Quarterly revenues from continuing operations grow 21% from last year / Record diluted EPS of $1.20 for fiscal year 2006

Versant Corporation (NASDAQ:VSNT), an industry leader in specialized data management, today announced its financial results for the fourth fiscal quarter and year ended October 31, 2006.

For the quarter, Versant reported revenues of $4.6 million from its continuing operations, compared to $3.8 million for the comparable period last year, representing an increase of approximately 21%. Net income for the quarter was $1.4 million and diluted net income per share was $0.38, compared to net income of $0.5 million and net income per share of $0.14 for the comparable period last year.  

Versant also reported an increase in cash and cash equivalents of approximately $0.9 million during the quarter, resulting in a cash and cash equivalents balance of approximately $8.2 million as of October 31, 2006.

The Company closed a significant transaction with a US customer totaling $1.2 million in license revenues during the quarter.

“This record quarter concludes a record fiscal year for Versant. With net income of $4.3 million, fiscal year 2006 represents by far the most profitable year since the Company’s Initial Public Offering in 1996”, said Jochen Witte, CEO of Versant Corporation.

“We are forecasting higher license and maintenance revenues and lower consulting revenues for fiscal 2007, resulting in comparable total revenues to fiscal 2006. As net income for fiscal year 2006 contained a one-time gain of approximately $0.5 million from the sale of Versant’s WebSphere consulting business, we believe that income from continuing operations before taxes provides a more meaningful basis for comparing the Company’s performance in future periods.  We anticipate income from continuing operations before taxes of between $4.4 million and $4.6 million for fiscal year 2007, representing growth of 10% to 15% when compared to income from continuing operations before taxes of $4.0 million in fiscal year 2006”, added Mr. Witte.

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 over 50,000 installations, Versant has been a highly reliable partner for over 15 years for Global 2000 companies such as Ericsson, Verizon, Sagem, the US Government, and Financial Times.  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 in this press release regarding our updated guidance regarding our expected revenue levels and anticipated range of income from continuing operations before taxes for fiscal year 2007, our anticipated growth in income from continuing operations in fiscal year 2007, and our forecast of higher license and maintenance revenues and lower consulting revenues in fiscal year 2007. Investors are cautioned that any such forward-looking statements are not guarantees of Versant’s 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 factors, risks and uncertainties include, without limitation: our inability to achieve revenue expectations or projected net income levels as a result of delays in the sales cycle for our products and services or failures to close key sales transactions; changing market demands or perceptions of our products and technologies; the fact that our results of operations are highly dependent on sales of our Versant Object Database product; the possibility that the amount of future contingent earn-out payments from the sale of our WebSphere consulting practice assets will fall below our estimates; the risk that the amount and timing of revenue from a multi-year maintenance agreement with a key European customer will not meet our current expectations; the performance of our resellers; 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; potential reductions in the prices we charge for our products and services due to competitive conditions; the uncertainty as to the impact and duration of the current market reductions in corporate IT spending; 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-KSB for the year ending October 31, 2005 and its Quarterly Reports on Form 10-Q for the quarters ending January 31, April 30, 2006 and July 31, 2006 and its reports on Form 8-K.

^{Versant is a registered trademark or trademark of Versant Corporation in the United States and/or other countries. All other products are a registered trademark or trademark of their respective company in the United States and/or other countries.}

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: Tuesday, December 5, 2006
Time: 1:30 PM Pacific (4:30 PM Eastern)
Dial-in number US: 1-800-936-9754
Dial-in number International: 1-973-935-2048
Conference ID: 8173254

Internet Simulcast *: http://viavid.net/dce.aspx?sid=000038F5

^{* 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 Versant Corporation at (510) 789-1577.

A replay of the conference call will be available until December 12, 2006.
Replay number US: 1-877-519-4471
International Replay number: 1-973-341-3080
Replay Pass Code **: 8173254

^{** Enter the playback pass code to access the replay}

Versant Corporation and Subsidiaries Condensed Consolidated Balance Sheet and Versant Corporation and Subsidiaries Condensed Consolidated Statement of Operations

For Versant Corporation and Subsidiaries Condensed Consolidated Balance Sheet and Versant Corporation and Subsidiaries Condensed Consolidated Statement of Operations click here (PDF file, appr. 132 KB).

Versant Contact

Jerry Wong
Chief Financial Officer
Versant Corporation
1-800-VERSANT
510-789-1500