CIMdata PLM Industry Summary Online Archive
26 July 2004
Financial News
Verisity Announces Revenue of $13.7 Million for Second Quarter Fiscal 2004
Verisity Ltd. announced financial results for the second fiscal quarter ended June 30, 2004. Revenue for the quarter was $13.7 million, a 10% increase from revenue of $12.5 million for the quarter ended June 30, 2003, and a 24% increase from revenue of $11 million for the quarter ended March 31, 2004.
The Company's net loss under generally accepted accounting principles (GAAP) for the quarter ended June 30, 2004 was $2.5 million, or ($0.11) per diluted share, compared to net income of $2.2 million, or $0.10 per diluted share, for the quarter ended June 30, 2003 and net loss of $2.2 million, or ($0.10) per diluted share, for the quarter ended March 31, 2004.
Non-GAAP net loss for the quarter ended June 30, 2004 was $0.6 million, or ($0.02) per diluted share, compared to net income of $2.3 million, or $0.11 per diluted share, for the quarter ended June 30, 2003 and net loss of $1.0 million, or ($0.04) per diluted share, for the quarter ended March 31, 2004.
Revenue for the six months ended June 30, 2004, was $24.7 million, a 2% increase from revenue of $24.2 million for the six months ended June 30, 2003. For the six months ended June 30, 2004, the Company's net loss was $4.7 million, or ($0.21) per diluted share, compared to a net income of $4.1 million, or $0.19 per diluted share, for the six months ended June 30, 2003. Non-GAAP net loss for the six months ended June 30, 2004 was $1.5 million, or ($0.07) per diluted share, compared to net income of $4.1 million, or $0.19 per diluted share, for the six months ended June 30, 2003.
Non-GAAP figures for the first and second quarter of 2004 exclude non-cash charges related to equity issuances, amortization of deferred compensation, and amortization of intangible assets resulting from the acquisition of Axis Systems that was completed on February 9, 2004.
"We are very pleased with our financial results for the quarter. We built substantial backlog while growing revenue to $13.7 million. Customers have embraced our expanded product offerings, quickly validating our recent strategic acquisition of Axis Systems," said Moshe Gavrielov, chief executive officer of Verisity. "We are now able to offer customers the full complement of solutions required for block, chip and system level verification. This has significantly fortified our competitive position in the verification marketplace. Our quick integration of Axis Systems allowed us to announce our SpeXtreme solution, integrating our market leading testbench automation solution with simulation, acceleration and emulation. SpeXtreme targets high performance chip- and system-level verification that will enable customers to significantly increase their verification performance," added Gavrielov.
The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. We do not plan to update, confirm or change this guidance until our next earnings conference call except by press release in the case of material events.
• Revenue in the third quarter of 2004 is expected to be approximately $15.0 to $15.3 million
• Non-GAAP loss per share in the third quarter of 2004 is expected to be approximately ($0.01) to ($0.02)
• Revenue for fiscal 2004 is expected to be between $56 and $58 million
• Non-GAAP loss per share for fiscal 2004 is expected to be between ($0.05) and ($0.09)
Verisity's earnings call will be webcast today at 5:00 p.m. Eastern Time / 2:00 p.m. Pacific Time. Following the conclusion of the webcast, a replay will be available via Verisity's web site at http://www.verisity.com through August 2, 2004. For those without access to the Internet, a replay of the call will be available from 5:00 p.m. Pacific Time on July 26, 2004 through August 2, 2004. To listen to a replay, call (719) 457-0820, access code 759072. The Company plans to include a business outlook in the conference call.
This press release includes financial measures for net income (loss) and net income (loss) per share that exclude certain non-cash charges and that have not been calculated in accordance with GAAP. These measures differ from GAAP in that they exclude non-cash charges related to equity issuances, amortization of deferred compensation, and amortization of intangible assets resulting from the acquisition of Axis Systems that was completed on February 9, 2004. Verisity provides these measurements in addition to GAAP financial results because it believes they provide a consistent basis for comparison between quarters that is not influenced by certain non-cash expenses and therefore is helpful to understanding Verisity's underlying operational results. Further, these non-GAAP measures are some of the primary measures Verisity's management uses for planning and forecasting. These measures should not be considered an alternative to GAAP, and these non-GAAP measures may not be comparable to information provided by other companies. For more information regarding the foregoing, including Verisity's unaudited non-GAAP condensed combined consolidated balance sheet as of December 31, 2003 and unaudited pro forma condensed combined consolidated statement of operations for the year ended December 31, 2003, please refer to Verisity's Current Report on Form 8-K/A, Amendment No. 1, filed with the Securities and Exchange Commission on April 22, 2004.
For more information, visit http://www.verisity.com
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