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Topsy-Turvy Q1 For Opsware

Data center software vendor Opsware announced its first-quarter results last night, posting revenues of $12.6 million, up 70 percent on the same quarter last year and just topping analysts estimates of $12.24 million (see Opsware Records Q1 Results).

Opsware registered a net loss for the quarter of 5 cents per share on $5.1 million, although this included non-cash charges of $2 million relating to the acquisition of Rendition Networks (see Opsware to Buy Rendition and Opsware Opens Its Wallet). In the same period last year Opsware registered a net profit of 2 cents per share on $2 million.

Excluding the non-cash charges, Opsware’s non-GAAP net loss was $3.1 million or 3 cents per share, which was in line with analysts’ estimates.

Opsware, which went public in 2001, has earned a reputation as something of a trailblazer in the server automation space, although the performance of its stock has not always matched its technology story. Speaking on a conference call last night, Ben Horowitz, Opsware CEO, said he is not planning any drastic action. “We’re going to keep growing the business and we believe that eventually that will take care of itself.”

However, Horowitz reeled off a list of around 40 customer wins for the quarter, which is double the number clinched in same period last year. Of these organizations, which included USA Today, Sallie Mae, and the U.S. State Department, around 60 percent were new deals and the remainder were upgrades (see Opsware Wins Sallie Mae Contract).

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