Veritas Q1 good, but Asia Pacific could drag down Q2
Veritas Q1 good, but Asia Pacific could drag down Q2
Storage management software vendor Veritas announced its first quarter results this week and reported revenues of US$394 million, but CEO Gary Bloom warned that the SARS epidemic could severely hit the second quarter results, if the illness affects sales in the Asia Pacific region.
The first quarter results are up on the $370 million Veritas reported for the same quarter last year. Net income at Veritas for the quarter, which ended on March 31, 2003, was $43 million, down one million from last year. Mr Bloom said the results were "directly tied" to the companies business model.
"Our strong balance sheet and revenue performance are proof that Veritas is gaining strength during this prolonged economic downturn," said Ed Gillis, Executive Vice President of Veritas.
Mr Bloom cited the damage the SARS illness could do to business in the Asia Pacific region as a warning for the next quarter. "Although our results for Q1 were better than expected, we remain cautious about Q2, due to the continued challenges in the economy, reduced IT spending patterns, and the potential impact of the recent SARS outbreak on our Asia Pacific business."
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