Forgent Announces Results for the 2007 Fiscal Second Quarter
AUSTIN, TX, Mar 01, 2007 (MARKET WIRE via COMTEX News Network) -- Forgent™ Networks (NASDAQ: FORG) today announced results for the 2007 fiscal second quarter ended Jan. 31, 2007. For the quarter, the company reported net income of approximately $1.3 million. Highlights for the quarter include:
- Grew NetSimplicity software revenue 86% over the quarter one year ago
and 6% over the prior quarter
- Realized $2.9M in cash from a patent sale to Tandberg Telecom AS.
- Grew cash and investments from $15.0M to $18.0M, an increase of 20%
over the prior quarter
- Held operating expenses to $2.7M, essentially flat with the prior
- Increased working capital from $14.1M to approximately $15.1M, an
increase of 7% over the prior quarter
- Achieved profitability for the second consecutive quarter
"We see continued progress with respect to the litigation of the '746 patent and are encouraged by the recent claims construction ruling and that the May 2007 trial remains on schedule. Additionally, we are pleased with the continued growth of our NetSimplicity software business and we remain optimistic about the continued growth prospects for this business," commented Richard Snyder, chairman and CEO of Forgent.
U.S. Patent No. 6,285,746 (the '746 Patent)
Forgent has litigation pending against 12 companies for infringement of its '746 Patent in the United States District Court for the Eastern District of Texas, Tyler Division. A jury trial is scheduled for May 2007. The '746 Patent relates to a computer controlled video system that allows playback during recording.
NetSimplicity software revenue increased by 6% to over $1 million for the second quarter of fiscal 2007, as compared to the prior quarter. This was the fourth consecutive quarter of revenue growth for NetSimplicity. NetSimplicity's growth can be attributed to several factors including an overall strong performance by the sales organization, the growing customer base investing further with additional purchases and upgrades, and a growing average sales price due to the penetration of larger accounts.
Fiscal Second Quarter Results
Revenue was approximately $1.0 million for the 2007 fiscal second quarter compared to $9.1 million for the 2007 fiscal first quarter. Overall operating expenses of $2.7 million increased by approximately $50,000 from the prior quarter. The company reported net income of $1.3 million or $0.05 per share for the second fiscal quarter of 2007, as compared to net income $2.7 million or $0.11 per share for the first quarter of 2007. Cash and investments were $18.0 million for the quarter.
Forgent expects to generate additional IP licensing revenue in the 2007 fiscal year. However, predicting the timing and amounts will be complicated because of the uncertainty of licensing negotiations and due to the ongoing litigation. In addition, we believe NetSimplicity will continue to be a growth business for Forgent.
Conference Call and Webcast
Forgent has scheduled a conference call with the investment community for Thu, Mar 1, 2007, at 10:00 a.m. CT (11:00 a.m. ET) to discuss the quarter and outlook. To take part, dial 888-396-2356 ten minutes before the conference call begins, ask for the Forgent event, and use a pass code of 77953307. International callers should dial 617-847-8709 and use a pass code of 77953307. Investors, analysts, media and the general public will also have the opportunity to listen to the conference call over the Internet by visiting the investor relations page of Forgent's web site at www.forgent.com. To listen to the live call, please visit the web site at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call on the investor relation's page of our web site at www.forgent.com.
Forgent™ Networks (NASDAQ: FORG) develops and licenses intellectual property and provides scheduling and asset management software to a wide variety of organizations. Forgent's intellectual property licensing program is related to communication technologies developed from its patent portfolio. Forgent's software division, NetSimplicity, develops software that simplifies day-to-day office administration tasks. The products are specifically designed for the management and scheduling of rooms, equipment, assets and resources. For additional information please visit www.forgent.com.
This release may include projections and other forward-looking statements that involve a number of risks and uncertainties, and actual results in future periods may differ materially from those currently expected. Some of the factors that could cause actual results to differ materially include changes in the general economy or in our industry, rapid changes in technology; sales cycle and product implementations; risks associated with transitioning to a new business model and the subsequent limited operating history; the possibility of new entrants into our software markets, the possibility that the market for the sale of certain software and services may not develop as expected; or that development of these software and services may not proceed as planned; the risks associated with the company's license program, and including risks of litigation involving intellectual property, patents and trademarks. Additional discussion of these and other risk factors affecting the company's business and prospects is contained in the company's periodic filings with the SEC.
SOURCE: Forgent Networks