Double-Take Software, Inc. Announces First Quarter 2007 Financial Results
biz.yahoo.com
Wednesday April 25, 4:01 pm ET
SOUTHBOROUGH, Mass.--(BUSINESS WIRE)--Double-Take Software, Inc. (NASDAQ: DBTK), a leading provider of recovery solutions, today announced its financial results for the first quarter 2007.
Total revenue for the quarter, which consists of software revenue and maintenance and professional services revenue, increased 67.9% to $17.9 million in the first quarter of 2007 from $10.7 million in the first quarter of 2006. Revenue for the first quarter of 2007 includes revenue from Double-Take EMEA for the entire quarter. Double-Take EMEA was acquired by the Company on May 23, 2006. (Formerly Sunbelt Systems Software S.A.S., Double-Take EMEA was Double-Take Software's near exclusive distributor in Europe.)
Software revenue increased 63.1% to $10.4 million in the first quarter of 2007 from $6.4 million in the first quarter of 2006. Maintenance and professional services revenue increased 74.9% to $7.5 million in the first quarter of 2007 from $4.3 million in the first quarter of 2006.
Operating expenses for the first quarter of 2007 increased 49.3% to $13.5 million from $9.1 million in the first quarter of 2006. Included in operating expenses in the first quarter of 2007 were the following items:
* Stock option expense of $0.3 million related to SFAS 123R.
* Amortization of intangible assets of $0.2 million related to the acquisition of Double Take EMEA in May 2006.
Included in operating expenses in the first quarter of 2006 was $0.4 million of stock option expense resulting from the adoption of SFAS 123R and the vesting of stock options for the former CEO and $0.1 million related to the issuance of Series C Preferred shares to management.
Income from operations was $2.5 million in the first quarter of 2007 compared to $0.3 million in the first quarter of 2006. Net income attributable to common stockholders was $2.9 million, or $0.13 per diluted share, in the first quarter of 2007 compared to a loss of ($1.7) million, or ($.44) per diluted share, in the first quarter of 2006.
Income from operations on an adjusted, non-GAAP basis in the first quarter of 2007 was $2.8 million, compared to $0.8 million in the first quarter of 2006. Adjusted, non-GAAP net income before accretion and dividends on preferred stock was $3.2 million in the first quarter of 2007 compared to $0.8 million in the first quarter of 2006. Dividend and accretion charges occurred until our Initial Public Offering in December 2006 when all preferred shares were converted into common shares. Adjusted, non-GAAP net income per diluted share was $0.14 in the first quarter of 2007. We calculate these adjusted non-GAAP income measures by excluding the effects in the respective periods of the non-cash SFAS 123R and other stock-based compensation expenses described as components of Operating Expenses above. An explanation of these non-GAAP financial measures and a reconciliation of these measures to GAAP results are provided in the tables included in this press release, and these measures should only be viewed together with the reconciliation and the further explanation given under "Non-GAAP Financial Measures" below.
Cash and cash equivalents at March 31, 2007 totaled $56.7 million.
"We got off to a very solid start to 2007," said Dean Goodermote, Chairman of the Board and CEO of Double-Take Software. "Especially pleasing was the continued expansion of our international business, the continued additional sales of our products within our large installed base and the continued growth of our partner program".
Guidance
The Company expects revenue for the second quarter of 2007 to be in the range of $19.0 to $19.5 million. Operating income is expected to be $3.1 to $3.3 million and adjusted, non-GAAP income per share for the second quarter of 2007 is expected to be in the range of $0.15 to $0.16 per share excluding the impact of stock-based compensation charges and using an estimated effective income tax rate of approximately 12% and weighted average diluted shares of approximately 23.0 to 23.2 million shares.
After taking the results of Q1 2007 into account, the Company expects full-year 2007 revenue to be in the range of $78.5 to $80.5 million. Operating income is expected to be $12.8 to $14.8 million and adjusted, non-GAAP income per share for full year 2007 is expected to be in the range of $0.56 to $0.62 excluding the impact of stock based compensation charges and using an estimated effective tax rate of approximately 10% and weighted average diluted shares assumed to be approximately 23.5 to 24 million. The effective tax rate for Q2 and for all of 2007 will be evaluated and possibly revised throughout the year if the allowance currently recorded against the deferred tax assets is reduced or eliminated. |
