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Reports First Quarter Results
BERKELEY, Calif., July 16, 2003 -- Barra, Inc.
(Nasdaq: BARZ), a global leader in risk management technology for investment
professionals, today reported consolidated revenues from continuing operations
of $37.0 million and income from continuing operations of $6.4 million or
$.32 of diluted earnings per share based on Generally Accepted Accounting
Principles (GAAP) for the quarter ended June 30, 2003. On a pro-forma basis,
income from continuing operations was $8.3 million or $.42 per diluted share
for the June 2003 quarter. This compares to revenues from continuing
operations of $34.8 million and income from continuing operations of
$9.7 million, or $.44 of diluted earnings per share for the same quarter last
year. Consolidated net income for the June 2003 quarter, including gain on
sale from discontinued operations, was $7.5 million or $.38 of diluted
earnings per share.
Pro-forma income from continuing operations, earnings per share and
operating margin are non-GAAP measures of profitability that exclude
restructuring charges and amortization of acquired intangibles. A
reconciliation of our pro-forma and GAAP results is described below under the
caption "Pro-Forma Financial Information."
"We are pleased with our financial performance this quarter, highlighted
by continued momentum for enterprise risk and a substantial increase in
sequential trading volumes for POSIT. While our retention rate was below
expectations due to the difficult business environment in Europe, we remain
confident about our plan for the year, especially if equity markets continue
to attract assets," said Barra's chief executive officer, Kamal Duggirala.
Total revenues for the June 2003 quarter for risk management products were
$32.7 million (or $31.7 million after adjusting for the positive impact of
changes in foreign currency translation rates) as compared to $29.7 million
for the same quarter a year ago. Revenues from products and services of
Barra's Financial Engineering Associates subsidiary (FEA) that are included in
core business revenues were $1.8 million for the three months ended June 2003.
Recurring subscription revenues for portfolio and enterprise risk
management products were $29.8 million compared to $28.3 million for the same
quarter a year ago. Non-recurring revenues from enterprise risk
implementation projects and other one-time fees were $1.1 million in the
June 2003 quarter, a decrease of 18 percent when compared to the same quarter
a year ago. Approximately 28 percent of the subscription base was subject to
renewal during the quarter, and we achieved 83 percent revenue retention.
Pro-forma operating margins for the core business were 24 percent for the
June 2003 quarter compared to 23 percent for the same quarter last year.
Restructuring charges of $2.5 million were recorded in the quarter ended
June 30, 2003 in connection with a 9 percent workforce reduction implemented
in April 2003.
POSIT Venture
Revenues from the POSIT joint venture with ITG, Inc. for the June 2003
quarter were $4.3 million as compared to $5.1 million for the same quarter a
year ago. These revenues consist of royalties directly related to trading
volume in the U.S. and European POSIT systems.
Discontinued Operations
Gain on sale of discontinued operations, net of applicable income taxes,
of $1.2 million for the quarter ended June 30, 2003, consists of contingent
payments received from the sale of Barra's interest in Symphony Asset
Management LLC. As previously announced in July 2001, Barra sold its
50 percent ownership interest in Symphony Asset Management LLC to The John
Nuveen Company for $128 million in cash with eligibility for additional future
payments, up to approximately $12 million, based on Symphony's business
exceeding specific growth and profitability targets over a five-year period.
Stock Repurchases
There were no share repurchases during the June 2003 quarter. The company
currently has authorization from its Board of Directors to repurchase up to
754,800 shares of its common stock as part of its previously announced stock
repurchase program.
Business Outlook
The Business Outlook section contains forward-looking statements that
reflect management's current expectations regarding future events and
financial performance. Given the risk factors, uncertainties and assumptions
discussed below, these statements may turn out to be wrong. Barra does not
intend to update its forward-looking statements until its next quarterly
results announcement.
At June 30, 2003, the total annual value of all core product subscriptions
was approximately $120 million, an increase of 1 percent as compared to
June 30, 2002.
For the second fiscal quarter ended September 30, 2003, the company
expects:
-- Approximately 18 percent of the subscription base to be subject to
renewal;
-- Core business revenues to increase 10 percent over the same quarter
last year;
-- Core pro-forma operating margins of approximately 25 percent, which
excludes amortization of acquired intangibles.
For the fiscal year ended March 31, 2004 the company expects:
-- Core business revenues to increase 10 percent over fiscal 2003;
-- Core pro-forma operating margins of approximately 25 percent, which
excludes amortization of acquired intangibles and restructuring
charges.
PRO-FORMA FINANCIAL INFORMATION
Reconciliation of the presentation of pro-forma results to GAAP is
provided in the following table. As described in the table, pro-forma net
income excludes restructuring charges of approximately $2.5 million related to
the core business work force reduction announced in April of 2003, and
amortization of acquired intangibles of $350,000 related to the acquisition of
Financial Engineering Associates in December of 2002. Similarly, pro-forma
operating margin is based on operating income that excludes such charges.
Presentation of pro-forma income from continuing operations, earnings per
share and operating margin information provides greater comparability of
Barra's financial results against historical results and financial models of
securities analysts. Further, these adjusted pro-forma results are one of the
primary indicators management uses for planning and forecasting in future
periods. The presentation of this additional information is not meant to be
considered in isolation or as a substitute for results prepared in accordance
with GAAP.
Earnings Conference Call for June 2003 Quarter
Barra will webcast its 1st quarter earnings release conference call today
at 3:00 pm eastern time. During the call, management will discuss results for
the quarter, year to date results, and business outlook. The live webcast will
be broadcast via the CCBN website at www.companyboardroom.com. Following the
call, a replay will be made available via webcast on the CCBN website. Those
interested in accessing the live webcast or the replay may also link to the
CCBN website from the investor relations section of Barra's website at www.barra.com.
The replay may also be accessed by telephone by dialing
888-203-1112, passcode 383348.
This release contains forward-looking statements that reflect management's
current expectations regarding future events and financial performance. The
statements made by Kamal Duggirala above regarding business momentum and
expectations regarding client retention and the equity markets, as well as all
statements under the Business Outlook section that address expectations or
projections about the future are forward-looking statements. Factors that
could cause actual results to differ materially include: variability of
revenue streams in the core business; disruption of operations or increases in
expenses caused by civil or political unrest or other catastrophic events; and
risks associated with product development and technological changes, general
economic conditions, the continued employment of key personnel, the retention
of key data vendors, business combinations, government regulation and
competition.
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Announces Plans to Webcast 1st Quarter Earnings Conference Call
BERKELEY, Calif., July 9, 2003 -- Barra, Inc.
(Nasdaq: BARZ) today announced that it will webcast its 1st quarter earnings
release conference call at 3:00 p.m. eastern time on Wednesday, July 16, 2003.
The live webcast will be broadcast via the CCBN website at www.companyboardroom.com.
Those interested in accessing the live webcast may
also link to the CCBN website from the investor relations section of Barra's
website at www.barra.com. Following the call, a replay will be made available
via webcast on the CCBN website. The replay may also be accessed by telephone
by dialing 888-203-1112, passcode 383348.
Barra is a global leader in delivering risk management systems and
services to managers of portfolio and firm-wide investment risk. Since its
inception in 1975, Barra's single vision -- to empower its clients to make
strategic investment decisions -- has made Barra the industry standard in
investment risk management. Headquartered in Berkeley, California, Barra has
offices in all major financial centers around the world.
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Reports
Fourth Quarter and Fiscal Year Results
BERKELEY, Calif., April 24, 2003 --
Barra, Inc. (Nasdaq: BARZ) a global leader in risk management technology for
investment professionals, today reported consolidated revenues from continuing
operations of $36.2 million and income from continuing operations of $5.9
million, or $.30 of diluted earnings per share based on Generally Accepted
Accounting Principles (GAAP) for the quarter ended March 31, 2003. On a pro-
forma basis, income from continuing operations was $7.7 million or $.39 per
diluted share for the quarter ended March 31, 2003. This compares to revenues
from continuing operations of $36.9 million and income from continuing
operations of $11.0 million, or $.49 of diluted earnings per share for the
same quarter last year. Consolidated net income for the March 2003 quarter,
including income and gain on sale from discontinued operations, was
$6.6 million or $.33 of diluted earnings per share as compared to
$14.8 million or $.66 of diluted earnings per share for the March 2002
quarter.
For the fiscal year ended March 31, 2003, consolidated revenues from
continuing operations were $141.1 million as compared to $145.8 million for
the same period a year ago. Income from continuing operations was $33.2
million or $1.59 of diluted earnings per share as compared to $40.4 million or
$1.80 of diluted earnings per share for the same period a year ago. On a
pro-forma basis, income from continuing operations and diluted earnings per
share for the fiscal year ended March 31, 2003 were $35.0 million and $1.68,
respectively. Consolidated net income for the fiscal year ended March 31,
2003, including income and gain on sale of discontinued operations, was
$34.0 million or $1.63 of diluted earnings per share as compared to $118.3
million or $5.26 of diluted earnings per share for the fiscal year ended
March 31, 2002.
Pro-forma income and earnings per share are non-GAAP measures of
profitability that exclude impairment losses on investments in unconsolidated
companies and the impact of certain non-recurring tax benefits. A
reconciliation of our pro-forma and GAAP results is described below under the
caption "Pro-Forma Financial Information."
"We are especially pleased to see growth in the subscription base this
quarter and solid revenue retention of 88 percent, despite what is overall
still a very difficult market for our clients," said Kamal Duggirala, chief
executive officer of Barra, Inc. "As we move into our next fiscal year, our
focus continues to be on execution within our core business with expectations
of growing revenues and profitability amidst challenging market conditions."
Core Business
Total revenues for the March 2003 quarter for risk management products
were $33.2 million (or $32.6 million after adjusting for the positive impact
of changes in foreign currency translation rates) as compared to $31.0 million
for the same quarter a year ago, an increase of 7 percent. Revenues from
products and services of Barra's Financial Engineering Associates subsidiary
(FEA) that are included in core business revenues were $1.9 million for the
three months ended March 31, 2003.
Recurring subscription revenues for portfolio and enterprise risk
management products combined were $30.1 million compared to $29.6 million for
the same quarter a year ago. Non-recurring revenues from enterprise risk
implementation projects and other one-time fees were $1.2 million in the March
2003 quarter, a decrease of 11 percent when compared to the same quarter a
year ago. Approximately 32 percent of the subscription base was subject to
renewal during the quarter, and we achieved 88 percent revenue retention.
For the quarter ended March 31, 2003 operating margins for the portfolio
and enterprise risk business were 25 percent compared to 30 percent for the
same quarter last year. Combined core business operating margins, including
results from FEA, were 23 percent for the March 2003 quarter.
POSIT Venture
Revenues from the Portfolio System for Institutional Trading (POSIT) joint
venture for the March 2003 quarter were $3.0 million as compared to $5.9
million for the same quarter a year ago, a decrease of 50 percent. These
revenues consist of royalties directly related to trading volume in the U.S.
and European POSIT systems.
Discontinued Operations
Gain on sale of discontinued operations, net of applicable income taxes,
of $.8 million for the quarter and fiscal year ended March 31, 2003, consists
of contingent payments received from the sale of Barra's interest in Symphony
Asset Management LLC. As previously announced in July 2001, Barra sold its
50 percent ownership interest in Symphony Asset Management LLC to The John
Nuveen Company for $128 million in cash with eligibility for additional future
payments, up to approximately $12 million, based on Symphony's business
exceeding specific growth and profitability targets over a five year period.
Impairment Loss on Unconsolidated Companies
Impairment losses on unconsolidated companies of $6.9 million ($.24 per
share) in the quarter ended March 31, 2003 represent non-cash charges to
reduce the book value of certain private equity investments to their fair
market values. During the quarter, management determined that the recorded
values of such assets had been permanently impaired after considering such
factors as financial performance, liquidity and other general market factors.
Income Taxes
Barra recorded a net tax benefit on income from continuing operations for
the quarter ended March 31, 2003 of $1.6 million. In the March 2003 quarter,
we were able to utilize certain foreign tax credits to reduce taxes paid on
earnings dividends from our Japanese subsidiary. Excluding the impact of these
credits, the overall effective income tax rate for the March 2003 quarter and
fiscal year would have been approximately 31.5 percent.
Stock Repurchase Plan
During the March 2003 quarter, as part of its previously announced stock
repurchase program, Barra repurchased 459,100 of its shares for a cost of
approximately $12.8 million. As of April 24, 2003, Barra has remaining
authorization to repurchase up to 754,800 shares.
Business Outlook
The Business Outlook section contains forward-looking statements that
reflect management's current expectations regarding future events and
financial performance. Given the risk factors, uncertainties and assumptions
discussed below, these statements may turn out to be wrong. Barra does not
intend to update its forward-looking statements until its next quarterly
results announcement.
At March 31, 2003, the total annual value of all core product
subscriptions was approximately $120 million, an increase of 2 percent as
compared to March 31, 2002.
For the first fiscal quarter ended June 30, 2003, the company expects:
-- Approximately 28 percent of the subscription base to be subject to
renewal;
-- Core business revenues to increase 8 percent over the same quarter last
year;
-- Core operating margins, excluding amortization of acquired intangibles,
of approximately 23 percent.
For the fiscal year ended March 31, 2004 the company expects:
-- Core business revenues to increase 10 percent over fiscal 2003;
-- Core operating margins, excluding amortization of acquired intangibles,
of approximately 25 percent.
PRO-FORMA FINANCIAL INFORMATION
Reconciliation of the presentation of pro-forma results to GAAP is
provided in the following table. As described in the table, pro-forma net
income excludes impairment losses on investments in unconsolidated companies
and the impact of certain non-recurring tax credits. Presentation of pro-forma
net income and earnings per share information provides greater comparability
of Barras' financial results against historical results and financial models
of securities analysts. Further, these adjusted pro-forma results are one of
the primary indicators management uses for planning and forecasting in future
periods. The presentation of this additional information is not meant to be
considered in isolation or as a substitute for results prepared in accordance
with GAAP.
Barra will webcast its 4th quarter and year end earnings release
conference call today at 11:30 am eastern time. During the call, management
will discuss results for the quarter, year to date results, and business
outlook. The live webcast will be broadcast via the CCBN website at
www.companyboardroom.com
. Following the call, a replay will be made available
via webcast on the CCBN website. Those interested in accessing the live
webcast or the replay may also link to the CCBN website from the investor
relations section of Barra's website at
www.barra.com
. The replay may also be
accessed by telephone by dialing 888.203.1112, passcode 462634.
Barra is a global leader in delivering risk management systems and
services to managers of portfolio and firm-wide investment risk. Since its
inception in 1975, Barra's single vision -- to empower its clients to make
strategic investment decisions -- has made Barra the industry standard in
investment risk management. Headquartered in Berkeley, California, Barra has
offices in all major financial centers around the world.
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Reports 3rd Quarter Financial Results
BERKELEY, Calif., January 16, 2003 --
Barra, Inc. (NASDAQ:BARZ) a global leader in risk management technology for
investment professionals, today reported consolidated revenues from continuing
operations of $35.2 million and net income of $8.6 million, or $.42 of diluted
earnings per share for the quarter ended December 31, 2002. This compares to
revenues from continuing operations of $37.0 million and net income of
$10.8 million, or $.49 of diluted earnings per share for the same quarter last
year. Net income for the December 2001 quarter including income from
discontinued operations was $11.0 million or $.50 of diluted earnings per
share.
For the nine months ended December 31, 2002, consolidated revenues from
continuing operations were $104.9 million as compared to $108.9 million for
the same period a year ago. Income from continuing operations was
$27.3 million or $1.29 of diluted earnings per share as compared to
$29.4 million or $1.30 of diluted earnings per share for the same period a
year ago. Net income for the nine months ended December 2001 including income
and gain on sale of discontinued operations was $103.5 million or $4.59 of
diluted earnings per share.
"We are encouraged by our continued success with enterprise risk system
sales and the overall growth in our U.S. business," said Kamal Duggirala,
chief executive officer of Barra, Inc. "This positive trend is being offset by
continued weakness in Japan and Europe. We expect our new product
introductions as well as the acquisition of Financial Engineering Associates
this quarter to build momentum worldwide as we head into next fiscal year."
Core Business
Total revenues for the December 2002 quarter for the core portfolio and
enterprise risk management business were $31.2 million (or $31.0 million
after adjusting for the positive impact of changes in foreign currency
translation rates) as compared to $31.0 million for the same quarter a year
ago.
Excluding the positive impact of changes in foreign currency translation
rates, recurring subscription revenues for portfolio and enterprise risk
management products combined were $29.2 million compared to $29.4 million for
the same quarter a year ago. Non-recurring revenues from enterprise risk
implementation projects and other one-time fees were $1.8 million in the
December 2002 quarter, an increase of 9 percent when compared to the same
quarter a year ago. Approximately 20 percent of the subscription base was
subject to renewal during the quarter, and we achieved 86 percent revenue
retention.
Core business operating margins were 24 percent in the December 2002
quarter as compared to 28 percent for the same quarter last year
Acquisition of Financial Engineering Associates, Inc.
As previously announced, Barra acquired Financial Engineering Associates,
Inc. (FEA) on December 12, 2002 in an all cash transaction for $21.45 million.
The total purchase price, including liabilities assumed and related
acquisition expenses amounted to approximately $27 million. FEA's results of
operations for the period subsequent to the acquisition date up until
December 31, 2002 were not material. The accompanying condensed consolidated
balance sheet as of December 31, 2002 includes net tangible FEA assets of
approximately $4 million and $23 million of other intangibles and goodwill
based on a preliminary valuation of the fair value of assets acquired.
POSIT Venture
Revenues from the Portfolio System for Institutional Trading (POSIT) joint
venture for the December 2002 quarter were $4.0 million as compared to
$6.0 million for the same quarter a year ago. These revenues consist of
royalties directly related to trading volume in the U.S. and European POSIT
systems.
Income Taxes
Barra's consolidated effective income tax rate for the quarter ended
December 31, 2002 was 28 percent as compared to 31 percent for the same
quarter a year ago. Income tax expense for the quarter ended December 31, 2002
includes an adjustment to lower the year-to-date effective income tax rate to
the estimated fiscal year 2003 effective income tax rate of 31.5 percent.
Stock Repurchase Plan
During the December 2002 quarter, as part of its previously announced
stock repurchase program, Barra repurchased 394,200 of its shares for a cost
of approximately $12.9 million. As of January 16, 2002, Barra has remaining
authorization to repurchase up to 1,213,900 shares.
Business Outlook
The Business Outlook section contains forward-looking statements that
reflect management's current expectations regarding future events and
financial performance. Given the number of risk factors, uncertainties and
assumptions discussed below, these statements may turn out to be wrong. Barra
does not intend to update its forward-looking statements until its next
quarterly results announcement.
At December 31, 2002, the total annual value of all core product
subscriptions was approximately $118 million, an increase of 1 percent as
compared to December 31, 2001.
For the fourth fiscal quarter ended March 31, 2003, (including results
from FEA) the company expects:
-- Approximately 32 percent of the subscription base to be subject to
renewal;
-- Core business revenues to increase 6 percent over the same quarter last
year;
-- Core operating margins of approximately 24 percent.
Earnings Conference Call for December 2002 Quarter
Barra will webcast its 3rd Quarter earnings release conference call today
at 11:00 am eastern time. During the call, management will discuss results for
the quarter, year to date results, and business outlook. The live webcast will
be broadcast via the CCBN website at www.companyboardroom.com. Those
interested in accessing the live webcast may also link to the CCBN website
from the investor relations section of Barra's website at www.barra.com.
Following the call, a replay will be made available via webcast on the CCBN
website. The replay may also be accessed by telephone by dialing
888-203-1112, passcode 636567.
Barra is a global leader in delivering risk management systems and
services to managers of portfolio and firm-wide investment risk. Since its
inception in 1975, Barra's single vision -- to empower its clients to make
strategic investment decisions -- has made Barra the industry standard in
investment risk management. Headquartered in Berkeley, California, Barra has
offices in all major financial centers around the world.
This release contains forward-looking statements that reflect management's
current expectations regarding future events and financial performance. The
last sentence under the Acquisition of Financial Engineering Associates, Inc.
section is a forward-looking statement, as it provides a preliminary valuation
of the fair value of assets acquired. The actual valuation will be determined
by a third party and therefore may vary from our preliminary estimate. The
second sentence under the Income Taxes section is a forward-looking statement,
as it provides an estimate of the applicable fiscal year 2003 effective income
tax rate. The actual effective income tax rate may vary since it is determined
based on fiscal year 2003 financial results. In addition, the statements made
by Kamal Duggirala above, as well as all statements under the Business Outlook
section that address expectations or projections about the future are
forward-looking statements. Factors that could cause actual results to differ
materially include: variability of revenue streams in the core business;
disruption of operations or increases in expenses caused by civil or political
unrest or other catastrophic events; and risks associated with product
development and technological changes, general economic conditions, the
continued employment of key personnel, the retention of key data vendors,
business combinations, government regulation and competition. These and other
important factors are detailed in various Securities and Exchange Commission
filings made periodically by the company, particularly its latest report on
Form 10-K and subsequent reports on Form 10-Q, copies of which are available
from the company without charge or online at http://www.barra.com. Please
review such filings and do not place undue reliance on these forward-looking
statements.
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Announces Plans to Webcast 3rd Quarter Earnings Release Conference Call
BERKELEY, Calif., January 7, 2002 --
Barra, Inc. (NASDAQ:BARZ) today announced that it will webcast its 3rd
quarter earnings release conference call at 11:00 a.m. eastern time on
Thursday, January 16, 2003. The live webcast will be broadcast via the CCBN
website at www.companyboardroom.com. Those interested in accessing the live
webcast may also link to the CCBN website from the investor relations section
of Barra's website at www.barra.com. Following the call, a replay will be
made available via webcast on the CCBN website. The replay may also be
accessed by telephone by dialing 888-203-1112, passcode 636567.
Barra is a global leader in delivering risk management systems and
services to managers of portfolio and firm-wide investment risk. Since its
inception in 1975, Barra's single vision -- to empower its clients to make
strategic investment decisions -- has made Barra the industry standard in
investment risk management. Headquartered in Berkeley, California, Barra has
offices in all major financial centers around the world.
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Acquires Financial Engineering Associates
BERKELEY, Calif., December 12, 2002 --
Barra, Inc. (NASDAQ:BARZ) a global leader in risk management technology for
investment professionals, announced today the acquisition of the closely held
private company Financial Engineering Associates, Inc., (FEA) a leading
provider of financial analytics based in Berkeley, California. Under the terms
of the acquisition, which closed on December 12, 2002, Barra acquired all
outstanding shares of FEA for $21.25 million in cash.
FEA is a developer of derivatives and risk analytics software for traders,
risk managers, and financial analysts for a wide range of industries. The
firm has a global client base, with over 700 clients across the U.S., Europe
and Asia. Operating revenues from software licensing and maintenance were
approximately $8 million for its fiscal year ending February 28, 2002, an
increase of 50 percent over the previous fiscal year. FEA sells perpetual
licenses for most of its products and typically charges a 20 percent annual
maintenance fee. While historical profit results are not meaningful given the
private, closely held nature of the company, FEA has been consistently
profitable. Through continued growth at FEA and new market opportunities for
the combined firm, the acquisition is expected to be accretive to Barra's
earnings in FY 2004. The acquisition is expected to be neutral to Barra's
earnings per share for the remaining periods within FY 2003, excluding the
impact of any acquisition-related charges expected to be recorded in the
December 31, 2002 quarter. FEA will be operated as a wholly owned subsidiary
of Barra Inc.
Kamal Duggirala, chief executive officer of Barra, said, "We are very
excited about joining forces with FEA, a market leader in derivatives and risk
analytics for financial, commodity and energy markets. FEA reinforces Barra's
core competence in financial analytics and at the same time adds new,
diversifying market segments for growth. The combined firm will leverage FEA's
impressive list of sell-side clients and market knowledge to develop a more
comprehensive suite of risk analytics for both trading and portfolio
management."
Mark B. Garman, founder and chairman of FEA, said, "Barra enables FEA to
expand our product and service offering to FEA's traditional sell side segment
using global scaling combined with a powerful brand association. With each
company's focus in risk management, the individual markets of the two
companies will complement and enhance both companies' offerings. FEA is
excited about this prospect for our clients, partners, and employees and
welcomes the opportunity to become part of the Barra family."
About Barra
Barra is a global leader in delivering risk management systems and
services to managers of portfolio and firm-wide investment risk. Since its
inception in 1975, Barra's single vision -- to empower its clients to make
strategic investment decisions -- has made Barra the industry standard in
investment risk management. Headquartered in Berkeley, California, Barra has
offices in all major financial centers around the world.
About FEA
Focusing on the energy, financial, and commodities markets since 1989,
Financial Engineering Associates, Inc., is renowned for the development of
option valuation models and market risk assessment software. Powered by
constant innovation, aggressive release schedules, and superb technical
support, FEA is routinely first-to-market with pricing models and
authoritative risk management tools for the latest, most complex financial
instruments. FEA's more than 700 institutional clients include energy firms,
money center banks, Fortune 500 companies, trading enterprises, and leading
financial firms worldwide. FEA remains at the forefront of financial
engineering through an on-going commitment to meeting the needs of its clients
worldwide.
This release contains forward-looking statements that reflect management's
current expectations regarding future events and financial performance. All
statements in this release containing the words or variations of the words
"expect," "continue," "expand" and "will" are forward-looking statements, and
all other statements that address expectations or projections about the
future, including but not limited to any projections of earnings, revenues,
acquisition synergies, accretion or other financial items; any statements of
the plans, strategies, and objectives of management for future operations; any
statements regarding future economic performance; any statements of belief and
any statements of assumptions underlying any of the foregoing. Any or all of
these forward-looking statements may turn out to be wrong. Factors that could
cause actual results to differ materially from the forward-looking statements
include the ability of Barra to retain and motivate key employees of both FEA
and Barra; the timely development, production and acceptance of products and
services; the challenges of integration and restructuring associated with the
acquisition of FEA; the challenges of achieving anticipated synergies;
undisclosed liabilities of FEA; and the assumption of maintaining revenues on
a combined company basis following the close of the acquisition. These and
other important factors are detailed in various Securities and Exchange
Commission filings made periodically by Barra, particularly its latest annual
report on Form 10-K for the fiscal year ended March 31, 2002 and subsequent
quarterly reports on Form 10-Q. Please review such filings
and do not place undue reliance on these forward-looking statements.
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Reports
Second Quarter Results
BERKELEY, Calif., October 16, 2002 --
Barra, Inc. (NASDAQ:BARZ) a global leader in risk management technology for
investment professionals, today reported consolidated revenues from continuing
operations of $34.9 million and net income of $9.0 million, or $.43 of diluted
earnings per share. This compares to revenues from continuing operations of
$35.7 million and net income of $9.7 million, or $.43 of diluted earnings per
share for the same quarter last year. For the six months ended September 30,
2002, consolidated revenues from continuing operations were $69.7 million as
compared to $71.8 million for the same period a year ago. Net income from
continuing operations for the six months ended September 30, 2002 was
$18.7 million or $.87 of diluted earnings per share as compared to
$18.7 million or $.82 of diluted earnings per share for the same period a year
ago.
"We are encouraged by our Core business results this quarter which
achieved sequential growth in subscription revenue and a revenue retention
rate of 89 percent, despite the decline in equity markets," said Kamal
Duggirala, chief executive officer of Barra. "This quarter also marked an
important milestone in Barra's track record for innovation. We launched
BarraOne, our first ASP product offering, and the Barra Integrated Model,
which represents a major advance in global multi-asset class risk modeling,"
he added.
Core Business
Total revenues for the core portfolio and enterprise risk management
business for the September 2002 quarter were $30.3 million (or $30.0 million
after adjusting for the negative impact of changes in foreign currency
translation rates) as compared to revenues of $29.9 million for the same
quarter a year ago.
Excluding the negative impact of changes in foreign currency translation
rates, recurring subscription revenues for portfolio and enterprise risk
management products combined were $28.9 million compared to $28.5 million for
the same quarter a year ago. Non-recurring revenues from enterprise risk
implementation projects and other one-time fees were $1.5 million in the
September 2002 quarter, an increase of 8 percent when compared to the same
quarter a year ago. Approximately 18 percent of the subscription base was
subject to renewal during the quarter, and we achieved 89 percent revenue
retention.
Core business operating margins were 23 percent in the September 2002
quarter as compared to 25 percent for the same quarter last year.
POSIT Venture
Revenues from the POSIT joint venture with ITG, Inc. for the September
2002 quarter were $4.9 million as compared to $5.8 million for the same
quarter a year ago. POSIT revenues for the September 2002 quarter consisted of
royalties directly related to trading volume in the U.S. and European POSIT
systems. Also included in POSIT revenues for the quarter ended September 30,
2002 was $413,000 related to an insurance recovery for lost POSIT royalties in
connection with the forced closure of POSIT for four trading days as a result
of the events that occurred on September 11, 2001. The claim proceeds were
received during the quarter and no further claims are outstanding.
Stock Repurchase Plan
As part of the previously announced stock repurchase program, Barra
repurchased 823,800 of its shares for a cost of approximately $26.9 million
during the September 2002 quarter. Under the current program, the company has
authorization to repurchase up to 676,200 additional shares of its common
stock.
Business Outlook
The Business Outlook section contains forward-looking statements that
reflect management's current expectations regarding future events and
financial performance. Given the number of risk factors, uncertainties and
assumptions discussed below, these statements may turn out to be wrong. Barra
does not intend to update its forward-looking statements until its next
quarterly results announcement.
At September 30, 2002, the total annual value of all core product
subscriptions was approximately $116 million, an increase of 7 percent as
compared to September 30, 2001.
For the quarter ended December 31, 2002, the company expects:
-- Approximately 20 percent of the subscription base to be subject to
renewal;
-- Core business revenues to remain unchanged over the same quarter last
year;
-- Core operating margins of approximately 24 percent.
For the year ended March 31, 2003, the company expects:
-- Core business revenues to remain unchanged over fiscal 2002;
-- Core operating margins of approximately 24 percent.
This release contains forward-looking statements that reflect management's
current expectations regarding future events and financial performance. All
statements under the Business Outlook section that address expectations or
projections about the future are forward-looking statements. Factors that
could cause actual results to differ materially include: variability of
revenue streams in the core business; disruption of operations or increases in
expenses caused by civil or political unrest or other catastrophic events; and
risks associated with product development and technological changes, general
economic conditions, the continued employment of key personnel, the retention
of key data vendors, business combinations, government regulation and
competition. These and other important factors are detailed in various
Securities and Exchange Commission filings made periodically by the company,
particularly its latest report on Form 10-K and subsequent reports on
Form 10-Q. Please review such filings and do not place
undue reliance on these forward-looking statements.
Earnings Conference Call for September 2002 Quarter
Barra will webcast its 2nd Quarter earnings conference call today at
4:30 pm eastern time. The live webcast will be broadcast via the CCBN website
at www.companyboardroom.com. Those interested in accessing the live webcast
may also link to the CCBN website via the investor relations section of
Barra's website at www.barra.com. Following the call, a replay will be made
available via webcast on the CCBN website. The replay may also be accessed by
telephone by dialing 888-203-1112, passcode 296139.
Barra is a global leader in delivering risk management systems and
services to managers of portfolio and firm-wide investment risk. Since its
inception in 1975, Barra's single vision -- to empower its clients to make
strategic investment decisions -- has made Barra the industry standard in
investment risk management. Headquartered in Berkeley, California, Barra has
offices in all major financial centers around the world.
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To Webcast 2nd Quarter Earnings Release Conference Call
BERKELEY, Calif., October 8, 2002 --
Barra, Inc. (NASDAQ:BARZ) today announced that it will webcast its 2nd
quarter earnings release conference call at 4:30 pm eastern time on Wednesday,
October 16, 2002. The live webcast will be broadcast via the CCBN website at
www.companyboardroom.com. Those interested in accessing the live webcast may
also link to the CCBN website from the investor relations section of Barra's
website at www.barra.com. Following the call, a replay will be made available
via webcast on the CCBN website. The replay may also be accessed by telephone
by dialing 888.203.1112, passcode 296139.
Barra is the global leader in delivering risk management systems and
services to managers of portfolio and firm-wide investment risk. Since its
inception in 1975, Barra's single vision -- to empower its clients to make
strategic investment decisions -- has made Barra the industry standard in
investment risk management. Headquartered in Berkeley, California, Barra has
offices in all major financial centers around the world.
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Reports
First Quarter Results
BERKELEY, Calif., July 17, 2002 -- Barra, Inc. (Nasdaq: BARZ), a global leader in risk management technology for investment professionals, today reported consolidated revenues of $34.8 million and income from continuing operations of $9.7 million or $.44 of diluted earnings per share for the quarter ended June 30, 2002. Consolidated revenues and income from continuing operations for the same quarter last year were $36.2 million and $8.9 million, respectively, or $.39 of diluted earnings per share.
"We are disappointed that continued weakness in financial markets requires further tactical adjustments to our plan for this fiscal year," said Barra's chief executive officer, Kamal Duggirala. "While the current environment dictates caution regarding near term growth, we remain enthusiastic about upcoming product launches and prospects for future growth."
Core Business
Total revenues for the core portfolio and enterprise risk management business for the June 2002 quarter were $30.2 million (or $29.7 million after adjusting for the negative impact of changes in foreign currency translation rates) as compared to revenues of $29.9 million for the same quarter a year ago.
Excluding the negative impact of changes in foreign currency translation rates, recurring subscription revenues for portfolio and enterprise risk management products combined were $29.0 million compared to $28.2 million for the same quarter a year ago. Non-recurring revenues from enterprise risk implementation projects and other one-time fees were $1.3 million in the June 2002 quarter, a decrease of 23 percent when compared to the same quarter a year ago.
Core business operating margins increased to 23 percent in the June 2002 quarter from 22 percent for the same quarter last year.
POSIT Venture
Revenues from the POSIT joint venture with ITG, Inc. for the June 2002 quarter were $5.1 million as compared to $6.3 million for the same quarter a year ago. These revenues consist of royalties directly related to trading volume in the U.S. and European POSIT systems.
Stock Repurchases
As part of the previously announced stock repurchase program, Barra repurchased 910,650 of its shares for a cost of approximately $41.6 million during the June 2002 quarter. The company currently has authorization from its Board of Directors to repurchase up to 1.5 million additional shares of its common stock.
Business Outlook
The Business Outlook section contains forward-looking statements that reflect management's current expectations regarding future events and financial performance. Given the number of risk factors, uncertainties and assumptions discussed below, these statements may turn out to be wrong. Barra does not intend to update its forward-looking statements until its next quarterly results announcement.
At June 30, 2002, the total annual value of all core product subscriptions was approximately $115 million, an increase of approximately 5 percent as compared to June 30, 2001.
For the quarter ended September 30, 2002, the company expects:
Core business revenues to remain unchanged over the same quarter last year;
Core operating margins of approximately 23 percent.
For the year ended March 31, 2003, the company expects:
Core business revenues to remain unchanged over fiscal 2002;
Core operating margins of approximately 24 percent.
This release contains forward-looking statements that reflect management's current expectations regarding future events and financial performance. The statements made by Kamal Duggirala above, as well as all statements under the Business Outlook section address expectations or projections about the future are forward-looking statements. Factors that could cause actual results to differ materially include: variability of revenue streams in the core and POSIT businesses; disruption of operations or increases in expenses caused by civil or political unrest or other catastrophic events; and risks associated with product development and technological changes, general economic conditions, the continued employment of key personnel, the retention of key data vendors, business combinations, government regulation and competition. These and other important factors are detailed in various Securities and Exchange Commission filings made periodically by the company, particularly its latest report on Form 10-K and subsequent reports on Form 10-Q. Please review such filings and do not place undue reliance on these forward-looking statements.
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Releases Proforma Historical Results of Operations
BERKELEY, Calif., May 16, 2002 -- Barra, Inc. (Nasdaq: Barra, Inc.(Nasdaq: BARZ ) released today proforma consolidated statements of operations for each fiscal quarter in the fiscal years ended March 31, 2002, 2001 and 2000. These proforma statements of operations are unaudited and reflect the necessary reclassifications to the previously issued consolidated statements of operations to present the results of Symphony Asset Management LLC, Barra RogersCasey, Inc., Barra Strategic Consulting Group, Barra Global Estimates and Bond Express as discontinued operations. Continuing operations in the attached statements reflect the combined results of our Core, POSIT and Other Ventures segments. For more information on each of these segments, please refer to the segment disclosures included in our quarterly Form 10Q filings.
Barra is the global leader in delivering risk management systems and services to managers of portfolio and firm-wide investment risk. Since its inception in 1975, Barra's single vision - to empower its clients to make strategic investment decisions - has made Barra the industry standard in investment risk management. Headquartered in Berkeley, California, Barra has offices in all major financial centers around the world.
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Reports 4th Quarter and Fiscal Year Results
BERKELEY, Calif., April 24, 2002 -- Barra, Inc. (Nasdaq: Barra, Inc.(Nasdaq: BARZ) the global leader in risk management technology for investment professionals, today reported consolidated revenues from continuing operations of $36.9 million and income from continuing operations of $11.0 million or $.49 of diluted earnings per share for the quarter ended March 31, 2002. Consolidated revenues and income from continuing operations for the same quarter last year were $36.0 million and $9.1 million, respectively, or $.40 of diluted earnings per share. Consolidated net income for the March 2002 quarter, including income and gain on sale from discontinued operations, was $14.8 million or $.66 of diluted earnings per share as compared to $10.3 million or $.45 of diluted earnings per share for the March 2001 quarter.
For the fiscal year ended March 31, 2002, consolidated revenues from continuing operations increased to $145.8 million and income from continuing operations grew to $40.4 million or $1.80 of diluted earnings per share as compared to revenues of $133.2 million and income from continuing operations of $32.8 million or $1.46 of diluted earnings per share for the same period last year. Consolidated net income for the fiscal year ended March 31, 2002, including income and gain (loss) on sale of discontinued operations, was $118.3 million or $5.26 of diluted earnings per share as compared to $45.3 million or $2.01 of diluted earnings per share for the fiscal year ended March 31, 2001.
Income from discontinued operations, net of applicable income taxes, consists of the operating results from Symphony Asset Management LLC, Barra Global Estimates, BARRA RogersCasey Inc., and Barra Strategic Consulting Group during the period under report and up until the time of their sale or disposal. Gain on sale of discontinued operations for the quarter ended March 31, 2002 represents the gain on sale of BARRA RogersCasey, net of closure costs associated with Strategic Consulting and applicable income taxes.
"We are executing well on our strategy of advancing our market leadership position in the core business of portfolio and enterprise risk management tools as well as the POSIT joint venture. We are very excited about new growth opportunities in our core business in fiscal 2003, with major releases of our flagship products and the inaugural release of our new ASP product, BarraOne," said Kamal Duggirala, Barra's chief executive officer.
Core Business
Total revenues for the March 2002 quarter for the core portfolio and enterprise risk management business increased 6 percent to $31.8 million (or $30.9 million, an increase of 3 percent after adjusting for the negative impact of changes in foreign currency translation rates) as compared to the same quarter a year ago.
Excluding the negative impact of changes in foreign currency translation rates, recurring subscription revenues for portfolio and enterprise risk management products combined increased 10 percent to $30.5 million compared to $27.8 million for the same quarter a year ago. Subscription revenues for enterprise risk management products increased 82 percent from the same quarter last year.
Non-recurring revenues from enterprise risk implementation projects and other one-time fees were $1.3 million in the March 2002 quarter, a decrease of 42 percent when compared to the same quarter a year ago.
Operating margins for the Core business increased from 27 percent in the March 2001 quarter to 32 percent in the March 2002 quarter.
POSIT Venture
Revenues from the POSIT joint venture with ITG, Inc. for the March 2002 quarter were $5.9 million as compared to $5.7 million for the same quarter a year ago. These revenues consist of royalties directly related to trading volume in the U.S. and European POSIT systems.
Other Ventures
On March 27, 2002, Barra announced the disposition of its consulting ventures, BARRA RogersCasey, Inc. and the Barra Strategic Consulting Group. BARRA RogersCasey, the company's pension fund consulting venture, was sold to Capital Resource Advisors for $14 million in cash in exchange for all of the stock of BARRA RogersCasey. Barra Strategic Consulting Group, which provided project-based management consulting to asset managers, ceased operations. Barra's gain on sale of its interest in BARRA RogersCasey, net of approximately $1.5 million in closure costs associated with the Barra Strategic Consulting Group and $2.2 million in income taxes, was $3.8 million or $0.17 of diluted earnings per share.
All current and historical results for these consulting ventures, including results for Barra Global Estimates and Bond Express which were sold in December 2000 and August 2001, respectively, have been reclassified in the accompanying consolidated statement of income to discontinued operations. As a result of these transactions, the Other Ventures financial reporting business segment now consists only of Barra's Retail Intermediaries business.
Stock Repurchases
The company did not repurchase any of its shares during the March 2002 quarter. The company has authorization from its Board of Directors to repurchase up to 1 million shares of its common stock.
Business Outlook
The Business Outlook section contains forward-looking statements that reflect management's current expectations regarding future events and financial performance. Given the number of risk factors, uncertainties and assumptions discussed below, these statements may turn out to be wrong. Barra does not intend to update its forward looking statements until its next quarterly results announcement, other than in publicly available statements.
At March 31, 2002, the total annual value of all core product subscriptions was approximately $126 million, an increase of 10 percent as compared to March 31, 2001.
For the quarter ended June 30, 2002, the company expects:
Core business revenues to increase approximately 5 percent over the same quarter last year;
Core operating margins of approximately 26 percent.
For the year ended March 31, 2003, the company expects:
Core business revenues to increase approximately 10 percent over fiscal 2002;
Core operating margins of approximately 30 percent;
POSIT revenues to increase approximately 15 percent over fiscal 2002;
POSIT operating margins of approximately 87 percent.
This release contains forward-looking statements that reflect management's current expectations regarding future events and financial performance. The statements made by Kamal Duggirala above, as well as all statements under the Business Outlook section address expectations or projections about the future are forward-looking statements. Factors that could cause actual results to differ materially include: variability of revenue streams in the core and POSIT businesses; disruption of operations or increases in expenses caused by civil or political disruption, a lack of continuous power supply in California or other extreme events; and risks associated with product development and technological changes, general economic conditions, the continued employment of key personnel, the retention of key data vendors, business combinations, government regulation and competition. These and other important factors are detailed in various Securities and Exchange Commission filings made periodically by the company, particularly its latest report on Form 10-K and subsequent reports on Form 10-Q,. Please review such filings and do not place undue reliance on these forward-looking statements.
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