Verity’s revenues for its first quarter were $20.1 million, representing a 36% decrease from revenues of $31.3 million for the same period last year. Software product revenues, which represented 51% of total revenues for the quarter, were $10.3 million, a 55% decrease from the $22.8 million for the same period last year. Net loss for the first quarter ended August 31, 2001 was $2.5 million or ($0.07) per share, compared with net income of $7.2 million or $0.20 per diluted share for the same period last year.
First quarter results were in line with the projections we provided on August 9, 2001, said Gary J. Sbona, Verity’s chairman and chief executive officer. As we indicated at that time, there has been an increasing trend of prospective customers canceling, delaying and down-sizing capital spending projects, due to the impact of worldwide economic pressures within their businesses. This has reduced and pushed our pipeline out in time, which had a significant adverse affect on our first quarter revenues and on our bottom line. While we can’t predict when the economy will improve, our objective continues to be to return Verity to profitability by the third quarter of this fiscal year. Our plan is to achieve this objective through a combination of prudent expense management and focused sales execution.
SOURCE: COMPANY PRESS RELEASE
