Versant Announces Quarterly Net Income of $0.9 Million

Revenues of $4.4 Million for Q3 2009

• Press Release
• Source: Versant Corporation
• On 4:10 pm EDT, Tuesday August 25, 2009

REDWOOD CITY, Calif., Aug. 25, 2009 (GLOBE NEWSWIRE) -- Versant Corporation (Nasdaq:VSNT - News), an industry leader in specialized data management, today announced its financial results for its third fiscal quarter ended July 31, 2009.

Related Quotes

Symbol	Price	Change
VSNT	19.31	+0.62

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For the quarter, Versant reported revenues of $4.4 million from its continuing operations, compared to $6.3 million for the same quarter of the last fiscal year.

The 30% decrease in revenues for the quarter as compared to the same quarter of last fiscal year was primarily attributable to a 49% decrease in license revenues in the quarter relative to the same period in the prior fiscal year. Additionally, the increase in the dollar/euro exchange rate during the quarter contributed to approximately 6% of the decrease in revenues for the quarter ended July 31, 2009 over the same period last year. In the quarter ended July 31, 2009 there were fewer license transactions and no customer accounted for more than 10% of total revenues in the quarter, whereas two customers contributed approximately 33% of total revenues in the quarter ended July 31, 2008.

Net income for the quarter was $0.9 million and diluted net income per share was $0.25, compared to net income of $2.7 million and diluted net income per share of $0.70 for the third quarter of fiscal 2008.

Versant's cash and cash equivalents balance remained unchanged from the second fiscal quarter ended April 30, 2009 at $26.8 million.

Since announcement of our stock repurchase program in December 2008, under which the Company is authorized to repurchase up to $5.0 million worth of its outstanding common shares, Versant has acquired 206,377 of its common shares in the open market for a total price of approximately $3.0 million, or an average purchase price of $14.47 per share, leaving a balance of approximately $2.0 million in funds available for future repurchases of stock under this program until its expiration on October 31, 2009.

"In the current quarter we have witnessed an increase of approximately 12% in revenues and 19% in diluted net income per share when compared to the prior quarter," said Jochen Witte, CEO of Versant Corporation. "We view this as a possible signal of stabilization, although the software market certainly remains very difficult."

About Versant Corporation

Versant Corporation (Nasdaq:VSNT - News) is an industry leader in specialized data management software, which helps companies to handle complex information in environments that have high performance and high availability requirements. Using the Versant Object Database, customers cut hardware costs, speed and simplify development, significantly reduce administration costs, and deliver products with a strong competitive edge. Versant's solutions are deployed in a wide array of industries, including telecommunications, financial services, transportation, manufacturing, and defense. With over 50,000 installations, Versant has been a highly reliable partner for over 15 years for Global 2000 companies such as Ericsson, Verizon, Sagem, U.S. Government, and Financial Times. For more information, call 650-232-2400 or visit www.versant.com.

Forward Looking Statements Involve Risks and Uncertainties

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. These forward-looking statements include the statements in this press release regarding the statement in this release that changes in Versant's financial results for the quarter ended July 31, 2009 over the quarter ended April 30, 2009, may possibly indicate some improvement in the software market. Investors are cautioned that any such forward-looking statements are not guarantees of Versant's future performance or other matters and involve significant risks and uncertainties.

There are many important factors and risks that could cause our actual results to differ materially from those anticipated in the forward-looking statements. These factors, risks and uncertainties include, without limitation: the impact of the ongoing downturn in the global economy, which may reduce our customers' revenues, profits and cash reserves and thus dissuade them from making strategic capital purchase decisions for our products and services; our inability to achieve revenue expectations or projected net income levels as a result of the foregoing factors, delays in the sales cycle for our products and services or failures to close key sales transactions; changing market demands or perceptions of our products and technologies; failure to develop new customers; the fact that our results of operations are highly dependent on sales of our Versant Object Database product; the performance of our resellers; the possibility that existing value added resellers may not remain committed to our software or that their sales activity may not keep pace with their historical results; the timing of larger customer transactions, which may tend to result in significant variations in quarterly revenues and operating results; potential reductions in the prices we charge for our products and services due to competitive conditions or the general economic downturn; changes in currency exchange rates; the Company's ability to successfully manage its costs and operations, any failure of our efforts to capitalize on, or successfully integrate, the recently acquired db4o database business or to ultimately make that business profitable; and the capabilities of our recently appointed Vice President of Sales, North America. The forward-looking statements contained in this press release are made only as of the date of this press release, and the Company assumes no obligation to publicly update any forward-looking statement. Investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning factors that could cause results to differ can be found in the Company's filings with the Securities and Exchange Commission, including without limitation the Company's most recent Annual Report on Form 10-K for the fiscal year ended October 31, 2008, its reports on Form 10-Q and its reports on Form 8-K.

Versant is a registered trademark or trademark of Versant Corporation in the United States and/or other countries.

Conference Call Information

Versant will host a teleconference today to discuss the above after markets close. The details for the call are as follows:

 Date:                   Tuesday, August 25, 2009
 Time:                   1:30 PM Pacific (4:30 PM Eastern)
 Dial-in number U.S.:    1-877-941-9205
 International:          1-480-629-9835
 Conference ID:          4140499
 Internet Simulcast*:    http://viavid.net/dce.aspx?sid=00006922
                         *Windows Media Player needed for simulcast.
                          Simulcast is voice only.

Dial in 5-10 minutes prior to the start time. An operator will request your name and organization and ask you to wait until the call begins. If you have any difficulty connecting, please call Versant Corporation at (650) 232-2416.

A replay of the conference call will be available until September 1, 2009.

 Replay number U.S.:           1-800-406-7325
 International Replay number:  1-303-590-3030
 Replay Pass Code**:           4140499
                 ** Enter the playback pass code to access the replay.

                  VERSANT CORPORATION AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
                 (in thousands, except for share amounts)
                               (unaudited)

                                                 July 31,   October 31,
                                                   2009         2008
                                               -----------  -----------

 ASSETS

 Current assets:
  Cash and cash equivalents                    $    26,755  $    27,234
  Trade accounts receivable, net of allowance
   for doubtful accounts of $8 and $16 at
   July 31, 2009 and October 31, 2008,
   respectively                                      2,576        2,801
  Other current assets                                 736          399
                                               -----------  -----------
    Total current assets                            30,067       30,434

 Property and equipment, net                           595          670
 Goodwill                                            8,410        6,720
 Intangible assets, net                                879          565
 Other assets                                           --          172
                                               -----------  -----------
    Total assets                               $    39,951  $    38,561
                                               ===========  ===========

 LIABILITIES AND STOCKHOLDERS' EQUITY

 Current liabilities:
  Accounts payable                             $       200  $       371
  Accrued liabilities                                1,159        1,525
  Deferred revenues                                  3,834        3,120
  Deferred rent                                         18           17
                                               -----------  -----------
    Total current liabilities                        5,211        5,033

 Deferred revenues                                     243          317
 Deferred rent                                          --           13
 Other long-term liabilities                            48           44
                                               -----------  -----------
    Total liabilities                                5,502        5,407
                                               -----------  -----------

 Stockholders' equity:
  Common stock, no par value, 7,500,000
   shares authorized, 3,565,992 shares issued
   and outstanding at July 31, 2009, and
   3,746,581 shares issued and outstanding at
   October 31, 2008                                 95,714       97,717
  Accumulated other comprehensive income               252          183
  Accumulated deficit                              (61,517)     (64,746)
                                               -----------  -----------
    Total stockholders' equity                      34,449       33,154
                                               -----------  -----------
    Total liabilities and stockholders' equity $    39,951  $    38,561
                                               ===========  ===========

                  VERSANT CORPORATION AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                (in thousands, except per share amounts)
                              (unaudited)


                                 Three Months Ended   Nine Months Ended
                                 ------------------  -------------------
                                 July 31,  July 31,  July 31,  July 31,
                                   2009      2008      2009      2008
                                 --------- --------- --------- ---------

 Revenues:
  License                        $  2,025  $  3,943  $  7,198  $ 12,330
  Maintenance                       2,345     2,305     6,617     6,764
  Professional services                63        52       196       211
                                 --------- --------- --------- ---------
    Total revenues                  4,433     6,300    14,011    19,305
                                 --------- --------- --------- ---------

 Cost of revenues:
  License                              84        75       206       233
  Amortization of intangible
   assets                              96        79       296       237
  Maintenance                         364       354     1,080     1,103
  Professional services                29        18       100        74
                                 --------- --------- --------- ---------
    Total cost of revenues            573       526     1,682     1,647
                                 --------- --------- --------- ---------

    Gross profit                    3,860     5,774    12,329    17,658
                                 --------- --------- --------- ---------

 Operating expenses:
  Sales and marketing               1,049       898     3,046     2,696
  Research and development          1,022     1,003     2,996     3,159
  General and administrative          813     1,181     2,817     4,244
                                 --------- --------- --------- ---------
    Total operating expenses        2,884     3,082     8,859    10,099
                                 --------- --------- --------- ---------

  Income from operations              976     2,692     3,470     7,559
   Interest and other income
   (expenses), net                    (24)      261       232       591
                                 --------- --------- --------- ---------
  Income from continuing
   operations before taxes            952     2,953     3,702     8,150
  Provision for income taxes           61       295       473       992
                                 --------- --------- --------- ---------
  Net income from continuing
   operations                         891     2,658     3,229     7,158
  Net income from discontinued
   operations, net of income
   taxes                               --        --        --        98
                                 --------- --------- --------- ---------
  Net income                     $    891  $  2,658  $  3,229  $  7,256
                                 ========= ========= ========= =========

 Basic income per share:
  Net income from continuing
   operations                    $   0.25  $   0.71  $   0.89  $   1.93
  Net income from discontinued
   operations, net of income
   taxes                         $     --  $     --  $     --  $   0.03
                                 --------- --------- --------- ---------
  Net income per share, basic    $   0.25  $   0.71  $   0.89  $   1.96

 Diluted income per share:
  Net income from continuing
   operations                    $   0.25  $   0.70  $   0.88  $   1.89
  Net income from discontinued
   operations, net of income
   taxes                         $     --  $     --  $     --  $   0.03
                                 --------- --------- --------- ---------
  Net income per share, diluted  $   0.25  $   0.70  $   0.88  $   1.92

 Shares used in per share
  calculation:
  Basic                             3,574     3,729     3,648     3,704
  Diluted                           3,609     3,806     3,683     3,781

 Non-cash stock-based
  compensation included in
  the above expenses:
  Cost of revenues               $     15  $     14  $     42  $     42
  Sales and marketing            $     37  $     51  $     95  $    153
  Research and development       $     66  $     43  $    166  $    124
  General and administrative     $    145  $    119  $    430  $    308

Versant Corporation
Jerry Wong, Chief Financial Officer
1-800-VERSANT
650-232-2400