Bakbone Software: BKB-TSE, BKBOF-Nasdaq BB
Closed today at C$2.33 and US$1.685.
Earnings and guidance released today - First profitable quarter:
BakBone Software Reports First Quarter Fiscal Year 2004 Results
Strong Sequential Growth in Quarterly Revenues;
Up 113 Percent Year-over-Year
* BakBone Software investor relations web site www.bakbone.com/investors
* First quarter fiscal 2004 conference call scheduled for
1:30 p.m. PDT today
* Conference call will be archived at www.bakbone.com/investors through
August 15
SAN DIEGO, July 29 /PRNewswire-FirstCall/ -- BakBone Software (BULLETIN BOARD: BKBOF) , a global provider of data recovery software, today reported financial and operating results for the first quarter ended June 30, 2003.
Financial Highlights
Revenues for the first quarter were a record US$7.7 million, compared to revenues of US$3.6 million for the same period a year ago, representing an impressive increase of 113 percent. Revenues consisted of US$6.7 million in licensing revenues and US$1.0 million in service revenues as compared to revenues for the first quarter fiscal 2003 of US$3.1 million in licensing revenues and US$571,000 in service revenues. As a result of company-wide cost containment, operating expenses remained consistent at US$6.2 million as compared to US$6.1 million for the same period a year ago. Net income for the first quarter was US$568,000, or US$0.01 per basic and diluted common share, as compared to a net loss of US$2.9 million, or US$0.06 per basic and diluted common share, for the quarter ended June 30, 2002.
"We are extremely pleased to report a solid quarter with strong top-line growth resulting in the first quarter of profitability in our Company's history," said Keith Rickard, president and CEO of BakBone Software. "I am equally pleased to report our expense line held firm to year ago levels while revenues increased reflecting the efficiencies and economies of scale we have built into our organization. We have developed an infrastructure to deliver the industry's premiere data storage management software, and in so doing, are growing a profitable, high-margin business and increasing shareholder value. Our progress in posting a 113 percent year-over-year increase in revenues points directly to our strategic success in delivering exceptional execution and results even in a market that continues to be somewhat sluggish."
Overall, cash and cash equivalents decreased US$1.0 million in the first quarter fiscal 2004, to US$4.0 million, from US$5.0 million as of March 31, 2003.
First Quarter Operational Highlights
In North America, licensing revenues for this quarter increased 218 percent to US$4.1 million from US$1.3 million in Q1 fiscal 2003. This includes one-time licensing revenues of US$2.1 million from Sony, which was announced in Q4 fiscal 2003. Licensing revenues for the Pac Rim region increased 21 percent to US$1.5 million this quarter from US$1.3 million for the quarter ended June 30, 2002. In the EMEA region (Europe, Middle East and Africa) licensing revenues grew 116 percent to US$1.1 million from US$509,000 for the same period a year earlier.
"Our ability to grow in each of these regions during a time when overall IT spending has declined is attributable to the quality relationships we have developed with OEM and alliance partners, resellers and global solution providers," commented Rickard. "To achieve this growth, our engineers have become extremely adept at giving our customers improved scalability, flexibility, ease of deployment and increased automation. OEM relationships with NCR-Teradata, Sony, Network Appliance and others, as well as the dynamic combination of our technologies, give end users solid solutions to the challenges of managing high-end enterprises and high-performance applications."
Commenting on the recent launch of BakBone's flagship product NetVault 7.0, which occurred during the first quarter, Rickard said, "The global introduction of NetVault 7.0 was a crucial milestone for the Company and represents the vehicle that will drive increased market share and revenue growth. NetVault 7.0 extends BakBone's position and reach as a leader in the backup and disaster recovery arena."
BakBone Software held its Annual and Special Meeting of Shareholders on July 17, 2003 where shareholders ratified an agreement with VantagePoint Venture Partners. BakBone, by way of private placement, issued to VantagePoint an aggregate of 22,000,000 Series A Preferred Shares at CDN$1.00 per Preferred Share for gross proceeds of CDN$22.0 million or US$15.7 million. BakBone shareholders also elected J. Stephan Dolezalek and Andrew T. Sheehan, representatives from VantagePoint, as new members of the BakBone board of directors.
"We continue to anticipate positive net earnings for this fiscal year and remain committed to net earnings in the range of US$0.04 to US$0.06 on a fully diluted share basis and after taking into account the recent financing event with VantagePoint. In addition, we expect fiscal year 2004 revenues to be in the range of US$29 million to US$32 million," said Rickard. "Looking forward to our second quarter, our focus will be on the strategic growth of our Company. Shareholders can expect to see continued enhancements and upgrades to our NetVault product, excellent execution by our management team in all regions of the world, and expansion of our OEM and VAR partnerships -- all targeted at increasing market share worldwide."
Quarterly Conference Call
Information not covered in this press release may be discussed in our conference call to review quarterly financial results and business outlook. This call, scheduled for 1:30 p.m. PDT today, is available to all investors.
The telephone dial-in number to access the live call is (800) 937-4595 (domestic) or (415) 904-2435 (international). Call participants are asked to dial-in 15 minutes prior to the start of the conference call. A taped archive of the call will be available for three days at (800) 633-8284 (domestic) or (402) 977-9140 (international), passcode 21155330.
A real-time audio web broadcast can be accessed at the BakBone corporate web site at bakbone.com. For those unable to listen to the live broadcast, the webcast will be archived through Friday, August 15.
About BakBone Software, Inc.
BakBone Software (BULLETIN BOARD: BKBOF) is a leading international data recovery solution provider that develops and distributes data backup, restore, and disaster recovery software for network storage and open-systems environments worldwide. BakBone delivers scalable solutions that address the complex demands of large enterprise environments, as well as small to medium sized businesses. Founded in 2000, BakBone products are used by Fortune 1000 corporations and domestic and international government entities. Distributed through a select global network of OEM partners, resellers and solution providers, more information about BakBone's products and services can be accessed at www.bakbone.com or emailinfo@bakbone.com.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks, uncertainties, assumptions and other factors, which, if they do not materialize or prove correct, could cause BakBone's results to differ materially from historical results, or those expressed or implied by such forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including statements containing the words "planned," "expects," "believes," "strategy," "opportunity," "anticipates," and similar words. These statements may include, among others, plans, strategies and objectives of management for future operations; any statements regarding proposed new products, services or developments; any statements regarding future economic conditions or performance; statements of belief and any statements of assumptions underlying any of the foregoing. The potential risks and uncertainties may include, but are not limited to, competition in our target markets; potential capital needs; management of future growth and expansion; risk of third party claims of infringement; protection of proprietary information, customer acceptance of the company's products and fee structures; the success of BakBone's brand development efforts; risks associated with strategic alliances; reliance on distribution channels; product concentration; need to develop new and enhanced products; potential product defects; our ability to hire and retain qualified employees and key management personnel; risks associated with changes in domestic and international market conditions; and the entry into and development of international markets for the company's products. Our forward-looking statements should be considered in the context of these and other risk factors disclosed in our most recent report filed with the Canadian Securities Administrators, which is available on the SEDAR disclosure system at sedar.com and/or those risk factors disclosed in the current report filed with the Securities and Exchange Commission which may be found at sec.gov. All future written and oral forward-looking statements made by us or on our behalf are also subject to these factors. BakBone assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made. The accompanying consolidated statements of operations and accumulated deficit and consolidated balance sheets are an integral part of this announcement.
BakBone, BakBone Software, NetVault, and the BakBone logo are all trademarks or registered trademarks of BakBone Software, Inc., in the United States and/or in other countries. All other brands, products or service names are or may be trademarks, registered trademarks or service marks of, and used to identify, products or services of their respective owners.
Corporate Contact: Karen Silva, Director of Investor Relations, BakBone Software, Inc., 858-795-7525, karen.silva@bakbone.com
BAKBONE SOFTWARE INCORPORATED
Consolidated Statements of Operations and Accumulated Deficit
(in thousands, except per share and share data)
(in U.S. dollars)
(Unaudited)
Three Months Ended
June 30, June 30,
2003 2002
Revenues $7,714 $3,630
Cost of revenues 796 321
Gross profit 6,918 3,309
Operating expenses:
Sales and marketing 3,563 3,139
Research and development 1,126 1,241
General and administrative (excluding $0 and
$396 related to stock-based compensation) 1,490 1,368
Stock-based compensation -- 396
Total operating expenses 6,179 6,144
Operating income (loss) 739 (2,835)
Interest expense, net (38) (29)
Foreign exchange (loss) gain, net (5) 9
Other expense, net -- (1)
Income (loss) before income taxes 696 (2,856)
Provision for income taxes 128 22
Net income (loss) 568 (2,878)
Accumulated deficit, beginning of period (50,036) (41,379)
Accumulated deficit, end of period $(49,468) $(44,257)
Net income (loss) per common share
Basic $0.01 $(0.06)
Diluted $0.01 $(0.06)
Weighted-average common shares
Basic 56,859,319 50,256,591
Diluted 59,178,328 50,256,591
BAKBONE SOFTWARE INCORPORATED
Consolidated Balance Sheets
(in thousands, except share data)
(in U.S. dollars)
June 30, March 31,
2003 2003
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $4,031 $5,045
Accounts receivable, net of allowance
for doubtful accounts of $121 and $87,
respectively 5,202 4,822
Other assets 879 850
Total current assets 10,112 10,717
Capital assets, net 2,295 2,239
Goodwill, net 3,982 3,982
Other assets 560 567
Total assets $16,949 $17,505
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $901 $865
Accrued liabilities 2,988 3,017
Deferred revenue 3,989 5,152
Current portion of capital lease
obligations 75 97
Current portion of note payable 1,652 1,652
Total current liabilities 9,605 10,783
Capital lease obligations, excluding
current portion 83 45
Other liabilities -- 24
Total liabilities $9,688 $10,852
Shareholders' equity:
Share capital, no par value, unlimited
shares authorized, 58,640,216 and
58,625,216 shares issued and
outstanding, respectively $57,535 $57,524
Share capital held by subsidiary (66) (66)
Accumulated deficit (49,468) (50,036)
Cumulative exchange adjustment (740) (769)
Total shareholders' equity 7,261 6,653
Total liabilities and
shareholders' equity $16,949 $17,505
BakBone Software, Inc.
CONTACT: Karen Silva, Director of Investor Relations of BakBone
Software, Inc., +1-858-795-7525, karen.silva@bakbone.com
Web site: sedar.com
Web site: bakbone.com
Web site: bakbone.com |
