BakBone Software issues 4Q03 and full year report:
BakBone Software Announces Fourth Quarter and Annual Fiscal 2003 Results
Tuesday May 20, 9:07 am ET
SAN DIEGO--(BUSINESS WIRE)--May 20, 2003--BakBone Software(TM) (OTCBB:BKBOF - News; TSX:BKB - News):
Annual revenues increased 84 percent to US$18.2 million from US$9.9 million in fiscal 2002
Annual operating expense growth limited to 12 percent over fiscal 2002
Fourth quarter positive cash flow from operations
In excess of 100 percent revenue growth in European operations over fiscal 2002
BakBone Software(TM) (OTCBB:BKBOF - News; TSX:BKB - News), a global provider of data recovery software, announced today financial results for the fourth quarter and fiscal year ended March 31, 2003.
Fourth Quarter Fiscal 2003
BakBone reported revenues of US$5.6 million for the fourth quarter, an increase of 82 percent over the same period in the previous fiscal year. Operating expenses were US$5.7 million, an increase of 5 percent from the same period last year.
Cash provided from operating activities in the fourth quarter was US$2.5 million, marking the first quarter in which the company has achieved positive cash flow from operations. Overall, cash and cash equivalents increased US$2.9 million, to US$5.0 million, from US$2.1 million as of the third fiscal quarter ended December 31, 2002.
Net loss for the fourth quarter was US$1.6 million, or US$0.03 per share. Included in net loss were non-operating charges of US$446,000 and US$385,000 related to an impairment of goodwill and a provision for income taxes arising from certain international transactions, respectively. Additionally, the company incurred an operating charge of US$317,000 arising from an employee stock program, which was established in March 2000 as a retention tool for key personnel associated with the United Kingdom entity acquired by BakBone. These items combined had a US$0.02 effect on net loss per share for the fourth quarter.
Fiscal Year 2003
For the year ended March 31, 2003, revenues were US$18.2 million, an increase of 84 percent over US$9.9 million for the previous fiscal year. Operating expenses were US$23.5 million, an increase of 12 percent over US$20.9 million for fiscal 2002. Net loss was US$8.7 million, or US$0.16 per share, compared to a net loss of US$18.8 million, or US$0.46 per share in the previous fiscal year.
For the fiscal year, the company had significant revenue growth in each geographic region, including:
110 percent in Europe, Middle East and Africa (EMEA) resulting from the addition of key channel partners and expansion to new markets such as France and Italy
85 percent in North America resulting from increased OEM sales from NCR Teradata and significant new customer wins
73 percent in the Pacific Rim resulting from continued success in the established Japanese market and significant growth in new markets such as China, South Korea and Malaysia.
"I am extremely pleased by the solid results we achieved both during our fourth quarter and for the fiscal year," said Keith Rickard, BakBone's President and CEO. "Not many companies today can show 84 percent revenue growth for a year that saw only a 12 percent increase in operating expenses. This performance is the result of our ability to expand market share and focus on emerging markets worldwide while tirelessly finding ways to optimize use of our cash and personnel resources. Fiscal year 2004 promises to bring many more key milestones and we enter this, our fourth year in business, striving for continued strong revenue growth, positive cash flow, profitability, and even higher profile customer and partner wins."
The company will discuss the quarterly and fiscal year end results during an investors' conference call to be held Tuesday, May 20, 2003 at 4:30 pm Eastern Standard Time. Interested parties may participate in the call by dialing 1-800-240-7305, and requesting the "BakBone Quarterly Conference Call."
About BakBone Software, Inc.
BakBone Software (OTCBB:BKBOF - News; TSX:BKB - News) is an international storage management software company that develops and globally distributes high-performance software solutions to the network storage and open systems markets. BakBone's backup and recovery software provides scalable data protection from the workgroup to the enterprise. Founded in 2000, BakBone Software's products are used by companies and governments worldwide, and are distributed through a network of OEMs and solution providers.
BakBone's corporate headquarters is located at 10145 Pacific Heights Boulevard, San Diego, California 92121. Its stock is listed on the Toronto Stock Exchange. For more information on BakBone products, call 866/484-2663, e-mail sales@bakbone.com, or access BakBone's web site at www.bakbone.com.
Safe Harbor
With the exception of historical information, the statements set forth above include forward looking statements (including but not limited to express or implied statements concerning BakBone's anticipated revenue growth, positive cash flow, profitability, and higher profile customer and partner wins) that involve risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These risks and uncertainties 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; 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 operations in foreign countries.
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 United States Securities and Exchange Commission which may be found at www.sec.gov/edgar.
All future written and oral forward-looking statements made by us or on our behalf are also subject to these factors. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
BAKBONE SOFTWARE INCORPORATED
Consolidated Statements of Operations
(in thousands, except per share and share data)
(in U.S. dollars)
Three Months Ended Year Ended
----------------------- -----------------------
March 31, March 31, March 31, March 31,
2003 2002 2003 2002
----------- ----------- ----------- -----------
Revenues $5,604 3,087 18,190 9,863
Cost of revenues 534 326 1,650 1,244
----------- ----------- ----------- -----------
Gross profit 5,070 2,761 16,540 8,619
----------- ----------- ----------- -----------
Operating expenses:
Sales and marketing 3,068 2,733 12,125 10,750
Research and
development 1,146 1,181 4,963 4,521
General and
administrative
(excluding $0, $0,
$326 and $0 of
stock-based
compensation) 1,504 1,507 5,710 5,659
Stock-based
compensation - - 326 -
Special charges - - 415 -
----------- ----------- ----------- -----------
Total operating
expenses 5,718 5,421 23,539 20,930
----------- ----------- ----------- -----------
Operating loss (648) (2,660) (6,999) (12,311)
Interest expense, net (83) (34) (182) (108)
Amortization and
impairment of
goodwill (446) (3,439) (888) (6,235)
Foreign exchange (loss)
gain, net (24) 95 (59) 110
Other expense, net (7) (431) (19) (359)
Minority interest - 12 - 112
----------- ----------- ----------- -----------
Loss before
income taxes (1,208) (6,457) (8,147) (18,791)
Provision for income
taxes 385 - 510 -
----------- ----------- ----------- -----------
Net loss $(1,593) (6,457) (8,657) (18,791)
=========== =========== =========== ===========
Net loss per share -
basic and diluted $(0.03) (0.13) (0.16) (0.46)
=========== =========== =========== ===========
Weighted-average common
shares 56,422,659 48,258,399 53,259,938 40,869,526
=========== =========== =========== ===========
BAKBONE SOFTWARE INCORPORATED
Consolidated Balance Sheets
(in thousands, except share data)
(in U.S dollars)
March 31, March 31,
2003 2002
-------- --------
Assets
Current assets:
Cash and cash equivalents $5,045 5,502
Restricted cash - 804
Accounts receivable, net of allowance for doubtful
accounts of $87 and $72, respectively 4,822 3,289
Other assets 850 588
-------- --------
Total current assets 10,717 10,183
Capital assets, net 2,239 2,762
Goodwill, net 3,982 4,784
Other assets 567 567
-------- --------
Total assets $17,505 18,296
======== ========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $865 645
Accrued liabilities 3,017 1,938
Deferred revenue 5,152 1,297
Current portion of capital lease obligations 97 201
Current portion of notes payable 1,652 -
Loans from related parties - 63
-------- --------
Total current liabilities 10,783 4,144
Capital lease obligations, excluding current portion 45 54
Notes payable, excluding current portion - 1,950
Other liabilities 24 -
-------- --------
Total liabilities 10,852 6,148
-------- --------
Shareholders' equity:
Share capital, no par value, unlimited shares
authorized, 58,625,216 and 53,121,681 shares
issued and outstanding, respectively 57,524 51,861
Share capital to be issued - 2,877
Share capital held by subsidiary (66) (66)
Accumulated deficit (50,036) (41,379)
Cumulative exchange adjustment (769) (1,145)
-------- --------
Total shareholders' equity 6,653 12,148
-------- --------
Total liabilities and shareholders'
equity $17,505 18,296
======== ========
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Contact:
BakBone Software
Chanda Idano (Investor relations), 858/450-9009
investors@bakbone.com |
