OPNET Reports 71% Revenue Growth for Q3 in Fiscal 2001
- Earnings and EPS Surge
- Software License Revenue up 83% for the quarter
- Future Revenue Visibility Improves
Washington, DC – January 29, 2001 -- OPNET Technologies, Inc. (Nasdaq: OPNT), the leading provider of intelligent network management software, today announced record setting financial results for its third fiscal quarter ended December 31, 2000.
Revenue for the quarter was a record $8.7 million, an increase of 71% over the same quarter last year and 12% over the second quarter of fiscal 2001. Net income continued to increase sharply for the quarter to $1.1 million, or $0.06 per share on a diluted basis, as compared to net income of $144,000, or $0.01 per share on a diluted basis, in the same quarter of fiscal year 2000.
Revenues derived from software licenses in the third quarter of 2001 grew to $5.1 million from $2.8 million in the same quarter of the previous fiscal year, representing an increase of 83%. Revenues derived from services in the third quarter of 2001 grew to $3.6 million from $2.3 million in the same quarter of the previous fiscal year, representing an increase of 57%.
For the nine months ended December 31, 2000, revenues were $22.9 million, 71% greater than the $13.5 million for the first nine months of the last fiscal year. Net income for the nine months grew to $2.1 million, or $0.12 per share on a diluted basis, compared to a net income of $337,000 or $0.02 per share on a diluted basis, for the comparable period ended December 31, 1999.
Marc Cohen, Chairman and Chief Executive Officer, stated, "We are extremely pleased to report an outstanding third quarter across all metrics. Demand for our products is strong as network professionals worldwide seek to improve the efficiency and reliability of their infrastructures and accelerate the introduction of new products and services. The rapid expansion of the Internet, with build-out of cable, DSL, optical, and wireless infrastructure requires an evolution in network management. OPNET is leading the way with intelligent network management solutions that make our customers more competitive."
Highlights for Third Quarter of Fiscal Year 2001
- Total revenues increased 71% over the prior year, 12% sequentially - a tenth consecutive quarter of strong growth.
- Software license revenue increased 83% over the prior year and 18% sequentially.
- Service revenues increased 57% over the prior year with future revenue backlogs for both maintenance and consulting services hitting new record levels.
- Deferred revenue increased to $7.2 million, growing by 44% or $2.2 million in this quarter.
- Days Sales Outstanding remained low at 43 days as of December 31, 2000.
- Gross Margins and Operating Margins improved to 85.4% and 8.7%, respectively, in the quarter.
- Net income grew to $1.1 million in the third quarter of fiscal 2001 from $144,000 in the third quarter of fiscal 2000.
- Earnings Per Share (diluted) increased by 50% over last quarter from $0.04 to $0.06 per share.
- Since the last investor conference call, OPNET opened and staffed its first direct sales office in Europe; released an updated suite of protocol models, including new software for PNNI, a routing protocol for ATM networks; and announced a resell agreement with Tellium, a leading optical equipment manufacturer.
The Company will hold a conference call to discuss its third quarter performance today, January 29, 2001, at 5:30 P.M. Eastern Standard Time. Investors will be able to listen to the call by dialing 800-633-8528 in the U.S., or 212-346-6384 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.
The OPNET family of intelligent network management software enables customers to optimize the performance and maximize the availability of communications networks and networked applications. The OPNET product suite combines predictive simulations and a comprehensive understanding of networking technologies to enable network professionals to more effectively design and deploy networks, provision services, diagnose network and application performance problems, and predict the impact of proposed network modifications. For more information about the Company 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 of 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 June 30, 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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Note - OPNET operates on a fiscal year ending on March 31.
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