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Reports First Quarter Results
SUNNYVALE, Calif., September 10, 2003 --
Financial Highlights:
-- Revenues and earnings within range provided at last quarter's earnings conference call
-- Revenues for the quarter of $26.6 million, up 21% over prior year
-- GAAP net income for the quarter of $1.8 million, up 32% over prior year
-- GAAP EPS for the quarter of $0.05 per share
-- Pro forma EPS for the quarter of $0.06 per share
-- Continued balance sheet strength with $247 million in cash and investments and no capitalized software cost
-- DSO's of 65 days
-- Repurchases approximately 527,000 shares of Verity common stock
Strategic Highlights:
-- Launches Ultraseek 5.1, first significant release under Verity banner
-- KM World names Ultraseek 5.1 a "Trend-setting Product of 2003"
-- Ships K2 Enterprise version 5.0, specially aimed at large-scale enterprises
-- Introduces sophisticated Arab language search/translation/analysis capability for K2 Enterprise
-- Reached settlement with BroadVision during the quarter
-- Strengthens executive ranks with appointment of new VP of Channel Sales
-- Signs significant deals with Accenture, Centers for Disease Control, Central Intelligence Agency, Computer Sciences Corporation, Federal Bureau of Investigation, Hewlett-Packard, International Monetary Fund, KPMG, News Ltd., Pfizer, Wellpoint Health Networks, Yahoo! Broadcast and others
-- Continues leadership in the OEM market segment with new or extended agreements with Daticon, Hewlett-Packard, Iron Mountain, Nando Media, PeopleSoft, Thomson Delphion, Xerox and others
Verity, Inc. (VRTY) , a leading provider of enterprise software that helps organizations maximize the return on their intellectual capital investment, today reported financial results for its first quarter of fiscal 2004 ended August 31, 2003. Verity's revenues for its first quarter were $26.6 million, representing a 21% increase from revenues of $22.0 million for the same period last year. Software product revenues for the first quarter, which represented 53% of total revenues, were $14.2 million, a 15% increase from the same period last year. On a Generally Accepted Accounting Principles ("GAAP") basis, net income for the first quarter was $1.8 million, or $0.05 per fully diluted share, a 32% increase, compared to net income of $1.4 million, or $0.04 per fully diluted share in the first quarter of fiscal 2003.
Verity also reports pro forma net income and income from operations, which exclude the effects of amortization of acquired intangible assets. Pro forma net income for the first quarter was $2.2 million, or $0.06 per fully diluted share. The reconciliation of pro forma adjustments to GAAP is set forth in the tables at the end of this press release. There were no pro forma effects for the first quarter of fiscal 2003.
Although GAAP disclosure provides investors and management with an overall view of Verity's financial performance, Verity believes that it is important for investors to also understand the performance of Verity's core ongoing operational business. Consequently, the pro forma results exclude charges not reflective of Verity's core ongoing operational business, namely, amortization of acquired intangible assets as set forth in the tables at the end of this press release. Management uses the pro forma results to assess the financial performance of Verity's core business.
At the end of the first quarter, Verity had $247 million in cash and investments, which translates to greater than $6.50 per share on a basic share basis. DSO's for the quarter were 65 days, which improved slightly over the 70 days of last quarter.
During the quarter, Verity repurchased approximately 527,000 shares of its common stock for approximately $7 million at an average price of $13.28 per share. This is the first quarter of the $50 million stock buyback program that initiated during fiscal 2004.
During the quarter, we reached a confidential settlement with BroadVision relative to our outstanding litigation. The detailed terms and conditions of this settlement are confidential and cannot be disclosed without the consent of each party. The settlement involves a payment to Verity from BroadVision of past royalties, a partial payment of our legal expenses and the execution of a license agreement. The payment of past royalties was recognized as revenue in the current quarter and was less than 10% of revenues for the first quarter.
"In what has historically been a difficult quarter for Verity due to seasonality of our business, our team delivered solid revenue growth over the first quarter of our last fiscal year," said Anthony J. Bettencourt, Verity's president and chief executive officer. "While the economy in general -- and Information Technology spending in particular -- show few signs of recovery, customers are investing in Verity solutions, since we can show them a clear return on their investment. This quarter's performance positions us for continued growth in revenue for the remainder of the year, and we are closely monitoring expenses to ensure that we are able to continue to deliver solid earnings results as well."
Customer Activity
During the period, Verity realized sales from a range of world-class companies in the defense, financial services, government, healthcare, high technology, manufacturing, professional services, publishing and media, and telecommunications industries. First quarter wins include Accenture, Centers for Disease Control, Central Intelligence Agency, Computer Sciences Corporation, Federal Bureau of Investigation, Hewlett-Packard, International Monetary Fund, KPMG, News Ltd., Pfizer, Wellpoint Health Networks, Yahoo! Broadcast and others.
The company extended its position in the OEM market for enterprise search, categorization and personalization software technology by way of new or extended agreements with Daticon, Hewlett-Packard, Iron Mountain, Nando Media, PeopleSoft, Thomson Delphion, Xerox and others.
Business Outlook
Verity is projecting revenue for its second quarter of fiscal 2004 to be in the range of $27 million to $29 million, with GAAP earnings in the range of $0.06 to $0.08 per share and pro forma earnings in the range of $0.08 to $0.10 per share. Second quarter of fiscal 2004 pro forma projections exclude the effect of anticipated amortization of acquired intangible assets of $0.6 million, or approximately $0.01 per fully diluted share, and the effect of an anticipated restructuring charge of $0.6 million, or approximately $0.01 per fully diluted share. The restructuring charge relates to a restructuring action taken by Verity on September 9, 2003 to eliminate 40 positions within the company, or about a 10% reduction, to reduce operating expenses. The projected number of fully diluted shares for the second quarter is approximately 39.3 million shares.
Verity is projecting revenue for its fiscal 2004 year to be in the range of $111 million to $115 million, with GAAP earnings in the range of $0.28 to $0.33 per share and pro forma earnings in the range of $0.33 to $0.38 per share. Fiscal 2004 total year pro forma projections exclude the effect of anticipated amortization of acquired intangible assets of $2.6 million, or approximately $0.04 per fully diluted share and the effect of an anticipated restructuring charge of $0.6 million or approximately $0.01 per fully diluted share. The projected number of fully diluted shares for the year is approximately 40.0 million shares.
Operating Results Conference Call Scheduled
Investors are cordially invited to join a Conference Call on Wednesday, September 10, 2003 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time) at which Gary J. Sbona, executive chairman, and Anthony J. Bettencourt, president and chief executive officer, and other key members of Verity's management team will review the operating results from Verity's first quarter that ended August 31, 2003 and its current business outlook.
DATE: Wednesday, September 10, 2003
TIME: 1:30 p.m. Pacific Time
DIAL-IN NUMBERS: United States & Canada: 1-877-888-3490 / International: 1-416-695-9757
WEB CAST LINK:
Investors desiring to participate in the call should dial in on the above referenced numbers five (5) minutes prior to the scheduled start time and ask for the Verity Quarterly Earnings Conference Call.
Alternatively, investors may access the web cast of Verity's earnings call at the above listed web site.
A replay of the Earnings Call will be available through December 10, 2003 at http://www.verity.com/company/corporate/investor_relations/webcasts.html , or by dialing 1-866-518-1010 (United States & Canada) or 1-416-252-1143 (International) between the hours of 4:00 a.m. - 8:00 p.m. PT.
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions that help organizations maximize the return on their intellectual capital investment by utilizing Verity's industry-leading enterprise search, classification and personalization technologies. Verity software is used for sharing information within and between enterprises, for facilitating e-commerce sales, and for B2B activities on Web-based market exchanges. In addition, Verity technology serves as a core component of many leading e-business applications.
Verity products are used by more than 3,500 organizations in the private and public sectors. Customers include Adobe Systems, AT&T, Cap Gemini Ernst & Young, Cisco, CNET, Dow Jones, EDGAR Online, FairMarket, Financial Times, Hewlett-Packard, Home Depot, Lotus, SAP, Siemens, Stellent, Sybase, Time New Media and Timex.
Forward-Looking Statements
The statements in this press release regarding Verity being positioned for future growth in revenues and ability to deliver solid earnings results, as well as under the heading "Business Outlook," are forward-looking statements. Actual financial results could differ materially as a result of many factors, including: these expectations and beliefs are based on assumptions that may not prove to be accurate, including the future demand for Verity's products may not be as strong as Verity predicts; many of Verity's product orders are large, and a delay in closing a large sale during any quarter could materially reduce Verity's revenues for that period; transactions accounting for a disproportionate percentage of Verity's quarterly revenues are frequently closed in the last few weeks or days of a quarter and, accordingly, even a slight delay in the closing of some of these transactions could materially reduce Verity's revenues for that period; Verity incurs expenses based upon anticipated revenues and, consequently, if the revenues are less than anticipated, Verity will have lower gross margins and operating results; if competitors develop new products that compete favorably against Verity's products, sales of Verity's products will be less than projected; and a portion of Verity's sales are in the international market, which exposes Verity to currency fluctuation and other risks. These and other risks relating to Verity and its business and products are set forth under the caption "Risk Factors" in Item 1 of Verity's latest Form 10-K filed with the Securities and Exchange Commission.
NOTE: Verity and the Verity logo are registered trademarks or trademarks of Verity, Inc.
All other trademarks are the property of their respective owners.
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Announces Fiscal Year 2004 Earnings Conference Call
SUNNYVALE, Calif.,
September 3, 2003 --
Date: Wednesday, September 10, 2003
Time: 1:30 p.m. Pacific Time
Dial-in numbers: United States & Canada: 1-877-888-3490 International:
1-416-695-9757 Web Cast Link:
You are cordially invited to join a Conference Call on Wednesday,
September 10, 2003 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern
Time) at which Gary J. Sbona, executive chairman, Anthony J. Bettencourt,
president and chief executive officer, and other key members of
Verity's management team will review the operating results from
our first quarter that ended August 31, 2003 and our current business
outlook.
If you wish to participate, please dial in on the above referenced
numbers five minutes prior to the scheduled start time and ask for
the Verity Quarterly Earnings Conference Call.
Alternatively, you may access the web cast of our earnings call
at the above listed web site.
A replay of the Earnings Call will be available through December
10, 2003, at the above listed Web site or by dialing 1-866-518-1010
(United States & Canada) or 1-416-252-1143 (International) between
the hours of 4 a.m. and 8 p.m. PT.
About Verity
Headquartered in Sunnyvale, Calif., Verity, Inc. (Nasdaq: VRTY)
provides software solutions that help organizations maximize the
return on their intellectual capital investment by utilizing Verity's
industry-leading enterprise search, classification and personalization
technologies. Verity software is used for sharing information within
and between enterprises; for facilitating e-commerce sales; and
for B2B activities on Web-based market exchanges. In addition, Verity
technology serves as a core component of many leading e-business
applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Bristol-Myers Squibb, Cap Gemini Ernst & Young, Cisco, Documentum,
Dow Jones, EDGAR Online, Financial Times, H-P, Home Depot, Lotus,
META Group, SAP, Siemens, Sybase, Time New Media and Timex.
NOTE: Verity and the Verity logo are registered trademarks or trademarks
of Verity, Inc. All other trademarks are the property of their respective
owners.
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Announces
Continuation of Stock Repurchase Program
SUNNYVALE, Calif.,
June 24, 2003 -- Verity Inc. (Nasdaq: VRTY), a leading provider of
enterprise software that helps organizations maximize the return on
their intellectual capital investment, today announced that its Board
of Directors has approved the repurchase of up to an additional $50
million of its Common Stock, during its fiscal year ending May 31,
2004.
"The decision to continue repurchasing our common stock reflects
our positive outlook for the future of Verity," said Gary J. Sbona,
Verity's executive chairman. "We further believe that this program
is a sound investment of available funds that will enhance shareholder
value." Share repurchases will be made periodically on the open
market at prevailing market prices or in negotiated transactions
off the market.
Under the prior program, which ended on May 31, 2003, the company
repurchased and retired approximately four million shares of its
common stock through open market transactions, valued at approximately
$48.5 million of the $50 million previously authorized by the Board
of Directors.
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions
that help organizations maximize the return on their intellectual
capital investment by utilizing Verity's industry-leading enterprise
search, classification and personalization technologies. Verity
software is used for sharing information within and between enterprises;
for facilitating e-commerce sales; and for B2B activities on Web-based
market exchanges. In addition, Verity technology serves as a core
component of many leading e-business applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Bristol-Myers Squibb, Cisco, Cap Gemini Ernst & Young, Documentum,
Dow Jones, EDGAR Online, Financial Times, H-P, Home Depot, Lotus,
META Group, SAP, Siemens, Stellent, Sybase, Time New Media and Timex.
The statements in this press release regarding the repurchase of
Verity common stock are forward-looking statements that are subject
to risks and uncertainties. Verity may repurchase all $50 million
of its stock, or no further shares of its stock, or any amount in
between, depending on the trading price of its common stock, market
conditions, determinations following the date of this announcement
to use such funds for other purposes, or for other reasons. Other
risks relating to Verity are set forth under the caption "Risks
Related to Our Business" in its Quarterly Report on Form 10-Q filed
with the United States Securities and Exchange Commission on April
10, 2003.
NOTE: Verity and the Verity logo are registered trademarks or trademarks
of Verity, Inc.
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Reports
Fourth Quarter and Fiscal Year-End Results
SUNNYVALE, Calif.,
June 24, 2003 -- Verity, Inc. (Nasdaq: VRTY), a leading provider of
enterprise software that helps organizations maximize the return on
their intellectual capital investment, today reported financial results
for its fourth quarter and fiscal year ended May 31, 2003. Verity's
revenues for its fourth quarter ended May 31, 2003 were $29.2 million,
representing a 5% sequential increase over third quarter revenues
of $27.8 million, and a 12% increase from revenues of $26.1 million
for the same period last year. Software product revenues for the fourth
quarter, which represented 57% of total revenues, were $16.6 million,
a 5% sequential increase over third quarter revenues, and a 1% increase
from the same period last year. On a Generally Accepted Accounting
Principles ("GAAP") basis, net income for the fourth quarter ended
May 31, 2003 was $4.2 million, or $0.11 per fully diluted share, a
16% increase, compared to net income of $3.7 million, or $0.10 per
fully diluted share in the third quarter of fiscal 2003 and a 22%
increase over the fourth quarter ended May 31, 2002 with net income
of $3.5 million, or $0.09 per fully diluted share.
Verity also reports pro forma net income and income from operations,
which exclude the effects of amortization of acquired intangible
assets, the one-time write-off of acquired in-process research and
development cost, a charitable contribution and restructuring charges.
Pro forma net income for the fourth quarter ended May 31, 2003 was
$4.6 million, or $0.12 per fully diluted share, a 3% decrease, compared
to pro forma net income of $4.8 million, or $0.13 per fully diluted
share in the third quarter of fiscal 2003. Pro forma income from
operations for the fourth quarter ended May 31, 2003 was $5.7 million,
an 8% decrease, compared to pro forma income from operations of
$6.2 million, in the third quarter of fiscal 2003. The reconciliation
of pro forma adjustments to GAAP is set forth in the tables at the
end of this press release. There were no pro forma effects for the
fourth quarter ended May 31, 2002.
For the twelve-month period ended May 31, 2003, total revenues
were $102.0 million, an increase of 9% from the same period last
year. GAAP net income for the twelve-month period ended May 31,
2003, was $11.6 million, or $0.31 per fully diluted share, compared
to a GAAP net income of $1.4 million, or $0.04 per fully diluted
share, for the same period last year. Pro forma net income for the
twelve-month period ended May 31, 2003, was $13.8 million, or $0.37
per fully diluted share, compared to a pro forma net income of $3.0
million, or $0.08 per fully diluted share, for the same period last
year. Pro forma income from operations for the twelve-month period
ended May 31, 2003 was $15.0 million, compared to a pro forma loss
from operations of $5.0 million, for the same period last year.
The reconciliation of pro forma adjustments to GAAP is set forth
in the tables at the end of this press release.
Although GAAP disclosure provides investors and management with
an overall view of Verity's financial performance, Verity believes
that it is important for investors to also understand the performance
of Verity's core business, such as the sale of its software products
and services. Consequently, the pro forma results exclude charges
not reflective of Verity's core ongoing operational business, namely,
amortization of acquired intangible assets, the one-time write-off
of acquired in-process research and development cost, a charitable
contribution and restructuring charges as indicated in the attached
pro forma supplemental schedule. Management uses the pro forma results
to assess the financial performance of Verity's core business.
"While global economic conditions remain challenging, we are pleased
with Verity's solid performance in its fourth quarter and fiscal
year," said Anthony J. Bettencourt, Verity's president and chief
executive officer. "The past year has been a year of growth for
Verity in a number of ways. Our acquisition of the assets of the
Inktomi enterprise search business last December broadened our product
line and strengthened our sales, marketing and development organizations.
We closed 550 sales transactions that were over $40,000 in fiscal
2003, with an average deal size of $146,000, broadening our base
of K2 and Ultraseek customers worldwide. We released version 5.0
of our flagship K2 product in May, which we believe will further
enhance our already strong competitive position. We grew Verity's
revenues and net income. And, in spite of the difficult economic
conditions that persisted, we achieved an annual profit for the
fifth consecutive year."
Customer Activity
During the period, Verity realized sales from a range of world-class
companies in the defense, financial services, government, healthcare,
high technology, manufacturing, professional services, publishing
and media, and telecommunications industries. Fourth quarter wins
include Anheuser-Busch, BHP Limited, Caterpillar, Deloitte Consulting,
Ernst & Young, Fannie Mae, Fujitsu, HCA, Hewlett-Packard, John Deere
Company, J.P. Morgan Chase & Co., PricewaterhouseCoopers, Raytheon,
Renault, SBC Communications, Unocal, the United States Department
of State and others.
The company extended its position in the OEM market for enterprise
search, categorization and personalization software technology by
way of new or extended agreements with Xerox, Stellent and others.
Business Outlook
Verity is projecting a modest sequential decrease in revenue in
the first quarter of fiscal year 2004, due to a combination of historic
seasonality in the summer months and an expected continuation of
challenging global economic conditions. Verity is projecting revenue
for its first quarter of fiscal 2004 to be in the range of $26 million
to $28 million, with GAAP earnings in the range of $0.03 to $0.05
per share and pro forma earnings in the range of $0.04 to $0.06
per share. First quarter of fiscal 2004 projections exclude the
effects of anticipated amortization of acquired intangible assets
of $0.6 million, or approximately $0.01 per fully diluted share.
For fiscal year 2004, Verity is projecting revenue to be in the
range of $122 million to $126 million, with GAAP earnings in the
range of $0.29 to $0.35 per share and pro forma earnings in the
range of $0.33 to $0.38 per share. Fiscal year 2004 projections
exclude the effects of anticipated amortization of acquired intangible
assets of $2.6 million, or approximately $0.04 per fully diluted
share.
Operating Results Conference Call Scheduled
Investors are cordially invited to join a Conference Call on Tuesday,
June 24, 2003 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time)
at which Gary J. Sbona, executive chairman, and Anthony J. Bettencourt,
president and chief executive officer, and other key members of
Verity's management team will review the operating results from
Verity's fourth quarter and fiscal year that ended May 31, 2003
and its current business outlook.
DATE: Tuesday, June 24, 2003
TIME: 1:30 p.m. Pacific Time
DIAL-IN NUMBERS: United States & Canada: 1-877-888-3490/International:
1-416-695-9757
WEB CAST LINK: http://www.vcall.com/ClientPage.asp?ID=84003
Investors desiring to participate in the call should dial in on
the above referenced numbers five (5) minutes prior to the scheduled
start time and ask for the Verity Quarterly Earnings Conference
Call.
Alternatively, investors may access the web cast of Verity's earnings
call at the above listed web site.
A replay of the Earnings Call will be available through September
23, 2003 at http://www.verity.com/company/corporate/investor_relations/webcasts.html,
or by dialing 1-866-518-1010 (United States & Canada) or 1-416-252-1143
(International) between the hours of 4:00 a.m. - 8:00 p.m. PT.
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions
that help organizations maximize the return on their intellectual
capital investment by utilizing Verity's industry-leading enterprise
search, classification and personalization technologies. Verity
software is used for sharing information within and between enterprises,
for facilitating e-commerce sales, and for B2B activities on Web-based
market exchanges. In addition, Verity technology serves as a core
component of many leading e-business applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Cap Gemini Ernst & Young, Cisco, CNET, Dow Jones, EDGAR Online,
FairMarket, Financial Times, Hewlett-Packard, Home Depot, Lotus,
SAP, Siemens, Stellent, Sybase, Time New Media and Timex.
Forward-Looking Statements
The statements in this press release regarding Verity's beliefs
as to the benefits its 5.0 release of its flagship K2 product will
have on its competitive position, and under the heading "Business
Outlook," are forward-looking statements. Actual financial results
could differ materially as a result of many factors, including:
these expectations and beliefs are based on assumptions that may
not prove to be accurate, including the future demand for Verity's
products may not be as strong as Verity predicts; many of Verity's
product orders are large, and a delay in closing a large sale during
any quarter could materially reduce Verity's revenues for that period;
transactions accounting for a disproportionate percentage of Verity's
quarterly revenues are frequently closed in the last few weeks or
days of a quarter and, accordingly, even a slight delay in the closing
of some of these transactions could materially reduce Verity's revenues
for that period; Verity incurs expenses based upon anticipated revenues
and, consequently, if the revenues are less than anticipated, Verity
will have lower gross margins and operating results; if competitors
develop new products that compete favorably against Verity's products,
sales of Verity's products will be less than projected; and a portion
of Verity's sales are in the international market, which exposes
Verity to currency fluctuation and other risks. These and other
risks relating to Verity and its business and products are set forth
under the caption "Risk Factors" in Item 1 of Verity's latest Form
10-Q filed with the Securities and Exchange Commission.
NOTE: Verity and the Verity logo are registered trademarks or trademarks
of Verity, Inc.
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Fourth
Quarter - Fiscal Year 2003 Earnings Conference Call
SUNNYVALE, Calif.,
Jun 9, 2003 --
Date: Tuesday, June 24, 2003
Time: 1:30 p.m. Pacific Time
Dial-in numbers: United States & Canada: 1-877-888-3490 International:
1-416-695-9757
Web Cast Link:
You are cordially invited to join a Conference Call on Tuesday,
June 24, 2003 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time)
at which Gary J. Sbona, executive chairman, and key members of Verity's
management team will review the operating results from our fourth
quarter and fiscal year that ended May 31, 2003 and our current
business outlook.
If you wish to participate, please dial in on the above referenced
numbers five minutes prior to the scheduled start time and ask for
the Verity Quarterly Earnings Conference Call.
Alternatively, you may access the web cast of our earnings call
at the above listed web site.
A replay of the Earnings Call will be available through July 11,
2003, at the above listed Web site or by dialing 1-866-518-1010
(United States & Canada) or 1-416-252-1143 (International) between
the hours of 4 a.m. and 8 p.m. PT.
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions
that help organizations maximize the return on their intellectual
capital investment by utilizing Verity's industry-leading enterprise
search, classification and personalization technologies. Verity
software is used for sharing information within and between enterprises;
for facilitating e- commerce sales; and for B2B activities on Web-based
market exchanges. In addition, Verity technology serves as a core
component of many leading e- business applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Bristol-Myers Squibb, Cisco, Cap Gemini Ernst & Young, Documentum,
Dow Jones, EDGAR Online, Financial Times, H-P, Home Depot, Lotus,
META Group, SAP, Siemens, Sybase, Time New Media and Timex.
NOTE: Verity and the Verity logo are registered trademarks or trademarks
of Verity, Inc.
All other trademarks are the property of their respective owners.
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CTO
to Speak at ACM SIGMOD Conference
SUNNYVALE, Calif.,
Jun 9, 2003 -- Verity Inc. (VRTY) today announced that Prabhakar Raghavan,
vice president and chief technology officer, will give two presentations
at the Association for Computing Machinery Special Interest Group
on Management of Data (ACM SIGMOD) 2003 Conference in San Diego, June
10-12, 2003. The ACM SIGMOD 2003 Conference is part of the Federated
Computing Research Conference (FCRC), to be held June 7-14 in San
Diego.
WHAT: Dr. Prabhakar Raghavan Presentations at ACM SIGMOD:
1) Panel Session: "Querying Networked Databases" 2) Industrial Session:
"Extracting and Exploiting Structure in Text Search"
WHERE: Town and Country Resort and Convention Center 500 Hotel
Circle North San Diego, Calif.
WHEN: 1) Querying Networked Databases: Tuesday, June 10, 2 p.m.
2) Extracting and Exploiting Structure in Text Search: Wednesday,
June 11, 2 p.m.
CONTACT: Winifred Shum, Verity Inc., 408-542-2363, wshum@verity.com
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions
that help organizations maximize the return on their intellectual
capital investment by utilizing Verity's industry-leading enterprise
search, classification and personalization technologies. Verity
software is used for sharing information within and between enterprises;
for facilitating e- commerce sales; and for B2B activities on Web-based
market exchanges. In addition, Verity technology serves as a core
component of many leading e- business applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Bristol-Myers Squibb, Cisco, Cap Gemini Ernst & Young, Documentum,
Dow Jones, EDGAR Online, Financial Times, H-P, Home Depot, Lotus,
META Group, SAP, Siemens, Stellent, Sybase, Time New Media and Timex.
NOTE: Verity and the Verity logo are registered trademarks or trademarks
of Verity, Inc.
All other trademarks are the property of their respective owners.
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To
Present at Thomas Weisel Partners' Internet 2003 Conference
SUNNYVALE, Calif.,
April 30, 2003 -- Anthony J. Bettencourt, president and chief executive
officer, and Steven R. Springsteel, senior vice president of finance
and administration and chief financial officer of Verity Inc. (Nasdaq:
VRTY), will make an investors presentation at the Thomas Weisel Partners'
Internet 2003 Conference on May 6, 2003, at the Four Seasons Hotel
in San Francisco, Calif.
WHAT: Verity's Investors Presentation at Thomas Weisel Partners'
Internet 2003 Conference
WHO: Anthony J. Bettencourt, Verity's president and CEO Steven
R. Springsteel, Verity's SVP of Finance and Administration and CFO
WHERE: The Four Seasons Hotel 757 Market Street San Francisco,
California
The presentation will also be webcast live at: http://www.veracast.com/webcasts/twp/internet-2003/81110202.cfm
WHEN: May 6, 2003, 12:50 - 1:20pm PT
CONTACT: Winifred Shum, Verity Inc., 408-542-2363, wshum@verity.com
Bettencourt and Springsteel will discuss Verity's marketplace performance
and outlook on the software market in which it competes, its approach
for extending category leadership, and evidence of how its innovative
technology is helping customers solve business problems and realize
measurable return-on-investment.
Hosted by Thomas Weisel Partners, this conference will offer participants
exciting and interactive discussions with many of the fastest growing
and cutting-edge Internet companies in America, all built on or
around the Internet. Panel discussions and workshops, designed to
connect the dots and provide original perspective on key issues
affecting a company's success in the Internet marketplace, will
also be held.
Thomas Weisel Partners is a research-driven merchant bank, which
focused exclusively on the growth sectors of the U.S. economy. The
Firm offers investment banking, institutional brokerage, private
equity investing, asset management and private client services.
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions
that help organizations maximize the return on their intellectual
capital investment by utilizing Verity's industry-leading enterprise
search, classification and personalization technologies. Verity
software is used for sharing information within and between enterprises;
for facilitating e-commerce sales; and for B2B activities on Web-based
market exchanges. In addition, Verity technology serves as a core
component of many leading e-business applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Bristol-Myers Squibb, Cisco, Cap Gemini Ernst & Young, Documentum,
Dow Jones, EDGAR Online, Financial Times, H-P, Home Depot, Lotus,
META Group, SAP, Siemens, Sybase, Time New Media and Timex.
NOTE: Verity and the Verity logo are registered trademarks or trademarks
of Verity, Inc.
All other trademarks are the property of their respective owners.
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Reports
Third Quarter Results
SUNNYVALE, Calif., March 13, 2003 -- Verity, Inc. (NASDAQ:VRTY),
a leading provider of enterprise software that helps organizations
maximize the return on their intellectual capital investment, today
reported financial results for its third fiscal quarter ended February
28, 2003. Verity's revenues for its third quarter ended February
28, 2003 were $27.8 million, representing a 22% sequential increase
over second quarter revenues of $22.9 million, and an 11% increase
from revenues of $25.0 million for the same period last year. Software
product revenues for the third quarter, which represented 57% of
total revenues, were $15.7 million, a 21% sequential increase over
second quarter revenues, and a 2% decrease from the same period
last year. On a Generally Accepted Accounting Principles (GAAP)
basis, net income for the third quarter ended February 28, 2003
was $3.7 million, or $0.10 per fully diluted share, a 55% increase,
compared to net income of $2.4 million, or $0.07 per fully diluted
share in the second quarter of fiscal 2003 and a 59% increase over
the third quarter ended February 28, 2002 with net income of $2.3
million, or $0.06 per fully diluted share.
Pro forma net income for the third quarter ended February 28,
2003 was $4.8 million, or $0.13 per fully diluted share, a 61% increase,
compared to pro forma net income of $3.0 million, or $0.08 per fully
diluted share in the second quarter of fiscal 2003. There were no
pro forma effects for the third quarter ended February 28, 2002.
For the nine-month period ended February 28, 2003, total revenues
were $72.7 million, an increase of 7% from the same period last
year. GAAP net income for the nine-month period ended February 28,
2003, was $7.4 million, or $0.20 per fully diluted share, compared
to a GAAP net loss of $2.1 million, or ($0.06) per share, for the
same period last year. Pro forma net income for the nine-month period
ended February 28, 2003, was $9.2 million, or $0.25 per fully diluted
share, compared to a pro forma net loss of $0.5 million, or ($0.01)
per share, for the same period last year.
Verity believes the pro forma results better reflect its operating
performance as they exclude the effects of certain non-cash or non-recurring
charges. Charges included in GAAP results that were excluded from
the pro forma results were amortization of acquired intangible assets,
the one-time write-off of acquired in-process research and development
cost, a charitable contribution and restructuring charges as indicated
in the attached pro forma supplemental schedule.
"The third quarter marked a number of important milestone events
for Verity," said Gary J. Sbona, Verity's executive chairman. "In
December we completed the acquisition of certain assets of the Inktomi
enterprise search business. The integration was well-planned and
executed smoothly throughout the quarter. In January, Steven R.
Springsteel joined Verity as our new senior vice president of finance
and administration and chief financial officer. Steve is an experienced
industry executive, and is already in a position to make significant
contributions to our future results. In February, there were a number
of well-deserved promotions of individuals who have made significant
contributions to Verity's success over time. These promotions included
Michael D. Mooney and Hugo L. Sluimer to senior vice president positions
within our field sales operations, Paul H. Cook to the position
of vice president of finance and corporate controller and Grant
I. McCormick to the position of vice president and chief information
officer. Then, on March 6, 2003, we announced the appointment of
Anthony J. Bettencourt to president and chief executive officer.
The net result of all of these changes is that Verity is a strong
company getting stronger. We are well-positioned for future growth,
to enhance our position as an industry leader in our space and to
increase long- term shareholder value."
Bettencourt has more than 20 years of senior management experience
in a variety of high-tech companies. He first joined Verity in 1995
and was named vice president of worldwide sales in 1996. He was
responsible for developing key alliances with Netscape, Informix,
Sybase, SCO and others that helped to define Verity's early niche
in the search and retrieval marketplace. He was also a member of
the Verity management team during the company's successful initial
public offering in 1995. He rejoined the company in September 1997
as senior vice president of worldwide sales and was named president
and elected to the board of directors in September 1999. He has
held senior management positions with OnLive! Technologies, Versant
Object Technology, Excelan, Quintus, Convergent Technologies and
Altos Computer Systems.
"Verity has certainly come a long way under the leadership of
Gary Sbona over the past five and a half years," said Bettencourt.
"I look forward to having the opportunity to work with him and the
rest of Verity's management team to build upon the company's numerous
strengths and successes, now and in the future."
Customer Activity
During the period, Verity realized sales from a range of world-class
companies in the banking and financial services, high technology,
professional services, and telecommunications industries. Third
quarter wins include ABN Amro Bank, Air France, Aventis Pharmaceuticals,
Barclays Bank, Bayer AG, British Telecom, Cadence, Janes Information
Group, Mercedes Benz, Smithkline Beecham, Symantec, Verizon, Vodafone
and others.
The company extended its position in the OEM market for enterprise
search and categorization software technology by way of new or extended
licensing agreements with FileNet, Kana Software and others.
Business Outlook
Verity is projecting revenue for its fourth quarter of fiscal 2003
to be in the range of $29 million to $31 million, with GAAP earnings
in the range of $0.11 to $0.13 per share and pro forma earnings
in the range of $0.12 to $0.14 per share.
Operating Results Conference Call Scheduled
Investors are cordially invited to join a Conference Call on Thursday,
March 13, 2003 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time)
at which Gary J. Sbona, executive chairman of the board and Anthony
J. Bettencourt, president and chief executive officer, and other
key members of Verity's management team will review the operating
results from Verity's third quarter that ended February 28, 2003
and its current business outlook.
DATE: Thursday, March 13, 2003
TIME: 1:30 p.m. Pacific Time
DIAL-IN NUMBERS: United States & Canada: 1-877-888-7019 / International:
1-416-695-5259
WEB CAST LINK: http://www.vcall.com/EventPage.asp?ID=83356
Investors desiring to participate in the call should dial in on
the above referenced numbers five (5) minutes prior to the scheduled
start time and ask for the Verity Quarterly Earnings Conference
Call.
Alternatively, investors may access the web cast of Verity's earnings
call at the above listed web site.
A replay of the Earnings Call will be available through March
28, 2003 at the above listed web site or by dialing 1-866-518-1010
(4:00 a.m. - 8:00 p.m. PT).
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions
that help organizations maximize the return on their intellectual
capital investment by utilizing Verity's industry-leading enterprise
search, classification and personalization technologies. Verity
software is used for sharing information within and between enterprises;
for facilitating e- commerce sales; and for B2B activities on Web-based
market exchanges. In addition, Verity technology serves as a core
component of many leading e- business applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Cisco, CNET, Cap Gemini Ernst & Young, Hewlett Packard, Dow Jones,
EDGAR Online, FairMarket, Financial Times, Globe and Mail, Home
Depot, Lotus, SAP, Siemens, Stellent, Sybase, Time New Media and
Timex.
Forward-Looking Statements
The statements in this press release regarding Verity's beliefs
as to its long-term prospects for growth and profitability, how
it intends to maximize long-term shareholder value, and under the
heading "Business Outlook," are forward-looking statements. Actual
financial results could differ materially as a result of many factors,
including: these expectations and beliefs are based on assumptions
that may not prove to be accurate, including the future demand for
Verity's products may not be as strong as Verity predicts; many
of Verity's product orders are large, and a delay in closing a large
sale during the fourth quarter could materially reduce Verity's
revenues for that period; transactions accounting for a disproportionate
percentage of Verity's quarterly revenues are frequently closed
in the last few weeks or days of a quarter and, accordingly, even
a slight delay in the closing of some of these transactions could
materially reduce Verity's revenues for that period; Verity incurs
expenses based upon anticipated revenues and, consequently, if the
revenues are less than anticipated, Verity will have lower gross
margins and operating results; if competitors develop new products
that compete favorably against Verity's products, sales of Verity's
products will be less than projected; and a portion of Verity's
sales are in the international market, which exposes Verity to currency
fluctuation and other risks. These and other risks relating to Verity
and its business and products are set forth under the caption "Risk
Factors" in Item 1 of Verity's latest Form 10-Q filed with the Securities
and Exchange Commission.
Verity and the Verity logo are registered trademarks or trademarks
of Verity, Inc. All other trademarks are the property of their respective
owners.
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To
Present at Lehman Brothers' Third Annual Global Software and IT
Services Conference
SUNNYVALE, Calif., March 7, 2003 -- Anthony J. Bettencourt, president
and chief executive officer and Steven R. Springsteel, senior vice
president of finance and administration and chief financial officer
of Verity Inc. (NASDAQ:VRTY), will speak about the company's marketplace
performance and outlook on the industry in which it competes at
Lehman Brothers' Third Annual Global Software and IT Services Conference
on March 11, 2003, in Half Moon Bay, Calif.
WHAT: Verity's Investor Presentation at Lehman Brothers' Third
Annual Global Software and IT Services Conference
WHERE: Half Moon Bay, California
WHEN: March 11, 2003, 3:30-4:30 p.m.
Bettencourt and Springsteel will offer the company's view of the
software market in which it competes, its approach for extending
category leadership, and evidence of how its innovative technology
is helping customers solve business problems and realize measurable
return on investment.
Hosted and moderated by the Lehman Brothers' Global Software and
IT Research Team, this year's conference will offer participants
a complete view of the global software landscape, featuring presentations
and panels providing insight on trends within enterprise, infrastructure,
security storage, the Internet, outsourcing, consulting and systems
integration, as well as other multi-industry topics.
Lehman Brothers (NYSE:LEH), an innovator in global finance, focuses
on serving the financial needs of corporations, governments and
municipalities, institutional clients, and high-net-worth individuals
worldwide. Founded in 1850, Lehman Brothers maintains leadership
positions in equity and fixed income sales, trading and research,
investment banking, private equity, and private client services.
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions
that help organizations maximize the return on their intellectual
capital investment by utilizing Verity's industry-leading enterprise
search, classification and personalization technologies. Verity
software is used for sharing information within and between enterprises;
for facilitating e-commerce sales; and for B2B activities on Web-based
market exchanges. In addition, Verity technology serves as a core
component of many leading e-business applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Bristol-Myers Squibb, Cisco, Cap Gemini Ernst & Young, Documentum,
Dow Jones, EDGAR Online, Financial Times, H-P, Home Depot, Lotus,
META Group, SAP, Siemens, Sybase, Time New Media and Timex.
Verity and the Verity logo are registered trademarks or trademarks
of Verity, Inc. All other trademarks are the property of their respective
owners.
Return
to headlines
Announces
the Appointment of Anthony J. Bettencourt to President & CEO
SUNNYVALE, Calif., March 6, 2003 -- Verity Inc. (NASDAQ:VRTY),
a leading provider of enterprise software that helps organizations
maximize the return on their intellectual capital investment, today
announced the appointment of Anthony J. Bettencourt III to president
and chief executive officer.
Bettencourt, Verity's president and a board member since September
1999, succeeds Gary J. Sbona as CEO. Sbona will continue as the
company's Executive Chairman of the Board.
"Anthony Bettencourt has been instrumental to Verity's performance
over the past three and a half years as the company's president,"
said Sbona, "and will continue to make outstanding contributions
as our CEO. As we move forward, Anthony will concentrate on day-to-day
operations allowing me to increase my focus on growing our business
through strategic initiatives such as mergers, acquisitions and
partnerships."
Sbona was named Verity's CEO in July 1997, a board member in May
1998 and board chairman in March 1999. Under Sbona's leadership,
Verity has grown its revenues from $42.7 million in 1997 to $93.8
million in 2002. The company has been profitable in each of its
past four fiscal years.
The Company also announced it has extended its current management
agreement with Regent Pacific Management Corporation until February
28, 2005. Under the amended agreement, Regent Pacific will continue
to provide the services of Gary J. Sbona as executive chairman of
Verity, and will continue to provide additional Regent Pacific management
services to the company.
"The shareholders, customers and employees of Verity owe Gary
Sbona a great debt of gratitude," Bettencourt said. "Anyone who
understands the challenges of leading a global software company
in the radically changing environments of the past five years will
certainly understand the significant contributions Gary has made
to our success. As we go forward, I will enjoy the benefit of his
counsel and management experience as our executive chairman and
colleague."
The senior management team now reporting to Bettencourt will be:
Stephen W. Young, chief operating officer, Steven R. Springsteel,
senior vice president of finance and administration and chief financial
officer; Dr. Ashok K. Chandra, senior vice president of development
and new business activities; Michael D. Mooney, senior vice president
of field sales operations in the Americas; Hugo Sluimer, senior
vice president of field sales in Europe, the Middle East, Africa
and the Asia-Pacific region, and Michael T. Zuckerman, vice president
of marketing.
Bettencourt has more than 20 years of senior management experience
in a variety of high-tech companies. He first joined Verity in 1995
and was named vice president of worldwide sales in 1996. He was
responsible for developing key alliances with Netscape, Informix,
Sybase, SCO and others that helped define Verity's early niche in
the search and retrieval marketplace.
He was also a member of the Verity management team during the
company's successful initial public offering in 1995. He rejoined
the company in September 1997 as senior vice president of worldwide
sales and was named president and elected to the board of directors
in September 1999. He has held senior management positions with
OnLive! Technologies, Versant Object Technology, Excelan, Quintus,
Convergent Technologies and Altos Computer Systems.
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions
that help organizations maximize the return on their intellectual
capital investment by utilizing Verity's industry-leading enterprise
search, classification and personalization technologies. Verity
software is used for sharing information within and between enterprises;
for facilitating e-commerce sales; and for B2B activities on Web-based
market exchanges. In addition, Verity technology serves as a core
component of many leading e-business applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Cisco, CNET, Cap Gemini Ernst & Young, Hewlett Packard, Dow Jones,
EDGAR Online, FairMarket, Financial Times, Globe and Mail, Home
Depot, Lotus, SAP, Siemens, Sybase, Time New Media and Timex.
Verity and the Verity logo are registered trademarks or trademarks
of Verity Inc. All other trademarks are the property of their respective
owners.
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Guidance
for Third Quarter - Fiscal Year 2003 And Announces Earnings Conference
Call
SUNNYVALE, Calif., March 4, 2003 -- Verity Inc. (NASDAQ:VRTY),
a leading provider of enterprise software that helps organizations
maximize the return on their intellectual capital investment, today
announced that it expects to meet its previously issued guidance
for the third quarter of 2003, ended February 28, 2003.
"Based on preliminary results, we are reaffirming our guidance
for the third quarter of fiscal 2003 and are now focusing our sales
efforts on the fourth quarter of 2003 and building our pipeline
for the first quarter of fiscal 2004," said Gary J. Sbona, chairman
and chief executive officer of Verity.
The Pro forma EPS amounts exclude both a one-time in-process research
and development write-off and the amortization of identifiable intangible
assets related to the Inktomi Enterprise Search acquisition, which
was concluded in December 2002.
"While we feel very comfortable with the issued guidance, the
quarterly results are preliminary in nature and subject to the quarterly
limited review of our outside independent auditors," said Steven
R. Springsteel, senior vice president and chief financial officer.
Announcing the Timing of the Earnings Call for the Third Quarter
of Fiscal Year 2003:
Investors are cordially invited to join a Conference Call on Thursday,
March 13, 2003 at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time)
at which Gary J. Sbona, chairman and chief executive officer, and
key members of Verity's management team will review the operating
results from Verity's third quarter that ended February 28, 2003
and its current business outlook.
Date: Thursday, March 13, 2003
Time: 1:30 p.m. Pacific Time
Dial-in numbers: United States & Canada: 1-877-888-7019 International:
1-416-695-5259
WEB CAST LINK: http://www.vcall.com/EventPage.asp?ID=83356
Investors desiring to participate in the call should dial in on
the above referenced numbers five (5) minutes prior to the scheduled
start time and ask for the Verity Quarterly Earnings Conference
Call.
Alternatively, investors may access the web cast of Verity's earnings
call at the above listed web site.
A replay of the Earnings Call will be available through March
28, 2003 at the above listed web site or by dialing 1-866-518-1010
(4:00 a.m. -- 8:00 p.m. PT).
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions
that help organizations maximize the return on their intellectual
capital investment by utilizing Verity's industry-leading enterprise
search, classification and personalization technologies. Verity
software is used for sharing information within and between enterprises;
for facilitating e-commerce sales; and for B2B activities on Web-based
market exchanges. In addition, Verity technology serves as a core
component of many leading e-business applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Bristol-Myers Squibb, Cap Gemini Ernst & Young, Cisco, Documentum,
Dow Jones, EDGAR Online, Financial Times, H-P, Home Depot, Lotus,
META Group, SAP, Siemens, Sybase, Time New Media and Timex.
Forward-Looking Statements
The statements in this press release regarding Verity's expected
third quarter revenue and earnings per share are forward-looking
statements. Actual results could differ materially as a result of
many factors, including the risk that, because the company has not
finalized its third quarter financial results, unexpected adjustments
may be made in finalizing these financial results from those currently
contemplated. Other risks relating to Verity and its business and
products are set forth under the caption "Risk Factors" in Item
1 of Verity's latest Form 10-K filed with the Securities and Exchange
Commission.
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Announces
Management Promotions
SUNNYVALE, Calif., February 13, 2003 -- Verity Inc. (NASDAQ:VRTY),
a leading provider of enterprise software that enables organizations
to maximize the return on their intellectual capital investment,
today announced the promotion of four of its key executives. They
include the leadership team of its worldwide sales organization,
its corporate controller and its chief information officer.
Michael D. Mooney and Hugo L. Sluimer were both promoted to the
positions of senior vice president, with Mooney heading Verity's
field sales operations in the Americas, and Sluimer heading the
company's field sales operations in Europe, the Middle East, Africa
and the Asia-Pacific region. Paul H. Cook was promoted to the position
of vice president and corporate controller, and Grant I. McCormick
was promoted to the position of vice president and chief information
officer.
In making these executive appointments, Gary J. Sbona, Verity's
chairman and chief executive officer said, "These promotions are
in recognition of these four individuals each doing their jobs in
an outstanding manner. They are consummate professionals who have
made significant contributions to Verity's success on a consistent
basis over an extended period of time."
Mooney will be responsible for all of Verity's sales activities
in the Americas, including direct, OEM and reseller channel sales,
as well as the company's business development activities on a worldwide
basis. Mooney had been vice president of North American sales and
business development.
Sluimer will manage Verity's sales activities in Europe, the Middle
East, Africa and the Asia-Pacific region. Sluimer had served as
vice president, international sales and European operations.
Cook continues to be responsible for all financial accounting,
budgeting, forecasting, financial analysis, and risk management,
as well as SEC reporting and treasury operations. He joined the
company as corporate controller in June 2001.
McCormick will serve as Verity's executive in charge of its information
processing systems, responsible for the performance and development
of the company's computing and communications infrastructure. He
had been the company's Director of Management Information Systems
prior to this promotion.
Mooney and Sluimer continue to report to Anthony J. Bettencourt,
Verity's president. Cook continues to report to Steven R. Springsteel,
Verity's senior vice president of finance and administration and
chief financial officer. McCormick continues to report to Dr. Ashok
K. Chandra, Verity's senior vice president of development and new
business activities.
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions
that help organizations maximize the return on their intellectual
capital investment by utilizing Verity's industry-leading enterprise
search, classification and personalization technologies. Verity
software is used for sharing information within and between enterprises;
for facilitating e-commerce sales; and for B2B activities on Web-based
market exchanges. In addition, Verity technology serves as a core
component of many leading e-business applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Bristol-Myers Squibb, Cisco, Cap Gemini Ernst & Young, Documentum,
Dow Jones, EDGAR Online, Financial Times, H-P, Home Depot, Lotus,
META Group, SAP, Siemens, Sybase, Time New Media and Timex.
Verity and the Verity logo are registered trademarks or trademarks
of Verity, Inc. All other trademarks are the property of their respective
owners.
Return
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Appoints
Springsteel Senior Vice President and CFO
SUNNYVALE, Calif., January 13, 2003 -- Verity Inc. (NASDAQ:VRTY),
a leading provider of enterprise software that helps organizations
maximize the return on their intellectual capital investment, today
announced the appointment of Steven R. Springsteel to be its senior
vice president of finance and administration and chief financial
officer (CFO). He joins Verity from Sagent Technology (NASDAQ:SGNT),
an enterprise business intelligence software company, where he served
most recently as chief operating officer (COO) and CFO. He will
remain a member of the Sagent Technology board of directors. In
his new post Springsteel will report to Gary J. Sbona, Verity's
chairman and chief executive officer.
"Steve brings a track record of impressive accomplishments in
financial and operations management to the Verity team," said Sbona.
"He is an excellent addition to an already strong management team
and takes over the CFO function that was superbly managed by Todd
K. Yamami."
The company announced Dec. 12, 2002, that Yamami was stepping
down as CFO to spend more time with his family, while remaining
with the company until his successor was in place. Stephen W. Young,
Verity's COO, has been acting as the company's CFO since Yamami
stepped down.
Springsteel brings more than 20 years of experience in financial
and operational management to his position. Prior to Sagent, he
held the post of COO at NOCpulse, a privately held provider of Internet
infrastructure monitoring and control technology. In addition, Springsteel
served as executive vice president and CFO of publicly traded Chordiant
Software, a customer relationship management software vendor, and
of Multipoint Networks, a privately held wireless data communications
company, and as a senior executive of the Santa Cruz Operation,
a UNIX operating system design and development company that is publicly
held.
"Verity is known as a very well-managed company and highly regarded
software provider," Springsteel said. "I look forward to helping
to build upon the company's achievements as its CFO. This is an
exciting time to join Verity, which is striving to enter its next
phase of growth and expand its leadership in the enterprise software
category."
A frequent speaker on financial issues, Springsteel has appeared
on CNBC and other business media outlets as well as at financial
industry conferences. He holds a bachelor's degree in business administration
from Cleveland State University.
About Verity
Headquartered in Sunnyvale, Calif., Verity provides software solutions
that help organizations maximize the return on their intellectual
capital investment by utilizing Verity's industry-leading enterprise
search, classification and personalization technologies. Verity
software is used for sharing information within and between enterprises;
for facilitating e-commerce sales; and for B2B activities on Web-based
market exchanges. In addition, Verity technology serves as a core
component of many leading e-business applications.
Verity products are used by more than 3,500 organizations in the
private and public sectors. Customers include Adobe Systems, AT&T,
Cisco, CNET, Cap Gemini Ernst & Young, Hewlett Packard, Dow Jones,
EDGAR Online, FairMarket, Financial Times, Globe and Mail, Home
Depot, Lotus, SAP, Siemens, Sybase, Time New Media and Timex.
The statements in this press release regarding Verity striving
to enter a new phase of growth and expand its leadership in the
enterprise software category are forward-looking statements. Actual
results could differ materially as a result of many factors, including:
demand for Verity's products may not be as strong as Verity predicts;
if competitors develop new products that compete favorably against
Verity's products, Verity may not be able to grow and expand its
leadership and business; and if the economy does not grow as Verity
expects, the market for its products may not grow, or may decline.
These and other risks relating to Verity and its business and products
are as set forth under the caption "Risk Factors" in Item 1 of Verity's
latest Form 10-K filed with the Securities and Exchange Commission.
Return
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Completes Acquisition of Inktomi Enterprise
Search Software Business
SUNNYVALE, Calif., December 18, 2002 -- Verity Inc., (NASDAQ:VRTY),
a leading provider of infrastructure software that powers corporate
intranets and e-commerce sites as well as e-business applications,
today announced the completion of its acquisition of the enterprise
search software business from Inktomi Corp. (NASDAQ:INKT).
"We are excited to have the opportunity to provide customers with
the ability to benefit from a portfolio of products that covers
the full spectrum of enterprise search solutions," said Gary J.
Sbona, Verity's chairman and CEO. "With the depth and breadth of
our product offering, customers will be able to start with us and
stay with us as their needs grow. Verity and Inktomi enterprise
search technologies and products, in combination, deliver the broadest
and strongest information retrieval offerings available today."
Inktomi(R) Enterprise Search will be renamed Verity Ultraseek,
bringing back the product's original and well-regarded brand on
a worldwide basis. Verity also gains access to Inktomi's enterprise
search customer base of 2,500 companies worldwide, considerably
expanding Verity's installed base of customers. Support and maintenance
services for existing Verity Ultraseek customers are already in
place. In addition, work to create linkages between Verity Ultraseek
and other Verity products is being conducted by a development team
that includes developers from Inktomi who are joining Verity. The
company intends to provide further details on Verity Ultraseek branding
as well as service and maintenance programs for the product shortly.
"Overall, this transaction means a healthier market for enterprise
search because Verity can address a broader range of market requirements
and move down market by creating an in-house channel that can help
drive further demand for its enterprise products," states Laura
Ramos, director at Giga Information Group in research entitled,
"Enterprise Search Consolidation Signals Healthier Market Ahead."
"Rationalizing the IT infrastructure continues to be a major priority
for Global 2000 executives," said Hadley Reynolds, director of research,
Delphi Group, a leading market advisor. "With Verity Ultraseek incorporated
in the software portfolio, Verity can offer enterprises that seek
better returns from content intelligence solutions a new level of
business unification. This single channel offer, crossing the spectrum
of smart analytics and presentation options, is a harbinger of what
will be demanded of search providers going forward."
About Verity
Headquartered in Sunnyvale, Calif., Verity is a leading provider
of business portal infrastructure software. Verity software gives
businesses a multitude of ways to improve access to vital information
and perform a range of e-business operations, while enhancing the
end-user experience. Verity-powered business portals, which include
corporate intranets used for sharing information within an enterprise;
e-commerce sites for online selling; and market exchange portals
for B2B activities, all provide personalized information to employees,
partners, customers and suppliers.
Verity products are used by approximately 80 percent of the Fortune
50 and by more than 1,500 corporations in various markets. Customers
include Adobe Systems, AT&T, Cap Gemini Ernst & Young, Cisco, CNET,
Compaq, Dow Jones, EDGAR Online, FairMarket, Financial Times, Globe
and Mail, Home Depot, Lotus, SAP, Siemens, Sybase, Time New Media
and Timex.
Forward-Looking Statements
The statements in this press release regarding the benefits Verity
expects to obtain from the acquisition, including the potential
benefits of the Inktomi products and technologies acquired, are
forward-looking statements that involve a number of uncertainties
and risks. The success of the acquisition and benefits Verity ultimately
obtains may differ from Verity's expectations. Such uncertainties
and risks include, without limitation: the potential difficulties
and uncertainties in the assimilation of technologies, methodologies
and products of Inktomi into Verity's products; the risk of loss
of key personnel Verity hired from Inktomi; diversion of management
attention from other business concerns; and the risk that the integration
of the potential benefits of Inktomi technology and personnel into
Verity will not be successful due to company culture or other issues.
As a result actual results may differ substantially from expectations.
For further information on risks affecting Verity, refer to the
section entitled "Risk Factors" in Verity's most recent Quarterly
Report on Form 10-Q filed with the Securities and Exchange Commission.
Verity undertakes no obligation to update the information in this
press release.
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Reports Second Quarter Results
SUNNYVALE, Calif., December 12, 2002 -- Verity, Inc. (NASDAQ:VRTY),
a leading provider of infrastructure software powering corporate
intranets and e-commerce sites as well as e-business applications,
today reported financial results for its second fiscal quarter ended
November 30, 2002. Verity's revenues for its second quarter ended
November 30, 2002 were $22.9 million, representing a 4% sequential
increase over first quarter revenues of $22.0 million and a 1% increase
from revenues of $22.6 million for the second quarter of last year.
Software product revenues for the second quarter, which represented
57% of total revenues, were $12.9 million, a 5% sequential increase
over first quarter revenues and a 2% decrease from the second quarter
of last year.
Net income for the second quarter ended November 30, 2002 was
$2.4 million, or $0.07 per diluted share, compared to first quarter
net income of $1.4 million, or $0.04 per diluted share, and a net
loss of $1.9 million, or ($0.05) per share, for the second quarter
of last year. Results for the quarter ended November 30, 2002 include
a restructuring charge of $1.0 million. Excluding this charge, net
income was $3.0 million, or $0.08 per diluted share. Results for
the quarter ended November 30, 2001 included a restructuring charge
of $1.6 million and a charitable contribution of $1.0 million. Excluding
these charges, net loss was $0.3 million, or ($0.01) per share.
There were no comparable charges in the first quarter ended August
31, 2002.
"Verity's performance in the face of the continuing difficult
global economic climate is validation of the company's ability to
effectively manage operating expenses while executing sales and
strategic opportunities," said Gary J. Sbona, Verity's chairman
and chief executive officer. "During this fiscal period we reported
quarter over quarter revenue growth while taking an important step
in our growth strategy, agreeing to acquire the enterprise search
business assets of Inktomi Corp. Verity's transaction to acquire
the Inktomi enterprise search business is expected to close shortly.
With this transaction done, Verity will be better positioned to
compete across the full spectrum of the enterprise search market
and provide support and upgrade opportunities to 2,500 new customers."
Finance Organization Change
Verity also announced today that Todd K. Yamami, Verity's vice president
and chief financial officer, will be leaving the company. Todd and
his wife have relocated outside of California in order to spend
more time with their families. While he is stepping down as CFO
at this time, he will remain with the company in order to provide
a smooth transition until a new CFO joins Verity, which the company
expects will be in early 2003.
"Todd's outstanding contributions and financial guidance have
helped Verity achieve its leadership position in the intelligent
content infrastructure software industry. He has developed a culture
of financial discipline and integrity that is now embodied in the
entire company. During his almost two years as our CFO, our financial
performance has been outstanding, and our balance sheet and overall
financial position have never been better," said Gary J. Sbona,
Verity's chairman and chief executive officer.
"I have thoroughly enjoyed my seven years with Verity. Although
it was a difficult decision to leave Verity, I do so with pride
in our accomplishments and our strong reputation in the investment
community. Our financial condition and overall position in the marketplace
has never been stronger, and I am confident in the company's future.
I will continue to be involved on a daily basis until a new CFO
is fully in place," said Yamami.
In the interim, Stephen W. Young, Verity's chief operating officer,
has been named as the company's acting chief financial officer.
Young has thirty years of financial and operational experience,
and has been a key member of Verity's executive management team
for the past five years. The search for Yamami's permanent successor
is currently underway.
Customer Activity
During the period, Verity realized sales from a range of world-class
companies in the banking and financial services, high technology,
professional services, and telecommunications industries. Second
quarter wins include Accenture, Bank of America, BBC, BMW, Boeing,
British Telecom, Defense Intelligence Agency, JP Morgan Chase, Schlumberger,
Verizon, Xerox, Ziff Brothers and others during the quarter.
The company extended its position in the OEM market for enterprise
search and categorization software technology by way of new or extended
licensing agreements achieved with Authoria, ePeople, Hyland, iManage,
Objective, MRO and others.
Business Outlook
Assuming the Inktomi enterprise search software business acquisition
closes on or before December 31, 2002, Verity is projecting revenue
for its third quarter of fiscal 2003 to be in the range of $26.0
million to $28.0 million with earnings in the range of $0.07 to
$0.10 per diluted share.
Operating Results Conference Call Scheduled
During a conference call, scheduled for Thursday, December 12, 2002
at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time), Gary J. Sbona,
chairman and chief executive officer, and key members of Verity's
management team will review the operating results from the Company's
second quarter that ended November 30, 2002 and Verity's current
business outlook.
To participate, dial 1-877-888-3490, in the United States or Canada,
or 1-416-695-9753 (International) five (5) minutes prior to the
scheduled start time.
Alternatively, investors may access the web cast of Verity's earnings
call at: http://www.vcall.com/EventPage.asp?ID=82860.
A replay of the operating results call will be available through
December 27, 2002 at the above listed Web site or by dialing 1-888-509-0082,
4 a.m. to 8 p.m. PT.
About Verity
Headquartered in Sunnyvale, Calif., Verity is a leading provider
of business portal infrastructure software. Verity software gives
businesses a multitude of ways to improve access to vital information
and perform a range of e-business operations, while enhancing the
end-user experience. Verity-powered business portals, which include
corporate intranets used for sharing information within an enterprise;
e-commerce sites for online selling; and market exchange portals
for B2B activities, all provide personalized information to employees,
partners, customers and suppliers.
Verity products are used by approximately 80 percent of the Fortune
50 and by more than 1,500 corporations in various markets. Customers
include Adobe Systems, AT&T, Cap Gemini Ernst & Young, Cisco, CNET,
Compaq, Dow Jones, EDGAR Online, FairMarket, Financial Times, Globe
and Mail, Home Depot, Lotus, SAP, Siemens, Sybase, Time New Media
and Timex.
Forward-Looking Statements
The statements in this press release regarding Verity's expectations
regarding the acquisition of the enterprise search assets of Inktomi,
and under the heading "Business Outlook," are forward-looking statements.
Actual results could differ materially as a result of many factors,
including: the closing of the enterprise search assets is conditioned
upon specified closing conditions being met which, if not met or
waived, will cause the acquisition not to close; expectations and
beliefs regarding projected financial results are based on assumptions
that may not prove to be accurate, including the future demand for
Verity's products may not be as strong as Verity predicts; many
of Verity's product orders are large, and a delay in closing a large
sale during the third quarter could materially reduce Verity's revenues
for that period; transactions accounting for a disproportionate
percentage of Verity's quarterly revenues are frequently closed
in the last few weeks or days of a quarter and, accordingly, even
a slight delay in the closing of some of these transactions could
materially reduce Verity's revenues for that period; Verity incurs
expenses based upon anticipated revenues and, consequently, if the
revenues are less than anticipated, Verity will have lower gross
margins and operating results; if competitors develop new products
that compete favorably against Verity's products, sales of Verity's
products will be less than projected; and a portion of Verity's
sales are into the international market, which exposes Verity to
currency fluctuation and other risks. These and other risks relating
to Verity and its business and products are as set forth under the
caption "Risk Factors" in Item 1 of Verity's latest Form 10-K filed
with the Securities and Exchange Commission.
Verity and the Verity logo are registered trademarks or trademarks
of Verity, Inc. All other trademarks are the property of their respective
owners.
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