OPNET Announces Results for Third Quarter of Fiscal 2007
Record revenue of $24.5 million Earnings per share of $0.14
BETHESDA, MD – January 31 , 2007 --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, 2006, was $24.5 million, compared to $20.1 million for the same quarter in the prior fiscal year. Earnings per share on a diluted basis for the third quarter of fiscal 2007 were $0.14, compared to $0.06 for the same quarter in the prior fiscal year.
Marc A. Cohen, OPNET’s Chairman and CEO, stated, “I am very pleased to report that during fiscal Q3 we recorded our sixth consecutive quarter of record revenue, which enabled us to record $19.4 million of gross profit and achieve double-digit operating margin of 11.1%. We also ended the quarter with record deferred revenue of $20 million and increased our cash, cash equivalents and marketable securities to $91.1 million.”
Financial Highlights for the Third Quarter of Fiscal Year 2007
- Grew revenue year-over-year 22% to $24.5 million from $20.1 million for the same quarter of fiscal 2006. Revenue for the quarter grew sequentially 3.8% from $23.6 million for the second quarter of fiscal 2007.
- Grew license revenue year-over-year 30.1% to $11 million from $8.4 million for the same quarter of fiscal 2006. License revenue for the quarter decreased sequentially 1.9% to $11 million from $11.2 million for the second quarter of fiscal 2007.
- Achieved record deferred revenue of $20 million, up sequentially from $19.6 million.
- Improved our gross profit sequentially to $19.4 million during the third quarter of fiscal 2007 from $18.7 million in the second quarter of fiscal 2007.
- Improved our operating income to $2.7 million, which represents a $937 thousand increase from the second quarter of fiscal 2007.
Mr. Cohen continued, “Legislation passed during fiscal Q3 that retroactively reinstated the Research and Development Tax Credit back to January 1, 2006. We adjusted our tax provision during the quarter to reflect the estimated tax benefit of this credit back to January 1, 2006. The sequential decrease in our effective tax rate from 38% in Q2 to 18.8% this quarter was primarily the result of adjusting our Q3 tax provision for this credit.”
Fourth
Quarter Fiscal Year 2007 Financial Outlook
OPNET currently expects fiscal 2007 fourth quarter revenue to be between $23.5
and $25.5 million, and earnings per share to be between $0.04 and $0.10. 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, January 31, 2007 at 5:00 pm Eastern Time to discuss the overall results of Q3.
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:
- Dial the replay phone number at 877-660-6853 or 201-612-7415 for international callers. For replay, enter account # 286, conference ID # 227468. The replay will be available from 7:00 pm Eastern Time January 31st 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.
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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.
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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
