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 third fiscal quarter, ended December 31, 2006, was $24.5 million, compared to $20.1 million for the same quarter in the prior fiscal year. Earnings per share on a diluted basis for the third quarter of fiscal 2007 were $0.14, compared to $0.06 for the same quarter in the prior fiscal year. Marc A. Cohen, OPNET�s Chairman and CEO, stated, �I am very pleased to report that during fiscal Q3 we recorded our sixth consecutive quarter of record revenue, which enabled us to record $19.4 million of gross profit and achieve double-digit operating margin of 11.1%. We also ended the quarter with record deferred revenue of $20 million and increased our cash, cash equivalents and marketable securities to $91.1 million.� Financial Highlights for the Third Quarter of Fiscal Year 2007 Grew revenue year-over-year 22% to $24.5 million from $20.1 million for the same quarter of fiscal 2006. Revenue for the quarter grew sequentially 3.8% from $23.6 million for the second quarter of fiscal 2007. Grew license revenue year-over-year 30.1% to $11 million from $8.4 million for the same quarter of fiscal 2006. License revenue for the quarter decreased sequentially 1.9% to $11 million from $11.2 million for the second quarter of fiscal 2007. Achieved record deferred revenue of $20 million, up sequentially from $19.6 million. Improved our gross profit sequentially to $19.4 million during the third quarter of fiscal 2007 from $18.7 million in the second quarter of fiscal 2007. Improved our operating income to $2.7 million, which represents a $937 thousand increase from the second quarter of fiscal 2007. Mr. Cohen continued, �Legislation passed during fiscal Q3 that retroactively reinstated the Research and Development Tax Credit back to January 1, 2006. We adjusted our tax provision during the quarter to reflect the estimated tax benefit of this credit back to January 1, 2006. The sequential decrease in our effective tax rate from 38% in Q2 to 18.8% this quarter was primarily the result of adjusting our Q3 tax provision for this credit.� Fourth Quarter Fiscal Year 2007 Financial Outlook OPNET currently expects fiscal 2007 fourth quarter revenue to be between $23.5 and $25.5 million, and earnings per share to be between $0.04 and $0.10. 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, January 31, 2007 at 5:00 pm Eastern Time to discuss the overall results of Q3. To listen to the OPNET investor conference call: Dial 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: Dial the replay phone number at 877-660-6853 or 201-612-7415 for international callers. For replay, enter account # 286, conference ID # 227468. The replay will be available from 7:00 pm Eastern Time January 31st through 11:59 pm Eastern Time February 6th. 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 December 31, Nine Months Ended December 31, 2006� 2005� 2006� 2005� � Revenue: New software licenses $ 10,974� $ 8,436� $ 32,483� $ 22,646� Software license updates and technical support 7,185� 6,198� 20,622� 17,922� Professional services 6,363� 5,464� 17,666� 14,271� Total revenue 24,522� 20,098� 70,771� 54,839� � Cost of revenue: New software licenses 197� 184� 518� 546� Software license updates and technical support 752� 639� 2,220� 1,932� Professional services 4,033� 3,517� 11,556� 9,961� Amortization of acquired technology 182� 192� 559� 575� Total cost of revenue 5,164� 4,532� 14,853� 13,014� � Gross profit 19,358� 15,566� 55,918� 41,825� � Operating expenses: Research and development 5,512� 4,608� 16,101� 13,796� Sales and marketing 8,259� 6,813� 25,226� 18,989� General and administrative 2,854� 3,826� 8,242� 9,867� Total operating expenses 16,625� 15,247� 49,569� 42,652� � Income (loss) from operations 2,733� 319� 6,349� (827) Interest and other income, net 993� 746� 2,884� 1,873� Income before provision for income taxes 3,726� 1,065� 9,223� 1,046� Provision (benefit) for income taxes 702� (101) 2,847� (106) Net income $ 3,024� $ 1,166� $ 6,386� $ 1,152� � Basic net income per common share $ 0.15� $ 0.06� $ 0.32� $ 0.06� Diluted net income per common share $ 0.14� $ 0.06� $ 0.30� $ 0.06� Basic weighted average common shares outstanding 20,365� 20,229� 20,270� 20,345� Diluted weighted average common shares outstanding 21,387� 20,523� 21,125� 20,607� OPNET TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited) � December 31, March 31, 2006� 2006� ASSETS Current assets: Cash and cash equivalents $ 36,913� $ 66,710� Marketable securities 54,200� 19,151� Accounts receivable 16,928� 12,765� Unbilled accounts receivable 3,481� 2,616� Deferred income taxes, prepaid expenses and other current assets 3,639� 2,339� Total current assets 115,161� 103,581� � Property and equipment, net 6,409� 6,088� Intangible assets, net 1,063� 1,240� Goodwill 14,639� 14,639� Deferred income taxes and other assets 1,922� 1,799� Total assets $ 139,194� $ 127,347� � LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 278� $ 1,019� Accrued liabilities 7,264� 8,539� Deferred and accrued income taxes 283� 527� Notes payable --� 47� Deferred rent --� 89� Deferred revenue 19,377� 15,800� Total current liabilities 27,202� 26,021� � Accrued liabilities 189� --� Notes payable --� 103� Deferred rent 1,215� 1,033� Deferred revenue 652� 779� Deferred income taxes 15� 13� Total liabilities 29,273� 27,949� � Stockholders' equity: Common stock 27� 27� Additional paid-in capital 84,869� 80,984� Deferred compensation --� (393) Retained earnings 33,236� 26,850� Accumulated other comprehensive income (loss) 361� (345) Treasury stock, at cost (8,572) (7,725) Total stockholders� equity 109,921� 99,398� Total liabilities and stockholders� equity $ 139,194� $ 127,347�