Revenue of $559 Million, 15% Growth Year-Over-Year.
MOUNTAIN VIEW, Calif. - May 3, 2005 - VERITAS Software Corporation (NASDAQ: VRTS) today announced financial results for the quarter ended March 31, 2005. Revenue was $559 million, compared to revenue of $486 million for the same period a year ago, representing 15 percent growth year over year.
GAAP net income for the quarter ended March 31, 2005 was $105 million, or $0.24 per diluted share, compared to GAAP net income of $100 million, or $0.22 per diluted share, for the same period a year ago. Included in GAAP net income were non-cash charges of $8.5 million, net of taxes, for the quarter ended March 31, 2005 related to amortization of intangibles, stock-based compensation and gains on strategic investments. Net income for the quarter ended March 31, 2005 also included approximately $12 million of expenses related to our pending merger with Symantec Corporation. For the quarter ended March 31, 2004, GAAP net income included $2.2 million, net of taxes, related to amortization of intangibles, in-process research and development, stock-based compensation and gains on strategic investments.
"Our results this quarter demonstrate the overall strength of our business, a continuation of the momentum we built exiting the fourth quarter and our customers' confidence with our strategic direction," said Gary Bloom, chairman, president and CEO, VERITAS Software. "License revenue was up seven percent and service revenue was up 29 percent year-over-year, driven by strength in our EMEA and Asia Pacific/Japan regions, which were up 48 percent and 28 percent, respectively."
"During the quarter, we generated a record $257 million in cash from operating activities and we exited the quarter with $2.4 billion in cash and short-term investments, after retiring $381 million of debt during the quarter," said Ed Gillis, executive vice president and chief financial officer, VERITAS Software.
"With the combination of our strong performance in Q1, the normal seasonality of the second quarter and the ongoing activities related to the pending merger with Symantec, we are being cautious with our outlook for the June quarter," said Bloom. "As a result, our revenue expectations for the quarter ending June 30, 2005 are in the range of $500 to $540 million, and diluted earnings per share are in the range of $0.15 to $0.20 on a GAAP basis. In addition for calendar year 2005 we continue to expect an annual revenue growth rate of approximately 11% to 12%."
The expectations for GAAP diluted earnings per share for the June quarter include the impact of certain expenses related to the company's planned merger with Symantec, which are estimated to be approximately $15 million.
The company will hold a conference call today at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time, to review the results and business outlook. The conference call will be available to all investors. The telephone dial-in number for listen-only access to the live call is (719) 457-2692, passcode: 4554106. A live webcast will also be available at www.veritas.com, Investor section. In addition, a replay will be available via audio webcast at www.veritas.com, Investor section, or via telephone at (719) 457-0820, replay code: 4554106 beginning on Tuesday, May 3rd at 4:00 p.m. Pacific Time until July 2005.
About VERITAS Software
VERITAS Software, one of the 10 largest software companies in the world, is a leading provider of software and services 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. With 2004 revenue of $2.04 billion, VERITAS delivers products and services for data protection, storage & server management, high availability and application performance management that are used by 99 percent of the Fortune 500. More information about VERITAS Software can be found at www.veritas.com
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 per share. 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 be unable to maintain the quality of our end-user customer and partnering relationships; the risk that our customers will reduce or defer purchases of our products and services due to economic or industry conditions, the impact of regulatory requirements or our pending merger with Symantec; the risk that we will not manage our business effectively; and the risk that our business may be negatively affected as a result of our pending merger with Symantec, 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-K for the year ended December 31, 2004 on file with the SEC. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date hereof.
Additional Information and Where to Find It
Symantec Corporation has filed a registration statement on Form S-4 containing a preliminary joint proxy statement/prospectus in connection with the proposed merger transaction involving Symantec and VERITAS. Investors and security holders are urged to read this filing (as well as the definitive joint proxy statement/prospectus when it becomes available) because it contains important information about the proposed merger. Investors and security holders may obtain free copies of this filing and other documents filed with the SEC at the SEC's web site at www.sec.gov
. In addition, investors and security holders may obtain free copies of documents filed with the SEC by Symantec by contacting Symantec Investor Relations at 408-517-8239. Investors and security holders may obtain free copies of the documents filed with the SEC by VERITAS by contacting VERITAS Investor Relations at 650-527-4523.
Copyright © 2005 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. & Tm. Off. Other product names and/or slogans mentioned herein may be trademarks or registered trademarks of their respective companies.
Symantec, VERITAS and their directors and executive officers may be deemed to be participants in the solicitation of proxies from the stockholders of Symantec and VERITAS in connection with the proposed merger transaction. Information regarding the special interests of these directors and executive officers in the proposed merger transaction is included in the joint proxy statement/prospectus of Symantec and VERITAS described above. Additional information regarding the directors and executive officers of Symantec is also included in Symantec's proxy statement for its 2004 Annual Meeting of Stockholders, which was filed with the SEC on July 30, 2004. Additional information regarding the directors and executive officers of VERITAS is also included in VERITAS' annual report on Form 10-K for the year ended December 31, 2004. These documents are available free of charge at the SEC's web site at www.sec.gov
and from Investor Relations at Symantec and VERITAS as described above.