Revenues Increase 131% to $56.1 Million for Q4 2000
Irvine, Calif., & Burnham, Bucks., February 5, 2001 - Quest Software (Nasdaq: QSFT), a leading provider of application management solutions, announced record financial results for its fourth quarter and year ended December 31, 2000. The company achieved fourth quarter revenues of $56.1 million, an increase of 131% over last year’s fourth quarter revenues of $24.3 million. Pro forma net income, excluding the amortization of goodwill and purchased intangible assets and other compensation costs, increased 242% to $6.3 million from $1.8 million year over year. Diluted pro forma net income per share for the fourth quarter was $0.07, up 250% from $0.02 for the same period last year.
(in thousands, except per share data)
Three Months ended December 31, 2000
Revenues 2000 - $56,085 1999 - $24,271
Pro forma income from operations (a) 2000 - $7,222 1999 - $1,935
Pro forma net income (b) 2000 - $6,302 1999 - $1,843
Pro forma net income per share 2000 - $0.07 1999 - $0.02
Pro forma diluted shares outstanding 2000 - 92,970 1999 - 84,038
(a) For the quarter ended December 31,
2000, excludes $15.2 million for
amortization of goodwill and other
compensation costs; and $2.0 million
for amortization of purchased intangible
assets. For the quarter ended
December 31, 1999, excludes $0.3
million of other compensation costs.
(b) For 2000, assumes a pro forma tax rate of 40%.
For the fourth quarter of 2000, on an as reported basis without adjustments for the amortization of goodwill and purchased intangible assets and other compensation costs, Quest Software reported a net loss of $8.7 million or $(0.10) per share, compared with net income of $1.6 million and $0.02 per diluted share.
"We completed the year with record revenues and we are very optimistic about our growth potential for 2001," said Vinny Smith, chairman and chief executive officer of Quest Software. "We also saw record pro forma operating margins of 13%, an increase of 500 basis points over the fourth quarter last year, as we obtained operating efficiencies at higher revenue levels. We continue to strengthen our position in our core markets as we gain share in Oracle development, administration and high availability areas. We have built out our IBM UDB, Microsoft and application monitoring product portfolios and expect them to contribute significantly to our 2001 results. Our value proposition to customers has always been to manage their most critical applications from an availability and performance perspective, and we are taking this orientation to these new markets."
For the years ended December 31, 2000 and 1999, Quest Software had revenue of $165.6 million and $70.9 million respectively, a 134% year over year increase. Pro forma net income in 2000 increased 304% to $16.7 million from pro forma net income of $4.1 million in 1999. Pro forma diluted net income per share for 2000 increased 260% to $0.18 from $0.05 for the prior year.
For the year, Quest Software reported a loss of $25.1 million, or $(0.29) per share, compared with net income of $2.8 million or $0.03 per diluted share for the prior year.
The Company is also announcing the appointment of Brinkley Morse as vice president of finance and operations. In this capacity, Morse will replace chief financial officer John Laskey. "John indicated his desire to leave Quest, and we began work on an orderly transition plan. We wish John well and thank him for his contributions to Quest," said Smith.
"I am delighted to welcome Brinkley to our management team, " said Smith. "With over a decade of experience in our industry dealing with larger, high growth operations, Brinkley will be a great asset to Quest as we continue to grow our business. This addition completes the build out of our executive team as we enter 2001 everyone on board."
Forward Looking Statements
This release may include predictions, estimates and other information that might be considered forward-looking statements. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ from those anticipated as a result of various factors, including the impact of economic conditions on our customers, variations in the size and timing of customer orders; competitive products and pricing; dependence on Oracle’s technologies; vulnerability to direct competition with Oracle and other providers of database and database management products; rapid technological change; risks associated with the development and market acceptance of new products; disruptions caused by acquisitions of companies and/or technologies; the exposure to risk from international operations; and the need to attract and retain qualified personnel.
For a discussion of these and other related risks, please refer to our recent SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 1999 and our Quarterly Report on Form 10-Q for the quarter ended September 30, 2000. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. We undertake no obligation to update forward-looking statements to reflect events or circumstances after the date hereof.
About Quest Software
Quest Software is a leading provider of application management solutions designed to maintain the integrity of mission-critical business transactions and maximise the performance of enterprise applications. Businesses and consumers alike have come to expect instant access to information and Quest Software provides solutions to ensure this availability. Quest Software (UK) Limited is a wholly owned subsidiary of Quest Software, Inc. Based in Irvine, Calif., Quest Software has offices worldwide and over 1,400 employees. For more information, visit http://www.quest.com
Quest Software (UK) Limited
Tel: 01628 601000
Fax: 01628 664030
Ad-Lib International Limited
Tel: 0118 9744189
This press release was distributed by ResponseSource Press Release Wire on behalf of Ad-Lib International Limited in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.