Versant Corporation (NASDAQ:VSNT), an industry leader in specialized data management, today announced its operating results for the fourth quarter ended October 31, 2005.

Versant reported revenues of $5.1 million and net income of $512,000 for its fourth quarter ended October 31, 2005, compared to revenues of $4.5 million and a net loss of $14.4 million for the third quarter ended July 31, 2005, during which the Company incurred approximately $12.9 million of charges for the impairment of goodwill and intangible assets. The increase in revenues over the third quarter was primarily due to an increase in license and maintenance revenues and was accompanied by a significant reduction in operating expenditures resulting from cost containment efforts due to our recent restructuring. This quarter, ended October 31, 2005, has yielded the highest quarterly net income since Versant’s acquisition of Poet Holdings in March 2004.

Versant’s cash balance was $4.0 million on October 31, 2005, compared to $3.6 million on July 31, 2005. The Company had positive net operating cash flows of $400,000 for the quarter ended October 31, 2005, and improved its DSO to 45 days for the quarter ended October 31, 2005, compared to 54 days for the previous quarter ended July 31, 2005.

“I am very pleased with our results,” said Jochen Witte, CEO of Versant Corporation. “We have surpassed our break-even objective by attaining a net income this quarter exceeding 10% of our revenues.”

Operating Results Outlook
The following statements are projections and forward-looking statements that are based on management’s estimates as of December 8, 2005 and are subject to risks and uncertainties.
The Company currently targets net income for fiscal 2006 ranging from $1.6 million to $2.0 million.

About Versant Corporation
Versant Corporation (NASDAQ: VSNT) is an industry leader in specialized data management software. Using Versant's solutions, customers cut hardware costs, speed and simplify development, significantly reduce administration costs, and deliver products with a strong competitive edge. Versant’s solutions are deployed in a wide array of industries including telecommunications, financial services, transportation, manufacturing, and defense. With hundreds of thousands of installations, Versant has been a highly reliable partner for over fifteen years for Global 2000 companies such as British Airways, US Government, Financial Times, IBM, and MCI. For more information, call 510-789-1500 or visit www.versant.com .

Forward-Looking Statements Involve Risks and Uncertainties
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the safe harbor created by those sections. These forward-looking statements include the statements under “Operating Results Outlook”, including statements regarding current targets for net income in fiscal 2006.  Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve significant risks and uncertainties. There are many important factors that could cause our actual results to differ materially from those anticipated in the forward-looking statements. These risks and uncertainties include, without limitation; the inability to achieve revenue expectations or net income as a result of delays in the sales cycle for our products and services, changing market demands or perceptions of our products and technologies, the performance of our resellers and the impact of our recent restructuring on our organization; the possibility that existing value added resellers may not remain committed to our software or that their sales activity may not keep pace with their historical results; that future sales levels will not meet expectations or may be delayed; adverse impacts on the prices we charge for our products and services due to competitive conditions; the potential for disruption of Versant’s business and delays in customer commitments as a result of our previously announced restructuring plan; the impact of potential sales losses to customers not within our core database management business; the uncertainty as to the impact and duration of the current market reductions in corporate IT spending; the possibility that additional restructuring actions or similar events may be required, resulting in charges that would adversely affect net income or increase net loss; and the company’s ability to successfully manage its costs and operations and maintain adequate working capital. The forward-looking statements contained in this press release are made only as of the date of this press release, and the Company assumes no obligation to publicly update any forward-looking statement. Investors are cautioned not to place undue reliance on forward-looking statements. Additional information concerning factors that could cause results to differ can be found in the Company’s filings with the Securities and Exchange Commission, including without limitation the Company’s most recent Annual Report on Form 10-K for the year ending October 31, 2004, as amended, and its Quarterly Reports on Form 10-QSB for the quarters ending January 31, April 30 and July 31, 2005, as amended, and its reports on Form 8-K.

Conference Call Information
Versant will host a teleconference today to discuss the above after markets close. The details for the call are as follows:

Date:Thursday December 8, 2005
Time:1:30 PM Pacific (4:30 PM Eastern)
Dial-in number:1-800-247-9979
International:1-973-935-2401
Internet Simulcast: * http://viavid.net/dce.aspx?sid=00002BB4

*Windows Media Player needed for simulcast. Simulcast is voice only.
Dial in 5-10 minutes prior to the start time. An operator will request your name and organization and ask you to wait until the call begins. If you have any difficulty connecting, please call the Liolios Group at (949) 574-3860.

A replay of the conference call will be available until December 12, 2005**
Replay number: 1-877-519-4471
International Replay number: 1-973-341-3080
Replay Pass Code: 6771583
** Enter the playback pass code to access the replay

VERSANT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

			October 31,		July 31,		October 31,
			2005		2005		2004
ASSETS
Current assets:
Cash and cash equivalents			$ 3,958		$ 3,629		$ 3,313
Restricted cash			-		-		320
Trade accounts receivable, net			2,529		2,366		5,121
Other current assets			744		852		823
Total current assets			7,231		6,847		9,577
Property and equipment, net			489		466		742
Goodwill			6,720		6,720		16,895
Intangible assets, net			1,512		1,591		4,770
Other assets			294		297		561
Total assets			$ 16,246		$ 15,921		$ 32,545
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable			$ 779		$ 561		$ 839
Accrued liabilities			2,667		2,588		4,307
Deferred revenue			2,779		2,925		3,027
Deferred rent			136		118		93
Total current liabilities			6,361		6,192		8,266
Long term restructuring accrual			448		616		1,120
Deferred revenue			184		30		43
Deferred rent			128		138		237
Variable interest liability			137		439		-
Total liabilities			7,258		7,415		9,666
Stockholders' equity:
Common stock, no par value			94,755		94,760		94,021
Deferred stock-based compensation			(44)		(70)		(146)
Other comprehensive income, net			396		445		569
Accumulated deficit			(86,119)		(86,629)		(71,565)
Total stockholders' equity			8,988		8,506		22,879
Total liabilities and stockholders' equity			$ 16,246		$ 15,921		$ 32,545

VERSANT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except for per share amounts)

(unaudited)

		Three Months Ended		Fiscal Year Ended
		October 31,	July 31,		October 31,	October 31,
		2005		2005		2004		2005		2004
Revenues:
License		$ 2,056		$ 1,706		$ 2,923		$ 8,828		$ 9,686
Maintenance		1,660		1,511		1,726		6,305		6,783
Professional services		1,380		1,240		1,580		5,376		6,406
Total revenues		5,096		4,457		6,229		20,509		22,875
Cost of revenues:
License		111		53		52		274		457
Amortization of intangible assets		79		197		224		671		698
Maintenance		354		327		307		1,456		1,516
Professional services		1,303		1,177		1,478		5,164		5,858
Total cost of revenues		1,847		1,754		2,061		7,565		8,529
Gross profit		3,249		2,703		4,168		12,944		14,346
Operating expenses:
Sales and marketing		993		1,469		2,011		5,815		8,051
Research and development		873		1,004		1,370		3,925		5,137
General and administrative		1,119		1,006		1,275		4,687		4,514
Impairment of goodwill		-		10,300		-		10,300		707
Impairment of intangibles		-		2,613		-		2,613		317
Restructuring		138		621		3,059		638		3,271
Total operating expenses		3,123		17,013		7,715		27,978		21,997
Income (loss) from operations		126		(14,310)		(3,547)		(15,034)		(7,651)
Variable interest, net		320		-		-		320		-
Other income (loss), net		35		(41)		(124)		197		119
Income (loss) from continuing operations before taxes and deemed dividend		481		(14,351)		(3,671)		(14,517)		(7,532)
Net provision (benefit) for income taxes		(31)		1		20		37		88
Net income (loss) from continuing operations before deemed dividend		512		(14,352)		(3,691)		(14,554)		(7,620)
Deemed dividend to preferred shareholders		-		-		-		-		(2,422)
Cumulative effect of accounting changes		-		-		(35)		-		-
Net income (loss) from continuing operations attributable to common shareholders		512		(14,352)		(3,726)		(14,554)		(10,042)
Income (loss) from discontinued operations, net of income taxes		-		-		14		-		(1,646)
Loss from sale of discontinued operations, net of income taxes		-		-		(309)		-		(309)
Net income (loss)		$ 512		$(14,352)		$ (4,021)		$(14,554)		$(11,997)

Net income (loss) per share:
Basic		$ 0.14		$ (4.04)		$ (1.16)		$ (4.11)		$ (3.85)
Diluted		$ 0.14		$ (4.04)		$ (1.16)		$ (4.11)		$ (3.85)
Shares used in per share calculation:
Basic		3,554		3,553		3,469		3,539		3,117
Diluted		3,555		3,553		3,469		3,539		3,117
Non-cash stock-based compensation included in the above expenses:
Cost of revenues		$ 6		$ 6		$ -		$ 27		$ -
Sales and marketing		$ 2		4		(5)		12		25
Research and development		$ 10		11		(4)		44		25
General and administrative		$ 3		4		(4)		13		36
Total		$ 21		$ 25		$ (13)		$ 96		$ 86