Verity announces Q1 '98 financial results

Verity (Sunnyvale, CA, http://www.verity.com

) has announced financial results for the first fiscal quarter ended August 31. As anticipated, revenues of $5.3 million represented a 39% decrease from Q1 '97. A net loss of $9.8 million compares with a net loss of $1.3 million in Q1 '97. During the period Verity signed over a dozen new customers, including Boeing, Motorola, Bell Atlantic and Tufts University. The period also saw a significant turnover of several senior management officials, including former chairman and CEO Philippe Courtot. Software sales, representing more than half of the total revenue, were down 57% from Q1 '97 to $3.1 million. "We need to significantly improve our performance from the levels of revenues and operating results of the first quarter," said president and CEO Gary Sbona. A 30% drop in cash and investments during the period "underscores the need to refocus our business, increase revenues and get our expenses in line with revenue expectations," Sbona said.