” said Jochen Witte, Versant’s CEO.

Based on the first three quarters’ performance in fiscal 2007, Versant is raising its guidance for fiscal 2007. The Company expects total revenue for full year fiscal 2007 to be in the range of $19.6 million to $20.1 million.  For fiscal 2007, the Company estimates net income to be in the range of $6.7 million to $7.0 million, resulting in estimated diluted net income per share between approximately $1.79 and $1.87 for fiscal 2007.



About Versant Corporation

Versant Corporation (NASDAQ: VSNT) is an industry leader in specialized data management software. Using Versant’s solutions, customers can reduce 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, the 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 expected revenue growth and anticipated range of net income and diluted net income per share for fiscal year 2007. 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 possibility that the amount of future contingent earn-out payments from the sale of our WebSphere consulting practice assets will fall below our estimates; 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; potential reductions in the prices we charge for our products and services due to competitive conditions; legal and potential other costs 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; 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, 2006, its Quarterly Reports on Form 10-Q for the quarters ending January 31, 2007 and April 30, 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, August 28, 2007

 

Time:

1:30 PM Pacific (4:30 PM Eastern)

 

Dial-in number US:

1-888-562-3654

 

International:

1-973-582-2703

 

Conference ID:

9164267

 

 

 

 

Internet Simulcast*:

http://viavid.net/dce.aspx?sid=0000448A

 

 

*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 4, 2007

Replay number US: 1-877-519-4471
International Replay number: 1-973-341-3080
Replay Pass Code**: 9164267

** Enter the playback pass code to access the replay



VERSANT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

July 31,

 

October 31,

 

 

 

2007

 

2006

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

14,492

 

$

8,231

 

Trade accounts receivable, net of allowance for doubtful accounts of $70 and $62 at July 31, 2007 and October 31, 2006, respectively

 

3,605

 

2,885

 

Other current assets

 

812

 

782

 

Total current assets

 

18,909

 

11,898

 

 

 

 

 

 

 

Property and equipment, net

 

774

 

385

 

Goodwill

 

6,720

 

6,720

 

Intangible assets, net

 

960

 

1,196

 

Other assets

 

105

 

62

 

Total assets

 

$

27,468

 

$

20,261

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

257

 

$

154

 

Accrued liabilities

 

2,477

 

2,363

 

Deferred revenues

 

3,718

 

3,083

 

Deferred rent

 

5

 

99

 

Total current liabilities

 

6,457

 

5,699

 

 

 

 

 

 

 

Deferred revenues

 

649

 

742

 

Deferred rent

 

32

 

—

 

Long-term capital lease obligations

 

7

 

28

 

Total liabilities

 

7,145

 

6,469

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, no par value

 

95,806

 

95,089

 

Accumulated other comprehensive income, net

 

789

 

521

 

Accumulated deficit

 

(76,272

)

(81,818

)

Total stockholders’ equity

 

20,323

 

13,792

 

Total liabilities and stockholders’ equity

 

$

27,468

 

$

20,261

 

 



VERSANT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except for per share amounts)

(unaudited)

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

July 31,

 

July 31,

 

July 31,

 

July 31,

 

 

 

2007

 

2006

 

2007

 

2006

 

Revenues:

 

 

 

 

 

 

 

 

 

License

 

$

2,925

 

$

1,934

 

$

9,373

 

$

6,192

 

Maintenance

 

2,225

 

1,730

 

6,019

 

4,820

 

Professional services

 

98

 

91

 

197

 

1,148

 

Total revenues

 

5,248

 

3,755

 

15,589

 

12,160

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

License

 

73

 

43

 

215

 

205

 

Amortization of intangible assets

 

79

 

79

 

237

 

237

 

Maintenance

 

377

 

330

 

1,153

 

1,059

 

Professional services

 

33

 

84

 

93

 

709

 

Total cost of revenues

 

562

 

536

 

1,698

 

2,210

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

4,686

 

3,219

 

13,891

 

9,950

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

877

 

669

 

2,511

 

2,380

 

Research and development

 

785

 

723

 

2,497

 

2,294

 

General and administrative

 

1,039

 

860

 

3,342

 

2,783

 

Restructuring

 

—

 

—

 

—

 

218

 

Total operating expenses

 

2,701

 

2,252

 

8,350

 

7,675

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

1,985

 

967

 

5,541

 

2,275

 

Outside shareholders’ income from Variable Interest Entity

 

—

 

—

 

—

 

138

 

Interest and other income, net

 

116

 

43

 

358

 

90

 

Gain on disposal of Variable Interest Entity

 

—

 

—

 

—

 

131

 

Income from continuing operations before taxes

 

2,101

 

1,010

 

5,899

 

2,634

 

Net provision for income taxes

 

228

 

93

 

585

 

275

 

Net income from continuing operations

 

1,873

 

917

 

5,314

 

2,359

 

Gain from sale of discontinued operations, net of income taxes

 

—

 

—

 

—

 

468

 

Net income from discontinued operations, net of income taxes

 

61

 

91

 

232

 

113

 

Net income

 

$

1,934

 

$

1,008

 

$

5,546

 

$

2,940

 

 

 

 

 

 

 

 

 

 

 

Basic income per share:

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

0.51

 

$

0.25

 

$

1.47

 

$

0.66

 

Net income from discontinued operations, net of income tax

 

$

0.02

 

$

0.03

 

$

0.06

 

$

0.16

 

Net income per share, basic

 

$

0.53

 

$

0.28

 

$

1.53

 

$

0.82

 

 

 

 

 

 

 

 

 

 

 

Diluted income per share:

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

0.50

 

$

0.25

 

$

1.44

 

$

0.66

 

Net income from discontinued operations, net of income tax

 

$

0.02

 

$

0.03

 

$

0.06

 

$

0.16

 

Net income per share, diluted

 

$

0.52

 

$

0.28

 

$

1.50

 

$

0.82

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculation:

 

 

 

 

 

 

 

 

 

Basic

 

3,648

 

3,573

 

3,624

 

3,564

 

Diluted

 

3,734

 

3,579

 

3,696

 

3,573

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation included in the above expenses:

 

 

 

 

 

 

 

 

 

Cost of revenues

 

$

16

 

$

6

 

$

45

 

$

31

 

Sales and marketing

 

$

24

 

$

11

 

$

64

 

$

31

 

Research and development

 

$

9

 

$

21

 

$

28

 

$

58

 

General and administrative

 

$

52

 

$

21

 

$

133

 

$

60