September Dividend Set At $0.09 Per Share

BETHESDA, Md., July 30, 2009 (GLOBE NEWSWIRE) -- OPNET Technologies, Inc. (Nasdaq:OPNT), a leading provider of solutions for managing networks and applications, today announced that revenue for the first fiscal quarter, ended June 30, 2009, was $27.7 million, compared to $30.1 million for the same quarter in the prior fiscal year. Earnings per share for the first quarter of fiscal 2010 were negative $0.02, compared to positive $0.04 for the first quarter of fiscal 2009. The Company also announced today a quarterly dividend of $0.09 per share, consistent with the Company's fiscal 2010 dividend target of $0.36, payable on September 29, 2009 to shareholders of record as of September 15, 2009.

Marc A. Cohen, OPNET's Chairman and CEO, stated, "We are disappointed by our fiscal Q1 revenue. We believe that the challenging economy significantly impacted our customers' ability to execute purchases, especially purchases of our network planning, engineering and operations solutions."

Mr. Cohen continued, "Despite the challenging economy, we continue to see indicators that our strategies to increase sales of our application performance management (APM) solutions are producing results. Our APM license bookings increased approximately 17% quarter over quarter and approximately 6% year over year. During the quarter we also closed the largest international corporate enterprise deal in our history, which we won in a competitive bid process against key players in the APM space. Revenue from this international APM sale will be recognized in future quarters as we deliver against the contract. We believe that our efforts to increase APM solution sales, together with the competitive advantages offered by our comprehensive solutions will enable us to grow market share and increase revenue when the economy improves."

The Company's first quarter fiscal 2010 financial results are presented below. The non-GAAP results exclude the income statement effects of stock-based compensation and acquisition-related amortization of intangible assets. A reconciliation of GAAP results to non-GAAP results has been provided in the financial statement table following the text of the press release. For further information, please refer to the section of the press release titled "Use of Non-GAAP Measures."

GAAP Financial Highlights for the First Quarter of Fiscal 2010:

 * Total revenue decreased year-over-year 7.9% to $27.7 million from
   $30.1 million for the same quarter of fiscal 2009.  Total revenue
   for the quarter decreased sequentially 4.1% from $28.9 million for
   the fourth quarter of fiscal 2009.
 * License revenue decreased year-over-year by 31.1% to $8.9 million
   from $12.9 million for the same quarter of fiscal 2009.  License
   revenue for the quarter decreased sequentially 16.6% from $10.7
   million for the fourth quarter of fiscal 2009.
 * Deferred revenue increased to a record $33.2 million at quarter end,
   a 5.6% increase year-over-year from $31.4  million at the end of
   the same quarter of fiscal 2009 and a 0.2% increase sequentially
   from $33.1 million at the end of the fourth quarter of fiscal 2009.
 * Gross profit decreased year-over-year to $19.9 million from $22.2
   million for the same quarter of fiscal 2009.  Gross profit
   decreased sequentially from $21.2 million in the fourth quarter of
   fiscal 2009.
 * Operating income decreased year-over-year to negative $624,000 from
   positive $945,000 for the same quarter of fiscal 2009.  Operating
   income decreased sequentially from negative $484,000 in the fourth
   quarter of fiscal 2009.

Non-GAAP Financial Highlights for the First Quarter of Fiscal 2010:

 * Non-GAAP gross profit decreased year-over-year to $20.4 million
   from $22.9 million for the same quarter of fiscal 2009.  Non-GAAP
   gross profit decreased sequentially from $21.7 million in the
   fourth quarter of fiscal 2009.
 * Non-GAAP operating income decreased year-over-year to $289,000 from
   $2.0 million for the same quarter of fiscal 2009.  Non-GAAP
   operating income decreased sequentially from $419,000 in the fourth
   quarter of fiscal 2009.
 * Non-GAAP operating margin decreased year-over year to 1.0% from
   6.6% for the same quarter of fiscal 2009.  Non-GAAP operating
   margin decreased sequentially from 1.4% in the fourth quarter of
   fiscal 2009.
 * Non-GAAP net income decreased year-over-year to $189,000 from $1.4
   million for the same quarter of fiscal 2009.  Non-GAAP net income
   decreased sequentially from $470,000 in the fourth quarter of
   fiscal 2009.

Second Quarter Fiscal Year 2010 Financial Outlook

OPNET currently expects fiscal 2010 second quarter GAAP revenue to be between $27.5 million and $30.0 million, and GAAP diluted earnings per share to be between negative $0.04 and positive $0.04. These estimates represent management's current expectations about the Company's future financial performance, based on information available at this time.

OPNET will hold an investor conference call on Thursday, July 30, 2009 at 5:00 pm Eastern Time to review financial results for the first quarter of fiscal 2010.

To listen to the OPNET investor conference call:

 * Call 888-334-3037 in the U.S. or 719-325-2172 for international
   callers, or
 * Use the webcast at www.opnet.com.  Investors are advised to go to
   the web site at least 15 minutes early to register, download, and
   install any necessary audio software.

To listen to the archived call:

 * Call the replay phone number at 888-203-1112 or 719-457-0820 for
   international callers. For replay, enter replay passcode # 4015381.
   The replay will be available from 8:00 pm Eastern Time July 30th
   through 11:59 pm Eastern Time August 6th.
 * The webcast will be available at www.opnet.com, archived for seven
   days.

Use of Non-GAAP Measures

OPNET uses a variety of financial measures that are not in accordance with generally accepted accounting principles, or GAAP, as supplemental measures to GAAP to evaluate its operational performance. These financial measures, which include non-GAAP gross profit, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income and non-GAAP diluted earnings per share, exclude the impact of certain items and, therefore, have not been calculated in accordance with GAAP. A detailed explanation of each of the adjustments to such financial measures is described below. A reconciliation of each of these non-GAAP financial measures to its most comparable GAAP financial measure is also included below.

Management uses non-GAAP financial measures (a) to evaluate OPNET's historical and prospective financial performance as well as its performance relative to its competitors, and (b) to measure operational profitability and the accuracy of forecasting. In addition, many financial analysts who follow OPNET focus on and publish both historical results and future projections based on non-GAAP financial measures. OPNET believes that it is in the best interest of its investors to provide this information to analysts so that they accurately report the non-GAAP financial information. Moreover, investors have historically requested these non-GAAP financial measures as a means of providing consistent and comparable information with past reports of financial results.

While management believes that these non-GAAP financial measures provide useful supplemental information to investors, there are limitations associated with the use of these non-GAAP financial measures.