OPNT Opiant Pharmaceuticals Inc

OPNET Technologies, Inc. (NASDAQ:OPNT), a leading provider of management software for networks and applications, today announced that quarterly revenue for the first fiscal quarter, ended June 30, 2006, was $22.6 million, compared to $16.5 million for the same quarter in the prior fiscal year. Earnings per share for the first quarter of fiscal 2007 were $0.08 on a diluted basis, compared to negative $0.02 for the same quarter in the prior fiscal year. Marc A. Cohen, OPNET's Chairman and CEO, stated, "We are very pleased to report a third consecutive quarter of record revenue across all three revenue categories: new software licenses, software license updates and technical support, and professional services. We achieved a gross margin of 78.9% during Q1, driven by new software license revenue of $10.3 million. Operating income for Q1 improved by $1 million from the prior quarter. We also ended the quarter with record deferred revenue of $18.5 million." Financial Highlights for the First Quarter of Fiscal Year 2007 -- Grew revenue year over year 37.4% to $22.6 million from $16.5 million for the same quarter of fiscal 2006. Revenue for the quarter grew sequentially 6.4% from $21.3 million for the fourth quarter of fiscal 2006. -- Grew license revenue year over year 55.8% to $10.3 million from $6.6 million for the same quarter of fiscal 2006. License revenue for the quarter grew sequentially 10.7% from $9.3 million for the fourth quarter of fiscal 2006. -- Achieved record deferred revenue of $18.5 million, up sequentially from $16.6 million. -- Improved our gross profit sequentially to $17.9 million during the first quarter of fiscal 2007 from $16.5 million. -- Improved our operating income sequentially to $1.8 million during the first quarter of fiscal 2007 from $793 thousand. Mr. Cohen continued, "We are well-positioned to leverage our operating model. We continue to be encouraged by the business activity generated from our worldwide distribution agreement with Cisco Systems. Additionally, legal expenses related to the lawsuit filed by Compuware Corporation in September 2004 are no longer putting pressure on our operating margin, as the lawsuit was settled on April 10, 2006." Second Quarter Fiscal Year 2007 Financial Outlook OPNET currently expects fiscal 2007 second quarter revenue to be between $22.0 and $23.5 million, and earnings per share to be between $0.02 and $0.07. These estimates represent management's current expectations about the Company's future financial performance, based on information available at this time. OPNET will hold an investor conference call on Wednesday, August 2, 2006 at 5:00pm Eastern Time to discuss the overall results of Q1. To listen to the OPNET investor conference call: -- Call 877-407-9205 in the U.S. or 201-689-8054 for international callers, or -- Use the webcast at www.opnet.com, or at www.investorcalendar.com (click on OPNT under "VCalls by Date"). Investors are advised to go to the web site at least 15 minutes early to register, download, and install any necessary audio software. To listen to the archived call: -- Call the replay phone number at 877-660-6853 or 201-612-7415 for international callers. For replay, enter account # 286, conference ID # 208275. The replay will be available from 7:00 pm Eastern Time August 2nd through 11:59 pm Eastern Time August 7th. -- The webcast will be available at www.opnet.com or at www.investorcalendar.com, archived for seven days. About OPNET Technologies, Inc. Founded in 1986, OPNET Technologies, Inc. (NASDAQ:OPNT) is a leading provider of management software for networks and applications. For more information about OPNET and its products, visit www.opnet.com. OPNET and OPNET Technologies, Inc. are trademarks of OPNET Technologies, Inc. All other trademarks are the property of their respective owners. Statements in this press release that are not purely historical facts may constitute forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. OPNET Technologies, Inc. ("OPNET") assumes no obligation to update statements. Forward-looking statements are predictions based upon information available to OPNET as of the date of this press release and involve risks and uncertainties; therefore, actual events or results may differ materially. For a discussion of risk factors, see OPNET's reports, including its most recent 10-Q and 10-K, filed with the Securities & Exchange Commission. Note to editors: The word OPNET is spelled with all upper-case letters. -0- *T OPNET TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) Three Months Ended June 30, ------------------------ 2006 2005 ----------- ----------- Revenue: New software licenses $ 10,326 $ 6,626 Software license updates and technical support 6,454 5,773 Professional services 5,852 4,078 ----------- ----------- Total revenue 22,632 16,477 ----------- ----------- Cost of revenue: New software licenses 126 180 Software license updates and technical support 707 619 Professional services 3,741 3,274 Amortization of acquired technology 191 192 ----------- ----------- Total cost of revenue 4,765 4,265 ----------- ----------- Gross profit 17,867 12,212 ----------- ----------- Operating expenses: Research and development 5,216 4,511 Sales and marketing 8,063 5,918 General and administrative 2,768 2,950 ----------- ----------- Total operating expenses 16,047 13,379 ----------- ----------- Income (loss) from operations 1,820 (1,167) Interest and other income, net 903 513 ----------- ----------- Income (loss) before provision for income taxes 2,723 (654) Provision (benefit) for income taxes 1,088 (200) ----------- ----------- Net income (loss) $ 1,635 $ (454) =========== =========== Basic net income (loss) per common share $ 0.08 $ (0.02) =========== =========== Diluted net income (loss) per common share $ 0.08 $ (0.02) =========== =========== Basic weighted average common shares outstanding 20,190 20,315 =========== =========== Diluted weighted average common shares outstanding 20,664 20,315 =========== =========== OPNET TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) June 30, March 31, 2006 2006 ----------- ----------- ASSETS Current assets: Cash and cash equivalents $ 69,509 $ 66,710 Marketable securities 17,403 19,151 Accounts receivable 15,017 12,765 Unbilled accounts receivable 3,238 2,616 Deferred income taxes, prepaid expenses and other current assets 2,313 2,339 ----------- ----------- Total current assets 107,480 103,581 Property and equipment, net 6,340 6,088 Intangible assets, net 1,449 1,240 Goodwill 14,639 14,639 Deferred income taxes and other assets 1,720 1,799 ----------- ----------- Total assets $ 131,628 $ 127,347 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 749 $ 1,019 Accrued liabilities 7,509 8,539 Deferred and accrued income taxes 1,283 527 Notes payable - 47 Deferred rent 112 89 Deferred revenue 17,586 15,800 ----------- ----------- Total current liabilities 27,239 26,021 ----------- ----------- Notes payable - 103 Deferred rent 991 1,033 Deferred revenue 882 779 Deferred income taxes 14 13 ----------- ----------- Total liabilities 29,126 27,949 ----------- ----------- Commitments and contingencies (Note 8) Stockholders' equity: Common stock 27 27 Additional paid-in capital 83,610 80,984 Deferred compensation (1,866) (393) Retained earnings 28,485 26,850 Accumulated other comprehensive loss (29) (345) Treasury stock, at cost (7,725) (7,725) ----------- ----------- Total stockholders' equity 102,502 99,398 ----------- ----------- Total liabilities and stockholders' equity $ 131,628 $ 127,347 =========== =========== *T