OPNET Reports Results for Fiscal Q3 2005
Revenue of $16.1 Million and EPS of $0.01
BETHESDA, MD - January 31, 2005 --OPNET Technologies, Inc. (NASDAQ: OPNT), a leading provider of management software for networks and applications, today announced financial results for its third fiscal quarter ended December 31, 2004. Revenue for the quarter ended December 31, 2004 was $16.1 million compared to $14.4 million for the same quarter in the prior year. Earnings per share for the third quarter of fiscal 2005 was $0.01 on a diluted basis, compared to $0.08 in the same quarter of the prior year.
For the nine months ended December 31, 2004, revenues were $47.1 million compared to $40.1 million for the same period in the prior fiscal year. Earnings per share for the nine months ended December 31, 2004 was $0.13 on a diluted basis, compared to $0.18 for the same period in the prior fiscal year.
OPNET Chairman & CEO, Marc A. Cohen, stated, "We are very
pleased to report strong results for fiscal Q3 of 2005. We exceeded
our revenue guidance, and generated a record increase in deferred
revenue. Our performance was not driven by any single deal, but
rather results from consistent execution across the sales organization.
Our EPS, although within guidance, was negatively impacted by a
reserve for an IRS examination of our R&D tax credit for fiscal
years 2002 and 2003, and also by increased consulting costs associated
with our Sarbanes-Oxley implementation efforts. The degree to which
Sarbanes-Oxley implementation costs will negatively impact EPS will
significantly decrease following Q4 of 2005. Overall, we are very
encouraged by our revenue visibility.”
Third Quarter Fiscal Year 2005 Financial Outlook
OPNET expects fiscal fourth quarter revenue to be between $16.2 and $17.0 million, and diluted earnings to be between breakeven and 3 cents per share. These amounts represent management’s current expectations about the Company’s future financial performance, based on information available at this time.
Financial Highlights for the Third Quarter of Fiscal 2005
- Grew revenue 11.3% year over year to $16.1 million from $14.4 million from the third quarter of fiscal 2004. Revenue for the quarter grew sequentially 13.0% from $14.2 million from the second quarter of fiscal 2005.
- Grew license revenue sequentially 35.8% to $7.8 million, from $5.7 million from the second quarter of fiscal 2005.
- Increased deferred revenue to a record $16.8 million as of December 31, 2004. Deferred revenue for the quarter experienced a record sequential quarter dollar increase of $2.7 million from the second quarter of fiscal 2005.
- Maintained profitability despite significant increases in consulting costs associated with Sarbanes-Oxley implementation efforts, and the inclusion of a full quarter of operating expenses associated with the operations of Altaworks Corporation (which was acquired on October 6, 2004).
- Maintained a strong balance sheet with $80.6 million in cash and marketable securities at December 31, 2004.
The Company will hold an investor conference call on Monday, January 31, 2005 at 5:00 pm Eastern Time to review financial results for the third quarter of fiscal 2005. Investors will be able to listen to the call by dialing 877-407-9205 in the U.S. or 201-689-8054 for international callers, and entering password OPT Q305, 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. Investors can listed to the archived call by calling the replay phone number at 877-660-6853 or 201-612-7415 for international callers. For replay, enter account # 1628, conference ID # 133881. The replay will be available from 7:00 pm Eastern Time January 31st through 11:59 pm Eastern Time February 4th. The webcast will be available at www.opnet.com or www.vcall.com, archived for seven days.
About OPNET Technologies, Inc.
Founded in 1986, OPNET Technologies, Inc. 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, including statements about expected financial performance
in future periods, constitute forward-looking statements as defined
in the Private Securities Litigation Reform Act of 1995. OPNET Technologies,
Inc. ("OPNET") assumes no obligation to update these statements.
Forward-looking statements are 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 that could affect OPNET’s
future performance, see OPNET's most recent 10-Q, filed with the
Securities & Exchange Commission. These risks include, among
others, the evolving nature of our market, fluctuations in customer
demand, the length and variability of our sales cycle, and risks
regarding our ability to successfully expand our sales force.
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Note to editors: The word OPNET is spelled with all upper-case letters.
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