OPNET Announces Results for Second Quarter of Fiscal 2006
Record revenue of $18.3 million
Earnings per share of $0.02
BETHESDA, MD - October 31, 2005 -- OPNET Technologies, Inc. (NASDAQ: OPNT), a leading provider of management software for networks and applications, today announced that quarterly revenues for the second fiscal quarter, ended September 30, 2005, were a record $18.3 million, compared to $14.2 million for the same quarter in the prior fiscal year. Earnings per share for the second quarter of fiscal 2006 were $0.02 on a diluted basis, compared to $0.02 for the same quarter in the prior fiscal year.
Marc A. Cohen, OPNET’s Chairman and CEO, stated, “We are very pleased to report record quarterly revenue for Q2 of 2006. Our record quarterly revenue resulted from a 14.5% sequential increase in license revenue, record revenue from software license updates and technical support and record revenue from professional services. In Q2, our operating margin improved by $1.2 million from the quarter ending June 30, 2005. Our improved operating margin during Q2 was primarily due to an increase in new license revenue of approximately $960 thousand and an increase in gross margins on professional services of approximately $760 thousand, which were partially offset by $1.1 million in legal expenses related to the lawsuit filed by Compuware Corporation in September of 2004. While achieving record quarterly revenue, we maintained stable revenue visibility with our deferred revenue of $15.3 million as of September 30, 2005.”
Financial Highlights for the Second Quarter of Fiscal Year 2006
- Grew revenue year over year 28.5% to a record $18.3 million from $14.2 million for the same quarter of fiscal 2005. Revenue for the quarter grew sequentially 10.8% from $16.5 million for the first quarter of fiscal 2006.
- Grew license revenue year over year 32.1% to $7.6 million from $5.7 million for the same quarter of fiscal 2005. License revenue for the quarter grew sequentially 14.5% from $6.6 million for the first quarter of fiscal 2006.
- Improved our gross margin sequentially to 76.9% during the second quarter of fiscal 2006 from 74.1%
- Improved our operating margin sequentially to $21 thousand during
the second quarter of fiscal 2006 from negative $1.2 million
Third Quarter Fiscal Year 2006 Financial Outlook
OPNET currently expects fiscal third quarter revenue to be between $17.7 and $18.7 million and earnings per share to be between negative $0.02 and positive $0.01. These estimates represent management’s current expectations about the Company’s future financial performance, based on information available at this time.
OPNET will also hold an investor conference call on Monday, October 31, 2005 at 5:00pm ET to discuss the overall results of Q2.
To listen to the OPNET investor conference call:
- Call 877-407-9205 in the U.S. or 201-689-8054 for international callers, or
- Use the webcast
at www.opnet.com, or at www.vcall.com (click 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
To listen to the archived call:
- Call the replay phone number at 877-660-6853 or 201-612-7415 for international callers. For replay, enter account # 286, conference ID # 172565. The replay will be available from 7:00 pm Eastern Time October 31st through 11:59 pm Eastern Time November 7th.
- The webcast will be available at www.opnet.com
or at www.vcall.com, archived for seven days.
About OPNET Technologies, Inc.
Founded in 1986, OPNET Technologies, Inc. (NASDAQ:OPNT) is a leading provider of management software for networks and applications. For more information about OPNET and its products, visit www.opnet.com.
OPNET and OPNET Technologies, Inc. are trademarks of OPNET Technologies, Inc. All other trademarks are the property of their respective owners.
Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. OPNET Technologies, Inc. (“OPNET”) assumes no obligation to update statements. Forward-looking statements are predictions based upon information available to OPNET as of the date of this press release and involve risks and uncertainties; therefore, actual events or results may differ materially. For a discussion of risk factors, see OPNET’s reports, including its most recent 10-Q and 10-K, filed with the Securities & Exchange Commission.
OPNET Media Contact:
Margarita Castillo
OPNET Technologies, Inc.
(240) 497-3000
Media@opnet.com
www.opnet.com
Computer Associates Contact:
Eric Snow
Computer Associates
(508) 904-2653
eric.snow@ca.com
