Menu
Media releases are provided as is by companies and have not been edited or checked for accuracy. Any queries should be directed to the company itself.

MERCURY INTERACTIVE REPORTS Q2 RESULTS - REVENUE UP BY 26 PERCENT

  • 17 July, 2003 08:42

<p>· Revenue: US$118.1 Million
· Earnings Per Share: US$0.19 GAAP; US$0.22 Non-GAAP
· Net Increase in Deferred Revenue: US$12.7 Million
· Cash Flow from Operations: US$38.2 Million</p>
<p>SUNNYVALE, CALIF. — JULY 16, 2003 —Mercury Interactive Corporation (NASDAQ: MERQ), the global leader in business technology optimization (BTO), today reported results for the second quarter ended June 30, 2003.</p>
<p>Revenue for the second quarter of 2003 was US$118.1 million, an increase of 26 percent compared to US$94.0 million reported in the second quarter of 2002. Revenue for the first six months of 2003 was US$228.4 million, an increase of 24 percent compared to US$184.5 million for the same period in 2002.</p>
<p>Deferred revenue for the second quarter of 2003 increased US$12.7 million from the first quarter of 2003 to US$194.0 million. Cash generated from operations for the second quarter of 2003 was US$38.2 million compared to US$35.5 million in the second quarter of 2002.</p>
<p>Q2 2003 BUSINESS HIGHLIGHTS
· Product revenue (license + subscription): US$70.5 million, 23% increase over year ago period
· Application delivery (Testing) product revenue: US$54.5 million, 17% increase over year ago period
· Application management (APM) product revenue: US$16.0 million, 53% increase over year ago period
· Operating margins: 16% GAAP; 19% Non-GAAP (see attached reconciliation table)
· Raised US$500 million through issuance of zero coupon senior convertible notes due 2008
· Cash and investments balance: US$1.2 billion
· Days sales outstanding (DSO): 64 days
· Acquired Performant to deliver and manage J2EE applications
· Signed definitive agreement to acquire Kintana and expand Optane offerings by adding IT governance product suite</p>
<p>GAAP RESULTS
Net income for the second quarter of 2003 was US$16.9 million, or US$0.19 per diluted share, compared to US$18.0 million, or US$0.20 per diluted share, for the same period a year ago. Net income for the first six months of 2003 was US$35.1 million, or US$0.39 per diluted share, compared to US$33.2 million, or US$0.38 per diluted share, for the same period a year ago.</p>
<p>NON-GAAP RESULTS
Net income for the second quarter of 2003 was US$19.8 million, or US$0.22 per diluted share, compared to US$13.3 million, or US$0.15 per diluted share, for the same period a year ago. Net income for the first six months of 2003 was US$38.6 million, or US$0.43 per diluted share, compared to US$25.4 million, or US$0.29 per diluted share, for the same period a year ago. Non-GAAP results, as presented in the attached reconciliation table, exclude the following recurring items: expenses from acquisition and restructuring related charges, amortization of unearned stock-based compensation and intangible assets, gain on early retirement of debt, as well as related income tax provisions or benefits.</p>
<p>“During the second quarter, Mercury Interactive achieved strong financial results as well as announced two strategic acquisitions and raised US$500 million in a convertible notes offering,” said Amnon Landan, chairman, CEO and president of Mercury Interactive Corporation. “Our business model is working and we continue to take share in the expanding BTO market.”</p>
<p>FINANCIAL OUTLOOK
The following financial outlook is provided based on information as of July 16, 2003.</p>
<p>Management initiates the following guidance, which does not take into account the pending Kintana acquisition, for the quarter ending September 30, 2003:</p>
<p>· Revenue is expected to be in the range of US$118 million to US$125 million
· GAAP diluted earnings per share is expected to be in the range of US$0.17 to US$0.23
· Non-GAAP diluted earnings per share is expected to be in the range of US$0.19 to US$0.25
· Net increase in deferred revenue is expected to be in the range of US$10 to US$20 million
· Cash flow from operations is expected to be in the range of US$35 to US$45 million</p>
<p>Non-GAAP guidance is adjusted from GAAP guidance by excluding recurring milestone payments associated with the Performant product integration program of approximately US$0.9 million and amortization expenses of approximately US$0.9 million associated with the Freshwater and Performant acquisitions.</p>
<p>Management offers the following guidance, which does not take into account the pending Kintana acquisition, for the full fiscal year ending December 31, 2003:</p>
<p>· Revenue is expected to be in the range of US$480 million to US$500 million
· GAAP diluted earnings per share is expected to be in the range of US$0.82 to US$0.92
· Non-GAAP diluted earnings per share is expected to be in the range of US$0.90 to US$1.00</p>
<p>Non-GAAP guidance is adjusted from GAAP guidance by excluding recurring milestone payments associated with the Performant product integration program of approximately US$2.7 million, amortization expenses of approximately US$3.3 million associated with the Freshwater and Performant acquisitions, and a one-time charge of US$1.3 million for the Performant in-process research and development.</p>
<p>We expect that the Kintana acquisition will close in the third quarter of 2003. This will result in one-time charges for in-process research and development and severance of approximately US$8 to US$9 million, or US$0.08 to US$0.09 per share, in the third quarter. Further, there will be recurring quarterly amortization charges of approximately US$3 to US$4 million, or US$0.03 to US$0.04 per share, which will be pro-rated in the third quarter. We expect the effect of the acquisition will be neutral to non-GAAP diluted earnings per share in the third quarter of 2003 and accretive by US$0.01 to US$0.02 to non-GAAP diluted earnings per share for the full year 2003.</p>
<p>QUARTERLY CONFERENCE CALL
A Webcast of today’s conference call, together with supplemental financial information, can be accessed through the company's Investor Relations Web site at http://www.mercuryinteractive.com/ir. An audio replay of the call will be available until midnight on July 22, 2003 by calling 0011 1 888-203-1112 or 0011 1 719-457-0820, conference call code: 545329.</p>
<p>ABOUT MERCURY INTERACTIVE
Mercury Interactive, the global leader in business technology optimization (BTO), delivers Optane, a suite of integrated products for enterprise testing, production tuning and performance management, that enables customers to optimize business processes and maximize business results. Customers worldwide use Mercury Interactive solutions across their application and technology infrastructures to continuously measure, maximize and manage performance at every level of the business process and each stage of the application lifecycle to improve quality, reduce costs, and align IT with business goals.</p>
<p>Founded in 1989, Mercury Interactive is headquartered in Sunnyvale, California, with offices in more than 25 countries. Further information is available at www.mercuryinteractive.com.</p>

Most Popular

Market Place