Record quarter from Veritas triggers US$300m share buyback
Record quarter from Veritas triggers US$300m share buyback
The highest quarter in terms of revenue generated in the company's 14-year history has prompted executives of storage software provider Veritas to set aside up to US$300 million to repurchase company stock.
Record quarter from Veritas triggers US$300m share buyback
The highest quarter in terms of revenue generated in the company's 14-year history has prompted executives of storage software provider Veritas to set aside up to US$300 million to repurchase company stock.
Revenue for the quarter ended June 30, 2003 was a record US$413 million, compared to revenue of $365 million for the same period a year ago, representing 13% growth year over year.
"We exited the quarter with $2.4 billion in cash and short-term investments and, by leveraging the revenue upside, we delivered earnings well ahead of expectations and generated approximately $122 million in cash from operating activities," said Ed Gillis, executive vice president and chief financial officer, Veritas. "In addition, we are pleased to announce our board has authorised the use of up to $300 million to be used for a stock repurchase program. This repurchase program is intended to reduce the dilution resulting from both our recent acquisition of Precise Software and our employee stock option programs."
Gary Bloom, Veritas' president, chairman and CEO, said there was further good news to come for the company's shareholders, with the forthcoming quarter expected to be another record buster.
"Our expectations for the quarter ending September 30, 2003 are for revenues in the range of $420 to $430 million, which includes revenue attributable to Precise, and diluted earnings per share to be in the range of $0.13 to $0.15 on a GAAP basis, including acquisition related expenses of $0.02 per share. While our U.S. enterprise business remains strong, our expectations factor in typical seasonality of the European markets in the third quarter."
Remarking on Veritas' performance in recent months, Bloom added: "Our performance this quarter marks the best in the history of Veritas. Our repeated delivery of year over year revenue growth for the past four quarters is a testament to the strength of Veritas' business model and the significant value we provide to our customers." Related Article: