Press Release Index

VA Software Reports Improved Results For Third Fiscal Quarter, 2002

$0.09 Per Share Pro Forma Net Loss Represents Best Results As A Public Company

FREMONT, CA May 21, 2002 VA Software Corporation (Nasdaq: LNUX), provider of the SourceForge™ collaborative software development platform, today announced results for its third fiscal quarter of 2002, beating analyst expectations for revenue, net loss and cash usage.

The third quarter fiscal 2002 pro forma net loss, excluding restructuring and other special charges and amortization of goodwill, intangible assets and deferred stock compensation, improved to $4.7 million, or $0.09 per share, from third quarter, fiscal 2001 pro forma net loss of $19.0 million, or $0.38 per share. This compares to the First Call reported analyst estimate of a pro forma loss of $0.13 per share.

On a total reported basis, the third quarter loss was $7.7 million, or $0.15 per share, showing significant improvement compared to last year’s third quarter total reported loss of $109.7 million, or $2.21 per share. For the nine months ended April 27, 2002, total reported results were a net loss of $72.3 million, or $1.37 per share compared to the first nine months of fiscal 2001 net loss of $235.2 million, or $4.93 per share.

Third quarter revenue totaled $5.1 million, compared to third quarter fiscal 2001 total revenue of $20.3 million. Total revenue for the nine months ended April 27, 2002 was $15.8 million, compared to $118.9 million for the first nine months of fiscal 2001.

"We met our objectives for the third quarter. We increased our customer base, grew revenue in a difficult market, minimized our net loss and cash usage, and announced the SourceForge 3.1 release for May availability as planned,” said Larry Augustin, chairman and CEO. “With SourceForge Enterprise Edition 3.1, we're offering more options to integrate with the industry’s leading software configuration management (SCM) tools and operating environments. In addition, 3.1 features a redesigned user interface, and improved functionality in project administration and knowledge management."

A conference call to review results will be held at 5:00 pm (Eastern) today. The call may be accessed via webcast at or by dialing (888) 2739885 or (612) 2880337.

Recent Highlights

  • Products. SourceForge[tm] Enterprise Edition 3.1, the latest version of VA’s collaborative software development platform, was announced on April 23, 2002. SourceForge 3.1 features broader integration with enterprise environments, enhanced functionality in project administration and knowledge management, and a redesigned user interface. With the release, scheduled to ship in May 2002, SourceForge Enterprise Edition will offer integration with software configuration management tools including Rational® ClearCase® and Perforce and will run on the Solaris® operating environment, in addition to Linux®.
  • SourceForge Customers. SourceForge continued to gain acceptance and is currently installed in more than 20 customer accounts. Customers include Pfizer, HewlettPackard, Agilent, Lawrence Livermore National Laboratory, Cornell University, Open SystemC Initiative, Singlestep Technologies, Persist Technologies, eMac Digital, General Atomics, Sandia National Laboratories and Lockheed Martin.
  • OSDN. OSDN continued to grow, reaching six million unique visitors monthly. According to Spring 2002 @plan data, OSDN is the No. 1 network for delivering people who look for technology news online and the No. 2 network for delivering people who look for General/Political news online, based on composition. Advertisers and sponsors for the network include Intel, IBM, Microsoft, Oracle, Compaq and RedHat.
  • Board of Directors. In March, Andre M. Boisvert, former president of SAS Institute and software industry veteran, was named to the VA Software Board of Directors. Mr. Boisvert brings more than 25 years of experience in the software industry, including sales, marketing and product development management positions at IBM, Cognos, Oracle and Wang Laboratories.

About VA Software

VA Software is the provider of SourceForge[tm], the collaborative software development (CSD) platform with more than 400,000 users worldwide. SourceForge Enterprise Edition helps IT and engineering organizations accelerate application development by integrating tools for developers to collaborate and for managers to gain insight into development activities across different locations, teams and participants. Information on VA Software’s SourceForge enterprise software product, services and support is available at


Note Regarding ForwardLooking Statements: This press release contains forwardlooking statements that involve risks and uncertainties, including statements regarding: the anticipated customer benefits from and scheduled shipping date for SourceForge Enterprise Edition 3.1. Actual results may differ materially from those expressed or implied in such forwardlooking statements due to various factors, including: VA's ability to successfully complete its ongoing SourceForge 3.1 quality assurance process and performance testing; VA's success in expanding its SourceForge enterprise software business; VA's ability to successfully attract, retain and motivate employees; the possibility of further deterioration in the general economy; VA’s ability to achieve and sustain higher levels of revenue; VA's reliance upon strategic relationships with other companies and its ability to negotiate, close and implement specific terms relating to them; rapid technological and market change; future guidelines and interpretations regarding software revenue recognition; unforeseen expenses that VA may incur in future quarters; competition with, and pricing pressures from, more established competitors; and VA's ability to protect and defend its intellectual property rights. Investors should consult VA's filings with the Securities and Exchange Commission, including its Quarterly Report on Form 10Q for the fiscal quarter ended January 26, 2002, for further information regarding these and the other risks of the Company's business. These documents are available at the SEC Web site: VA assumes no obligation to update the forward-looking information contained in this news release.

Note to editors: VA Software, SourceForge and OSDN are trademarks or registered trademarks of VA Software Corporation in the United States and other countries. All other trademarks are property of their respective owners.


Investor Relations
VA Software Corporation
(510) 687-8731

Marla Kramer, Media Relations
VA Software Corporation
(510) 687-7018

(In thousands, except per share data)

  Three Months Ended Nine Months Ended
  April 27, 2002 April 28, 2001 April 27, 2002 April 28, 2001
Net Revenues $ 5,140 $ 20,334 $ 15,770 $ 118,909
Cost of Revenues 2,779 25,129 9,032 118,239
Gross Margin 2,361 (4,795) 6,738 670
Operating Expenses
Sales and Marketing 2,961 9,690 10,453 32,715
Research and Development 1,349 4,817 6,192 14,389
General and Administrative 2,619 4,787 9,521 18,251
Restructuring Costs and other Special Charges 35 43,386 44,991 43,386
Amortization of Deferred Stock Compensation 89 19,911 1,633 61,090
Amortization of Goodwill and Intangible Assets 3,214 23,970 8,518 71,383
Total Operating Expenses 10,267 106,561 81,308 241,214
Loss from Operations (7,906) (111,356) (74,570) (240,544)
Interest and other income, net 117 1,701 2,304 5,394
Net Loss $ (7,729) $ (109,655) $ (72,266) $ (235,150)
Basic and diluted net loss per share $ (0.15) $ (2.21) $ (1.37) $ (4.93)
Weighted-average shares outstanding: basic and diluted 53,210 49,629 52,889 47,686

Reconciliation of Net loss as reported to pro forma net loss

  Three Months Ended Nine Months Ended
  April 27, 2002 April 28, 2001 April 27, 2002 April 28, 2001
Net Loss as Reported $ (7,729) $ (109,655) $ (72,266) $ (235,150)
Non Cash Charges:        
Restructuring Costs and other special charges (275) 46,794 41,882 63,294
Amortization of Deferred Stock Compensation 89 19,911 1,633 61,090
Amortization of Goodwill and Intangible Assets 3,214 23,970 8,518 71,383
Net loss before non cash charges $ (4,701) $ (18,980) $ (20,233) $ (39,383)
Basic and diluted net loss per share pro forma $ (0.09) $ (0.38) $ (0.38) $ (0.83)
Weightedaverage shares outstanding Basic and diluted 53,210 49,629 52,889 47,686

(In thousands)

  April 27, 2002
July 28, 2001
Current Assets
Cash, cash equivalents, & marketable securities $ 60,216 $ 82,942
Accounts receivable, net 541 10,107
Inventories 239 343
Prepaid expenses and other current assets 1,111 3,895
Total current assets 62,107 97,287
Property and equipment, net 8,511 17,703
Goodwill and intangible assets, net 17,531 56,730
Other assets 1,592 1,313
  $ 89,741 $ 173,033
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of loans and notes payable $ 83 $ 756
Accounts payable $ 2,266 $ 14,319
Accrued restructuring liabilities 2,459 3,135
Accrued liabilities and other 11,519 15,283
Total current liabilities 16,327 33,493
Notes payable, net of current portion - 42
Accrued restructuring liabilities, net of current portion 14,534 6,378
Other long-term liabilities 957 1,366
Minority interest - 5,392
Total Liabilities 31,818 46,671
Stockholders' Equity:
Common stock 54 54
Additional paid-in capital 765,456 768,793
Deferred stock compensation (396) (6,108)
Accumulated other comprehensive loss (38) (1,490)
Accumulated deficit (707,153) (634,887)
Total stockholders' equity 57,923 126,362
Total Liabilities and Stockholders' Equity $ 89,741 $ 173,033

Home | SourceForge | Solutions | Services | News & Events | OSTG | Company | Contact | Site Map

© Copyright 2004 VA Software Corporation. All rights reserved. Please read: Legal | Privacy Statement