LEGATO Systems, Inc. Announces First Quarter 2003 Results
LEGATO Systems, Inc. (NASDAQ: LGTO), a worldwide leader in enterprise storage management software, today announced financial results for its first quarter of 2003.
Revenues for the first quarter of 2003 were $74.0 million, a decrease of 3% from the $76.6 million reported for the fourth quarter of 2002 and an increase of 33% from the $55.6 million reported for the first quarter of 2002. Net loss, computed in accordance with generally accepted accounting principles (GAAP), for the first quarter of 2003 was $2.6 million, or $0.02 per share, as compared to a GAAP net loss of $10.0 million, or $0.09 per share, for the fourth quarter of 2002, and as compared to a GAAP net loss of $46.7 million, or $0.52 per share, for the first quarter of 2002. In the fourth quarter of 2002, the Company took a charge to earnings of $11.7 million primarily related to the costs of excess facilities. In the first quarter of 2002, the Company took a litigation settlement charge of $67.0 million.
LEGATO reports net loss and basic and diluted net loss per share in accordance with GAAP and additionally on a non-GAAP basis, referred to as pro forma, which excludes the amortization of intangibles and certain other charges, such as litigation settlement charge, restructuring costs, non-operating gains or losses, valuation allowance on deferred tax assets and other related income tax effects.
After excluding these charges, effects and items included in GAAP reporting, pro forma net income for the first quarter of 2003 was $0.1 million, or $0.00 per share, as compared to a net income of $0.7 million, or $0.01 per share, for the fourth quarter of 2002, and a net loss of $5.7 million, or $0.06 per share, for the first quarter of 2002. As in prior periods, a reconciliation of GAAP net loss to the pro forma non-GAAP net income (loss) is included on the consolidated statements of operations attached.
LEGATO believes pro forma reporting is a more accurate representation of the Company's on-going economic performance, and therefore uses pro forma reporting internally to evaluate and manage the Company's operations. LEGATO has chosen to provide this information to investors to enable them to more readily compare operating results and as a means to emphasize the results of on-going operations.
"With the ongoing push for corporations to come into compliance with various regulations, our content and messaging solutions are gaining momentum," said David B. Wright, Chairman and CEO of LEGATO Systems. "In addition we were pleased to see anticipated product announcements well received by partners and alliances. LEGATO today is the preferred company enterprises turn to for scalable and secure software solutions that ensure reliable access to vital information when needed."
"LEGATO has successfully posted another quarter that has met or exceeded our expectations. The balance sheet continues to show strength. During the quarter the company generated $2.1 million of cash from operations, DSOs (days sales outstanding) decreased to 52 days and deferred revenue was up 3% quarter over quarter," said Andy Brown, CFO of LEGATO Systems.
The Company will be hosting a conference call today at 9:00 a.m. Eastern (6:00 a.m. Pacific) time to discuss the financial results referenced in this press release.
A slide presentation is available by going to the Companys website at www.LEGATO.com.
There will be two ways to participate in the call:
1. Telephonically by dialing (719) 457-2600 and viewing the slides at www.LEGATO.com.
2. Through a live audio stream and viewing the slides on the corporate website at www.LEGATO.com
A telephonic replay of the conference call is available until April 25, 2003 by calling (719) 457-0820 Passcode: 631483. The web cast of the conference call with the supporting slide presentation will be archived on the corporate website at www.LEGATO.com.
About Legato
LEGATO Systems, Inc. (NASDAQ:LGTO) delivers worldwide enterprise class software solutions and services that keep the world's business-critical information and applications available. With a direct sales force and through strategic partnerships and alliances, LEGATO delivers the advantage of business continuance through enterprise automation with information protection, application availability as well as content, message and storage management solutions. The company's corporate headquarters are located at 2350 West El Camino Real, Mountain View, CA 94040 (650) 210-7000, fax: (650) 210-7032, Web site: www.legato.com
Information regarding products, services and offerings may be superseded by subsequent documents. For the latest information and specifications regarding LEGATO Systems, Inc. and any of its offerings or services, please contact your local sales office or the Corporate Headquarters.
This press release contains forward-looking statements about projections or other forward looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and actual events or results may differ materially. Forward looking statements involve a number of risks and uncertainties. Please refer to the documents LEGATO Systems files from time to time with the Securities and Exchange Commission, specifically each company's latest filed Form 10-K and Form 10-Q. These documents contain and identify important risk factors that could cause actual results to differ materially from those contained in this press release (including expectations as to 2003 results) The forward-looking statements in this press release reflect the Company's beliefs and predictions as of April 22, 2003. The Company disclaims any obligation to update these forward-looking statements as a result of financial, business or any other developments occurring after April 22, 2003.
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LEGATO and the LEGATO logo are registered trademarks, and LEGATO NetWorker, NetWorker, SmartMedia, Co-StandbyServer, RepliStor, SnapShotServer, QuikStartz, AlphaStor, ClientPak, Xtender, XtenderSolutions, DiskXtender, ApplicationXtender, ArchiveXtender, EmailXtender, and EmailXaminer are trademarks or registered trademarks of LEGATO Systems, Inc. This is a nonexhaustive list of LEGATO trademarks, and other trademarks may be the property of their respective owners.
Revenues for the first quarter of 2003 were $74.0 million, a decrease of 3% from the $76.6 million reported for the fourth quarter of 2002 and an increase of 33% from the $55.6 million reported for the first quarter of 2002. Net loss, computed in accordance with generally accepted accounting principles (GAAP), for the first quarter of 2003 was $2.6 million, or $0.02 per share, as compared to a GAAP net loss of $10.0 million, or $0.09 per share, for the fourth quarter of 2002, and as compared to a GAAP net loss of $46.7 million, or $0.52 per share, for the first quarter of 2002. In the fourth quarter of 2002, the Company took a charge to earnings of $11.7 million primarily related to the costs of excess facilities. In the first quarter of 2002, the Company took a litigation settlement charge of $67.0 million.
LEGATO reports net loss and basic and diluted net loss per share in accordance with GAAP and additionally on a non-GAAP basis, referred to as pro forma, which excludes the amortization of intangibles and certain other charges, such as litigation settlement charge, restructuring costs, non-operating gains or losses, valuation allowance on deferred tax assets and other related income tax effects.
After excluding these charges, effects and items included in GAAP reporting, pro forma net income for the first quarter of 2003 was $0.1 million, or $0.00 per share, as compared to a net income of $0.7 million, or $0.01 per share, for the fourth quarter of 2002, and a net loss of $5.7 million, or $0.06 per share, for the first quarter of 2002. As in prior periods, a reconciliation of GAAP net loss to the pro forma non-GAAP net income (loss) is included on the consolidated statements of operations attached.
LEGATO believes pro forma reporting is a more accurate representation of the Company's on-going economic performance, and therefore uses pro forma reporting internally to evaluate and manage the Company's operations. LEGATO has chosen to provide this information to investors to enable them to more readily compare operating results and as a means to emphasize the results of on-going operations.
"With the ongoing push for corporations to come into compliance with various regulations, our content and messaging solutions are gaining momentum," said David B. Wright, Chairman and CEO of LEGATO Systems. "In addition we were pleased to see anticipated product announcements well received by partners and alliances. LEGATO today is the preferred company enterprises turn to for scalable and secure software solutions that ensure reliable access to vital information when needed."
"LEGATO has successfully posted another quarter that has met or exceeded our expectations. The balance sheet continues to show strength. During the quarter the company generated $2.1 million of cash from operations, DSOs (days sales outstanding) decreased to 52 days and deferred revenue was up 3% quarter over quarter," said Andy Brown, CFO of LEGATO Systems.
The Company will be hosting a conference call today at 9:00 a.m. Eastern (6:00 a.m. Pacific) time to discuss the financial results referenced in this press release.
A slide presentation is available by going to the Companys website at www.LEGATO.com.
There will be two ways to participate in the call:
1. Telephonically by dialing (719) 457-2600 and viewing the slides at www.LEGATO.com.
2. Through a live audio stream and viewing the slides on the corporate website at www.LEGATO.com
A telephonic replay of the conference call is available until April 25, 2003 by calling (719) 457-0820 Passcode: 631483. The web cast of the conference call with the supporting slide presentation will be archived on the corporate website at www.LEGATO.com.
About Legato
LEGATO Systems, Inc. (NASDAQ:LGTO) delivers worldwide enterprise class software solutions and services that keep the world's business-critical information and applications available. With a direct sales force and through strategic partnerships and alliances, LEGATO delivers the advantage of business continuance through enterprise automation with information protection, application availability as well as content, message and storage management solutions. The company's corporate headquarters are located at 2350 West El Camino Real, Mountain View, CA 94040 (650) 210-7000, fax: (650) 210-7032, Web site: www.legato.com
Information regarding products, services and offerings may be superseded by subsequent documents. For the latest information and specifications regarding LEGATO Systems, Inc. and any of its offerings or services, please contact your local sales office or the Corporate Headquarters.
This press release contains forward-looking statements about projections or other forward looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and actual events or results may differ materially. Forward looking statements involve a number of risks and uncertainties. Please refer to the documents LEGATO Systems files from time to time with the Securities and Exchange Commission, specifically each company's latest filed Form 10-K and Form 10-Q. These documents contain and identify important risk factors that could cause actual results to differ materially from those contained in this press release (including expectations as to 2003 results) The forward-looking statements in this press release reflect the Company's beliefs and predictions as of April 22, 2003. The Company disclaims any obligation to update these forward-looking statements as a result of financial, business or any other developments occurring after April 22, 2003.
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LEGATO and the LEGATO logo are registered trademarks, and LEGATO NetWorker, NetWorker, SmartMedia, Co-StandbyServer, RepliStor, SnapShotServer, QuikStartz, AlphaStor, ClientPak, Xtender, XtenderSolutions, DiskXtender, ApplicationXtender, ArchiveXtender, EmailXtender, and EmailXaminer are trademarks or registered trademarks of LEGATO Systems, Inc. This is a nonexhaustive list of LEGATO trademarks, and other trademarks may be the property of their respective owners.
