OPNET Reports Results for Q3 2002
- Revenue up 26%
- EPS of 6 Cents
- Operations Generate $1.6 million in Cash Flow
- Global Crossing Bankruptcy Eliminates $1.1
million in Q3 2002 Revenues
Bethesda, MD– January 30, 2002 -- OPNET Technologies, Inc. (Nasdaq: OPNT), the leading provider of intelligent network management software, today announced financial results for its third fiscal quarter ended December 31, 2001.
Revenue for the quarter was $10,973,000, an increase of 26% over the same quarter in the prior year. Pro forma net income for the quarter, excluding the amortization of acquired technology, was $1,280,000, or $0.06 per share on a diluted basis, as compared to net income of $1,144,000, or $0.06 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 $1,222,000, or $0.06 per share on a diluted basis, as compared to $1,144,000, or $0.06 per share on a diluted basis, in the comparable quarter of fiscal 2001.
Revenues derived from software licenses grew to $6,807,000 in the third quarter of fiscal year 2002 from $5,106,000 in the same quarter of the previous fiscal year, representing an increase of 33%. Revenues derived from services grew to $4,166,000 in the third quarter of fiscal 2002 from $3,629,000 in the same quarter of the previous fiscal year, representing an increase of 15%.
For the nine months ended December 31, 2001, revenues
were $33,378,000, a 46% increase over the $22,939,000 reported for
the first nine months of the previous fiscal year. Pro forma net
income for the nine months, excluding the amortization of acquired
technology, grew to $3,659,000, or $0.18 per share on a diluted
basis, compared to $2,103,000 or $0.12 per share on a diluted basis,
for the comparable period ended December 31, 2000. Reported net
income for the nine months ended December 31, 2001, including the
amortization of acquired technology, was $3,459,000, or $0.17 per
share on a diluted basis, as compared to $2,103,000, or $0.12 per
share on a diluted basis, in the comparable period ended December
31, 2000.
"We are pleased to present strong results for the quarter, including solid
year-over-year growth and continued profitability,"
stated Marc Cohen, Chairman and CEO of OPNET Technologies, Inc. "We
expected to present record financial results for the quarter, but
due to Global Crossing's bankruptcy announced on 28 January we are
reducing revenue by $1.1 million. Enterprise accounts now represent
the largest contributor to revenue and we see this market as a significant
driver of our growth moving forward."
Financial Highlights for the Third
Quarter of Fiscal Year 2002
- Increased total revenues by 26% over the comparable quarter in the prior year.
- Improved pro forma operating margins to 11%, compared to 9% in the same quarter last year.
- Achieved pro forma net income per share on a diluted basis of $0.06.
- Maintained days sales outstanding in receivables of 66 days.
- Improved deferred revenues to $8,151,000, up from $7,207,000 in the same quarter last year.
- Generated $1,564,000 in cash flow from operations.
Corporate Highlights for the Third Quarter
of Fiscal Year 2002
- Acquired remaining 80% interest of WDM NetDesign for $1.3 million in January 2002. This group will focus on the development of WDM Guru that enables service providers to better plan, design, and evaluate optical transport networks.
- Joined the Micromuse Alliance TM Program as a Netcool® Marketing Partner TM. This relationship will enable both companies to jointly pursue business and marketing opportunities.
- Completed OPNETWORK2001 Tokyo, our largest international event to date, with partner E3 Networks (owned by Mitsui & Co.). This event focused on intelligent network management for service providers and enterprises, with a special emphasis on OPNET products IT Guru and SP Guru.
- Named Joseph W. Kuhn as Vice President and Chief Financial Officer.
- Continued international expansion by opening a subsidiary in Australia, OPNET's third direct international sales and support office.
The Company will hold an investor conference call
to discuss its third quarter performance today, January 30, 2002,
at 5:00 P.M. Eastern Standard Time. Investors will be able to listen
to the call by dialing 800-670-3541 in the U.S., or 212-748-2790
internationally, shortly before the scheduled starting time. Investors
may also listen to the call at www.opnet.com or www.vcall.com by
clicking on OPNT under "Today's VCalls." Investors are
advised to go to the web site at least 15 minutes early to register,
download, and install any necessary audio software. The webcast
will be archived for seven days.
About OPNET Technologies, Inc.
Founded in 1986, OPNET Technologies, Inc. is the leading provider of intelligent network management software. For more information about OPNET and its products, visit www.opnet.com.
The statements 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 forward-looking statements it may make. 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 September 30, 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 above pro forma amounts exclude the amortization of acquired technology of $118 and $330 for the three and nine months ended December 31, 2001. Pro forma results also reflect an effective tax rate of 19% and 28% for the three and nine months ended December 31, 2001.
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