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VERITAS Software Reports First Quarter Revenue of $487 Million

  • 22 April, 2004 11:30

<p>For Immediate Release</p>
<p>VERITAS Software Reports First Quarter Revenue of $487 Million</p>
<p>Revenues Grow 24% year over year</p>
<p>MOUNTAIN VIEW, Calif. – April 22, 2004 - VERITAS Software Corporation (NASDAQ: VRTSE) today announced financial results for the quarter ended March 31, 2004. Revenue was $487 million, compared to revenue of $394 million for the same period a year ago, representing 24 percent growth year over year.</p>
<p>GAAP net income for the quarter ended March 31, 2004 was $103.0 million, or $0.23 per diluted share, compared to GAAP net income of $42.5 million, or $0.10 per diluted share, for the same period a year ago. Included in GAAP net income are charges of $1.5 million, net of taxes, for the quarter ended March 31, 2004, and $27.6 million, net of taxes, for the same period a year ago, related to amortization of intangibles, in-process research and development, stock-based compensation and gains/losses on the sale of strategic investments.</p>
<p>On March 15, 2004, the company announced that it would delay filing its annual report on Form 10-K for the year ended December 31, 2003, to restate the company's financial statements for the years ended December 31, 2001 and 2002 and adjust its previously announced financial results for the year ended December 31, 2003. As a result, the financial information presented in this press release is subject to adjustment based on the results of the restatement.</p>
<p>“Our strong first quarter financial results demonstrate the fundamental strength of our business strategy and the benefit of an improvement in IT spending,” said Gary Bloom, chairman, president and CEO, VERITAS Software. “Through our strategic acquisitions and continued investment in organic product development, VERITAS continues to deliver a successful portfolio of products to enable utility computing. This quarter, we further extended our leadership in backup and storage software solutions, with some of the most significant upgrades to VERITAS products in the past 10 years. We remain focused on the fundamentals of our business and we are highly motivated to drive the company past our $2 billion revenue target in 2004.”</p>
<p>"The revenue upside once again demonstrated the leverage in our business model, generating approximately $202 million in cash from operating activities and driving our cash and short-term investment balance to $2.7 billion," said Ed Gillis, executive vice president and chief financial officer, VERITAS Software. “Building on the strength of a solid first quarter, we continue to view 2004 as an important growth year for VERITAS and expect revenue for our second quarter to be in the range of $490 million to $505 million and diluted earnings per share to be in the range of $0.21 to $0.23 on a GAAP basis."</p>
<p>VERITAS continues to be a leader in the storage software market. Building on that leadership position, the company introduced several new products during the first quarter:</p>
<p>VERITAS Data Lifecycle Manager 5.0, setting the industry benchmark for software that helps companies manage data from creation to archiving.</p>
<p>VERITAS NetBackup 5.0 Server, further enhancing our market leading technology to provide a new class of heterogeneous storage protection for mid-sized companies and workgroups.</p>
<p>VERITAS Storage Foundation 4.0, the most significant upgrade to our core foundation products since their initial release in 1992, further extending our technical leadership in storage management and virtualization.</p>
<p>New SUSE Linux versions of VERITAS Storage Foundation, VERITAS Cluster Server, and VERITAS OpForce.</p>
<p>The company held a conference call for investors this week to review the results and business outlook. In addition, a replay is available via audio webcast at www.veritas.com, Investor section, beginning on Wednesday, April 21 at 4:00 p.m. Pacific Time and via telephone at (719) 457-0820, replay code: 721604.</p>
<p>About VERITAS Software
VERITAS Software, one of the top 10 largest software companies in the world, is a leading provider of software to enable utility computing.  In a utility computing model, IT resources are aligned with business needs and business applications are delivered with optimal performance and availability on top of shared computing infrastructure, minimizing hardware and labor costs.  VERITAS products for data protection, storage and server management, high availability and application performance management are used by 99 percent of the Fortune 500. More information about VERITAS Software can be found at www.veritas.com.</p>
<p>Comparative Financial Information
On March 15, 2004, the company announced that it is in the process of restating its financial results for 2001 and 2002 and revising its previously announced financial results for 2003, including its results for the quarter ended March 31, 2003. The company expects that the pending restatement will reduce its 2003 revenues in the range of $10 million to $15 million from the previously reported $1.77 billion and reduce 2003 net income in the range of $15 to $20 million from the previously announced GAAP net income of $274 million.  In addition, the company announced a tax settlement relating to the company’s 2000 acquisition of Seagate Technology, which is expected to increase 2003 GAAP net income by $95 million. As a result, the financial information presented in this press release is subject to adjustment based on the results of the restatement.</p>
<p>Safe Harbor Statement
This press release may include estimates and forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including statements relating to projections of future revenue and earnings and statements relating to the anticipated effects of our pending restatement on our financial results. These forward-looking statements involve a number of risks and uncertainties, including the risk that we will not gain market acceptance of our products and services, the risk that we will not be able to maintain the quality of our end-user customer and partnering relationships, the risk that we will need to make other unanticipated adjustments to our financial results and the risk that we will not manage our business effectively, that could cause the actual results we achieve to differ materially from such forward-looking statements. For more information regarding potential risks, see the "Factors That May Affect Future Results" section of our most recent report on Form 10-Q for the quarter ended September 30, 2003 on file with the SEC. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date hereof.</p>
<p>Copyright © 2004 VERITAS Software Corporation. All rights reserved. VERITAS, the VERITAS Logo and all other VERITAS product names and slogans are trademarks or registered trademarks of VERITAS Software Corporation. VERITAS and the VERITAS Logo Reg. U.S. Pat. &amp; Tm. Off. Other product names and/or slogans mentioned herein may be trademarks or registered trademarks of their respective companies.</p>
<p># # #</p>
<p>Press Contacts:
Narelle Wilson, General Manager Marketing, Australia and New Zealand, VERITAS Software
(61 2) 8220 7000, narelle.wilson@veritas.com</p>
<p>Fiona Martin, Account Director, Max Australia
(61 2) 9954 3492, fiona.martin@maxaustralia.com.au</p>

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