Bakbone Software: BKB-TSE, BKBOF-Nasdaq BB
Closed today at C$3.30 (-.03) and US$2.51 (-.04). Earnings released yesterday after the close.
October 28, 2003
BakBone Software Announces Earnings For Second Quarter Fiscal Year 2004
Company Posts Profitability and Positive Operating Cash Flow in Same Quarter
SAN DIEGO, CA - October 28, 2003 - BakBone Software (TSX:BKB; OTCBB: BKBOF), a global provider of data recovery software, today reported financial and operating results for the second quarter ended September 30, 2003.
Financial Highlights
Total revenues for the second quarter of fiscal 2004 were US$6.5 million, 62 percent higher than the US$4.0 million reported for the same period a year earlier. The breakdown of revenues consisted of US$5.2 million in licensing revenues and US$1.3 million in service revenues as compared to second quarter fiscal 2003 of US$3.3 million in licensing revenues and US$695,000 in service revenues. Net income for the second quarter of fiscal 2004 was US$132,000, or breakeven on a per basic and diluted share basis. This compares with a net loss of US$2.0 million, or US$0.04 per basic and diluted share for the quarter ended September 30, 2002. Operating expenses were unchanged for the second quarter fiscal 2004 at US$5.6 million.
Keith Rickard, BakBone’s president and CEO, said, "We are very pleased with the results for our second quarter. This was the first time in BakBone’s history that profitability and positive operating cash flow were achieved in the same quarter."
"Factoring out the US$2.1 million of OEM revenue in Q1 resulting from the Sony contract, we once again achieved double-digit sequential growth with revenues increasing by 15 percent," added Rickard. "As revenues have increased, it is also important to note this organization is holding its expenses in line. The strength of our financial fundamentals is a clear message that BakBone is staying true to its core business by focusing on complete customer acceptance of our products and delivering products that feature higher performance, greater reliability and faster transaction throughput than those of our competitors."
Cash and cash equivalents increased US$13.3 million as of September 30, 2003 to US$17.3 million from US$4.0 million as of June 30, 2003. The increase in cash and cash equivalents during the quarter is attributable to: 1) US$157,000 of positive operating cash flow; 2) US$14.3 million of net financing proceeds from the VantagePoint Venture Partners private placement in July 2003; and 3) proceeds of US$429,000 from exercised options and warrants. These amounts were offset slightly by US$81,000 in capital equipment purchases and the retirement of a US$1.7 million note payable.
Second Quarter Regional Highlights
North America revenues of US$2.5 million for the quarter represented 38 percent of Q2 worldwide revenues and a 74 percent increase from US$1.4 million in Q2 fiscal 2003. Revenues for the Pacific Rim region grew 52 percent to US$2.6 million compared to Q2 fiscal 2003 of US$1.7 million and represented 40 percent of the Company’s total revenues. Revenues for Q2 from our Europe, Middle East and Africa region (EMEA) were US$1.4 million representing 22 percent of overall revenues and a 61 percent increase in revenues year-over-year from US$892,000.
"Revenues in each region grew year-over-year and directly point to the industry relationships we have built over the past three years," said Rickard. "Our partnerships with OEMs, strategic alliances, integrators and VARs are invaluable. With the latest announcements from Sony, Red Flag, Vertices, Bell Micro, Red Hat and EMC, we are forging new ground every day in developing an organization that will continue to grow its business in a cost effective manner. In addition, we are posting strong financial results for the Company in a market that continues to be challenged by anemic IT spending and longer sales cycles."
Business Outlook:
Revenues for fiscal year 2004 are expected to be between US$29 million and US$32 million
Earnings per share for fiscal year 2004 are projected to be in the range of US$0.04 to US$0.06 on a fully diluted basis
Licensing revenues are expected to represent approximately 82 to 85 percent of total revenues for fiscal year 2004; service revenues from maintenance contracts are expected to be approximately 15 to 18 percent of total revenues for fiscal year 2004, and "other" services (professional services) are expected to be less than one percent
On a regional basis, fiscal year 2004 revenues are projected to be 50 percent, 29 percent and 21 percent for North America, Pacific Rim and EMEA, respectively.
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. PST today, is available to all investors.
The telephone dial-in number to access the live call is (888) 343-7268 (domestic) or (415) 537-1988 (international). Call participants are asked to dial-in ten 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 21163163.
A real-time audio web broadcast can be accessed at the BakBone corporate web site at www.bakbone.com/investors. For those unable to listen to the live broadcast, the webcast will be archived through Friday, November 14.
About BakBone Software, Inc.
BakBone Software 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. 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, you can learn more information about BakBone's products and services at www.bakbone.com or email info@bakbone.com.
Safe Harbor
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; and 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 www.sedar.com and/or those risk factors disclosed in the current report filed with the Securities and Exchange Commission, which may be found at www.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.
BakBone, BakBone Software, NetVault, Application Plugin Module, APM 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. |
