OPNET Announces Results for Fourth Quarter of Fiscal 2006
Record revenue of $21.3 million
Earnings per share of $0.05
BETHESDA, MD - May 17, 2006 -- OPNET Technologies, Inc. (NASDAQ: OPNT), a
leading provider of management software for networks and applications, today
announced that quarterly revenue for the fourth fiscal quarter, ended March
31, 2006, was $21.3 million, compared to $17.2 million for the same quarter
in the prior fiscal year. Earnings per share for the fourth quarter of
fiscal 2006 were $0.05 on a diluted basis, compared to negative $0.03 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 second consecutive quarter of record 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
$16.5 million, driven by new software license revenue of $9.3 million. Operating
income for Q4 improved by $474 thousand from the prior quarter. We also
ended the quarter with strong deferred revenue of $16.6 million. Legal
expenses related to the lawsuit filed by Compuware Corporation in September of
2004 once again put considerable pressure on our operating margin, as we incurred
related legal expenses during Q4 of $884 thousand.”
Financial Highlights for the Fourth Quarter of Fiscal Year 2006
- Grew revenue year over year 23.8% to $21.3 million from $17.2 million for the same quarter of fiscal 2005. Revenue for the quarter grew sequentially 5.9% from $20.1 million for the third quarter of fiscal 2006.
- Grew license revenue year over year 17.7% to $9.3 million from $7.9 million for the same quarter of fiscal 2005. License revenue for the quarter grew sequentially 10.6% from $8.4 million for the third quarter of fiscal 2006.
- Ended the quarter with strong deferred revenue of $16.6 million, down sequentially from $16.8 million.
- Improved our gross profit sequentially to $16.5 million during the fourth quarter of fiscal 2006 from $15.6 million.
- Improved our operating income sequentially to $793 thousand during the fourth quarter of fiscal 2006 from $319 thousand.
Mr. Cohen continued, “In addition to achieving impressive financial results during Q4, we also started recording revenue associated with our worldwide distribution agreement with Cisco Systems. Additionally, on April 11, 2006, we announced that the civil actions between Compuware and OPNET had been amicably resolved.”
First Quarter Fiscal Year 2007 Financial Outlook
OPNET currently expects fiscal first quarter fiscal 2007 revenue to be between $20.7 and $22.1 million, and earnings per share to be between breakeven and $0.05. 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, May 17, 2006 at 5:00pm Eastern Time to discuss the overall results of Q4.
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 # 198964. The replay will be available from 7:00 pm Eastern Time May 17th through 11:59 pm Eastern Time May 21st.
- 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
