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Altiris reports net income of $2.8 million for Q2

Quoting the press release:

Altiris, Inc. a pioneer of service-oriented management solutions, today announced financial results for the second quarter of fiscal year 2006, ended June 30, 2006. 

For the second quarter, total revenue increased 20 percent over the prior year to $55.6 million.  Net income for the second quarter was $2.8 million, or $0.10 per diluted share, including charges of $1.7 million for the amortization of acquired intellectual property, $995,000 for amortization of intangible assets, and $3.3 million in share-based compensation as required by FAS 123(R).
 
Non-GAAP net income increased strongly to $7.3 million, or $0.25 per diluted share, from $1.9 million, or $0.07 per diluted share, reported in the second quarter of 2005.  Non-GAAP net income excludes the above-mentioned charges and applies a tax rate of 35 percent.
 
The Company closed the second quarter with $168.3 million in cash and investments.
 
Altiris also announced that the Board of Directors of the Company authorized the repurchase of up to $50 million of the Company's outstanding common stock. The Company intends to accomplish such repurchases by implementing a share repurchase program.
 
“We had strong performance across the business in the second quarter and are particularly pleased to report license revenue growth of 10 percent, as well as strong operating improvements,” commented Greg Butterfield, president and CEO of Altiris. “Altiris® Software Virtualization Solution™ and our security offerings were influential in revenue growth from existing suites. We experienced continued demand for Altiris® Total Management Suite™ software, as well as strength in revenue from Altiris® Asset and Server Management Suites™ software in the quarter.
 
“Strength in our go-to-market model and in particular our value added reseller (VAR) and systems integrator (SI) relationships also contributed to growth in the quarter.   We had good business activity with OEM partners Dell and HP, where revenue contributions were in line with our expectations. 

"Based on the current price of our common stock, we believe that a stock repurchase program is a prudent use of capital. The approval to repurchase shares emphasizes our focus on shareholder value and our confidence in Altiris’ future. 

“With the first half of 2006 successfully behind us, we are looking ahead with optimism.  Our position as a leading service-oriented management company uniquely positions Altiris to be more responsive to customers’ needs and provides a platform for the quick integration of new technologies.  Over the coming months, we will focus on further establishing Altiris as a software development platform, investing in our channel to support growing trends, and continuing to work with key industry partners to drive technology development and new business opportunities,” concluded Butterfield.

Published Monday, August 07, 2006 6:43 AM by David Marshall
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