EX-99.01 2 a07-30624_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 Record Quarterly Net Income of $2.1 Million

 

Quarterly revenues grow 21% over last year

Record diluted net income per share of $2.06 for fiscal year 2007

 

Redwood City, California, December 4, 2007 - Versant Corporation (NASDAQ:VSNT), an industry leader in specialized data management, today announced its financial results for the fourth fiscal quarter and fiscal year ended October 31, 2007.

 

For the quarter, Versant reported revenues of $5.6 million from its continuing operations, compared to $4.6 million for the comparable period last year, representing an increase of approximately 21%. This increase was driven primarily by license revenues which grew by 45% from $2.3 million in the fourth quarter of 2006 to $3.3 million in the fourth quarter of 2007. One telecom customer accounted for approximately 21% of total revenues (and approximately 28% of license revenues) in the fourth quarter of 2007.

 

Net income for the quarter was a record $2.1 million and diluted net income per share was $0.56, compared to net income of $1.4 million and diluted net income per share of $0.38 for the fourth quarter of fiscal 2006.

 

Versant also reported a strong increase in cash and cash equivalents of approximately $4.6 million during the quarter, resulting in a cash and cash equivalents balance of approximately $19.1 million as of October 31, 2007.   The increase in cash and cash equivalents was higher than net income for the quarter, primarily due to a decrease in accounts receivable as a result of a reduction in days sales outstanding.

 

Revenues from continuing operations for the fiscal year ended October 31, 2007 was approximately $21.2 million compared to approximately $16.7 million for fiscal 2006, an increase of approximately 26%. Net income for the 2007 fiscal year was $7.6 million, an increase of 77% over net income of $4.3 million in fiscal 2006 and diluted net income per share for fiscal 2007 was $2.06, compared to diluted net income per share of $1.20 in fiscal 2006.

 

“This was another quarter of strong license revenue growth and earnings for Versant. For fiscal 2007, our license revenues increased by 50% compared to fiscal 2006, thereby driving our net income to a record level of $7.6 million,” said Jochen Witte, Versant’s CEO.

 


 

For fiscal 2008 the Company currently estimates total year revenues of approximately $24 million, or an approximate 13% increase from fiscal 2007. The Company also believes that quarterly revenues during fiscal 2008 may fluctuate as a result of there being a limited number of revenue transactions in the sales pipeline at any given point in time, and the difficulty in accurately assessing when such transactions may actually close. The Company currently estimates net income of approximately $9.5 million for fiscal 2008, resulting in estimated diluted net income per share of approximately $2.50 for fiscal 2008, based on the Company’s current capitalization. These estimates are based on the Company’s current outlook and assessment of fiscal 2008.

 

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 estimated revenue growth, estimated net income and estimated diluted net income per share for fiscal year 2008 and our statements regarding potential fluctuations in our quarterly revenues in 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; potential reductions in the prices we charge for our products and services due to competitive conditions; potential changes in economic conditions, including potentially higher costs of capital that may disincent certain customers from making 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, 2006, its Quarterly Reports on Form 10-Q for the quarters ending January 31, 2007, April 30, 2007 and July 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, December 4, 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:

 

26037244

 

 

 

Internet Simulcast*:

 

http://viavid.net/dce.aspx?sid=00004943

 

 

 

 

*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 December 11, 2007

 

Replay number US: 1-800-642-1687
International Replay number: 1-706-645-9291
Replay Pass Code**: 26037244

 

** Enter the playback pass code to access the replay

 


 

VERSANT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

 

October 31,

 

October 31,

 

 

 

2007

 

2006

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

19,086

 

$

8,231

 

Trade accounts receivable, net of allowance for doubtful accounts of $68 and $62 at October 31, 2007 and October 31, 2006, respectively

 

2,330

 

2,885

 

Other current assets

 

506

 

782

 

Total current assets

 

21,922

 

11,898

 

 

 

 

 

 

 

Property and equipment, net

 

835

 

385

 

Goodwill

 

6,720

 

6,720

 

Intangible assets, net

 

881

 

1,196

 

Other assets

 

108

 

62

 

Total assets

 

$

30,466

 

$

20,261

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Accounts payable

 

$

157

 

$

154

 

Accrued liabilities

 

2,756

 

2,363

 

Deferred revenues

 

3,707

 

3,083

 

Deferred rent

 

7

 

99

 

Total current liabilities

 

6,627

 

5,699

 

 

 

 

 

 

 

Deferred revenues

 

641

 

742

 

Deferred rent

 

29

 

—

 

Long-term capital lease obligations

 

4

 

28

 

Total liabilities

 

7,301

 

6,469

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

Common stock, no par value

 

96,004

 

95,089

 

Accumulated other comprehensive income, net

 

1,346

 

521

 

Accumulated deficit

 

(74,185

)

(81,818

)

Total stockholders’ equity

 

23,165

 

13,792

 

Total liabilities and stockholders’ equity

 

$

30,466

 

$

20,261

 

 


 

VERSANT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except for per share amounts)

(unaudited)

 

 

 

Three Months Ended

 

Fiscal Year Ended

 

 

 

October 31,

 

October 31,

 

October 31,

 

October 31,

 

 

 

2007

 

2006

 

2007

 

2006

 

Revenues:

 

 

 

 

 

 

 

 

 

License

 

$

3,308

 

$

2,277

 

$

12,681

 

$

8,469

 

Maintenance

 

2,206

 

1,906

 

8,225

 

6,726

 

Professional services

 

47

 

402

 

244

 

1,550

 

Total revenues

 

5,561

 

4,585

 

21,150

 

16,745

 

 

 

 

 

 

 

 

 

 

 

Cost of revenues:

 

 

 

 

 

 

 

 

 

License

 

(73

)

108

 

142

 

313

 

Amortization of intangible assets

 

79

 

79

 

315

 

315

 

Maintenance

 

316

 

384

 

1,469

 

1,442

 

Professional services

 

18

 

311

 

112

 

1,021

 

Total cost of revenues

 

340

 

882

 

2,038

 

3,091

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

5,221

 

3,703

 

19,112

 

13,654

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

Sales and marketing

 

881

 

681

 

3,392

 

3,062

 

Research and development

 

912

 

853

 

3,410

 

3,147

 

General and administrative

 

1,059

 

928

 

4,401

 

3,712

 

Loss on the liquidation of a foreign subsidiary

 

245

 

—

 

245

 

—

 

Restructuring

 

—

 

—

 

—

 

218

 

Total operating expenses

 

3,097

 

2,462

 

11,448

 

10,139

 

 

 

 

 

 

 

 

 

 

 

Income from operations

 

2,124

 

1,241

 

7,664

 

3,515

 

Outside shareholders’ income from Variable Interest Entity

 

—

 

—

 

—

 

138

 

Interest and other income, net

 

173

 

118

 

532

 

208

 

Gain on disposal of Variable Interest Entity

 

—

 

—

 

—

 

131

 

Income from continuing operations before taxes

 

2,297

 

1,359

 

8,196

 

3,992

 

Net provision for income taxes

 

282

 

115

 

867

 

390

 

Net income from continuing operations

 

2,015

 

1,244

 

7,329

 

3,602

 

Gain from sale of discontinued operations, net of income taxes

 

—

 

—

 

—

 

468

 

Net income from discontinued operations, net of income taxes

 

72

 

118

 

304

 

231

 

Net income

 

$

2,087

 

$

1,362

 

$

7,633

 

$

4,301

 

 

 

 

 

 

 

 

 

 

 

Basic income per share:

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

0.55

 

$

0.35

 

$

2.01

 

$

1.01

 

Net income from discontinued operations, net of income tax

 

$

0.02

 

$

0.03

 

$

0.08

 

$

0.19

 

Net income per share, basic

 

$

0.57

 

$

0.38

 

$

2.09

 

$

1.20

 

 

 

 

 

 

 

 

 

 

 

Diluted income per share:

 

 

 

 

 

 

 

 

 

Net income from continuing operations

 

$

0.54

 

$

0.35

 

$

1.98

 

$

1.01

 

Net income from discontinued operations, net of income tax

 

$

0.02

 

$

0.03

 

$

0.08

 

$

0.19

 

Net income per share, diluted

 

$

0.56

 

$

0.38

 

$

2.06

 

$

1.20

 

 

 

 

 

 

 

 

 

 

 

Shares used in per share calculation:

 

 

 

 

 

 

 

 

 

Basic

 

3,668

 

3,586

 

3,649

 

3,577

 

Diluted

 

3,744

 

3,617

 

3,708

 

3,584

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

Cost of revenues

 

$

20

 

$

7

 

$

65

 

$

39

 

Sales and marketing

 

$

26

 

$

10

 

$

90

 

$

41

 

Research and development

 

$

11

 

$

21

 

$

39

 

$

79

 

General and administrative

 

$

89

 

$

17

 

$

222

 

$

77