Veritas Eyes Record Revenue
Veritas Software (VRTS) CEO Gary Bloom informally raised the company's guidance Monday, saying he is "reasonably confident" that fourth-quarter revenue will top the $500 million mark for the first time in Veritas' history.
"We haven't changed guidance," Bloom said during a presentation at the Lehman Brothers investment conference in New York. "But if a few things fall the way we want and the stars align a little bit," Veritas will hit $500 million in the December quarter.
Mountain View, Calif.-based Veritas sells software that helps manage network storage.
The company's formal guidance projects revenue of $480 million to $490 million, while analysts polled by Thomson First Call expect revenue of $489.7 million. If Bloom is correct, the December quarter will be the second in a row that the company set an all-time record for quarterly revenue.Bloom noted, however, that extra revenue in the fourth quarter also means a larger-than-expected drop in the seasonally slower first quarter. But he left guidance for earnings in the December quarter unchanged, ranging from 21 cents to 23 cents a share, a penny below Wall Street's expectations. Helping to drive the quarter, Bloom said, are strong sales of products that help businesses comply with new regulatory demands, including Sarbanes-Oxley and others. Bloom's upbeat presentation, delivered an hour before the closing bell, didn't have a lasting impression on investors. After trading as high as $37.39 early on, Veritas shares ended down 54 cents, or 1.5%, to $35.75 on Monday. The stock was down another 12 cents to $35.63 after hours.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV