VA Software Reports Results for Second Fiscal Quarter, 2002
FREMONT, CA February 21, 2002 VA Software Corporation (Nasdaq: LNUX), provider of the SourceForge[tm] collaborative software development platform, today announced results for its second fiscal quarter of 2002, beating analyst expectations for revenue, net loss and cash usage.
The second quarter pro forma net loss, excluding amortization of goodwill and intangible assets and deferred stock compensation, improved to $6.9 million, or $0.13 per share, from the fiscal 2001 second quarter net loss of $13.4 million, or $0.28 per share. This compares to First Call reported consensus analyst estimates of a pro forma loss of $0.16 per share, and guidance offered in the company's November 20, 2001 press release of a pro forma net loss of $8.0 to $8.5 million.
On a total reported basis, the fiscal 2002 second quarter net loss was $9.7 million, or $0.18 per share, showing significant improvement compared to last year's second quarter total reported net loss of $74.1 million, or $1.57 per share. For the six months ended January 26, 2002, the company's total reported net loss was $64.5 mllion, or $1.22 per share, compared to the total reported net loss of $125.5 million, or $2.69 per share, for the six months ended January 26, 2001.
Second quarter revenue totaled $5.1 million, compared to the second quarter of fiscal 2001 total revenue of $42.5 million. Total revenue for the six months ended January 26, 2002 was $10.6 million, compared to $98.6 million for the first six months of fiscal 2001.
"VA Software made great progress this quarter," said Chairman and CEO, Larry Augustin. "We expanded our SourceForge 3.0 customer base, saw significant licensing and renewals and are entering the third quarter with a solid pipeline of prospects."
President and COO, Ali Jenab added, "Second quarter results reflect our focus on the SourceForge business. We have reduced our cash burn and decreased the size of our losses while investing in SourceForge product development, sales and marketing. Our cash burn declined by almost 50% from the first quarter to $6.3 million. With almost $65 million in cash and marketable securities, we believe that we have adequate liquidity to execute our business plan."
A conference call to review results will be held at 2:00 pm (Pacific) today. The call may be accessed via webcast at http://www.vasoftware.com or by dialing (800) 450-0785 (access code 622015).
About VA Software
VA Software is the provider of SourceForge™, the collaborative software development (CSD) platform used by more than a quarter million developers worldwide. SourceForge Enterprise Edition helps IT and engineering organizations accelerate development by improving internal visibility and control through a centralized, integrated CSD platform. 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 VA's sales prospects for the fiscal third quarter and the adequacy of VA's liquidity to execute the Company's business plan. Actual results may differ materially from those expressed or implied in such forwardlooking statements due to various factors, including: VA's success in expanding its SourceForge enterprise software business; VA's ability to complete its sales cycle with prospective customers; unforeseen expenses that VA may incur in future quarters; the possibility that VA will not identify sufficient sources of expense reduction; competition with, and pricing pressures from, more established competitors; 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; 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 fiscal 2001 Annual Report on Form 10K and its fiscal 2002 Quarterly Reports on Form 10Q, 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 forwardlooking information contained in this news release.
Note to editors: VA Software, SourceForge and OSDN are trademarks or registered trademarks of VA Software Corporation. 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