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Opsware Inc. An der Welle 4 60422 Frankfurt, Germany https://www.opswat.com
Contact Ms Nina Oestlien +1 415-318-4225
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Opsware Inc.

OPSWARE INC. Q3 non-eds revenue grows 97%

Non-EDS derived bookings totals $22.4 million; up 32% sequentially

(PresseBox) (Sunnyvale, )
Opsware Inc. (NASDAQ: OPSW), the leading provider of Data Center Automation software, today reported results for its third quarter ended October 31, 2006, highlighted by 97% year-over-year growth in non-EDS revenue and the largest bookings quarter in company history.

Net revenue for the third quarter ended October 31, 2006 totaled $25.0 million, up 59% from the same quarter last year. Net revenue was at the low end of the company’s previously guided range and, during this record bookings period, corresponded with deferred revenue growth that exceeded the company’s expectation. Deferred revenue grew by $2.1 million sequentially to $28.4 million, exceeding the company’s expectation of $26 million.

Non-EDS revenue totaled $19.7 million in the third quarter, a 97% increase over the same quarter last year. A chart depicting Opsware’s historical non-EDS revenue is included in this release.

Non-EDS derived bookings (which equals net revenue, plus the sequential changes in deferred revenue and advances from customers, all excluding the impact of the EDS contract) totaled $22.4 million in the third quarter, up $5.4 million or 32% sequentially, and exceeded the company’s expectation. Non-EDS derived bookings increased 58% from the same quarter last year. A chart depicting Opsware’s historical non-EDS derived bookings is included in this release.

Non-GAAP net income in the third quarter was $0.5 million or $0.01 per share, above the company’s guidance of $0.00 per share.

GAAP net loss in the third quarter was $(4.8) million or $(0.05) per share. Non-GAAP net income in the third quarter excludes non-cash charges of approximately $1.1 million relating to previous acquisitions and $4.2 million of non-cash stock-based compensation. A reconciliation between net income (loss) on GAAP and non-GAAP bases is provided in a table immediately following the Condensed Consolidated Statements of Operations attached to this release.

The company reaffirmed its full year revenue expectation of approximately $102 million and non-GAAP profitability of $0.03 per share.

“With record bookings and 97% year-over-year non-EDS revenue growth, I am pleased with our continuing momentum and strong performance in Q3,” said Ben Horowitz, president and CEO of Opsware Inc. “Our market opportunity continues to grow and with the addition of our just announced Virtualization Director, we’re in a great position to benefit from one of the fastest-growing trends in enterprise IT.”
Financial Outlook Management provides the following guidance for its fourth quarter ending January 31, 2007:
- Net revenue is expected to total approximately $30 million.
- Non-GAAP EPS is expected to be $0.03.

Management reaffirms the following guidance for its fiscal year ending January 31, 2007:
- Net revenue is expected to total approximately $102 million.
- Non-GAAP EPS is expected to be $0.03.

About Non-GAAP Financial Information
When used in connection with historical results or forward-looking guidance, non-GAAP net income, non-GAAP profitability and non-GAAP EPS each exclude non-cash stock-based compensation expense and non-cash charges relating to past acquisitions. With respect to historical results, a reconciliation between both net income (loss) and net income (loss) per share on GAAP and non-GAAP bases is provided in a table immediately following the Condensed Consolidated Statement of Operations attached to this release. With respect to forward-looking guidance, a reconciliation between EPS on GAAP and non-GAAP bases has not been provided because EPS on a GAAP basis depends in part upon the amount of stock based compensation expense, which expense is dependent upon our future stock price and other factors that cannot be determined at this time.

To supplement our consolidated financial statements presented on a GAAP basis, we believe that these non-GAAP measures better reflect our core operating results and thus are appropriate to enhance the overall understanding of our past financial performance and our prospects for the future. These adjustments to our GAAP results are made with the intent of providing both management and investors a more complete understanding of our underlying operational results and trends and our performance. Management uses these non-GAAP measures to evaluate its financial results, develop budgets and manage expenditures. The presentation of additional information is not meant to be considered in isolation or as a substitute for net loss or net loss per share prepared in accordance with GAAP.

Opsware Inc.

Opsware Inc. is the world’s leading Data Center Automation software company. The growth of the Internet is driving a shift from client/server computing to Web architecture. With this shift comes an overwhelming proliferation of servers, network devices and applications, creating massive complexity that makes an automated IT model a necessity. The Opsware System automates the complete IT lifecycle and delivers utility computing by enabling IT to automatically provision, patch, configure, secure, change, scale, audit, recover, consolidate, migrate, and reallocate servers, network devices and applications. Over 350 of the world’s largest companies, outsourcers and government agencies use Opsware to deliver this new, automated model of IT. For more information on Opsware Inc., please visit our web site at www.opsware.com.

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The publisher indicated in each case (see company info by clicking on image/title or company info in the right-hand column) is solely responsible for the stories above, the event or job offer shown and for the image and audio material displayed. As a rule, the publisher is also the author of the texts and the attached image, audio and information material. The use of information published here is generally free of charge for personal information and editorial processing. Please clarify any copyright issues with the stated publisher before further use. In case of publication, please send a specimen copy to service@pressebox.de.