OPNET Reports 73% Revenue Growth to $10.0 Million for Q4 2001
- Revenue and Pro Forma Earnings Surge
- Software License Revenue up 84%
BETHESDA, MD - April 30, 2001 -- OPNET Technologies, Inc. (Nasdaq: OPNT), ), the leading provider of intelligent network management software, today announced record-setting financial results for its fourth fiscal quarter ended March 31, 2001.
Fourth Quarter 2001 Results
Revenue for the quarter was a record $10.0 million, an increase of 73% over the same quarter of the prior year and 15% over the immediately preceding third quarter of fiscal 2001. Pro forma net income for the quarter, excluding the write-off of purchased in-process research and development, was $1.2 million, or $0.06 per share on a diluted basis, as compared to net income of $238,000, or $0.02 per share on a diluted basis, in the comparable quarter of fiscal year 2000.
Revenues derived from software licenses grew to $5.9 million in the fourth quarter of fiscal year 2001, from $3.2 million in the same quarter of the previous fiscal year, representing an increase of 84%. Revenues derived from services grew to $4.1 million in the fourth quarter of 2001 from $2.6 million in the same quarter of the previous fiscal year, representing an increase of 60%.
Fiscal Year 2001 Results
The Company completed its fiscal year ended March 31, 2001, with revenues of $32.9 million, 71% greater than the $19.2 million from the prior fiscal year. Pro forma net income for the year, excluding the write-off of purchased in-process research and development, grew to $3.3 million, or $0.19 per share on a diluted basis, compared to net income of $575,000 or $0.04 per share on a diluted basis, for the comparable period ended March 31, 2000.
Marc Cohen, Chairman and Chief Executive Officer, stated, "We are very pleased to report an outstanding fourth quarter. We continued to see strong demand for our products, which add a crucial layer of intelligence to network management. OPNET software generates significant return on investment by empowering our customers to rapidly make better use of resources, reduce operational problems, and improve competitiveness."
Highlights for Fourth Quarter and Fiscal Year 2001
- Total revenues increased 73% over the comparable quarter in the prior year, 15% sequentially - an eleventh consecutive quarter of growth.
- Software license revenue increased 84% over the comparable quarter in the prior year and 15% sequentially.
- Service revenue increased 60% 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 $238,000 in the fourth quarter of fiscal 2000.
- Pro forma diluted Earnings Per Share more than tripled from the comparable period in the prior year, increasing from $0.02 to $0.06 per share.
- Operations continued to generate positive cash flow, excluding the effects of the Make Systems transaction and OPNET's new facility build-out.
- Deferred revenue increased 114% year-over-year to $8.0 million.
- Days Sales Outstanding continued to be low at 51 days, excluding the effects for the Make Systems transaction.
- Gross margins remained strong at 85%.
- Pro forma operating margins of 9.6% of revenue continued to show strong sequential growth.
- The Company closed the acquisition of the NetMaker Division of Make Systems to broaden OPNET's product suite for the service provider market.
- The Company relocated its primary operations to Bethesda, Maryland to meet current and near-term growth.
Net income for the quarter, including the write-off of purchased in-process research and development, was $771,000, or $0.04 per share on a diluted basis, as compared to net income of $238,000, or $0.02 per share on a diluted basis, in the comparable quarter of fiscal year 2000.
Net income for the year, including the write-off of purchased in-process research and development, was $2.9 million, or $0.16 per share on a diluted basis, as compared to net income of $575,000, or $0.04 per share in the prior year.
The Company will hold an investor conference call to discuss its fourth quarter performance today, April 30, 2001, at 4:30 P.M. Eastern Daylight Time. Investors will be able to listen to the call by dialing 888-673-1385 in the U.S., or 212-993-0201 internationally, shortly before the scheduled starting time, or they can listen to the call at 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-Q for the quarterly period ended December 31, 2000.
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Note to editors: The word OPNET is spelled with all upper-case letters.
OPNET Technologies, Inc.
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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