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 http://www.vasoftware.com or by dialing (888) 2739885 or (612) 2880337.
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 www.vasoftware.com.
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: www.sec.gov. 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.
Marla Kramer, Media Relations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Reconciliation of Net loss as reported to pro forma net loss
CONDENSED CONSOLIDATED BALANCE SHEETS