Veritas beat its own and Wall Street's expectations by recording record earnings for the second consecutive quarter. Net income in the third quarter was $77.6 million, or 18 cents per share, more than double the $36.2 million, or 9 cents per share, it earned in the year-ago quarter. Revenue was $451 million, up 23 percent from $366 million in the previous year for the Mountain View, Calif., company.
Veritas pumped up its fourth-quarter forecast, predicting revenues of between $480 million and $490 million -- well above the $468 million analysts were projecting.
Veritas CEO Gary Bloom certainly doesn't appear concerned about EMC's recent acquisitions of Legato and Documentum. By acquiring Legato's backup-and-restore and Documentum's content-management software, EMC has the key pieces for its strategy to dominate the information lifecycle management (ILM) market (see EMC Closes Legato Acquisition and EMC Cops Documentum).
On a conference call with analysts yesterday, Bloom said Veritas has already been making gains against Legato, and that he doesn't consider Documentum a direct competitor.