OPNET Technologies Inc. (OPNT) filed Quarterly Report for the period ended 2009-09-30.
Opnet Technologies provides predictive network management software solutions that enable organizations to optimize the performance and maximize the availability of communications networks and networked applications. The company's suite of products advances network and application management beyond reactive problem identification and reporting to proactive problem resolution and avoidance. The company's OPNET product suite consists of three primary software solutions: OPNETIT DecisionGuru OPNET Modeler and OPNET Netbiz. Opnet Technologies Inc. has a market cap of $213.8 million; its shares were traded at around $10.3 with a P/E ratio of 60.6 and P/S ratio of 1.7. The dividend yield of Opnet Technologies Inc. stocks is 3.5%.
Highlight of Business Operations:
Our increase in total revenue in Q2 fiscal 2010 from Q1 fiscal 2010 was primarily due to an increase in new software license revenue of $2.8 million and, to a lesser extent, an increase of $353,000 in software license updates, technical support and services, which was partially offset by a $210,000 decrease in professional services revenue. The sequential increase in revenue from new software licenses was largely the result of an increase in revenue from United States government customers, and to a lesser extent, corporate enterprise customers. The sequential increase in software license updates, technical support and services revenue was largely due to growth in our installed customer base. The sequential decrease in revenue from professional services was largely the result of a decrease in revenue from corporate enterprise customers, which was partially offset by an increase in revenue from service providers. Total revenue generated from sales to United States government customers increased by $1.7 million during Q2 fiscal 2010 as compared to Q1 fiscal 2010. The percentage of total revenue from United States government customers increased to 44.3% in Q2 fiscal 2010 from 42.6% in Q1 fiscal 2010.
Our international revenue was $5.9 million and $6.0 million for Q2 fiscal 2010 and Q1 fiscal 2010, respectively. As a percentage of total revenue, international revenue decreased from 21.5% to 19.2% during Q2 fiscal 2010. We expect revenue from sales outside the United States to continue to account for a significant portion of our total revenue in the future. Sales to corporate enterprises and service providers accounted for the largest portion of our international revenue during Q2 fiscal 2010. We believe that continued growth and profitability will require further expansion of our sales, marketing and customer service functions in international markets.
Our gross profit increased $2.9 million, or 14.8%, to $22.9 million for Q2 fiscal 2010 from $19.9 million for Q1 fiscal 2010. The increase in gross profit and gross margin was the result of a $2.8 million increase in new software license revenue and a $353,000 increase in software license updates, technical support and services revenue, partially offset by a $210,000 decrease in professional services revenue. Gross margin on new software license revenue, software license updates, technical support and services revenue and professional services revenue for Q2 fiscal 2010 was 89.4%, 89.9%, and 33.5%, respectively. Changes in revenue from new software licenses and software license updates, technical support and services revenue have more impact on gross profit than changes in revenue from professional services due to their higher gross margins.
New Software License Revenue. New software license revenue was $11.7 million and $14.0 million for the three months ended September 30, 2009 and 2008, respectively, representing a decrease of 16.7%. The decrease was largely due to a decrease in revenue generated from service providers, partially offset by an increase in revenue generated from corporate enterprise customers. New software license revenue was $20.6 million and $26.9 million for the six months ended September 30, 2009 and 2008, respectively, representing a decrease of 23.6%. The decrease in license revenue for the six months ended September 30, 2009, as compared to the same period in fiscal 2009, was due largely to a decrease in revenue generated from service providers and, to a lesser extent, corporate enterprise customers, partially offset by an increase in U.S. government customers.
Software License Updates, Technical Support and Services Revenue. Software license updates, technical support and services revenue was $11.7 million and $11.2 million for the three months ended September 30, 2009 and 2008, respectively, representing an increase of 3.9%. Software license updates, technical support and services revenue was $23.0 million and $21.0 million for the six months ended September 30, 2009 and 2008, respectively, representing an increase of 9.5%. Software license updates, technical support and services revenue growth rates are affected by the overall new software license revenue growth rates, as well as the renewal rate of
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