Veritas posts EBITDA and revenue gain in 2Q, but cash burn intensifies 

Veritas Technologies’ fiscal 2Q22 earnings edged higher as the company’s appliance hardware business continued to grow, according to two sources familiar with the situation.  

For fiscal 2Q ended 30 September, Veritas booked USD 194m of adjusted EBITDA, compared to USD 181m in the prior year period, the sources said. The latest adjusted EBITDA figure was relatively clean, sources continued. For comparison, pro forma adjusted EBITDA after including cost savings came in at USD 194m, up 4% from USD 186m from the same period last year,  

In 2Q, revenue stood at USD 448m, up 2.5% from the same period last year, the sources said.  

The company’s appliances hardware business continued to gain traction, up 21% year-over-year on a top-line basis. 

However, Veritas’ cash burn accelerated in the quarter due in part to ramp up in working capital, sources added. The borrower burned USD 107m of cash in the quarter, compared to a USD 16m cash outlay for fiscal 2Q21.  

As of 30 September, liquidity totaled USD 647m through USD 464m of cash and USD 183m of revolver availability. 

In March 2021, the company repriced its USD 1.975bn-equivalent TLB at par, split between a USD 1.322bn tranche at Libor+ 500bps and a EUR 549m tranche at Euribor+ 475bps, as reported. 

The USD 1.75bn 7.5% secured notes due 2025 last changed hands at 103.875 to yield 4.843% yesterday (8 November), in line with recent levels, according to MarketAxess.  

The USD-denominated TL due 2025, which came at a 98.5 OID, is quoted at 100/100.5, while the EUR-denominated TL due 2025 is quoted 100/101, according to a trader.  

Veritas, a provider of storage management and backup and recovery software, was acquired by Carlyle from former parent Symantec in late 2015. 

Messages left with the company were not returned.

2021 Debtwire

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