Veritas Makes a Profit

The storage management software maker keeps revenues steady in the second quarter.

Veritas Software Corp. reported Tuesday that it made a profit of $26 million, or 14 cents per share, in the second quarter this year.

The storage software company garnered $365 million in revenue in the quarter ended June 30, compared to the previous quarters $370 million in revenue, officials said.

The Mountain View, Calif., company now has $2 billion in cash, and will probably bring in $350 million to $370 million in revenues in the next quarter, the officials projected. Veritas earnings for the third quarter are expected to be between 11 cents and 13 cents per share.

Sales of at least $1 million came from 18 customers last quarter, with sales of at least $250,000 coming from 68 customers, as Veritas improved its products for IBM platforms and launched two new programs – Veritas Enabled and Veritas powered – for partners to build interoperability and Veritas-based products, respectively.

Gary Bloom, Veritas president, CEO and chairman Bloom promised that Veritas would work on an area of weakness, its storage resource management technology, as well as work on making its software more tightly integrated into networks. "Its absolutely critical for the future of Veritas that we be tightly integrated at the network level," he said, echoing the current approach of many start-ups in storage management.

More adaptation of Veritas products for the Linux platform will also come in the future. "We do see increased interest" in Linux for enterprises, Bloom said. "We think our timing is actually kind of perfect… Linux is getting a little wind in its sails."

Bloom also addressed the recent rash of vice president-level departures at his company – many of which were involuntary. More may come: "We continue to kind of tweak and tune the organization," but "we think we have significant bench strength," he said.

No layoffs are planned, officials added, responding to an analysts question. The company did not take questions from the press.

"It still remains clear that were in a very foggy kind of environment," said analyst Nitsan Hargil, of Friedman, Billings, Ramsey Group Inc., in New York City. Veritas amount of large deals is "a very significant drop" from recent quarters, he said. Also, Blooms mentions of "unnatural" pricing in the industry directly refers to rival Legato Systems Inc., also of Mountain View, which has priced some deals at a loss to gain market share, Hargil said.