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VERITAS Software Reports Second Quarter Revenue of $485 Million

  • 28 July, 2004 16:59

<p>For Immediate Release</p>
<p>VERITAS Software Reports Second Quarter Revenue of $485 Million</p>
<p>Announces $500 Million Stock Repurchase Authorization</p>
<p>MOUNTAIN VIEW, Calif. – July 28, 2004 - VERITAS Software Corporation (NASDAQ: VRTS) today announced financial results for the quarter ended June 30, 2004. Revenue was $485 million, compared to revenue of $408 million for the same period a year ago, representing 19 percent growth year-over-year.</p>
<p>GAAP net income for the quarter ended June 30, 2004 was $86 million, or $0.20 per diluted share, compared to GAAP net income of $46 million, or $0.11 per diluted share, for the same period a year ago. Included in GAAP net income are charges of $4.6 million, net of taxes, for the quarter ended June 30, 2004 and $31.7 million, net of taxes, for the same period a year ago, related to amortization of intangibles, in-process research and development and stock-based compensation.</p>
<p>“While total revenue was up 19 percent year-over-year, the June quarter was challenging in our U.S. enterprise business, particularly for license transactions at the end of the quarter,” said Gary Bloom, chairman, president and CEO, VERITAS Software. “License revenue was up seven percent and service revenue was up 38 percent year-over-year. Our channel and international businesses performed well this quarter, with our EMEA and Asia Pacific regions growing 44 percent and 34 percent, respectively, year-over-year.”</p>
<p>For the first six months of fiscal year 2004, total year-over-year revenue growth was 22 percent. License revenue grew 14 percent year-over-year, while services revenue grew 34 percent year-over-year.</p>
<p>“During the quarter, we strengthened our balance sheet, generating approximately $104 million in cash from operating activities, and exited the quarter with $2.75 billion in cash and short-term investments,” said Ed Gillis, executive vice president and chief financial officer, VERITAS Software. “I am also pleased to announce that our Board of Directors has authorized the company to repurchase up to $500 million of its stock over the next 12 to 18 months.”</p>
<p>“We view 2004 as an important growth year for VERITAS, and we continue to forecast our business based on a measured recovery in IT spending,” said Bloom. “We expect revenue for the September quarter to be in the range of $485 million to $505 million and diluted earnings per share to be in the range of $0.19 to $0.21 on a GAAP basis. And, we continue to target $2 billion in revenue for the full year.”</p>
<p>The company will hold a conference call today at 2:00 p.m. Pacific Time, 5:00 p.m. Eastern Time, to review the results and business outlook. The conference call will be available to all investors. The telephone dial-in number for listen-only access to the live call is 913-981-5509, passcode: 267476. A live webcast will also be available at www.veritas.com, Investor section.
In addition, a replay will be available via audio webcast at www.veritas.com, Investor section, beginning on Tuesday, July 27th at 4:00 p.m. Pacific Time until October 2004 via telephone at 719-457-0820 and entering replay code: 267476.</p>
<p>About VERITAS Software
VERITAS Software, one of the 10 largest software companies in the world, is a leading provider of software to enable utility computing. In a utility computing model, IT resources are aligned with business needs, and business applications are delivered with optimal performance and availability on top of shared computing infrastructure, minimizing hardware and labor costs. With 2003 revenues of $1.75 billion, VERITAS delivers products for data protection, storage &amp; server management, high availability and application performance management that are used by 99 percent of the Fortune 500. More information about VERITAS Software can be found at www.veritas.com.
Safe Harbor Statement
This press release may include estimates and forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including statements relating to projections of future revenue and earnings. These forward-looking statements involve a number of risks and uncertainties, including the risk that we will not gain market acceptance of our products and services, the risk that we will not be able to maintain the quality of our end-user customer and partnering relationships, the risk that our customers will reduce or defer purchases of our products and services due to economic or industry conditions or the impact of regulatory requirements, and the risk that we will not 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 report on Form 10-Q for the quarter ended March 31, 2004 on file with the SEC. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date hereof.</p>
<p># # #</p>
<p>For further information please contact:</p>
<p>VERITAS Software</p>
<p>Narelle Wilson, General Manager Marketing, Australia and New Zealand, VERITAS Software
(61 2) 8220 7000, narelle.wilson@veritas.com</p>
<p>Fiona Martin, Account Director, Max Australia
(61 2) 9954 3492, fiona.martin@maxaustralia.com.au</p>
<p>Copyright © 2004 VERITAS Software Corporation. All rights reserved. VERITAS, the VERITAS Logo and all other VERITAS product names and slogans are trademarks or registered trademarks of VERITAS Software Corporation. VERITAS and the VERITAS Logo Reg. U.S. Pat. &amp; Tm. Off. Other product names and/or slogans mentioned herein may be trademarks or registered trademarks of their respective companies.</p>

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