Quest Software Inc. reported earnings results for the third quarter and nine months ended September 30, 2009. Total revenues were $170.8 million a 8.9% decrease compared to the prior year's third quarter revenue of $187.6 million. Quest Software's net income for the third quarter of 2009 was $2.9 million, or $0.03 per fully diluted share. This compares to net income of $17.3 million, or $0.16 per share on a fully diluted basis, for the third quarter of 2008. Operating margins decreased year-over-year from 14.8% to 1.2% in the third quarter, resulting in an operating loss of $2.0 million which compares to income of $27.8 million for the corresponding period in 2008. On a non-GAAP basis, net income for the third quarter of 2009 was $31.2 million, or $0.34 per fully diluted share. This compares to non-GAAP net income of $26.8 million, or $0.25 per share on a fully diluted basis, for the third quarter of 2008. The non-GAAP operating margin was 24.3% in the third quarter of 2009, resulting in non-GAAP operating income of $41.6 million, compared to non-GAAP operating margin and operating income of 22.1% and $41.5 million, respectively, for the corresponding period in 2008. For the quarter, the company reported net cash provided by operating activities of $43.7 million and purchases of property and equipment of $4.3 million compared to net cash provided by operating activities of $35.1 million and purchases of property and equipment of $2.6 million a year ago. For the quarter, the company reported income before income tax provision of $0.7 million compared to income before income tax provision of $21.2 million a year ago. Total revenues for the first nine months of 2009 were $500.7 million, a 6.2% decrease compared to $533.8 million for the same period in 2008. Net income for the first nine months of 2009 was $33.3 million, or $0.35 per fully diluted share, versus net income of $38.9 million, or $0.36 per fully diluted share, for the comparable period in 2008. For the nine months ended September 30, 2009, non-GAAP net income was $80.8 million, or $0.86 per fully diluted share. This compares to non-GAAP net income of $66.7 million, or $0.63 per fully diluted share, for the nine months ended September 30, 2008. The non-GAAP operating margin was 21.4% in the first nine months of 2009, resulting in non-GAAP operating income of $107.4 million, compared to non-GAAP operating margin of 15.6% and non-GAAP operating income of $83.5 million in the comparable period of 2008. For the nine months, the company reported income before income tax provision of $41.3 million compared to income before income tax provision of $46.07 million a year ago. For the nine months, the company reported net cash provided by operating activities of $116.3 million and purchases of property and equipment of $8.2 million compared to net cash provided by operating activities of $111.4 million and purchases of property and equipment of $8.1 million a year ago. The company also announced that it has reached an agreement in principle with the class representative to settle the shareholder class action relating to alleged option backdating that was filed in October 2006 in the U.S. District Court for the Central District of California against Quest and certain of its current or former officers and directors for a payment of $29.4 million. The parties are negotiating in good faith a stipulation of settlement which will be subject to court approval once finalized.

Quest Software Inc. announced two significant product releases in the SQL Server performance management space, at PASS Summit in Seattle. The newest release of Spotlight(R) on SQL Server Enterprise, now featuring business intelligence (BI) monitoring, coupled with the debut of Foglight(R) for SQL Server, enables database administrators (DBAs) to proactively detect, diagnose and resolve SQL Server performance issues. Spotlight on SQL Server, Quest's monitoring and diagnostics tool, now features fully integrated monitoring and diagnostic capabilities for SSAS. Spotlight provides DBAs with a wealth of data on Analysis Services performance and processing in an easy-to-understand graphical representation of SSAS architecture. Spotlight on SQL Server Enterprise also offers automated CPU diagnosis, which affords users detailed visibility into CPU conditions from both SQL Server and Windows perspectives within a single location, empowering database and systems administrators to troubleshoot issues collaboratively. The new version also integrates direct links to Quest's SQLServerPedia portal from dashboard, giving users access to detailed information on SQL Server performance issues via expert blogs, wiki posts, video tutorials, and more. Quest will also introduce Foglight for SQL Server, a web-based monitoring and diagnostic solution based on the Foglight framework. Foglight for SQL Server offers 100% remote monitoring with highly optimized collections, providing users with a complete, out-of-the-box solution for monitoring their entire SQL Server infrastructure all with fast, easy installation. By leveraging the proven power of Spotlight on SQL Server's data collection framework and metric presentation, Foglight for SQL Server includes built-in dashboards, workflows and alarms.

Quest Software Inc. - Conference Presentation Calls