OPNET Announces Results for Second Quarter of Fiscal 2008
Revenue of $25 million
Diluted earnings per share of $0.06
BETHESDA, MD – November 1, 2007 -- OPNET Technologies, Inc. (NASDAQ: OPNT), a leading provider of solutions for managing networks and applications, today announced that quarterly revenue for the second fiscal quarter, ended September 30, 2007, was $25 million, compared to $23.6 million for the same quarter in the prior fiscal year. Earnings per share on a diluted basis for the second quarter of fiscal 2008 were $0.06, compared to $0.08 for the same quarter in the prior fiscal year.
Marc A. Cohen, OPNET’s Chairman and CEO, stated, “We are pleased to report record revenue for our second fiscal quarter. Our Q2 revenue was driven by a sequential increase in revenue from new software licenses, and record revenue from software license updates, technical support and services, in addition to professional services. We ended the quarter with strong deferred revenue of $22 million and are encouraged by our strong sales pipeline. We are pleased that we achieved record revenue and that our license revenue increased sequentially. However, we are focused on further increasing the contribution of new software license revenue so that we can achieve our operating margin goals.”
Financial Highlights for the Second Quarter of Fiscal 2008:- Grew revenue year-over-year 5.8% to $25 million from $23.6 million for the same quarter of fiscal 2007. Revenue for the quarter increased sequentially 7.1% from $23.3 million for the first quarter of fiscal 2008.
- License revenue decreased year-over-year by 13.8% to $9.6 million from $11.2 million for the same quarter of fiscal 2007. License revenue for the quarter increased sequentially 10.9% from $8.7 million for the first quarter of fiscal 2008.
- Ended the quarter with deferred revenue of $22 million, flat sequentially from $22 million in the first quarter of fiscal 2008.
- Gross profit increased year-over-year to $19 million from $18.7 million for the same quarter of fiscal 2007. Gross profit increased sequentially from $17.5 million in the first quarter of fiscal 2008.
- Operating income decreased year-over-year to $211 thousand from $1.8 million for the same quarter of fiscal 2007. Operating income increased sequentially from a loss of $59 thousand in the first quarter of fiscal 2008.
Marc A. Cohen continued, “In October, we completed a transaction in which we acquired substantially all of the assets of Network Physics, Inc. We are very excited about the synergies that the Network Physics product line brings to our application performance management portfolio. We believe that this acquisition will start contributing to revenue immediately, and that it offers tremendous potential for growth and cross-selling with our existing product line.”
Third Quarter Fiscal Year 2008 Financial Outlook
OPNET currently expects fiscal 2008 third quarter revenue to be between $25 million and $27 million, and earnings per share to be between negative $0.09 and negative $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 Thursday, November 1, 2007 at 5:00pm EDT to review financial results for the second quarter of fiscal 2008.
To listen to the OPNET investor conference call:
- Dial 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 # 258223. The replay will be available from 7:00 pm Eastern Time November 1st through 11:59 pm Eastern Time November 8th.
- The webcast will be available at www.opnet.com or at www.investorcalendar.com, archived for seven days.
More detailed financial results for the first quarter of fiscal 2008 will be released after the market closes on Wednesday, August 1, 2007.
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, including comments concerning expected revenue for the third quarter of fiscal 2008, 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.
###
Note to editors: The word OPNET is spelled with all upper-case letters.
OPNET Media Contact: |
OPNET Investor Relations: Mel Wesley OPNET Technologies (240) 497-3000 ir@opnet.com www.opnet.com |
