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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (date of earliest event reported) April 19, 2000
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VERITAS SOFTWARE CORPORATION
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(Exact name of registrant as specified in its charter)
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<S> <C> <C>
Delaware 000-26247 77-0507675
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(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
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1600 Plymouth Street
Mountain View, California 94043
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(Address of principal executive offices including Zip Code)
Registrant's telephone number, including area code: (650) 335-8000
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Item 5: Other Events
On April 19, 2000, VERITAS Software Corporation announced
financial results for its first quarter ended March 31, 2000. The press release
is attached to this Current Report as Exhibit 99.1 and is incorporated herein by
this reference.
Item 7: Financial Statements and Exhibits.
(c) Exhibits
99.1 Press release dated April 19, 2000.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: April 19, 2000
VERITAS SOFTWARE CORPORATION
By: /s/ Jay A. Jones
---------------------------------------------
Jay A. Jones
Senior Vice President,
Chief Administrative Officer & Secretary
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EXHIBIT INDEX
99.1 Press release of the registrant dated April 19, 2000.
<PAGE> 1
EX-99.1
VERITAS NEWS
VERITAS Software
1600 Plymouth Street
Mountain View, CA 94043
650.335.8000
FOR IMMEDIATE RELEASE
VERITAS SOFTWARE REPORTS RECORD FIRST-QUARTER RESULTS;
REVENUE UP 82% TO $245 MILLION FOR THE QUARTER
Pro forma Quarterly Net Income Grows 86% Resulting in $0.12 Per Share
MOUNTAIN VIEW, CALIF. - APRIL 19, 2000 - VERITAS(R) Software Corporation
(Nasdaq: VRTS), the industry's leading enterprise-class application storage
management software provider, today announced record financial results for its
first-quarter ended March 31, 2000. The Company achieved first-quarter revenue
of $244.6 million, an increase of 82% over last year's pro forma first-quarter
revenue of $134.7 million. Pro forma net income, which excludes purchase
accounting adjustments, increased to $51.6 million from $27.7 million for the
same quarter prior year, an 86% increase. Diluted pro forma net income per share
for the first-quarter was $0.12, a 71% increase from $0.07 for the same period
last year. VERITAS Software's pro forma operating margin increased to 31% for
the first-quarter as compared with an operating margin of 30% for the same
quarter last year.
The Company's as-reported revenue for the first-quarter was $244.6 million,
compared with $71.9 million for the same period last year. For the
first-quarter, VERITAS Software reported a net loss of $174.4 million, or $0.44
per share, compared with net income of $13.6 million, or $0.06 per share on a
diluted basis for the prior year. Included in the current period's net loss is
$235.2 million of purchase accounting amortization.
"Our record revenue growth again asserts our leadership positioning in the
heterogeneous application storage management space," said Mark Leslie, chairman
and CEO of VERITAS Software. "This success demonstrates the value of our
solutions to mission-critical environments that demand continuous data
availability, including customers in the financial, telecom and Internet
sectors, and our significant position as the partner of choice for today's
market-driving technology vendors. We continue to see strong demand for all
product lines across the board and significant contributions from all of our key
distribution channels, including our direct sales force, one-tier VAR network,
two-tier distribution infrastructure, and OEM sales."
-more-
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VERITAS Software Q1'00 Earnings Release
Page 2 of 5
To better facilitate the financial reporting, the Company has added an
additional financial table to its earnings releases: "Pro forma Statements of
Operations." These pro forma statements are intended to present the Company's
operating results excluding purchase accounting adjustments but including the
results of Seagate Software NSMG and TeleBackup Systems effective at the
beginning of 1999.
The Company will host a conference call today at 2:00 p.m. Pacific Time, 5:00
p.m. Eastern Time to discuss its results. Live Webcast is available at
http://nasdaq.com/asp/Broadcast.asp?symbol=VRTS. Replay number for the call is
800-633-8284 (#148-84-281).
ABOUT VERITAS SOFTWARE
For enterprise customers who demand the continuous availability of
business-critical information, VERITAS Software Corporation (Nasdaq: VRTS), the
industry's leading enterprise-class application storage management software
provider, ensures information availability from business-critical applications
by delivering integrated, cross-platform storage management software solutions.
The Company's products enable Business Without Interruption(TM) and are designed
to protect, access and manage business-critical application information. VERITAS
Software products are delivered through a global end user sales force and a
worldwide network of enterprise VARs, resellers and OEM partners. The Company's
corporate headquarters is located at 1600 Plymouth Street, Mountain View, CA
94043. Telephone: (650) 335-8000. Fax: (650) 335-8050. Email:
[email protected]. WWW site: http://www.veritas.com/.
###
FOR FURTHER INFORMATION CONTACT:
Ken Lonchar, Senior Vice President and CFO, VERITAS Software
(650) 526-2501, [email protected]
Dave Galiotto, Vice President of Finance/Investor Relations, VERITAS Software
(650) 318-4047, [email protected]
Erin Jones, Public Relations Director, VERITAS Software
(805) 783-4528, [email protected]
Borah Kim, Senior Manager of Investor Relations, VERITAS Software
(650) 318-4514, [email protected]
This press release may include estimates and forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933 and 21E of the
Securities Exchange Act of 1934. These forward-looking statements involve a
number of risks and uncertainties, including the timely development and market
acceptance of our products and our ability to manage our business effectively,
that could cause the actual results we achieve to differ materially from such
forward-looking statements. For more information regarding potential risks, see
the "Factors That May Affect Future Results" section of our most recent reports
on Form 10-K and Form 10-Q on file with the SEC.
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VERITAS Software Q1'00 Earnings Release
Page 3 of 5
VERITAS SOFTWARE CORPORATION
PRO FORMA STATEMENTS OF OPERATIONS
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
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<CAPTION>
THREE MONTHS ENDED
MARCH 31,
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2000 1999
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NET REVENUE:
User license fees $ 204,316 $ 115,566
Services 40,324 19,163
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TOTAL NET REVENUE 244,640 134,729
COST OF REVENUE:
User license fees 11,778 5,377
Services 18,299 7,489
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TOTAL COST OF REVENUE 30,077 12,866
GROSS PROFIT 214,563 121,863
OPERATING EXPENSES:
Selling and marketing 87,583 49,801
Research and development 35,113 22,884
General and administrative 14,911 8,667
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TOTAL OPERATING EXPENSES 137,607 81,352
Income from operations 76,956 40,511
Interest and other income, net 11,263 4,242
Interest expense (7,523) (1,438)
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Income before income taxes 80,696 43,315
Provision for income taxes 29,051 15,594
PRO FORMA NET INCOME $ 51,645 $ 27,721
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PRO FORMA NET INCOME PER SHARE - BASIC $ 0.13 $ 0.07
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PRO FORMA NET INCOME PER SHARE - DILUTED $ 0.12 $ 0.07
========= =========
SHARES USED IN PER SHARE CALCULATION - BASIC 394,471 377,627
========= =========
SHARES USED IN PER SHARE CALCULATION - DILUTED 437,107 412,875
========= =========
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The pro forma statements of operations are intended to present the Company's
operating results excluding purchase accounting adjustments but including the
results of NSMG and Telebackup assuming the companies had been combined at the
beginning of the three month periods ending March 31, 2000 and 1999,
respectively. Such purchase accounting adjustments would include amortization of
developed technology, amortization of goodwill and intangibles, restructuring
and other merger costs, in-process research and development costs, and related
adjustments for the income tax provision.
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VERITAS Software Q1'00 Earnings Release
Page 4 of 5
VERITAS SOFTWARE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
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<CAPTION>
THREE MONTHS ENDED
MARCH 31,
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2000 1999
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NET REVENUE:
User license fees $ 204,316 $ 55,786
Services 40,324 16,118
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TOTAL NET REVENUE 244,640 71,904
COST OF REVENUE:
User license fees 11,778 1,955
Services 18,299 6,527
Amortization of developed technology 15,395 -
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TOTAL COST OF REVENUE 45,472 8,482
GROSS PROFIT 199,168 63,422
OPERATING EXPENSES:
Selling and marketing 87,583 26,823
Research and development 35,113 13,816
General and administrative 14,911 3,289
Amortization of goodwill and other intangibles 219,759 -
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TOTAL OPERATING EXPENSES 357,366 43,928
Income (loss) from operations (158,198) 19,494
Interest and other income, net 11,263 3,031
Interest expense (7,523) (1,433)
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Income (loss) before income taxes (154,458) 21,092
Provision for income taxes 19,925 7,509
NET INCOME (LOSS) $(174,383) $ 13,583
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NET INCOME (LOSS) PER SHARE - BASIC $ (0.44) $ 0.06
========= =========
NET INCOME (LOSS) PER SHARE - DILUTED $ (0.44) $ 0.06
========= =========
SHARES USED IN PER SHARE CALCULATION - BASIC 394,471 215,199
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SHARES USED IN PER SHARE CALCULATION - DILUTED 394,471 239,111
========= =========
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VERITAS Software Q1'00 Earnings Release
Page 5 of 5
VERITAS SOFTWARE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
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<CAPTION>
MARCH 31, DECEMBER 31,
2000 1999
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(UNAUDITED)
ASSETS
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CURRENT ASSETS:
Cash and short-term investments $ 851,450 $ 692,381
Accounts receivable, net 126,448 132,180
Deferred income taxes 23,803 23,803
Other current assets 18,925 13,381
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TOTAL CURRENT ASSETS 1,020,626 861,745
Long-term investments 49,004 65,036
Property and equipment 88,233 76,958
Goodwill and other intangibles 2,991,076 3,226,749
Other non-current assets 8,429 2,789
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TOTAL ASSETS $ 4,157,368 $ 4,233,277
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 32,774 $ 30,229
Accrued compensation and benefits 41,769 35,560
Accrued acquisition and restructuring costs 22,089 24,202
Other accrued liabilities 35,229 41,727
Income taxes payable 173 6,804
Customer advances 6,521 5,208
Deferred revenue 124,296 86,979
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TOTAL CURRENT LIABILITIES 262,851 230,709
NON-CURRENT LIABILITIES:
Convertible subordinated notes 454,557 451,044
Deferred income taxes 144,384 157,867
Other non-current liabilities 529 596
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TOTAL NON-CURRENT LIABILITIES 599,470 609,507
Stockholders' equity 3,295,047 3,393,061
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,157,368 $ 4,233,277
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