Mercury Interactive Corporation, the global leader in business technology optimisation, today reported results for the fourth quarter and year ended 31 December 2002.
Revenue for the fourth quarter of 2002 was $117.8 million, an increase of 30% over the $90.3 million reported in the fourth quarter of 2001. On a GAAP basis, net income for the fourth quarter of 2002 was $18.8 million, or $0.21 diluted earnings per share. This includes amortisation of $0.7 million associated with the Freshwater Software acquisition and the write-off of $4.9 million in investments in non-consolidated companies.
Pro forma net income for the fourth quarter of 2002, which excludes the items mentioned above, was $23.4 million. This represents an increase of 92% compared to pro forma net income of $12.1 million in the fourth quarter of 2001. Pro forma diluted earnings per share were $0.27, up 93% from $0.14 per share for the fourth quarter of 2001.
For the year ended 31 December 2002, revenue was $400.1 million, an increase of 11% over the $361 million for 2001. On a GAAP basis, net income for the year ended 31 December 2002 was $65.2 million, or $0.74 diluted earnings per share. This includes amortisation of $3.5 million, the write-off of $4.9 million in investments in non-consolidated companies, a reversal of $0.5 million in restructuring charges and a gain on early retirement of debt of $11.6 million. Pro forma net income for the year ended 31 December 2002 was $62.9 million, an increase of 16% compared to $54.3 million for 2001. Pro forma diluted earnings per share were $0.72, up 18% from $0.61 per share for 2001.
Cash generated from operations for the fourth quarter of 2002 was $41.2 million compared to $29.4 million in the fourth quarter of 2001. Cash generated from operations for the year ended 31 December 2002 was $132.2 million compared to $83.1 million for 2001. Deferred revenue for the fourth quarter of 2002 increased $32.7 million from the prior quarter to $159.4 million.
"Our strong fourth quarter performance demonstrates the viability of our strategy and ability to execute successfully in a challenging environment," said Amnon Landan, chairman, CEO and president of Mercury Interactive Corporation. "2002 was a transformational year for Mercury Interactive. We have adapted to the changing IT agenda by initiating our Business Technology Optimisation (BTO) strategy to optimise quality and align IT with business objectives and by executing on our business objectives across the board."
Mercury Interactive will host a conference call today at 2pm Pacific Time to discuss fourth quarter and 2002 results. Information regarding the conference call and Webcast is available at www.mercuryinteractive.com/company/ir.
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Mercury Interactive, the global leader in business technology optimisation (BTO), delivers Optane, a suite of integrated products for enterprise testing, production tuning and performance management, that enables customers to optimise business processes and maximize business results. Customers worldwide use Mercury Interactive solutions across their application and technology infrastructures to continuously measure, maximise and manage performance at every level of the business process and each stage of the application lifecycle to improve quality, reduce costs, and align IT with business goals.
Founded in 1989, Mercury Interactive is headquartered in Sunnyvale, California, with offices in more than 25 countries. Further information is available at www.mercuryinteractive.com or by phone at US +1.408.822.5200.
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