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Veritas Holds Steady

A rocky quarter in the executive suite failed to dampen Veritas Software Corp.'s (Nasdaq: VRTS) quarterly software sales.

Veritas beat analyst expectations and its own guidance today when it announced first-quarter income of $103 million, or earnings of $0.23 per share, on revenue of $487 million. Analyst consensus called for EPS of $0.21 on $467 million in revenues.

Veritas easily beat its previous guidance for revenues to fall between $455 million and $470 million, with EPS from $0.18 to $0.21.

For the current quarter, Veritas CEO Gary Bloom gave guidance that placed revenues between $490 million and $505 million, with EPS between $0.21 and $0.23.

Veritas also widened the gap a bit between its new license revenue and maintenance revenue. It reported new license revenue of $303 million, or 60 percent of total revenue, level with last quarter. Meanwhile, maintenance revenue was $183 million, or 38 percent of total revenue, compared to 40 percent last quarter. Veritas license revenue in the quarter was driven by big deals. It reported 25 deals of $1 million or more compared to 12 each in the first and fourth quarters of 2003.

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