Q4 and FY2005 VA Software Corporation Earnings Conference Call - Final.

Original Source: FD (FAIR DISCLOSURE) WIRE

OPERATOR: Good afternoon, and welcome to the VA Software fourth-quarter and fiscal year 2005 year-end financial results conference. At this time, I would like to turn our conference over to your main speaker, Ms. Kathy McElwee. Go ahead, please.

KATHY MCELWEE, CFO, VA SOFTWARE: Good afternoon, and welcome to VA Software's conference call reviewing our fourth-quarter and fiscal year 2005 financial results. Let me remind you that this discussion will include forward-looking statements which will be made pursuant to the Safe Harbor provisions of section 21E of the Securities Exchange Act of 1934. Investors are cautioned that statements made during this call that are not strictly historical in nature constitute forward-looking statements, which involves risks and uncertainties such as statements regarding future or current financial performance; management's plans and objectives for future operations; product plans and performance; management's assessment of of market factors; market acceptance of the SourceForge product; expected contribution to revenue and various products and services offered by VA; and statements regarding the strategy and plans of VA and companies with which it collaborates.

Factors that could cause actual results to differ from our forward-looking statements are specified in VA's press release announcing the Company's quarterly results released earlier this afternoon and the Company's filings with the Securities and Exchange Commission, including VA's annual report on Form 10-K for the year ended July 31, 2004, and Form 10-Q for the quarter ended April 30, 2005. These documents are available at the Company's Website, VASoftware.com, or at the SEC's site, SEC.gov.

The press release announcing VA Software financial results was issued after the stock markets closed today and has been posted to the company's Website. In addition, a replay of this conference call will be available on the Website later today. The replay will also be available by telephone at 888-562-0857 or 402-220-7341.

Now I will turn the call over to VA Software's President and CEO, Ali Jenab.

ALI JENAB, PRESIDENT, CEO, VA SOFTWARE: Good afternoon, and thank you for joining us today. I'm going to make a few opening remarks, and then turn this back to Kathy McElwee, our CFO, to review the financial results. We will then open the call to questions.

I'm pleased with our fourth quarter and fiscal year 2005 financial results. During the fourth quarter, revenue grew to $8.4 million, with the growth led by a 34% increase in software revenue compared to last year's fourth quarter. We also saw growth in our e-commerce and online images businesses.

Although fourth quarter media revenue declined year-over-year, we saw sequential growth compared to the third quarter. The media sales team is now fully staffed, and we are seeing strong interest …