REDWOOD CITY, Calif., Feb. 24, 2010 (GLOBE NEWSWIRE) -- Versant Corporation (Nasdaq:VSNT), an industry leader in specialized data management, today announced its financial results for its first fiscal quarter ended January 31, 2010.
For the quarter, Versant reported revenues of $4.5 million from its operations compared to $5.6 million for the same quarter of the last fiscal year.
The 21% decrease in revenues for the quarter as compared to the same quarter of last fiscal year was primarily attributable to a 24% decrease in license revenues and also to a 14% decrease in maintenance revenues relative to the same period in the prior fiscal year. In the quarter ended January 31, 2010 there were generally smaller license transactions compared to the first quarter of fiscal 2009, although one customer accounted for 13% of total revenues in the quarter, whereas no customer accounted for more than 10% of total revenues in the quarter ended January 31, 2009.
Net income for the quarter was $0.5 million and diluted net income per share was $0.14, compared to net income of $1.6 million and diluted net income per share of $0.42 for the first quarter of fiscal 2009.
Versant also reported a decrease in cash and cash equivalents of approximately $0.7 million during the quarter. The decrease was primarily a result of the increase in trade accounts receivable of $1.3 million and the expenditure of $0.7 million to repurchase shares of our common stock under the stock repurchase program, and was partially offset by an increase in deferred revenues of $0.7 million.
The provision for income taxes for the quarter includes adjustments for taxable gains from U.S. denominated currencies held by our German operations as a result of the strengthening of the U.S. dollar against the euro, and to a lesser extent, foreign withholding taxes on sales transactions for certain countries in the Asia Pacific region.
Under the Company's current stock repurchase program, in which the Company is authorized to repurchase up to $5.0 million worth of its outstanding common shares, Versant has acquired 49,542 of its common shares in the open market for a total price of approximately $0.7 million, or an average purchase price of $15.03 per share, leaving a balance of approximately $4.3 million in funds available for future repurchases of stock under this program until its expiration on October 31, 2010.
"In the current quarter revenues increased by approximately 8% over the preceding quarter," said Jochen Witte, CEO of Versant Corporation. "Income from operations also grew 22% compared to the preceding quarter despite our increased spending levels in sales and marketing. We view this as a possible signal of stabilization, although the software market certainly remains very difficult to forecast in the current economic environment."
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, 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 possible stabilization in the general economy and in the software markets. These forward-looking statements are based on our assessment of the general economic environment in fiscal 2010 which 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 to differ materially from those anticipated in the forward-looking statements. These factors, risks and uncertainties include, without limitation: the impact, severity and duration of the current downturn in the global economy, which may reduce our customers' revenues and profits and thus dissuade them from making strategic capital purchase decisions for our products and services or delay such decisions; our inability to achieve revenue expectations or projected net income levels as a result of the foregoing factors or delays in the sales cycle for our products and services, failures to close key sales transactions, failure of customers to renew maintenance agreements; changing market demands or perceptions of our products and technologies; the impact of actions of our competitors or new technologies; our failure to retain existing customers or to develop and retain significant new customers, including customers in new markets; the fact that our results of operations are highly dependent on sales of our Versant Object Database product; the performance of our resellers; the possibility that value added resellers may not remain committed to our software or that their sales activity may not keep pace with their historical results; the timing of larger customer transactions, which may tend to result in significant variations in quarterly revenues and operating results; potential reductions in the prices we charge for our products and services due to competitive conditions or the general economic downturn; changes in currency exchange rates; the Company's ability to successfully manage its costs and operations, its ability to effectively utilize any increases in its sales and marketing expense and to maintain its cash flows and adequate working capital; and any failure of our efforts to capitalize on our db4o database business or to ultimately make that business profitable. 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 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 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: | Wednesday, February 24, 2010 |
| Time: | 1:30 PM Pacific (4:30 PM Eastern) |
| Dial-in number U.S.: | 1-888-846-5003 |
| International: | 1-480-629-9856 |
| Conference ID: | 4236224 |
| Internet Simulcast*: | http://viavid.net/dce.aspx?sid=00007140 |
| *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 March 3, 2010. | |
| Replay number U.S.: | 1-800-406-7325 |
| International Replay number: | 1-303-590-3030 |
| Replay Pass Code**: | 4236224 |
| ** Enter the playback pass code to access the replay. | |
| VERSANT CORPORATION AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| (in thousands, except for share amounts) | ||
| (unaudited) | ||
| January 31, | October 31, | |
| 2010 | 2009 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 27,099 | $ 27,812 |
|
Trade accounts receivable, net of allowance for doubtful accounts of $8 and $36 at January 31, 2010 and October 31, 2009, respectively |
3,553 | 2,251 |
| Deferred income taxes | 879 | 939 |
| Other current assets | 609 | 633 |
| Total current assets | 32,140 | 31,635 |
| Property and equipment, net | 490 | 488 |
| Goodwill | 8,499 | 8,410 |
| Intangible assets, net | 725 | 802 |
| Other assets | 38 | 38 |
| Total assets | $ 41,892 | $ 41,373 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 273 | $ 154 |
| Accrued liabilities | 1,068 | 1,215 |
| Deferred revenues | 4,128 | 3,475 |
| Total current liabilities | 5,469 | 4,844 |
| Deferred revenues | 180 | 177 |
| Other long-term liabilities | 107 | 95 |
| Total liabilities | 5,756 | 5,116 |
| Stockholders' equity: | ||
|
Common stock, no par value, 7,500,000 shares authorized, 3,511,974 shares issued and outstanding at January 31, 2010, and 3,552,946 shares issued and outstanding at October 31, 2009 |
95,389 | 95,730 |
| Accumulated other comprehensive income, net | 149 | 434 |
| Accumulated deficit | (59,402) | (59,907) |
| Total stockholders' equity | 36,136 | 36,257 |
| Total liabilities and stockholders' equity | $ 41,892 | $ 41,373 |
| VERSANT CORPORATION AND SUBSIDIARIES | ||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||
| (in thousands, except for per share amounts) | ||
| (unaudited) | ||
| Three Months Ended | ||
| January 31, | January 31, | |
| 2010 | 2009 | |
| Revenues: | ||
| License | $ 2,459 | $ 3,243 |
| Maintenance | 1,984 | 2,314 |
| Professional services | 12 | 62 |
| Total revenues | 4,455 | 5,619 |
| Cost of revenues: | ||
| License | 81 | 65 |
| Amortization of intangible assets | 77 | 93 |
| Maintenance | 390 | 383 |
| Professional services | 10 | 36 |
| Total cost of revenues | 558 | 577 |
| Gross profit | 3,897 | 5,042 |
| Operating expenses: | ||
| Sales and marketing | 1,186 | 1,186 |
| Research and development | 1,044 | 993 |
| General and administrative | 923 | 1,187 |
| Restructuring | 43 | -- |
| Total operating expenses | 3,196 | 3,366 |
| Income from operations | 701 | 1,676 |
| Interest and other income, net | 10 | 154 |
| Income before provision for income taxes | 711 | 1,830 |
| Provision for income taxes | 206 | 268 |
| Net income | $ 505 | $ 1,562 |
| Net income per share: | ||
| Basic | $ 0.14 | $ 0.42 |
| Diluted | $ 0.14 | $ 0.42 |
| Shares used in per share calculation: | ||
| Basic | 3,537 | 3,723 |
| Diluted | 3,575 | 3,760 |