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Neoware Reports Fourth Quarter and FY07 Results

Neoware, Inc., a leading provider of thin client computing solutions, today reported financial results for its fiscal fourth quarter and year ended June 30, 2007. In addition, Neoware reported that it filed a preliminary proxy statement with the SEC related to the pending acquisition of the Company by HP (Hewlett-Packard Company).

Q4 Financial Highlights:

  • Revenues were $22,995,000, compared to $23,553,000 in the prior year fourth quarter.
  • Gross profit was 34% of revenue, compared to 37% of revenue in the prior year fourth quarter. Non-GAAP gross profit was 35% of revenue, compared to 38% of revenue in the prior year fourth quarter. The pricing environment proved to be challenging in the quarter due to competition.
  • Operating expenses were $10,548,000, compared to $8,825,000 in the prior year fourth quarter. Non-GAAP operating expenses were $9,147,000 compared to $7,175,000, in the prior year fourth quarter. This increase in operating expense was due to a planned increase in investments in staffing and programs for research and development and sales and marketing.
  • Non-GAAP net income for the quarter was $.00 per fully diluted share, compared to $.09 per fully diluted share in the prior year fourth quarter.
  • Net loss for the quarter was $.04 per diluted share, compared to net income of $.02 per diluted share in the prior year fourth quarter.
  • The Company ended the quarter with $121.5 million of cash and marketable securities.
  • Non-GAAP results exclude amortization of acquisition-related intangibles and stock-based compensation and apply a non-GAAP tax rate of 52% and 33% in the fourth quarters of fiscal 2007 and 2006, respectively, for the purpose of showing a comparable view of the Company's performance from period to period.


FY07 Financial Highlights:

  • Revenues for the year were $90,401,000 compared to $107,219,000 in the prior year.
  • Gross profit was 37% of revenue, compared to 41% of revenue in the prior year. Non-GAAP gross profit was 38% of revenue, compared to 43% of revenue in the prior year.
  • Operating expenses were $41,976,000, compared to $35,126,000, in the prior year. Non-GAAP operating expenses were $35,139,000, compared to $29,860,000 in the prior year.
  • Non-GAAP net income for the year was $.08 per fully diluted share, compared to $.66 per fully diluted share, in the prior year.
  • Net loss for the year was $.12 per diluted share, compared to net income of $.39 per diluted share in the prior year.
  • Non-GAAP results exclude amortization of acquisition-related intangibles and stock-based compensation and apply a non-GAAP tax rate of 52% in fiscal 2007 and 33% in fiscal 2006 for the purpose of showing a comparable view of the Company's performance from period to period.

Details of the financial results for the fiscal fourth quarter and year ended June 30, 2007 appear in the accompanying financial schedules. The Company will not be holding a conference call to discuss this earnings release or guidance for fiscal 2008 due to the pending acquisition of the Company by HP.

Published Friday, August 10, 2007 8:54 PM by David Marshall
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