OPNET Announces Results for Third Quarter of Fiscal 2006
BETHESDA, MD -February 1, 2006 --OPNET Technologies, Inc. (NASDAQ: OPNT),
a leading provider of management software for networks and applications, today
announced that quarterly revenue for the third fiscal quarter, ended December
31, 2005, was $20.1 million, compared to $16.1 million for the same quarter
in the prior fiscal year. Earnings per share for the third quarter of
fiscal 2006 were $0.06 on a diluted basis, compared to $0.01 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 Q3 of 2006. Our performance was
the result of achieving record quarterly revenue across all three revenue categories:
new software licenses, software license updates and technical support, and professional
services. We achieved record quarterly gross profit of $15.6 million, driven
by new software license revenue of $8.4 million. Operating income for Q3
improved by $298 thousand from the prior quarter. We also ended the quarter
with record deferred revenue of $16.8 million. Legal expenses related to
the lawsuit filed by Compuware Corporation in September of 2004 continue to put
considerable pressure on our operating margin, as we incurred related legal expenses
during Q3 of $1.5 million.”
Financial Highlights for the Third Quarter of Fiscal Year 2006
- Grew revenue year over year 25.1% to $20.1 million from $16.1 million for the same quarter of fiscal 2005. Revenue for the quarter grew sequentially 10% from $18.3 million for the second quarter of fiscal 2006.
- Grew license revenue year over year 8.3% to $8.4 million from $7.8 million for the same quarter of fiscal 2005. License revenue for the quarter grew sequentially 11.2% from $7.6 million for the second quarter of fiscal 2006.
- Ended the quarter with record deferred revenue of $16.8 million, up sequentially from $15.3 million.
- Improved our gross margin sequentially to 77.5% during the third quarter of fiscal 2006 from 76.9%. Gross profit for the quarter was a record $15.6 million.
- While operating income decreased year over year from $583 thousand for the same quarter of fiscal 2005, our operating income improved sequentially to $319 thousand from $21 thousand for the second quarter of fiscal 2006.
Mr. Cohen continued, “Our Q3 2006 EPS of $0.06 was positively impacted by recording a tax benefit in the quarter of $101 thousand, which resulted in an effective tax rate for the quarter of negative 9.5%. The tax benefit recorded during Q3 was the result of adjusting previously projected foreign tax credits and projected research and development tax credits to the actual amount of the credits computed on the company’s fiscal 2005 tax return, which was completed and filed during the quarter. The tax benefit recorded during Q3 was also the result of adjusting similar benefits for the current fiscal year. The company’s effective tax rate for Q2 of fiscal 2006 was 30.7%”.
Fourth Quarter Fiscal Year 2006 Financial Outlook
OPNET currently expects fiscal fourth quarter revenue to be between $19.5 and $20.5 million, and earnings per share to be between negative $0.01 and positive $0.02. 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, February 1, 2006 at 5:00pm Eastern Time to discuss the overall results of Q3.
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 # 187082. The replay will be available from 7:00 pm Eastern Time February 1st through 11:59 pm Eastern Time February 6th.
- 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 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.
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Note to editors: The word OPNET is spelled with all upper-case letters.
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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
