Versant Announces Preliminary First Quarter Results

Revenues and Earnings to Be Below Expectation, Company Takes Cost

Cutting Action



Apr 10, 2001, 01:00 ET from Versant Corporation

    FREMONT, Calif., April 10 /PRNewswire/ -- Versant Corporation
 (Nasdaq:   VSNT), a leading provider of middleware infrastructure technology,
 announced today that it will report lower than expected revenue and a net loss
 for first quarter, 2001.  As a result the company has taken cost cutting
 actions to re-align the business.
     Versant said that it now expects first quarter revenues to be in the range
 of $4.7 million to $5.2 million, compared with its previous target of
 $6.8 million.  Loss per share is expected to be in the range of ($0.29) to
 ($0.33), compared to a previously anticipated breakeven target.
     Versant has taken actions that will reduce existing company expense by
 approximately 20% by the end of the second quarter.  The company will remain
 focused on its engineering and sales organizations, particularly for the
 company's e-business product and services lines.
     "We remain bullish about our e-business product and services portfolios
 although, as with many other software infrastructure providers, the broad
 market slowdown has surprised us with its severity and swiftness," said Nick
 Ordon, Versant president and CEO.   "We entered 2001 with an optimism toward
 our heritage object database business that hasn't been reflected in the
 current market, especially in the telecommunications sector.  Accordingly, we
 have executed aggressive cost cutting measures quickly.  Our first priority is
 a rapid return to cash flow breakeven or better," continued Ordon.  "We remain
 confident in the direction of the company, and also in our continued ability
 to sustain proper company operation."
     "Despite the unfavorable market realities most companies are facing, we
 see encouraging signs for Versant's key 2001 initiative, the launch of Versant
 enJin.  Early industry and customer response has been positive, indicating to
 us we are targeted properly.  Furthermore, we will report record services
 revenues for the company this quarter.  The current economy serves to
 reinforce our commitment to our e-business strategy, where Versant enJin, our
 transaction accelerator, is expected to do well in the robust application
 server market and our services initiatives continue to post strong growth."
     Versant will host a conference call to discuss its first quarter earnings
 on Thursday, April 26, 2001, at 1:30 p.m. PDT.  Details for the call will be
 forthcoming.
 
     About Versant Corporation
     Versant Corporation (Nasdaq:   VSNT) has led the industry in highly
 scalable, reliable object management solutions for complex enterprise-level
 systems since its founding in 1988.  The company's Object Data Management
 System (ODBMS) serves as the core database for fraud detection, yield
 management, real-time data collection and analysis, operation support systems
 (OSS) and other large-scale applications in the telecommunications, financial
 services, transportation and defense industries.  Versant enJin and Versant
 Developer Suite, based on the same proven technology and seamless object
 persistence, help accelerate both the development cycle and the transaction
 speed for e-business and Internet infrastructures.  For more information, call
 510-789-1500 or visit www.versant.com .
 
     This press release contains forward-looking information within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934, and is subject to the safe harbor created by those
 sections.  These forward-looking statements include those related to Versant's
 financial and operational prospects, including expected growth in the service
 and e-business areas and industry acceptance of Versant's products and
 services, especially Versant enJin and Versant's WebSphere consulting
 practice.  Actual events or results may differ materially from those discussed
 in the forward looking statements as a result of various factors.  These
 factors include the unpredictability of revenues, competition faced by
 Versant, the need for Versant to attract additional services business, market
 acceptance of Versant's products and services, Versant's limited financial
 resources, the uncertainty surrounding the length and depth of the current
 slowdown in technology markets and the risk factors set forth in Versant's
 most recent Annual Report on Form 10-K filed with the SEC.  Versant assumes no
 obligation to update the information contained in this press release.
     Versant and Versant ODBMS are trademarks of Versant Corporation.  All
 other company names and product names are trademarks of the individual
 companies.
 
     CONTACT:  Lee McGrath, Chief Financial Officer of Versant Corporation,
 1-800-VERSANT, 510-789-1500, lmcgrath@versant.com , or IR, Scott Liolios of
 Liolios Group, Inc., 949-574-3860, scott@liolios.com , for Versant
 Corporation.
 
 

SOURCE Versant Corporation
    FREMONT, Calif., April 10 /PRNewswire/ -- Versant Corporation
 (Nasdaq:   VSNT), a leading provider of middleware infrastructure technology,
 announced today that it will report lower than expected revenue and a net loss
 for first quarter, 2001.  As a result the company has taken cost cutting
 actions to re-align the business.
     Versant said that it now expects first quarter revenues to be in the range
 of $4.7 million to $5.2 million, compared with its previous target of
 $6.8 million.  Loss per share is expected to be in the range of ($0.29) to
 ($0.33), compared to a previously anticipated breakeven target.
     Versant has taken actions that will reduce existing company expense by
 approximately 20% by the end of the second quarter.  The company will remain
 focused on its engineering and sales organizations, particularly for the
 company's e-business product and services lines.
     "We remain bullish about our e-business product and services portfolios
 although, as with many other software infrastructure providers, the broad
 market slowdown has surprised us with its severity and swiftness," said Nick
 Ordon, Versant president and CEO.   "We entered 2001 with an optimism toward
 our heritage object database business that hasn't been reflected in the
 current market, especially in the telecommunications sector.  Accordingly, we
 have executed aggressive cost cutting measures quickly.  Our first priority is
 a rapid return to cash flow breakeven or better," continued Ordon.  "We remain
 confident in the direction of the company, and also in our continued ability
 to sustain proper company operation."
     "Despite the unfavorable market realities most companies are facing, we
 see encouraging signs for Versant's key 2001 initiative, the launch of Versant
 enJin.  Early industry and customer response has been positive, indicating to
 us we are targeted properly.  Furthermore, we will report record services
 revenues for the company this quarter.  The current economy serves to
 reinforce our commitment to our e-business strategy, where Versant enJin, our
 transaction accelerator, is expected to do well in the robust application
 server market and our services initiatives continue to post strong growth."
     Versant will host a conference call to discuss its first quarter earnings
 on Thursday, April 26, 2001, at 1:30 p.m. PDT.  Details for the call will be
 forthcoming.
 
     About Versant Corporation
     Versant Corporation (Nasdaq:   VSNT) has led the industry in highly
 scalable, reliable object management solutions for complex enterprise-level
 systems since its founding in 1988.  The company's Object Data Management
 System (ODBMS) serves as the core database for fraud detection, yield
 management, real-time data collection and analysis, operation support systems
 (OSS) and other large-scale applications in the telecommunications, financial
 services, transportation and defense industries.  Versant enJin and Versant
 Developer Suite, based on the same proven technology and seamless object
 persistence, help accelerate both the development cycle and the transaction
 speed for e-business and Internet infrastructures.  For more information, call
 510-789-1500 or visit www.versant.com .
 
     This press release contains forward-looking information within the meaning
 of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
 Exchange Act of 1934, and is subject to the safe harbor created by those
 sections.  These forward-looking statements include those related to Versant's
 financial and operational prospects, including expected growth in the service
 and e-business areas and industry acceptance of Versant's products and
 services, especially Versant enJin and Versant's WebSphere consulting
 practice.  Actual events or results may differ materially from those discussed
 in the forward looking statements as a result of various factors.  These
 factors include the unpredictability of revenues, competition faced by
 Versant, the need for Versant to attract additional services business, market
 acceptance of Versant's products and services, Versant's limited financial
 resources, the uncertainty surrounding the length and depth of the current
 slowdown in technology markets and the risk factors set forth in Versant's
 most recent Annual Report on Form 10-K filed with the SEC.  Versant assumes no
 obligation to update the information contained in this press release.
     Versant and Versant ODBMS are trademarks of Versant Corporation.  All
 other company names and product names are trademarks of the individual
 companies.
 
     CONTACT:  Lee McGrath, Chief Financial Officer of Versant Corporation,
 1-800-VERSANT, 510-789-1500, lmcgrath@versant.com , or IR, Scott Liolios of
 Liolios Group, Inc., 949-574-3860, scott@liolios.com , for Versant
 Corporation.
 
 SOURCE  Versant Corporation