Opsware Inc. (NASDAQ:OPSW), the leading provider of Data Center Automation software, today reported results for its fourth quarter and full year ended January 31, 2007, highlighted by 103% year-over-year growth in non-EDS revenue and the strongest bookings quarter in company history.
Separately, the company announced the acquisition of privately held iConclude, the leader in IT process automation software.
Opsware Inc.’s net revenue for the fourth quarter ended January 31, 2007 totaled $29.6 million, up 59% from the same quarter last year.
Full year revenue totaled $101.7 million, up 67% from the prior year.
Non-EDS revenue totaled $24.1 million in the fourth quarter, an 81% increase over the same quarter last year. A chart depicting Opsware’s historical non-EDS revenue growth is included in this release.
Full year non-EDS revenue totaled $80.6 million, up 103% from the prior year.
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 $26.7 million in the fourth quarter, up 50% from the same quarter last year and $4.3 million sequentially. A chart depicting Opsware’s historical non-EDS derived bookings growth is included in this release.
Non-GAAP net income in the fourth quarter was $3.5 million or $0.03 per share, meeting the company’s guidance.
GAAP net loss in the fourth quarter was $(1.7) million or $(0.02) per share. Non-GAAP net income in the fourth quarter excludes non-cash charges of approximately $1.1 million relating to previous acquisitions and $4.1 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.
“This was another great year for Opsware,” said Ben Horowitz, president and CEO of Opsware Inc. “During FY ’07 we grew our non-EDS revenue by more than 100%, doubled the number of new deals signed, crossed the $100 million revenue milestone, and in a year in which we grew our product suite from 2 to 6, achieved non-GAAP profitability for the year. We expect FY ’08 to be even better, with non-EDS derived bookings growing even more than they did this year.”
Financial Outlook
Management provides the following guidance for its first quarter ending April 30, 2007:
- Net revenue is expected to total approximately $26 – 27 million.
- Non-GAAP EPS is expected to be $(0.01 – 0.02).
Management provides the following guidance for its fiscal year ending January 31, 2008:
- Non-EDS derived bookings growth is expected to be at least 60% compared to fiscal year 2007.
- Net revenue is expected to total $142 – $147 million.
- Non-GAAP operating margin is expected to be 5 – 8%.
- Non-GAAP EPS is expected to be $0.09 – 0.13.
The company guidance for its fiscal year ending January 31, 2008 includes incremental revenue of $2 – 3 million, as well as the expense base acquired from the purchase of iConclude. The net effect of the transaction on non-GAAP EPS after considering acquired operating expenses, share issuance, and lower interest income is $(0.05) in fiscal 2008. The transaction is expected to be EPS accretive in fiscal 2009.
About Non-GAAP Financial Information
When used in connection with historical results or forward-looking guidance, non-GAAP net income, non-GAAP profitability, non-GAAP operating margin 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 both operating margin and EPS on GAAP and non-GAAP bases has not been provided because each of operating margin and 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.
Separately, the company announced the acquisition of privately held iConclude, the leader in IT process automation software.
Opsware Inc.’s net revenue for the fourth quarter ended January 31, 2007 totaled $29.6 million, up 59% from the same quarter last year.
Full year revenue totaled $101.7 million, up 67% from the prior year.
Non-EDS revenue totaled $24.1 million in the fourth quarter, an 81% increase over the same quarter last year. A chart depicting Opsware’s historical non-EDS revenue growth is included in this release.
Full year non-EDS revenue totaled $80.6 million, up 103% from the prior year.
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 $26.7 million in the fourth quarter, up 50% from the same quarter last year and $4.3 million sequentially. A chart depicting Opsware’s historical non-EDS derived bookings growth is included in this release.
Non-GAAP net income in the fourth quarter was $3.5 million or $0.03 per share, meeting the company’s guidance.
GAAP net loss in the fourth quarter was $(1.7) million or $(0.02) per share. Non-GAAP net income in the fourth quarter excludes non-cash charges of approximately $1.1 million relating to previous acquisitions and $4.1 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.
“This was another great year for Opsware,” said Ben Horowitz, president and CEO of Opsware Inc. “During FY ’07 we grew our non-EDS revenue by more than 100%, doubled the number of new deals signed, crossed the $100 million revenue milestone, and in a year in which we grew our product suite from 2 to 6, achieved non-GAAP profitability for the year. We expect FY ’08 to be even better, with non-EDS derived bookings growing even more than they did this year.”
Financial Outlook
Management provides the following guidance for its first quarter ending April 30, 2007:
- Net revenue is expected to total approximately $26 – 27 million.
- Non-GAAP EPS is expected to be $(0.01 – 0.02).
Management provides the following guidance for its fiscal year ending January 31, 2008:
- Non-EDS derived bookings growth is expected to be at least 60% compared to fiscal year 2007.
- Net revenue is expected to total $142 – $147 million.
- Non-GAAP operating margin is expected to be 5 – 8%.
- Non-GAAP EPS is expected to be $0.09 – 0.13.
The company guidance for its fiscal year ending January 31, 2008 includes incremental revenue of $2 – 3 million, as well as the expense base acquired from the purchase of iConclude. The net effect of the transaction on non-GAAP EPS after considering acquired operating expenses, share issuance, and lower interest income is $(0.05) in fiscal 2008. The transaction is expected to be EPS accretive in fiscal 2009.
About Non-GAAP Financial Information
When used in connection with historical results or forward-looking guidance, non-GAAP net income, non-GAAP profitability, non-GAAP operating margin 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 both operating margin and EPS on GAAP and non-GAAP bases has not been provided because each of operating margin and 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.
