OPNET Reports 73% Revenue Growth for Q1 2002
- Software License Revenue up 79%
- Operating Earnings Surge
BETHESDA, MD - July 30, 2001 -- OPNET Technologies, Inc. (Nasdaq: OPNT), the leading provider of intelligent network management software, today announced record-setting financial results for its first fiscal quarter ended June 30, 2001.
Revenue for the quarter was a record $11.1 million, an increase of 73% over the same quarter of the prior year and 11% over the immediately preceding fourth quarter of fiscal 2001. Pro forma net income for the quarter, excluding the amortization of acquired technology, was $1,235,000, or $0.06 per share on a diluted basis, as compared to net income of $224,000, or $0.02 per share on a diluted basis, in the comparable quarter of fiscal year 2001. Reported net income for the quarter, including the amortization of acquired technology, was $1,175,000, or $0.06 per share on a diluted basis.
Revenues derived from software licenses grew to $6.5 million in the first quarter of fiscal year 2002, from $3.7 million in the same quarter of the previous fiscal year, representing an increase of 79%. Revenues derived from services grew to $4.6 million in the first quarter of 2002 from $2.8 million in the same quarter of the previous fiscal year, representing an increase of 65%.
"We are pleased to report another quarter of record-setting
financial results, despite a challenging economic climate in the communications
industry," said Marc Cohen, OPNET's Chairman and Chief Executive Officer.
"Although some sales prospects postponed orders last quarter due to budgetary
constraints, overall demand for our products remains strong. As service providers,
enterprises, and manufacturers strive for profitability, OPNET products are
becoming more essential for the design, delivery, and ongoing management of
network services and applications. Our intelligent software enables our customers
to achieve better performance with limited resources by automating complex
tasks that would otherwise be time-consuming or impossible. Our exceptional
growth in this environment demonstrates our technology leadership and the value
we deliver to our customers."
Highlights for the First Quarter of Fiscal Year 2002
- Total revenues increased 73% over the comparable quarter in the prior year, 11% sequentially - a twelfth consecutive quarter of growth.
- Software license revenue increased 79% over the comparable quarter in the prior year and 11% sequentially.
- Service revenue increased 65% over the comparable quarter in the prior year with future revenue backlogs for both maintenance and consulting services hitting new record levels.
- Pro forma net income grew to $1.2 million, compared to $224,000 in the first quarter of fiscal 2001.
- Pro forma diluted Earnings Per Share tripled from the comparable period in the prior year, increasing from $0.02 to $0.06 per share.
- Deferred revenue increased 96% year-over-year to $8.0 million.
- Days Sales Outstanding continued to be low at 53 days.
- Gross margins remained strong at 85%.
- Pro forma operating margins of 10.7% of revenue continued to show strong sequential growth.
- During the quarter, OPNET announced the releases of SP Guru, a new software solution designed for service providers, and OPNET 8.0, the eighth major release of the core technology underlying its IT Guru, SP Guru, Modeler, and Netbiz products.
The Company will hold an investor conference call to discuss its first quarter performance today, July 30, 2001, at 5:00 P.M. Eastern Daylight Time. Investors will be able to listen to the call by dialing 800-670-3540 in the U.S., or 212-748-2785 internationally, shortly before the scheduled starting time, or they can listen to the call at www.opnet.com or www.vcall.com; click on OPNT under "Today's VCalls." The call will be archived for 7 days. Investors are advised to go to the web site at least 15 minutes early to register, download, and install any necessary audio software.
About OPNET Technologies, Inc.
Founded in 1986, OPNET Technologies, Inc. is the leading provider of intelligent network management software. The OPNET product suite combines predictive modeling and a comprehensive understanding of networking technologies to enable its customers to more effectively design and deploy networks, provision services, diagnose network and application performance problems, and predict the impact of network changes. For more information about OPNET and its products, visit www.opnet.com.
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding OPNET Technologies Inc.'s expectations, beliefs, intentions, or strategies regarding the future. All forward-looking statements included in this document are based upon information available to OPNET Technologies, Inc. as of the date hereof; OPNET Technologies, Inc. assumes no obligation to update any such forward-looking statements. Forward-looking statements involve risks and uncertainties, which could cause actual results to differ materially from those projected. For a discussion of such risks and uncertainties, see the Company's reports filed with the Securities & Exchange Commission, including its Form 10-K for the year ended March 31, 2001.
OPNET is a registered trademark of OPNET Technologies, Inc.
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Note to editors: The word OPNET is spelled with all upper-case letters.
OPNET Technologies, Inc.
Pro Forma Consolidated Statements of Operations
(unaudited)
Note 1
Note 1 - The pro forma results exclude the amortization of acquired technology and the related income tax effect.
OPNET Technologies, Inc.
Consolidated Statements of Operations
(unaudited)
OPNET Media Contact:
Margarita Castillo
OPNET Technologies, Inc.
(240) 497-3000
Media@opnet.com
www.opnet.com
OPNET Investor Relations:
Mel Wesley
OPNET Technologies
(240) 497-3000
ir@opnet.com
www.opnet.com