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News >> Technology >>
WebEx posts record Q3 revenue
By siliconindia
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Thursday, 17 October 2002, 19:30 IST
BANGALORE: Subrah Iyer led WebEx posted better than expected third quarter revenues of $36.8M up 66 percent from the year ago quarter. The company reported a $6.4 million operating profit excluding equity-based compensation expense in the third quarter of 2002, compared to a corresponding operating loss of $1.9 million in the third quarter of 2001.
Reported GAAP net income was $5.0 million or $0.12 per diluted share, including equity-based compensation and using the actual effective tax rate of 3%, in the third quarter of 2002 compared to a net loss of $6.1 million or ($0.16) per diluted share for third quarter of 2001. Net income was $3.9 million or $0.09 per diluted share, excluding equity-based compensation expense and assuming a 40% tax rate, in the third quarter of 2002, compared to a corresponding loss of $2.4 million or ($0.06) per diluted share in the third quarter of 2001.
"We are pleased with the operational excellence we have achieved during the year as WebEx continues to grow with increasing profitability in this tough economic environment," said Subrah Iyar, Chairman and CEO of WebEx Communications. "As we move forward, our solid financial position allows us to further increase our investments in sales and marketing to drive our growth and expand our market leadership. Our investments in technology also continue at a record pace, enabling us to expand our offerings for the comprehensive communications needs of our customers."
In Q3 2002, WebEx continued its worldwide growth of new customers across wide segments of the economy including: Allianz AG, Celanese Chemicals, Dillards Department Stores, Gallup Organization, Kimberly Clark, Land O'Lakes, Mariner Health Care, Merrill Lynch Bank Suisse S.A., NASA, Orkin, Salle Mae Services, State Street Bank, Stanley Works, U.S. Piper Jaffray.
The company announced that it anticipates revenues of approximately $40 million in the fourth quarter of 2002 and approximately $140 million for the year. Earnings per share, excluding equity-based compensation expense and using an assumed tax rate of 40%, are anticipated to be in the range of $0.09 - $0.10 for the fourth quarter and $0.26-$0.27 for all of 2002. This is an increase from the previous guidance for the total year of $0.20 - $0.25 per share, the company announced.
For fiscal year 2003, WebEx is reiterating its previously given guidance of approximately $200 million in revenues and earnings per share of $0.50 - $0.55, excluding equity-based compensation expense and assuming a tax rate of 40%.