Financial Highlights for the First Quarter of Fiscal Year 2009:
- Reported revenues increased 13 percent year-over-year to $87.9 million
- Deferred revenues increased 15 percent year-over-year to $145.2 million
- GAAP net income per share of $0.00 and non-GAAP net income per share of $0.09
- Cash flows from operations were $29.7 million
Wind River Systems, Inc. (NASDAQ:WIND), the global leader in Device Software Optimization (DSO), today reported results for the first quarter of fiscal year 2009, ended April 30, 2008. Revenues for the first quarter of fiscal 2009 were $87.9 million, compared with $78.0 million reported in the first quarter of fiscal 2008, an increase of 13 percent.
GAAP Results: Net income for the first quarter of fiscal 2009 was $0.3 million, compared to a net loss of $(4.6) million in the first quarter a year ago. Net income per diluted share for the quarter was $0.00, compared to a net loss per diluted share of $(0.05) in the first quarter a year ago.
Non-GAAP Results: Non-GAAP net income for the first quarter of fiscal 2009 was $7.6 million, compared to non-GAAP net income of $3.1 million in the first quarter a year ago. Non-GAAP net income per diluted share for the quarter was $0.09, compared to $0.04 in the first quarter a year ago, an increase of 125 percent. A detailed reconciliation of GAAP to non-GAAP results is provided at the end of this release.
Deferred revenues as of April 30, 2008 were $145.2 million, compared to $126.0 million as of April 30, 2007, an increase of 15 percent. Cash, cash equivalents and investments totaled $206.5 million as of April 30, 2008. During the first quarter of fiscal 2009, Wind River repurchased 8.7 million shares for a total amount of $66.6 million. Cash flows from operations for the first quarter of fiscal 2009 were $29.7 million.
“Wind River’s strong execution and solid return from the investments we have made in our products, our sales organization and alliance partnerships drove excellent first quarter financial results and marked a healthy start to fiscal year 2009,” said Ken Klein, chairman, president and chief executive officer of Wind River. “We saw strong demand across all products and geographies, indicating our strategy is resonating with customers and partners.”
Financial Outlook
For the full fiscal year 2009 ending January 31, 2009:
- Revenue is expected to be in the range of $365.0 million to $375.0 million.
- GAAP net income per share is expected to be in the range of $0.10 to $0.12.
- Non-GAAP net income per share is expected to be in the range of $0.48 to $0.50.
For the second quarter fiscal 2009 ending July 31, 2008:
- Revenue is expected to be in the range of $86.0 million to $88.0 million.
- GAAP net loss per share is expected to be in the range of $(0.01) to $(0.02).
- Non-GAAP net income per share is expected to be in the range of $0.07 to $0.08.
A reconciliation of GAAP to non-GAAP targets is provided at the end of this release.
Conference Call
Wind River will hold its quarterly conference call today at 5:00 p.m. ET/2:00 p.m. PT to discuss its first quarter financial results, business highlights and outlook. The conference call may be accessed via webcast at http://ir.windriver.com or by calling +1.800.399.5927 in the United States or +1.706.643.3427 internationally.
A replay of the webcast can be accessed via Wind River’s web site at http://ir.windriver.com. Additionally, an audio replay of the conference call will be available through June 6, 2008 by calling +1.800.642.1687 in the United States or +1.706.645.9291 internationally (conference id required: 47350406).
Use of Non-GAAP Financial Information
This press release includes the following supplemental non-GAAP financial measures: non-GAAP gross profit, non-GAAP operating income, non-GAAP net income and non-GAAP net income per diluted share. The presentation of this supplemental non-GAAP financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for, or superior to, the financial information prepared and presented in accordance with generally accepted accounting principles. In addition, these measures may be materially different from non-GAAP financial measures used by other companies. Wind River is providing these non-GAAP financial measures because it believes that such measures provide important supplemental information to management and investors about the company’s core operating results, primarily because the non-GAAP measures exclude certain expenses and other amounts that management does not consider to be indicative of the company’s core operating results or business outlook. Wind River management uses these non-GAAP financial measures, in addition to the corresponding GAAP financial measures, in evaluating the company’s operating performance, in planning and forecasting future periods, in making decisions regarding business operations and the allocation of resources, and in comparing the company’s performance against its historical performance. For a description of these non-GAAP financial measures, including the reasons management uses these measures, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with GAAP, please see the following sections of this release entitled “About Non-GAAP Financial Measures,” “Reconciliation of GAAP to Non-GAAP Financial Measures” and “Reconciliation of GAAP to Non-GAAP Net Income (Loss) per Share Targets.” All non-GAAP financial measures should be read in conjunction with the comparable information presented in accordance with GAAP. Unless specified otherwise in this release, all references to GAAP and non-GAAP net income (loss) per share are calculated on a fully-diluted basis.
Forward-Looking Statements
This press release contains forward-looking statements, including those relating to expected revenues and GAAP and non-GAAP net income (loss) per share for the three-month period ending July 31, 2008 and the fiscal year ending January 31, 2009, as well as statements made by our CEO about our business. Words such as “expects,” “anticipates,” “projects,” “intends,” “plans,” “believes” and “estimates,” variations of such words and similar expressions are also intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated herein. Factors that could cause or contribute to such differences include but are not limited to, the success of Wind River’s implementation of its new and current products, the success of our business models and market strategies, the ability to address rapidly changing technology and markets and to deliver our products on a timely basis, our ability to grow our Linux business, the ability of our customers to sell products that include the company’s software, the impact of competitive products and pricing, weakness in the economy generally or in the technology sector specifically, the success of the company’s strategic relationships, the impact of other costs and the risk factors detailed in Wind River’s Annual Report on Form 10-K for the fiscal year ended January 31, 2008, its Quarterly Reports on Form 10-Q and other periodic filings with the Securities and Exchange Commission. Wind River undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
About Wind River
Wind River is the global leader in Device Software Optimization (DSO). Wind River enables companies to develop, run and manage device software faster, better, at lower cost and more reliably. Wind River platforms are pre-integrated, fully standardized, enterprise-wide development solutions. They reduce effort, cost and risk and optimize quality and reliability at all phases of the device software development process, from concept to deployed product.
Founded in 1981, Wind River is headquartered in Alameda, California, with operations worldwide. To learn more, visit Wind River at www.windriver.com or call 1-800-872-4977.
Wind River Systems and the Wind River Systems logo are trademarks of Wind River Systems, Inc., and VxWorks and WIND RIVER are registered trademarks of Wind River Systems, Inc. Third party marks and brands are the property of their respective holders.
| WIND RIVER SYSTEMS, INC. | ||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| (In thousands, except per share amounts) | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| April 30, | ||||||||
| 2008 | 2007 | |||||||
| Revenues, net: | ||||||||
| Product | $ | 32,898 | $ | 28,196 | ||||
| Subscription | 33,070 | 28,825 | ||||||
| Service | 21,897 | 21,028 | ||||||
| Total revenues, net | 87,865 | 78,049 | ||||||
| Cost of revenues: | ||||||||
| Product | 750 | 525 | ||||||
| Subscription | 4,662 | 4,488 | ||||||
| Service | 16,746 | 13,970 | ||||||
| Amortization of purchased intangibles | 528 | 585 | ||||||
| Total cost of revenues | 22,686 | 19,568 | ||||||
| Gross profit | 65,179 | 58,481 | ||||||
| Operating expenses: | ||||||||
| Selling and marketing | 35,172 | 33,423 | ||||||
| Product development and engineering | 20,307 | 19,881 | ||||||
| General and administrative | 9,040 | 10,347 | ||||||
| Amortization of other intangibles | 107 | 112 | ||||||
| Restructuring and other charges | 2,930 | - | ||||||
| Total operating expenses | 67,556 | 63,763 | ||||||
| Loss from operations | (2,377 | ) | (5,282 | ) | ||||
| Other income, net | 2,563 | 1,941 | ||||||
| Income (loss) before income taxes | 186 | (3,341 | ) | |||||
| Provision for (benefit from) income taxes | (138 | ) | 1,210 | |||||
| Net income (loss) | $ | 324 | $ | (4,551 | ) | |||
| Net income (loss) per share: | ||||||||
| Basic and diluted | $ | 0.00 | $ | (0.05 | ) | |||
| Shares used in per share calculation: | ||||||||
| Basic | 85,211 | 85,260 | ||||||
| Diluted | 85,496 | 85,260 | ||||||
| WIND RIVER SYSTEMS, INC. | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
| (In thousands) | ||||||||
| (Unaudited) | ||||||||
| April 30, | January 31, | |||||||
| 2008 | 2008 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 91,873 | $ | 101,635 | ||||
| Short-term investments | 12,754 | 22,646 | ||||||
| Accounts receivable, net | 71,447 | 85,680 | ||||||
| Prepaid and other current assets | 17,941 | 18,855 | ||||||
| Total current assets | 194,015 | 228,816 | ||||||
| Long-term investments | 101,888 | 119,867 | ||||||
| Property and equipment, net | 76,879 | 77,981 | ||||||
| Goodwill | 115,562 | 114,371 | ||||||
| Other intangibles, net | 4,439 | 4,961 | ||||||
| Other assets | 18,272 | 17,923 | ||||||
| Total assets | $ | 511,055 | $ | 563,919 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 6,708 | $ | 9,341 | ||||
| Accrued and other current liabilities | 22,510 | 21,817 | ||||||
| Accrued compensation | 24,011 | 24,433 | ||||||
| Income taxes payable | - | 614 | ||||||
| Deferred revenues | 124,636 | 119,886 | ||||||
| Total current liabilities | 177,865 | 176,091 | ||||||
| Long-term deferred revenues | 20,590 | 14,647 | ||||||
| Other long-term liabilities | 7,896 | 7,589 | ||||||
| Total liabilities | 206,351 | 198,327 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 91 | 91 | ||||||
| Additional paid-in-capital | 870,837 | 865,565 | ||||||
| Treasury stock | (116,649 | ) | (49,802 | ) | ||||
| Accumulated other comprehensive income | 7,420 | 7,057 | ||||||
| Accumulated deficit | (456,995 | ) | (457,319 | ) | ||||
| Total stockholders' equity | 304,704 | 365,592 | ||||||
| Total liabilities and stockholders' equity | $ | 511,055 | $ | 563,919 | ||||
|
WIND RIVER SYSTEMS, INC. |
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ABOUT NON-GAAP FINANCIAL MEASURES |
|||||
|
In addition to the company's condensed consolidated financial
statements prepared in accordance with generally accepted accounting
principles, or GAAP, Wind River is providing in this release certain
supplemental non-GAAP measures of financial performance. These
non-GAAP financial measures include: non-GAAP gross profit, non-GAAP
operating income, non-GAAP net income and non-GAAP net income per
diluted share. For a reconciliation of these non-GAAP financial
measures to the most directly comparable financial measures prepared
|
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