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 second fiscal quarter, ended September 30, 2006, was $23.6 million, compared to $18.3 million for the same quarter in the prior fiscal year. Earnings per share on a diluted basis for the second quarter of fiscal 2007 were $0.08, compared to $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 fifth consecutive quarter of record revenue. We are especially pleased that we grew our license revenue to $11.2 million this quarter, which represents an 8.3% sequential increase from last quarter�s record of $10.3 million and a 47.5% increase from the second quarter of fiscal 2006. The sequential and year-over-year growth in license revenue was primarily the result of increased sales to the United States government. We experienced a sequential decrease in our operating margin to 7.6% from 8% as a result of increased sales and marketing expenses, which included a $750 thousand increase in sales commissions driven by a significant increase in bookings. A $250 thousand increase in operating expenses from stock-based compensation also contributed to the sequential decrease in operating margin. The increase in bookings we achieved this quarter drove our deferred revenue to a record $19.6 million.� Financial Highlights for the Second Quarter of Fiscal Year 2007 Grew revenue year-over-year 29.3% to $23.6 million from $18.3 million for the same quarter of fiscal 2006. Revenue for the quarter grew sequentially 4.4% from $22.6 million for the first quarter of fiscal 2007. Grew license revenue year-over-year 47.5% to $11.2 million from $7.6 million for the same quarter of fiscal 2006. License revenue for the quarter grew sequentially 8.3% to $11.2 million from $10.3 million for the first quarter of fiscal 2007. Achieved record deferred revenue of $19.6 million, up sequentially from $18.5 million. Improved our gross profit sequentially to $18.7 million during the second quarter of fiscal 2007 from $17.9 million in the first quarter of fiscal 2007. Our operating income of $1.8 million represented a $24 thousand decrease from the first quarter of fiscal 2007. Mr. Cohen continued, �We are well-positioned to leverage our operating model and are excited about the significant increase in bookings we experienced during our second fiscal quarter. We continue to be encouraged by the business activity generated from our worldwide distribution agreement with Cisco Systems.� Third Quarter Fiscal Year 2007 Financial Outlook OPNET currently expects fiscal 2007 third quarter revenue to be between $23 and $24.5 million, and earnings per share to be between $0.04 and $0.09. 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, November 1, 2006 at 5:00 pm Eastern Time to discuss the overall results of Q2. 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 # 215705. The replay will be available from 7:00 pm Eastern Time November 1st through 11:59 pm Eastern Time November 8th. 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. OPNET TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) � � Three Months Ended September 30, Six Months Ended September 30, 2006� 2005� 2006� 2005� � Revenue: New software licenses $ 11,183� $ 7,584� $ 21,509� $ 14,210� Software license updates and technical support 6,983� 5,951� 13,437� 11,724� Professional services � 5,451� � 4,729� � 11,303� � 8,807� Total revenue � 23,617� � 18,264� � 46,249� � 34,741� � Cost of revenue: New software licenses 195� 182� 321� 362� Software license updates and technical support 761� 673� 1,468� 1,293� Professional services 3,782� 3,170� 7,523� 6,444� Amortization of acquired technology � 186� � 192� � 377� � 383� Total cost of revenue � 4,924� � 4,217� � 9,689� � 8,482� � Gross profit � 18,693� � 14,047� � 36,560� � 26,259� � Operating expenses: Research and development 5,373� 4,677� 10,589� 9,188� Sales and marketing 8,904� 6,258� 16,967� 12,176� General and administrative � 2,620� � 3,091� � 5,388� � 6,041� Total operating expenses � 16,897� � 14,026� � 32,944� � 27,405� � Income (loss) from operations 1,796� 21� 3,616� (1,146) Interest and other income, net � 988� � 614� � 1,891� � 1,127� Income (loss) before provision for income taxes 2,784� 635� 5,507� (19) Provision (benefit) for income taxes � 1,057� � 195� � 2,144� � (5) Net income (loss) $ 1,727� $ 440� $ 3,363� $ (14) � Basic net income (loss) per common share $ 0.09� $ 0.02� $ 0.17� $ (0.00) Diluted net income (loss) per common share $ 0.08� $ 0.02� $ 0.16� $ (0.00) Basic weighted average common shares outstanding � 20,266� � 20,311� � 20,228� � 20,336� Diluted weighted average common shares outstanding � 21,019� � 20,552� � 20,920� � 20,336� � OPNET TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) � � September 30, March 31, 2006� 2006� ASSETS Current assets: Cash and cash equivalents $ 44,112� $ 66,710� Marketable securities 42,316� 19,151� Accounts receivable 16,900� 12,765� Unbilled accounts receivable 4,123� 2,616� Deferred income taxes, prepaid expenses and other current assets � 3,307� � 2,339� Total current assets 110,758� 103,581� � Property and equipment, net 6,322� 6,088� Intangible assets, net 1,245� 1,240� Goodwill 14,639� 14,639� Deferred income taxes and other assets � 1,673� � 1,799� Total assets $ 134,637� $ 127,347� � LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 423� $ 1,019� Accrued liabilities 7,543� 8,539� Deferred and accrued income taxes 361� 527� Notes payable --� 47� Deferred rent 138� 89� Deferred revenue � 18,881� � 15,800� Total current liabilities � 27,346� � 26,021� � Accrued liabilities 127� --� Notes payable --� 103� Deferred rent 950� 1,033� Deferred revenue 706� 779� Deferred income taxes � 14� � 13� Total liabilities � 29,143� � 27,949� � Commitments and contingencies (Note 9) Stockholders' equity: Common stock 27� 27� Additional paid-in capital 83,242� 80,984� Deferred compensation --� (393) Retained earnings 30,213� 26,850� Accumulated other comprehensive income (loss) 190� (345) Treasury stock, at cost � (8,178) � (7,725) Total stockholders� equity � 105,494� � 99,398� Total liabilities and stockholders� equity $ 134,637� $ 127,347� OPNET Technologies, Inc. (NASDAQ:OPNT), a leading provider of management software for networks and applications, today announced that quarterly revenue for the second fiscal quarter, ended September 30, 2006, was $23.6 million, compared to $18.3 million for the same quarter in the prior fiscal year. Earnings per share on a diluted basis for the second quarter of fiscal 2007 were $0.08, compared to $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 fifth consecutive quarter of record revenue. We are especially pleased that we grew our license revenue to $11.2 million this quarter, which represents an 8.3% sequential increase from last quarter's record of $10.3 million and a 47.5% increase from the second quarter of fiscal 2006. The sequential and year-over-year growth in license revenue was primarily the result of increased sales to the United States government. We experienced a sequential decrease in our operating margin to 7.6% from 8% as a result of increased sales and marketing expenses, which included a $750 thousand increase in sales commissions driven by a significant increase in bookings. A $250 thousand increase in operating expenses from stock-based compensation also contributed to the sequential decrease in operating margin. The increase in bookings we achieved this quarter drove our deferred revenue to a record $19.6 million." Financial Highlights for the Second Quarter of Fiscal Year 2007 -- Grew revenue year-over-year 29.3% to $23.6 million from $18.3 million for the same quarter of fiscal 2006. Revenue for the quarter grew sequentially 4.4% from $22.6 million for the first quarter of fiscal 2007. -- Grew license revenue year-over-year 47.5% to $11.2 million from $7.6 million for the same quarter of fiscal 2006. License revenue for the quarter grew sequentially 8.3% to $11.2 million from $10.3 million for the first quarter of fiscal 2007. -- Achieved record deferred revenue of $19.6 million, up sequentially from $18.5 million. -- Improved our gross profit sequentially to $18.7 million during the second quarter of fiscal 2007 from $17.9 million in the first quarter of fiscal 2007. -- Our operating income of $1.8 million represented a $24 thousand decrease from the first quarter of fiscal 2007. Mr. Cohen continued, "We are well-positioned to leverage our operating model and are excited about the significant increase in bookings we experienced during our second fiscal quarter. We continue to be encouraged by the business activity generated from our worldwide distribution agreement with Cisco Systems." Third Quarter Fiscal Year 2007 Financial Outlook OPNET currently expects fiscal 2007 third quarter revenue to be between $23 and $24.5 million, and earnings per share to be between $0.04 and $0.09. 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, November 1, 2006 at 5:00 pm Eastern Time to discuss the overall results of Q2. 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 # 215705. The replay will be available from 7:00 pm Eastern Time November 1st through 11:59 pm Eastern Time November 8th. -- 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 Six Months Ended September 30, September 30, --------------------- --------------------- 2006 2005 2006 2005 ---------- ---------- ---------- ---------- Revenue: New software licenses $ 11,183 $ 7,584 $ 21,509 $ 14,210 Software license updates and technical support 6,983 5,951 13,437 11,724 Professional services 5,451 4,729 11,303 8,807 ---------- ---------- ---------- ---------- Total revenue 23,617 18,264 46,249 34,741 ---------- ---------- ---------- ---------- Cost of revenue: New software licenses 195 182 321 362 Software license updates and technical support 761 673 1,468 1,293 Professional services 3,782 3,170 7,523 6,444 Amortization of acquired technology 186 192 377 383 ---------- ---------- ---------- ---------- Total cost of revenue 4,924 4,217 9,689 8,482 ---------- ---------- ---------- ---------- Gross profit 18,693 14,047 36,560 26,259 ---------- ---------- ---------- ---------- Operating expenses: Research and development 5,373 4,677 10,589 9,188 Sales and marketing 8,904 6,258 16,967 12,176 General and administrative 2,620 3,091 5,388 6,041 ---------- ---------- ---------- ---------- Total operating expenses 16,897 14,026 32,944 27,405 ---------- ---------- ---------- ---------- Income (loss) from operations 1,796 21 3,616 (1,146) Interest and other income, net 988 614 1,891 1,127 ---------- ---------- ---------- ---------- Income (loss) before provision for income taxes 2,784 635 5,507 (19) Provision (benefit) for income taxes 1,057 195 2,144 (5) ---------- ---------- ---------- ---------- Net income (loss) $ 1,727 $ 440 $ 3,363 $ (14) ========== ========== ========== ========== Basic net income (loss) per common share $ 0.09 $ 0.02 $ 0.17 $ (0.00) ========== ========== ========== ========== Diluted net income (loss) per common share $ 0.08 $ 0.02 $ 0.16 $ (0.00) ========== ========== ========== ========== Basic weighted average common shares outstanding 20,266 20,311 20,228 20,336 ========== ========== ========== ========== Diluted weighted average common shares outstanding 21,019 20,552 20,920 20,336 ========== ========== ========== ========== *T -0- *T OPNET TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) September 30, March 31, 2006 2006 ------------- ------------- ASSETS Current assets: Cash and cash equivalents $ 44,112 $ 66,710 Marketable securities 42,316 19,151 Accounts receivable 16,900 12,765 Unbilled accounts receivable 4,123 2,616 Deferred income taxes, prepaid expenses and other current assets 3,307 2,339 ------------- ------------- Total current assets 110,758 103,581 Property and equipment, net 6,322 6,088 Intangible assets, net 1,245 1,240 Goodwill 14,639 14,639 Deferred income taxes and other assets 1,673 1,799 ------------- ------------- Total assets $ 134,637 $ 127,347 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 423 $ 1,019 Accrued liabilities 7,543 8,539 Deferred and accrued income taxes 361 527 Notes payable -- 47 Deferred rent 138 89 Deferred revenue 18,881 15,800 ------------- ------------- Total current liabilities 27,346 26,021 ------------- ------------- Accrued liabilities 127 -- Notes payable -- 103 Deferred rent 950 1,033 Deferred revenue 706 779 Deferred income taxes 14 13 ------------- ------------- Total liabilities 29,143 27,949 ------------- ------------- Commitments and contingencies (Note 9) Stockholders' equity: Common stock 27 27 Additional paid-in capital 83,242 80,984 Deferred compensation -- (393) Retained earnings 30,213 26,850 Accumulated other comprehensive income (loss) 190 (345) Treasury stock, at cost (8,178) (7,725) ------------- ------------- Total stockholders' equity 105,494 99,398 ------------- ------------- Total liabilities and stockholders' equity $ 134,637 $ 127,347 ============= ============= *T