Enterprise software provider Verity`s first-quarter net income increased 32% from the same period the previous year.
<B>Salient figures</B>
Verity results for the quarter to 31 August 2003.
Figures for the prior-year period in parentheses:
Revenues: $26.6m ($22.01m)
Gross profit: $22.88m ($19.07m)
Income from operations: $1.75m ($0.32m)
Net income: $1.82m ($1.38m)
Net income per share: $0.05 ($0.04)
Current assets: $176.42m (31 May 2003: $177.02m)
Current liabilities: $38.98m (31 May 2003: $45.01m)
Net income of $1.8 million for the quarter to 31 August compares with $1.4 million for the year earlier period. Revenue rose by 21% from $22 million to $26.6 million.
"In what has historically been a difficult quarter for Verity due to seasonality of its business, the company delivered solid revenue growth over the first quarter of the previous year," says Verity SA district manager Garth Wittles.
He says customers continue to invest in the company`s solutions despite the fact that the economy in general and IT spending in particular show few signs of recovery.
"This quarter`s performance positions Verity for continued growth in revenue for the remainder of the year and the company is closely monitoring expenses to ensure that it can continue to deliver solid earnings results as well." says Wittles.
"In SA, we continue to make excellent progress, both with our traditional K2E offering and Ultraseek, which we acquired earlier this year."
The group is projecting revenue for the second quarter to be in the range of $27 million to $29 million, with earnings between $0.06 and $0.08 a share.
For the 2004 fiscal year it is projecting revenue to be in the range of $111 million to $115 million, with earnings of $0.28 to $0.33 a share.
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