Versant Reports First Quarter Results

Versant Posts First Loss in Five Quarters



Apr 26, 2001, 01:00 ET from Versant Corporation

    FREMONT, Calif., April 26 /PRNewswire/ -- Versant Corporation
 (Nasdaq: VSNT), a leading provider of middleware infrastructure technology,
 today announced its results for the quarter ended March 31, 2001.
     For the quarter ended March 31, 2001, the Company reported total revenue
 of $5.2 million, down from $6.5 million in the quarter ended March 31, 2000.
 License revenue for the quarter was $1.6 million, down  from $4.7 million for
 the quarter ended March 31, 2000.  Services revenue was $3.6 million, a 102%
 increase from $1.8 million for the quarter ended March 31, 2000, and a record
 for the Company.
     Net loss for the first quarter of 2001 was $3.6 million, or $0.30 per
 diluted share, compared to net income of $444,000, or $0.03 per diluted share,
 for the quarter ended March 31, 2000.
     Versant's e-business customers generated $2.6 million of revenue for the
 first quarter of 2001, representing 50% of total revenue and an increase of
 28%, as compared with $2.0 million for the quarter ended March 31, 2000.
 
     Quarterly Highlights
     "The first quarter of this year proves that our e-business strategy
 remains the right course for the Company," said Nick Ordon, Versant President
 and CEO.  "As a result of changing market conditions, we took immediate action
 to focus our Company on delivering both Versant enJin and its associated
 services to market to take advantage of the continued worldwide demand for
 application servers.
     "Even though we saw a softening of demand in the telecommunications sector
 for our object database, several new projects have been initiated for Versant
 enJin in this sector.  Similarly, new prospects in financial services and
 Internet infrastructure are also moving forward on their e-business projects
 that include Versant enJin.  In the first quarter, we closed new business with
 notable customers such as BellSouth, American Express, Federated Stores and GE
 Harris.  And finally, our commitment to Versant enJin is also reinforced in
 the appointment of Charlie Wuischpard as our new VP of North American Sales.
 Charlie brings 16 years sales experience, specifically sales management for
 enterprise-level IBM WebSphere solutions and e-business services."
     Continued Ordon, "On the operational front, we have also demonstrated an
 ability to react quickly to market conditions.  We are committed to delivering
 profitability, demonstrating that 6 out of the last 7 quarters while
 continuing to grow revenue.  We have taken immediate steps to target cash flow
 breakeven for the near term and to return Versant to profitability by the
 third quarter of this year."
 
     Operating Results Outlook
     The following statements are projections based on management's estimates
 as of April 26, 2001.  These statements are forward-looking and actual results
 may differ materially.  Please reference the "Forward Looking Statements
 Involving Risks and Uncertainties" section below.
     The Company expects second quarter revenue to be in the $6.2 to
 $6.5 million range and is forecasting a net loss of $.07 - $.12 per diluted
 share.  The Company expects revenue for 2001 to increase 10% to 15% over 2000,
 yielding a positive EBITDA for the year.  The lowered forecast is a shift from
 the beginning of the year, reflecting the general downturn in the market
 economy.  "However, based on our confidence in Versant enJin," concluded
 Ordon, "we believe we can attain record revenue levels in the second half."
 
     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 services
 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 increased 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.
     Versant will hold its first quarter conference call on April 26, 2001 to
 discuss its first quarter results and business prospects.  Details for the
 call follow:
 
     Date:  Thursday, April 26, 2001
     Time:  4:30 p.m. EDT (1:30 p.m. PDT)
     Dial-in Numbers:  Domestic: (877) 871-2677, International: (212) 993-0251
 
     Call the conference telephone number prior to the start time.  An operator
 will check your name and organization and ask you to wait until the call
 begins.  If you have difficulty connecting with conference call number, please
 call (949)-574-3860.
     A replay of the conference call will be available for 48 hours beginning
 at 8:30 p.m. EDT on April 26th by calling:
 
     Domestic:  (800) 633-8284 Reservation #18656028
     International:  (858) 812-6440 Reservation #18656028
     Audio Webcast:
     http://webcast.themeetingson.com/webcast.jsp?reservation=18656028
 
 
     VERSANT CORPORATION
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (in thousands, except per share amounts)
     (Unaudited)
 
                                                 Three Months Ended
                                                      March 31,
                                                   2001      2000
     Revenue:
       License                                    $1,606    $4,721
       Services                                    3,608     1,783
        Total revenue                              5,214     6,504
 
     Cost of revenue:
       License                                       361       114
       Services                                    2,809     1,059
        Total cost of revenue                      3,170     1,173
 
     Gross profit                                  2,044     5,331
 
     Operating expenses:
       Marketing and sales                         2,378     2,020
       Business development                          399        83
       Research and development                    1,698     1,674
       General and administrative                    857       917
       Amortization of goodwill                      123       126
        Total operating expenses                   5,455     4,820
 
     Income from operations                       (3,411)      511
 
       Other expense, net                           (127)      (48)
 
     Income (loss) before taxes                   (3,538)      463
 
       Provision for taxes                            47        19
 
     Net income (loss)                           $(3,585)     $444
 
 
     Basic net income (loss) per share            $(0.30)    $0.04
     Diluted net income (loss) per share          $(0.30)    $0.03
 
     Basic weighted average common shares
      and common equivalent shares                11,933    10,860
     Diluted weighted average common shares
      and common equivalent shares                11,933    15,564
 
 
     VERSANT CORPORATION
     CONDENSED CONSOLIDATED BALANCE SHEETS
     (in thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
                                                   (Unaudited)          *
     ASSETS
 
     Current assets:
       Cash and cash equivalents                       $3,014         $4,280
       Accounts receivable, net of
        allowance for doubtful
        accounts of $600 and $551, respectively         7,896         11,562
       Other current assets                             1,023          1,091
          Total current assets                         11,933         16,933
 
       Property and equipment, net                      3,979          4,155
       Other assets                                       (19)            21
       Goodwill net of accumulated amortization
        of $3,523 and $3,403, respectively              1,274          1,393
          Total assets                                $17,167        $22,502
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
       Current portion of capital lease obligations       $65            $63
       Current maturities of long term debt                 -            210
       Short-term borrowings                               88          1,114
       Accounts payable                                   906            688
       Accrued liabilities and other                    3,035          3,253
       Deferred revenue                                 3,105          3,742
         Total current liabilities                      7,199          9,070
 
     Long-term liabilities, net of current portion:
       Capital lease obligations                           23             40
       Deferred revenue                                   113            171
         Total liabilities                              7,335          9,281
       Shareholders' equity:
       Common stock                                    52,189         51,968
       Preferred stock                                  4,912          4,912
       Accumulated deficit                           (47,269)        (43,659)
         Total shareholders' equity                     9,832         13,221
          Total liabilities and shareholders'
           equity                                     $17,167        $22,502
 
     * Derived from audited financial statements
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X83571772
 
 

SOURCE Versant Corporation
    FREMONT, Calif., April 26 /PRNewswire/ -- Versant Corporation
 (Nasdaq: VSNT), a leading provider of middleware infrastructure technology,
 today announced its results for the quarter ended March 31, 2001.
     For the quarter ended March 31, 2001, the Company reported total revenue
 of $5.2 million, down from $6.5 million in the quarter ended March 31, 2000.
 License revenue for the quarter was $1.6 million, down  from $4.7 million for
 the quarter ended March 31, 2000.  Services revenue was $3.6 million, a 102%
 increase from $1.8 million for the quarter ended March 31, 2000, and a record
 for the Company.
     Net loss for the first quarter of 2001 was $3.6 million, or $0.30 per
 diluted share, compared to net income of $444,000, or $0.03 per diluted share,
 for the quarter ended March 31, 2000.
     Versant's e-business customers generated $2.6 million of revenue for the
 first quarter of 2001, representing 50% of total revenue and an increase of
 28%, as compared with $2.0 million for the quarter ended March 31, 2000.
 
     Quarterly Highlights
     "The first quarter of this year proves that our e-business strategy
 remains the right course for the Company," said Nick Ordon, Versant President
 and CEO.  "As a result of changing market conditions, we took immediate action
 to focus our Company on delivering both Versant enJin and its associated
 services to market to take advantage of the continued worldwide demand for
 application servers.
     "Even though we saw a softening of demand in the telecommunications sector
 for our object database, several new projects have been initiated for Versant
 enJin in this sector.  Similarly, new prospects in financial services and
 Internet infrastructure are also moving forward on their e-business projects
 that include Versant enJin.  In the first quarter, we closed new business with
 notable customers such as BellSouth, American Express, Federated Stores and GE
 Harris.  And finally, our commitment to Versant enJin is also reinforced in
 the appointment of Charlie Wuischpard as our new VP of North American Sales.
 Charlie brings 16 years sales experience, specifically sales management for
 enterprise-level IBM WebSphere solutions and e-business services."
     Continued Ordon, "On the operational front, we have also demonstrated an
 ability to react quickly to market conditions.  We are committed to delivering
 profitability, demonstrating that 6 out of the last 7 quarters while
 continuing to grow revenue.  We have taken immediate steps to target cash flow
 breakeven for the near term and to return Versant to profitability by the
 third quarter of this year."
 
     Operating Results Outlook
     The following statements are projections based on management's estimates
 as of April 26, 2001.  These statements are forward-looking and actual results
 may differ materially.  Please reference the "Forward Looking Statements
 Involving Risks and Uncertainties" section below.
     The Company expects second quarter revenue to be in the $6.2 to
 $6.5 million range and is forecasting a net loss of $.07 - $.12 per diluted
 share.  The Company expects revenue for 2001 to increase 10% to 15% over 2000,
 yielding a positive EBITDA for the year.  The lowered forecast is a shift from
 the beginning of the year, reflecting the general downturn in the market
 economy.  "However, based on our confidence in Versant enJin," concluded
 Ordon, "we believe we can attain record revenue levels in the second half."
 
     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 services
 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 increased 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.
     Versant will hold its first quarter conference call on April 26, 2001 to
 discuss its first quarter results and business prospects.  Details for the
 call follow:
 
     Date:  Thursday, April 26, 2001
     Time:  4:30 p.m. EDT (1:30 p.m. PDT)
     Dial-in Numbers:  Domestic: (877) 871-2677, International: (212) 993-0251
 
     Call the conference telephone number prior to the start time.  An operator
 will check your name and organization and ask you to wait until the call
 begins.  If you have difficulty connecting with conference call number, please
 call (949)-574-3860.
     A replay of the conference call will be available for 48 hours beginning
 at 8:30 p.m. EDT on April 26th by calling:
 
     Domestic:  (800) 633-8284 Reservation #18656028
     International:  (858) 812-6440 Reservation #18656028
     Audio Webcast:
     http://webcast.themeetingson.com/webcast.jsp?reservation=18656028
 
 
     VERSANT CORPORATION
     CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
     (in thousands, except per share amounts)
     (Unaudited)
 
                                                 Three Months Ended
                                                      March 31,
                                                   2001      2000
     Revenue:
       License                                    $1,606    $4,721
       Services                                    3,608     1,783
        Total revenue                              5,214     6,504
 
     Cost of revenue:
       License                                       361       114
       Services                                    2,809     1,059
        Total cost of revenue                      3,170     1,173
 
     Gross profit                                  2,044     5,331
 
     Operating expenses:
       Marketing and sales                         2,378     2,020
       Business development                          399        83
       Research and development                    1,698     1,674
       General and administrative                    857       917
       Amortization of goodwill                      123       126
        Total operating expenses                   5,455     4,820
 
     Income from operations                       (3,411)      511
 
       Other expense, net                           (127)      (48)
 
     Income (loss) before taxes                   (3,538)      463
 
       Provision for taxes                            47        19
 
     Net income (loss)                           $(3,585)     $444
 
 
     Basic net income (loss) per share            $(0.30)    $0.04
     Diluted net income (loss) per share          $(0.30)    $0.03
 
     Basic weighted average common shares
      and common equivalent shares                11,933    10,860
     Diluted weighted average common shares
      and common equivalent shares                11,933    15,564
 
 
     VERSANT CORPORATION
     CONDENSED CONSOLIDATED BALANCE SHEETS
     (in thousands)
 
                                                     March 31,    December 31,
                                                       2001           2000
                                                   (Unaudited)          *
     ASSETS
 
     Current assets:
       Cash and cash equivalents                       $3,014         $4,280
       Accounts receivable, net of
        allowance for doubtful
        accounts of $600 and $551, respectively         7,896         11,562
       Other current assets                             1,023          1,091
          Total current assets                         11,933         16,933
 
       Property and equipment, net                      3,979          4,155
       Other assets                                       (19)            21
       Goodwill net of accumulated amortization
        of $3,523 and $3,403, respectively              1,274          1,393
          Total assets                                $17,167        $22,502
 
     LIABILITIES AND SHAREHOLDERS' EQUITY
 
     Current liabilities:
       Current portion of capital lease obligations       $65            $63
       Current maturities of long term debt                 -            210
       Short-term borrowings                               88          1,114
       Accounts payable                                   906            688
       Accrued liabilities and other                    3,035          3,253
       Deferred revenue                                 3,105          3,742
         Total current liabilities                      7,199          9,070
 
     Long-term liabilities, net of current portion:
       Capital lease obligations                           23             40
       Deferred revenue                                   113            171
         Total liabilities                              7,335          9,281
       Shareholders' equity:
       Common stock                                    52,189         51,968
       Preferred stock                                  4,912          4,912
       Accumulated deficit                           (47,269)        (43,659)
         Total shareholders' equity                     9,832         13,221
          Total liabilities and shareholders'
           equity                                     $17,167        $22,502
 
     * Derived from audited financial statements
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X83571772
 
 SOURCE  Versant Corporation