Legato Announces Q1 Results; Revenues Increase 87%, with Net Income Up 100% Excluding Acquisition-Related Charges

Business Wire, April 15, 1996

PALO ALTO, Calif.--(BUSINESS WIRE)--April 15, 1996--Legato Systems, Inc. (Nasdaq: LGTO), a leader in the enterprise storage management market, today announced revenue of $10.9 million for the first fiscal quarter ended March 31, 1996. This represents revenue growth of 87% over first quarter 1995 levels.

Net income, excluding $2.1 million of acquisition-related write-offs and amortization of intangibles, grew to $2.0 million, an increase of 100% over the first quarter of 1995. Earnings per share, excluding the acquisition-related charges, grew 47% to $0.22 per share from $0.15 for the first quarter of 1995, including an increase in weighted average shares outstanding. The reported net loss for the quarter was $127,000, or $0.02 per share, including the previously announced charges relating to in-process research and development and amortization expenses incurred in connection with the acquisitions of Innovus Inc. and Innovus Technologies Inc. (collectively "Innovus").

"We were very pleased with our first quarter performance," commented Louis C. Cole, president and CEO. "Demand was solid, and we saw good growth in product license revenue, as well as in royalties and software subscriptions. We shipped new releases of our flagship NetWorker product family that offer enhanced functionality and performance across all major platforms. Also, during the quarter, we shipped our Windows NT server product, and we announced StorSuite, a family of integrated backup, archive, and hierarchical storage management applications that can be used in conjunction with NetWorker. We believe these new products, as well as important new alliances established during the quarter with Apple, Octopus, SAP and Tandem, will enhance our position in the enterprise storage management market." Legato NetWorker received in March the Editors' Choice Award from Network Computing magazine for the best enterprise backup solution, in a head-to-head comparison with several of its competitors, and earlier this month won Network Computing's prestigious "Well-Connected" award for best network backup software at the Networld Interop `96 Las Vegas trade show. -0-