OPNET Announces Results for First Quarter of Fiscal 2007
Record revenue of $22.6 million
Earnings per share of $0.08
BETHESDA, MD – August 2, 2006 --OPNET Technologies, Inc. (NASDAQ: OPNT),
a leading provider of management software for networks and applications, today
announced that quarterly revenue for the first fiscal quarter, ended June 30,
2006, was $22.6 million, compared to $16.5 million for the same quarter in
the prior fiscal year. Earnings per share for the first quarter of fiscal
2007 were $0.08 on a diluted basis, compared to negative $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 a third consecutive quarter of record revenue across all three revenue
categories: new software licenses, software license updates and technical support,
and professional services. We achieved a gross margin of 78.9% during Q1,
driven by new software license revenue of $10.3 million. Operating income
for Q1 improved by $1 million from the prior quarter. We also ended the
quarter with record deferred revenue of $18.5 million.”
- Grew revenue year over year 37.4% to $22.6 million from $16.5 million for the same quarter of fiscal 2006. Revenue for the quarter grew sequentially 6.4% from $21.3 million for the fourth quarter of fiscal 2006.
- Grew license revenue year over year 55.8% to $10.3 million from $6.6 million for the same quarter of fiscal 2006. License revenue for the quarter grew sequentially 10.7% from $9.3 million for the fourth quarter of fiscal 2006.
- Achieved record deferred revenue of $18.5 million, up sequentially from $16.6 million.
- Improved our gross profit sequentially to $17.9 million during the first quarter of fiscal 2007 from $16.5 million.
- Improved our operating income sequentially to $1.8 million during the first quarter of fiscal 2007 from $793 thousand.
Mr. Cohen continued, “We are well-positioned to leverage our operating model. We continue to be encouraged by the business activity generated from our worldwide distribution agreement with Cisco Systems. Additionally, legal expenses related to the lawsuit filed by Compuware Corporation in September 2004 are no longer putting pressure on our operating margin, as the lawsuit was settled on April 10, 2006.”
Second Quarter Fiscal Year 2007 Financial Outlook
OPNET currently expects fiscal 2007 second quarter revenue to be between $22.0 and $23.5 million, and earnings per share to be between $0.02 and $0.07. These estimates represent management’s current expectations about the Company’s future financial performance, based on information available at this time.
OPNET will hold an investor conference call on Wednesday, August 2, 2006 at 5:00pm Eastern Time to discuss the overall results of Q1.
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.investorcalendar.com (click on OPNT under "VCalls by Date"). 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 # 208275. The replay will be available from 7:00 pm Eastern Time August 2nd through 11:59 pm Eastern Time August 7th.
- The webcast will be available at www.opnet.com or at www.investorcalendar.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 t www.opnet.com.
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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.
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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
OPNET Investor Relations:
Mel Wesley
OPNET Technologies
(240) 497-3000
ir@opnet.com
www.opnet.com
