VA Software Reports Second Quarter Fiscal Year 2003 Results
Second Quarter Fiscal Year 2003 Revenue Increases 30% Compared to Prior Year
FREMONT, CA February 20, 2003 VA Software Corporation (Nasdaq: LNUX), provider of SourceForge™, the leading Development Intelligence application, and parent company of OSDN™, a network of media and commerce sites that serve the IT and software development communities, today announced financial results for its second quarter of fiscal year 2003, ended January 25, 2003.
Second quarter fiscal 2003 revenue grew 30% to $6.6 million, compared to second quarter fiscal 2002 total revenue of $5.1 million. Revenue from the software and online businesses increased 41% to $6.3 million in the second quarter of fiscal 2003 from $4.5 million in the second quarter of fiscal 2002. Revenue from the exited hardware business was $0.2 million in the second quarter of fiscal 2003 and $0.6 million in the second quarter of fiscal 2002. Total revenue for the six months ended January 25, 2003 was $11.6 million, compared to $10.6 million in the six months ended January 26, 2002. The yearoveryear growth was driven by the growth in the company’s software and online businesses which increased 36% to $11.2 million for the six months ended January 25, 2003 from $8.3 million for the six months ended January 26, 2002.
On a total reported basis, the second quarter fiscal 2003 loss was $3.7 million, or $0.07 per share, compared to last year’s second fiscal quarter total reported loss of $9.7 million, or $0.18 per share. The second quarter fiscal year 2003 total reported loss includes a credit of $0.4 million associated with adjustments to previously recorded restructuring reserves, and a $0.7 million charge for amortization of intangible assets and deferred stock compensation. For the six months ended January 25, 2003, the company’s total reported net loss was $7.8 million, or $0.15 per share, compared to $64.5 million, or $1.22 per share, for the six months ended January 26, 2002.
The second quarter fiscal 2003 pro forma net loss, excluding restructuring and other special charges, amortization of intangible assets and deferred stock compensation, improved to $3.4 million, or $0.06 per share, as compared to last year’s second quarter fiscal 2002 pro forma net loss of $6.9 million, or $0.13 per share. Cash and investments remain strong at $46.3 million.
“I am very pleased with the financial results for our second quarter. Our software revenue more than tripled and online revenue grew a spectacular 32% compared to last year’s second quarter. Our pro forma financial results were in line with our expectations and our $2.4 million cash usage was nearly half of what we had expected,” said Ali Jenab, President and CEO. “We continue to collect additional validation that our products meet the needs of our customers. We added a number of impressive new SourceForge customers to our installed base during the quarter, we had significant renewals, and we are conducting trials at a number of additional accounts. We had record levels of sales in our online business as holiday season business far exceeded our expectations.”
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) 273-9885 or (612) 332-0820. A replay of the call will be available for 30 days by dialing (800) 475-6701 or (320) 365-3844; passcode 673285.
About VA Software
VA Software (Nasdaq: LNUX), provider of SourceForge Enterprise Edition, is the leader in Development Intelligence. SourceForge is an integrated webbased application that combines software development tools with the ability to track, measure and report on software project activity in realtime. IT and software engineering organizations use SourceForge to manage application development more effectively, improve operational efficiency and build better quality software. Development Intelligence with SourceForge provides the information and infrastructure required to make software development a key driver of competitive advantage. VA Software customers currently using SourceForge include major organizations in financial services, defense and aerospace, manufacturing, communications and government. Information on how SourceForge aligns IT and business is available at www.vasoftware.com.
OSDN, the Open Source Development Network, Inc., a subsidiary of VA Software, is the most dynamic communitydriven IT media network on the web. The cornerstone of the Open Source community, OSDN attracts every level of IT decision maker and buyer, from CTOs to project managers. Technologists, developers and system administrators turn to OSDN sites to create, debate, and make or break IT news, tools, technologies and techniques. OSDN is the home of several popular web sites, including the award winning news discussion site, Slashdot.org, and the world’s largest collaborative software development site, SourceForge.net.
Note Regarding ForwardLooking Statements: This press release contains forwardlooking statements that involve risks and uncertainties, including statements regarding the anticipated customer benefits from SourceForge Enterprise Edition 3.2. 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 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; VA’s success in meeting scheduled product availability dates; VA's ability to protect and defend its intellectual property rights; the size and timing of execution of enterpriselevel licenses; 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. Investors should consult VA's filings with the Securities and Exchange Commission, including its Annual Report on Form 10K for the fiscal year ended July 27, 2002 and Form 10Q for the fiscal quarter ended October 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 forwardlooking 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. Slashdot and ThinkGeek are registered trademarks of the Open Source Development Network, Inc., in the United States and other countries. All other trademarks are property of their respective owners.
Eureka Endo, Media Relations
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Reconciliation of Net loss as reported to pro forma net loss
CONDENSED CONSOLIDATED BALANCE SHEETS
Copyright © 2005 VA Software Corporation. All rights reserved. VA Software, OSTG and SourceForge are trademarks or registered trademarks of VA Software Corporation. All other trademarks, brand names, or product names belong to their respective holders. Please read: Legal | Privacy Statement