DGAP-News

OPNET Technologies, Inc. (deutsch)

OPNET Announces Record Financial Results for Fourth Quarter of Fiscal 2011

OPNET Technologies, Inc.

09.05.2011 22:58

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June Dividend Increased to $0.12 Per Share

BETHESDA, Md., 2011-05-09 22:58 CEST (GLOBE NEWSWIRE) --
OPNET Technologies, Inc. (Nasdaq:OPNT), a leading provider of solutions for
application and network performance management, today announced that revenue
for the fourth fiscal quarter, ended March 31, 2011, was $41.1 million,
compared to $34.4 million for the same quarter in the prior fiscal year.
Diluted earnings per share for the fourth quarter of fiscal 2011 were $0.17,
compared to $0.11 for the same quarter in the prior fiscal year. The Company
also announced today a quarterly dividend of $0.12 per share, which represents
one quarter of the Company´s fiscal 2012 annual dividend target of $0.48,
payable on June 29, 2011 to stockholders of record as of the close of business
on June 15, 2011. During fiscal 2011, the Company paid aggregate quarterly
dividends of $0.40 per share and a one-time special dividend of $0.75 per
share.

Marc A. Cohen, OPNET´s Chairman and CEO, stated, ´We are very pleased to report
strong execution both for the fourth quarter of fiscal 2011 and for the entire
fiscal year. Our strong performance was driven by our success in addressing the
multi-billion dollar application performance management (APM) market. During
our fourth quarter, we set new records, including total revenue of $41.1
million, product revenue of $21.6 million, total cash, cash equivalents and
marketable securities of $114.7 million, and deferred revenue of $47.5 million.
During fiscal 2011, we grew product revenue year-over-year by 39% and more than
doubled our operating income from $8.1 million to $18.8 million.´

Mr. Cohen continued, ´APM product sales accounted for 63% of our total product
bookings during the quarter, and increased 41% over the same quarter last year.
APM product sales accounted for 68% of our total product bookings during fiscal
2011, and increased 38% over fiscal 2010. We believe that the growth in APM is
being driven by both superior analytics, and our end-to-end solutions that span
networks, applications, and systems. We further believe that these competitive
advantages can generate sustained growth in product revenue and profitability
over the long term.´

The Company´s fourth quarter fiscal 2011 financial results are presented below.
The non-GAAP results exclude the income statement effects of stock-based
compensation and acquisition-related amortization of intangible assets. A
reconciliation of GAAP results to non-GAAP results has been provided in the
financial statement table following the text of the press release. For further
information, please refer to the section of the press release titled ´Use of
Non-GAAP Measures.´

GAAP Financial Highlights for the Fourth Quarter of Fiscal 2011:

-- Total revenue increased year-over-year 19.4% to $41.1 million from $34.4
million for the same quarter of fiscal 2010. Total revenue for the quarter
increased sequentially 3.6% from $39.7 million for the third quarter of
fiscal 2011.
-- Product revenue increased year-over-year by 33.3% to $21.6 million from
$16.2 million for the same quarter of fiscal 2010. Product revenue for the
quarter increased sequentially 6.9% from $20.2 million for the third
quarter of fiscal 2011.
-- Deferred revenue increased year-over-year by 9.5% to $47.5 million from
$43.4 million at the end of the same quarter of fiscal 2010. Deferred
revenue for the quarter increased sequentially 10.7% from $42.9 million at
the end of the third quarter of fiscal 2011.
-- Gross margin increased year-over-year to 79.1% from 75.7% for the same
quarter of fiscal 2010. Gross margin increased sequentially from 78.8% in
the third quarter of fiscal 2011.
-- Operating margin increased year-over-year to 15.2% from 9.0% for the same
quarter of fiscal 2010. Operating margin increased sequentially from 14.1%
in the third quarter of fiscal 2011.
-- Earnings per share increased year-over-year to $0.17 from $0.11 for the
same quarter of fiscal 2010. Earnings per share decreased sequentially from
$0.19 in the third quarter of fiscal 2011.

Non-GAAP Financial Highlights for the Fourth Quarter of Fiscal 2011:

-- Non-GAAP gross margin increased year-over-year to 80.5% from 77.0% for the
same quarter of fiscal 2010. Non-GAAP gross margin increased sequentially
from 80.3% in the third quarter of fiscal 2011.
-- Non-GAAP operating margin increased year-over-year to 17.8% from 11.7% for
the same quarter of fiscal 2010. Non-GAAP operating margin increased
sequentially from 17.3% in the third quarter of fiscal 2011.
-- Non-GAAP earnings per share increased year-over-year to $0.20 from $0.14
for the same quarter of fiscal 2010. Non-GAAP earnings per share decreased
sequentially from $0.23 in the third quarter of fiscal 2011.

First Quarter Fiscal Year 2012 Financial Outlook

OPNET currently expects fiscal 2012 first quarter GAAP revenue to be between
$37.0 million and $40.0 million, and GAAP diluted net income per common share
to be between $0.10 and $0.17 and non-GAAP diluted net income per common share
to be between $0.13 and $0.20. The non-GAAP diluted net income per common share
expectation excludes approximately $663,000 of expense associated with
stock-based compensation expense, amortization of acquired intangible assets,
and the related impact of these adjustments on the provision for income taxes.
These estimates represent management´s current expectations about the Company´s
future financial performance, based on information available at this time.

OPNET will hold an investor conference call on Monday, May 9, 2011 at 5:00 pm
Eastern Time to review financial results for the fourth quarter of fiscal 2011.

To listen to the OPNET investor conference call:

-- Call 877-377-7550 in the U.S. or 408-337-0151 for international callers, or
-- Use the webcast at www.opnet.com. Investors are advised to go to the web
site at least 15 minutes early to register, download, and install any
necessary audio software.

To listen to the archived call:

-- Call the replay phone number at 800-642-1687 or 706-645-9291 for
international callers. For replay, enter passcode # 59512299. The replay
will be available from 8:00 pm Eastern Time May 9, 2011 through 11:59 pm
Eastern Time May 19, 2011.
-- The webcast will be available at www.opnet.com, archived for seven days.

Use of Non-GAAP Measures

OPNET uses a variety of financial measures that are not in accordance with
generally accepted accounting principles, or GAAP, as supplemental measures to
GAAP to evaluate its operational performance. These financial measures, which
include non-GAAP gross profit, non-GAAP operating income, non-GAAP operating
margin, non-GAAP net income and non-GAAP diluted earnings per share, exclude
the impact of certain items and, therefore, have not been calculated in
accordance with GAAP. A detailed explanation of each of the adjustments to such
financial measures is described below. A reconciliation of each of these
non-GAAP financial measures to its most comparable GAAP financial measure is
also included below.

Management uses non-GAAP financial measures (a) to evaluate OPNET´s historical
and prospective financial performance as well as its performance relative to
its competitors, and (b) to measure operational profitability and the accuracy
of forecasting. In addition, many financial analysts who follow OPNET focus on
and publish both historical results and future projections based on non-GAAP
financial measures. OPNET believes that it is in the best interest of its
investors to provide this information to analysts so that they accurately
report the non-GAAP financial information. Moreover, investors have
historically requested these non-GAAP financial measures as a means of
providing consistent and comparable information with past reports of financial
results.

While management believes that these non-GAAP financial measures provide useful
supplemental information to investors, there are limitations associated with
the use of these non-GAAP financial measures. These non-GAAP financial measures
are not prepared in accordance with GAAP, are not reported by all of OPNET´s
competitors and may not be directly comparable to similarly titled measures of
OPNET´s competitors due to potential differences in the exact method of
calculation. OPNET compensates for these limitations by using these non-GAAP
financial measures only as supplements to GAAP financial measures and by
providing the reconciliations of the non-GAAP financial measures to their most
comparable GAAP financial measures.

The adjustments we use to derive these non-GAAP financial measures, and the
basis for such adjustments, are outlined below:

Amortization of intangibles and its related tax impact. OPNET incurs
amortization of intangibles related to various acquisitions it has made in
recent years. This amortization is included in the following line items of its
GAAP presentation:

-- cost of revenue -- amortization of acquired technology and customer
relationships
-- operating expenses -- research and development

Management excludes these expenses and their related tax impact for the purpose
of calculating non-GAAP operating income, non-GAAP gross profit, non-GAAP
operating margin, non-GAAP net income and non-GAAP diluted earnings per share
when it evaluates the continuing operational performance of OPNET because these
costs are fixed at the time of an acquisition, are then amortized over a period
of three to five years after the acquisition and generally cannot be changed or
influenced by management after the acquisition. Accordingly, management does
not consider these expenses for purposes of evaluating the performance of OPNET
during the applicable time period after a given acquisition, and it excludes
such expenses when evaluating OPNET´s financial performance.

Stock-based compensation expense and its related tax impact. OPNET incurs
expense related to stock-based compensation, which is included in the following
line items of its GAAP presentation:

-- cost of revenue -- product updates, technical support and services
-- cost of revenue -- professional services
-- operating expenses --research and development
-- operating expenses -- sales and marketing
-- operating expenses - general and administrative

Although stock-based compensation is an expense of OPNET and is viewed as a
form of compensation, management excludes these expenses for the purpose of
calculating non-GAAP operating income, non-GAAP gross profit, non-GAAP
operating margin, non-GAAP net income and non-GAAP diluted earnings per share
when it evaluates the continuing operational performance of OPNET.
Specifically, OPNET excludes stock-based compensation during its quarterly and
annual assessments of OPNET´s and management´s performance. In evaluating the
performance of senior management, stock-based compensation is excluded from
expenditure and profitability results.

Diluted weighted average common shares outstanding. Non-GAAP diluted net income
per common share reflects the elimination of amortization of intangibles,
stock-based compensation expense and the related tax impacts, all as discussed
above. In addition, in cases in which the non-GAAP net income changes from
negative to positive when compared to the GAAP net income, or vice versa, the
non-GAAP per-share calculation also gives effect to an adjustment to the number
of diluted weighted average common shares outstanding reflecting the
application of the treasury method and the fact that shares previously
considered anti-dilutive would now be considered dilutive, or vice versa.

About OPNET Technologies, Inc.

Founded in 1986, OPNET Technologies, Inc. (Nasdaq:OPNT) is a leading provider
of application and network performance management solutions. For more
information about OPNET and its products, visit www.opnet.com.

OPNET, OPNET Technologies, Inc., AppMapper Xpert, AppResponse Xpert, and
AppInternals Xpert are trademarks of OPNET Technologies, Inc. All other
trademarks are the property of their respective owners.

Statements in this press release that are not purely historical facts may
constitute forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. OPNET Technologies, Inc. (´OPNET´) assumes no
obligation to update such statements. Forward-looking statements, including
statements regarding the impact of enhancements to our APM product portfolio or
our competitive position and statements concerning expected revenue and diluted
net income per common share and Non-GAAP diluted net income per common share
for the first quarter of fiscal 2012, are predictions based upon information
available to OPNET as of the date of this press release and involve risks and
uncertainties; therefore, actual events or results may differ materially.
Factors that may cause OPNET´s actual results, levels of activity, performance
or achievements to be materially different from any future results, levels of
activity, performance or achievements expressed or implied by such
forward-looking statements include, among others, those factors listed under
the caption ´Risk Factors´ in OPNET´s Annual Report on Form 10-K for the fiscal
year ended March 31, 2010, as filed with the Securities and Exchange Commission
on June 4, 2010, as updated from time to time in subsequent SEC filings. The
risk factors set forth in the Company´s Form 10-K under the caption ´Risk
Factors, ´ as updated from time to time in subsequent SEC filings, are
specifically incorporated by reference into this press release. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or otherwise.

Note to editors: The word OPNET is spelled with all upper-case letters.

OPNET TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share data)
(unaudited)

Three Months Ended Year Ended
March 31, March 31,

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2011 2010 2011 2010

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Revenue:
Product $ 21,570 $ 16,181 $ 72,392 $ 52,252
Product updates, technical support, 14,112 12,351 53,392 47,264
and services
Professional services 5,423 5,905 22,202 26,831

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Total revenue 41,105 34,437 147,986 126,347

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Cost of revenue:
Product 2,621 1,877 9,293 5,983
Product updates, technical support, 1,433 1,284 5,260 4,859
and services
Professional services 3,997 4,760 16,183 19,328
Amortization of acquired technology 539 459 2,050 1,835
and customer relationships

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Total cost of revenue 8,590 8,380 32,786 32,005

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Gross profit 32,515 26,057 115,200 94,342

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Operating expenses:
Research and development 9,320 8,480 34,718 32,043
Sales and marketing 13,616 11,480 48,733 43,181
General and administrative 3,340 2,999 12,947 11,011

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Total operating expenses 26,276 22,959 96,398 86,235

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Income from operations 6,239 3,098 18,802 8,107
Interest and other expense, net (66) (66) (151) (70)

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Income before provision for income taxes 6,173 3,032 18,651 8,037
Provision for income taxes 2,350 723 6,250 2,214

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Net income $ 3,823 $ 2,309 $ 12,401 $ 5,823
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Basic net income per common share $ 0.17 $ 0.11 $ 0.57 $ 0.28
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Diluted net income per common share $ 0.17 $ 0.11 $ 0.55 $ 0.28
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Basic weighted average common shares 21,929 20,622 21,429 20,529
outstanding
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Diluted weighted average common shares 22,507 21,153 22,130 20,790
outstanding
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OPNET TECHNOLOGIES, INC.
RECONCILIATION OF GAAP TO NON-GAAP INCOME
(in thousands, except per share data)
(unaudited)

Three Months Ended Three
March 31, Months
Ended
December
31,

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2011 2010 2010

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GAAP gross profit $ 32,515 $ 26,057 $ 31,274
Stock-based compensation expense included 22 5 25
in cost of revenue
Amortization of intangibles included in 540 459 552
cost of revenue

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Non-GAAP gross profit $ 33,077 $ 26,521 $ 31,851
=================================

GAAP income from operations $ 6,239 $ 3,098 $ 5,603
Stock-based compensation expense - total 533 432 664
(included in cost of revenue and in
operating expenses)
Amortization of intangibles - total 565 484 578
(included in cost of revenue and in
research and development expenses)

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Non-GAAP income from operations $ 7,337 $ 4,014 $ 6,845
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GAAP net income $ 3,823 $ 2,309 $ 4,324
Stock-based compensation expense - total 533 432 664
Amortization of intangibles - total 565 484 578
Provision for income tax (1) (439) (366) (497)

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Non-GAAP net income $ 4,482 $ 2,859 $ 5,069
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Diluted net income per common share:
GAAP $ 0.17 $ 0.11 $ 0.19
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Non-GAAP $ 0.20 $ 0.14 $ 0.23
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Diluted weighted average common shares
outstanding
GAAP 22,507 21,153 22,230
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Non-GAAP 22,507 21,153 22,230
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(1) Reflects the tax effect of non-GAAP adjustments above at the statutory rate
of 40%

OPNET TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)

March 31, March 31,
2011 2010

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ASSETS

Current assets:
Cash and cash equivalents $83,296 $104,681
Marketable securities 31,432 --
Accounts receivable, net 32,597 28,015
Unbilled accounts receivable 1,915 4,765
Inventory 666 872
Deferred income taxes, prepaid expenses and other 4,002 2,816
current assets

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Total current assets 153,908 141,149

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Property and equipment, net 12,701 13,245
Intangible assets, net 4,507 5,109
Goodwill 15,406 14,639
Deferred income taxes and other assets 5,078 4,210

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Total assets $191,600 $178,352
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LIABILITIES AND STOCKHOLDERS´ EQUITY
Current liabilities:
Accounts payable $1,247 $1,405
Accrued liabilities 14,698 10,932
Other income taxes 186 498
Deferred rent 182 432
Deferred revenue 42,282 38,425

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Total current liabilities 58,595 51,692

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Accrued liabilities 107 145
Deferred rent 2,422 2,138
Deferred revenue 5,215 4,946
Other income taxes 661 755

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Total liabilities 67,000 59,676

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Stockholders´ equity:
Common stock 30 28
Additional paid-in capital 121,007 99,229
Retained earnings 25,348 37,920
Accumulated other comprehensive loss (649) (999)
Treasury stock, at cost (21,136) (17,502)

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Total stockholders´ equity 124,600 118,676

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Total liabilities and stockholders´ equity $191,600 $178,352
=====================

CONTACT: OPNET Media Contact:
Sue Cole
OPNET Technologies, Inc.
[phone]
[e-mail]
www.opnet.com

OPNET Investor Relations:
Mel Wesley
OPNET Technologies, Inc.
[phone]
[e-mail]
www.opnet.com
News Source: NASDAQ OMX

09.05.2011 Dissemination of a Corporate News, transmitted by DGAP -
a company of EquityStory AG.
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Language: English
Company: OPNET Technologies, Inc.

US
Phone:
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E-mail:
Internet:
ISIN: US6837571081
WKN:

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