BakBone Software: BKB-TSE, BKBOF-Nasdaq BB
Closed today at C$4.12 (+.12) and US$3.18 (+.13).
BakBone Reports Fiscal 2004 Third Quarter Results
Total Revenue Increases 61 Percent Year-Over Year; Third Consecutive Profitable Quarter * BakBone Software investor relations web site www.bakbone.com/investors * BakBone Software investor relations web site www.bakbone.com/investors * Third quarter fiscal 2004 conference call scheduled for 1:30 p.m. PST; 4:30 p.m. EST today * Conference call will be archived at www.bakbone.com/investors through Friday, February 13
SAN DIEGO, Jan 27, 2004 /PRNewswire-FirstCall via COMTEX/ -- BakBone Software (Toronto: BKB; OTC Bulletin Board: BKBOF), a global provider of data protection software, today reported financial and operating results for the third fiscal quarter ended December 31, 2003.
(Logo: newscom.com )
Financial Highlights
Total revenues for the third quarter were US$7.9 million, 61 percent higher than the US$4.9 million reported for the same period a year earlier. The breakdown of revenues consisted of US$6.4 million in licensing revenues and US$1.5 million in service revenues as compared to third quarter fiscal 2003 of US$4.2 million in licensing revenues and US$708,000 in service revenues. Net income for the third quarter of fiscal 2004 was US$603,000, or US$0.01 per basic and diluted common share. This compares with a net loss of US$2.2 million, or US$0.04 per basic and diluted common share for the same period last year. Operating expenses for the third quarter were US$6.3 million as compared to US$6.1 million for the same period a year ago, which included special charges of US$415,000 associated with the discontinuance of the MagnaVault product offering.
"Our third quarter proved exceptional for the Company," said Keith Rickard, BakBone's president and CEO. "We posted strong revenue growth while at the same time keeping expenses in line. Our strength across all business lines including traction in product technologies, as well as our efforts in building strategic alliances with leading industry software and hardware vendors, speaks to our leadership gains in a highly competitive marketplace. BakBone is well positioned to capitalize on its profitable growth as the markets evolve. We are gratified the strategies and investments we continue to make in our business are paying off."
Cash and cash equivalents increased US$552,000 to US$17.9 million as of December 31, 2003 from US$17.3 million as of September 30, 2003.
Added Rickard, "We continue to focus on key long-term financial priorities. The strength of our balance sheet gives us the flexibility to further invest in technologies, pursue potential acquisition activities, and drive the overall growth and development of our business. This is a very exciting time for BakBone."
Third Quarter Regional Highlights
North American revenues of US$3.2 million for the quarter represented 40 percent of Q3 worldwide revenues and a 47 percent increase from US$2.2 million in Q3 fiscal 2003. Revenues for the Pacific Rim region grew 63 percent to US$3.0 million compared to Q3 fiscal 2003 of US$1.8 million and represented 38 percent of total revenues. Revenues for Q3 in the Europe, Middle East and Africa region (EMEA) were US$1.7 million representing 22 percent of overall revenues and an 89 percent increase in revenues from US$930,000 last year.
Third Quarter Business Highlights
In addition to record revenue performance, business highlights for the third quarter included:
* BakBone launched its Linux Advantage initiative in a move to build
industry support and momentum for open source architecture in the data
center. Joining BakBone in this effort were leading Linux
distributors and enterprise application vendors including: Red Hat,
SUSE, Red Flag, Miracle Linux, Conectiva, TurboLinux, HP, Intel,
Network Appliance, Oracle, Silicon Graphics, Sony, StorageTek, Fujitsu
and Breece Hill.
* The Company continued to make progress in forging strategic business
relationships with: IBM, HP, Dell, Oracle, StorageTek, Sun, Overland
Storage and Apple. BakBone's NetVault data protection technology was
featured at MacWorld in early January and will support Apple's newest
MAC OS X Panther Server for Mac, Windows and UNIX systems.
* NetVault 7.1 was released during the quarter providing the industry's
most comprehensive platform support and includes key features designed
to improve performance, scalability and system administration. In
support of BakBone's growth and customer acceptance in international
markets, NetVault 7.1 also offers improved support for international
character sets.
* BakBone was honored with a number of awards during the quarter for
"best backup and recovery vendor" and is a finalist for the Codie
Awards in the category of "Best Storage Software." The Software &
Information Industry Association is the sponsor for the Codie awards
and honors best-in-class technology products and services as selected
by software industry professionals.
In addition, the Company recently announced that Bruce Nakao has joined the BakBone Board of Directors and will chair the audit committee. Bruce brings over 30 years of professional operational and financial management experience to the Company, specifically in the areas of initial public offerings and mergers and acquisitions.
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. While dial-in lines are limited, we do encourage investors to listen real-time to BakBone's quarterly earnings results via our web site www.bakbone.com/webcast .
The telephone dial-in number to access the live call is (800) 721-7178 (domestic) or (415) 908-4762 (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 21182166.
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, February 13.
About BakBone Software, Inc.
BakBone Software (Toronto: BKB; OTC 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 email info@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," "projects," "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 financial expectations or projections; 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 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. 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.
For further information, please contact Karen A. Silva, Director of Investor Relations of BakBone Software, Inc., +1-858-795-7525, 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 Nine months ended
December 31, December 31,
2003 2002 2003 2002
Revenues $7,917 $4,932 $22,140 $12,586
Cost of revenues 759 405 2,238 1,116
Gross profit 7,158 4,527 19,902 11,470
Operating expenses:
Sales and marketing 3,899 3,025 10,968 9,057
Research and development 1,171 1,233 3,376 3,817
General and administrative
(excluding $0, $0, $0
and $326 related to
stock-based
compensation) 1,203 1,407 3,703 4,206
Stock-based compensation -- -- -- 326
Special charges -- 415 -- 415
Total operating
expenses 6,273 6,080 18,047 17,821
Operating income (loss) 885 (1,553) 1,855 (6,351)
Interest income
(expense), net 16 (38) (30) (99)
Impairment of goodwill -- (442) -- (442)
Foreign exchange loss, net (15) (29) (38) (35)
Other expense, net (48) (10) (66) (12)
Income (loss) before
income taxes 838 (2,072) 1,721 (6,939)
Provision for income taxes 235 79 418 125
Net income (loss) 603 (2,151) 1,303 (7,064)
Accumulated deficit,
beginning of period (49,336) (46,292) (50,036) (41,379)
Accumulated deficit,
end of period $(48,733) $(48,443) $(48,733) $(48,443)
Net income (loss) per
common share:
Basic $0.01 $(0.04) $0.02 $(0.14)
Diluted $0.01 $(0.04) $0.02 $(0.14)
Weighted-average common
shares outstanding:
Basic 61,639,204 52,559,757 59,017,249 51,657,060
Diluted 84,929,882 52,559,757 74,678,983 51,657,060
BAKBONE SOFTWARE INCORPORATED
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
(in U.S. dollars)
December 31, March 31,
2003 2003
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $17,879 $5,045
Accounts receivable, net of allowance
for doubtful accounts of $174 and $87,
respectively 7,898 4,822
Other assets 865 850
Total current assets 26,642 10,717
Capital assets, net 2,063 2,239
Goodwill, net 3,982 3,982
Other assets 609 567
Total assets $33,296 $17,505
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $794 $865
Accrued liabilities 3,309 3,017
Current portion of deferred revenue 4,688 4,123
Current portion of capital lease obligations 44 97
Current portion of note payable -- 1,652
Total current liabilities 8,835 9,754
Deferred revenue, excluding current portion 823 1,029
Capital lease obligations, excluding
current portion 56 45
Other liabilities -- 24
Total liabilities 9,714 10,852
Shareholders' equity:
Series A convertible preferred stock, no
par value, 22,000,000 and zero shares
authorized, respectively, 18,000,000 and
zero, issued and outstanding, respectively,
liquidation preference of $20,863 11,160 --
Share capital, no par value, unlimited shares
authorized, 64,390,921 and 58,625,216 shares
Issued and outstanding, respectively 61,522 57,524
Share capital held by subsidiary -- (66)
Accumulated deficit (48,733) (50,036)
Cumulative exchange adjustment (367) (769)
Total shareholders' equity 23,582 6,653
Total liabilities and shareholders' equity $33,296 $17,505
SOURCE BakBone Software, Inc.
Karen A. Silva, Director of Investor Relations of BakBone
Software, Inc., +1-858-795-7525, karen.silva@bakbone.com
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