Nothing Thursday, 06/10/10 04:07:39 PM Re: None Post # of 10 BakBone Software Announces Fourth Quarter and Full Year Fiscal 2010 Financial Results PR Newswire "Press Releases US - English " SAN DIEGO , June 10 /PRNewswire-FirstCall/ -- BakBone Software Ã‚Â® (OTC Bulletin Board: BKBO), a leading provider of storage and data protection software, today announced its financial results for the fourth quarter and full fiscal year of 2010, ended March 31, 2010 . Ã‚Â Included in the fiscal fourth quarter and full year results was a $12.6 million non-recurring, non-cash charge for the impairment of goodwill, intangible, and other assets related to the Company's ColdSpark division. Fourth Quarter Fiscal 2010 Financial Highlights Consolidated Revenues $14.7 million Consolidated Net Loss $(12.2) million Storage Management Revenues $14.4 million Storage Management Operating Income $1.9 million Storage Management Bookings $13.7 million "With the closing of ColdSpark, we are fully focused on driving our storage management business. During the fourth fiscal quarter, we experienced growing demand for our NetVaultÃ‚Â® product suite, demonstrated by growth in new customers worldwide," said Steve Martin , senior vice president, Chief Financial Officer and Interim CEO, BakBone. "Our new NetVault: FASTRecover and NetVault: SmartDisk offerings have expanded the breadth of our product line, providing us with additional storage solutions to sell to our customer base. We hit our bookings target with $14.1 million for the quarter, which included approximately $375,000 for the discontinued ColdSpark business. "We took steps during the quarter to reduce personnel costs in select areas of the company to align the BakBone team to better serve the needs of our channel partners and end user customers," Mr. Martin continued. "The entire organization is now directed at driving revenues of our core backup and storage business and improving profitability from continuing operations." Fiscal Fourth Quarter Financial Results Fiscal fourth quarter 2010 revenues of $14.7 million were two percent above revenues in the fourth quarter of fiscal 2009. The Company reported a net loss of $12.2 million , or $(0.14) per share, in the recent fourth quarter compared with a net loss of $0.9 million , or $(0.01) per share, in the fourth quarter last year. ColdSpark was acquired on May 14, 2009 , following the close of the fourth quarter of fiscal 2009, and therefore there is no contribution from the division in the fiscal fourth quarter or the full year 2009 results. Storage management revenues for the fiscal fourth quarter 2010 totaled $14.4 million , virtually unchanged from the $14.4 million in revenues in the fourth quarter of the prior year. Operating income for the storage management business was $1.9 million in the fiscal fourth quarter 2010 compared with an operating loss of $0.3 million in the fourth quarter of fiscal 2009. Storage management net income was $1.7 million for the fiscal fourth quarter 2010. Fiscal 2010 Financial Results For the full fiscal year 2010, revenues totaled $61.9 million , 10% above the $56.0 million in revenues in fiscal 2009. The Company reported a net loss for fiscal 2010 of $9.8 million , or $(0.12) per share, compared with a net loss of $5.5 million , or $(0.08) per share, for fiscal 2009. Ã‚Â Bookings for fiscal 2010 totaled $56.5 million . Storage management revenues totaled $60.8 million for fiscal 2010, an increase of 9% over revenues in fiscal 2009. Operating income for the storage management business was $7.6 million in fiscal 2010 compared with an operating loss of $6.1 million in the prior fiscal year. Storage management net income increased to $7.0 million . Total cash at March 31, 2010 was $5.0 million . Conference Call Information The Company has scheduled a conference call for today, June 10, 2010 , at 2:00 p.m. PT to discuss the results for the quarter ended March 31, 2010 . The call will be hosted by Steve Martin , Interim CEO and Chief Financial Officer of BakBone. Ã‚Â To access the conference call, please dial 800-854-3238; internationally, dial 706-634-9547 (Passcode: 76750537). This call will also be webcast and can be accessed at www.bakbone.com by clicking on "Company Info" and then "Investor Relations." The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site. About BakBone Software BakBone makes data protection a simple, straightforward process with an award-winning product suite. From real-time data protection to deduplication, disk-based and tape backup and application protection, BakBone's solutions manage resources across all platforms, providing improved operational efficiency, reduced system downtime, improved data and application availability and enhanced security to support the business growth of enterprise environments. For more information about BakBone, visit www.bakbone.com or email [email protected] Safe Harbor This press release contains express and/or implied forward-looking statements including, without limitation, statements regarding anticipated financial results and market developments 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. The potential risks and uncertainties may include, but are not limited to: risks that the costs of exiting the ColdSpark business will be higher than anticipated; risks that the ongoing weak economic and market conditions, particularly in North America , could continue to lead to reduced spending on information technology products; competition in our target markets; potential capital needs; management of future growth and expansion; the development, implementation and execution of the Company's strategic vision; risk of third-party claims of infringement; protection of proprietary information; customer acceptance of the Company's existing and newly introduced products and fee structures; the success of the Company'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 Securities and Exchange Commission , which may be found at www.sec.gov, as well as those risk factors disclosed in our current report filed with the relevant Canadian securities regulators, which is available on SEDAR at www.sedar.com. 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, other than as required under applicable securities laws. BakBoneÃ‚Â®, BakBone SoftwareÃ‚Â®, NetVaultÃ‚Â®, Application Plugin ModuleÃ¢â€žÂ¢, BakBone logoÃ‚Â®, Integrated Data ProtectionÃ¢â€žÂ¢, NetVault: SmartDiskÃ¢â€žÂ¢, AsempraÃ‚Â®, FASTRecoverÃ¢â€žÂ¢, ColdSparkÃ‚Â® and SparkEngineÃ¢â€žÂ¢ 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. Investor Contact: Corporate Contact: Media Contact: Doug Sherk / Jenifer Kirtland Steve Martin Amber Winans 415-896-6820 858-795-7525 858-795-7584 [email protected] [email protected] [email protected] (Logo: Ã‚Â http://photos.prnewswire.com/prnh/20031120/SDBAKLOGO) BAKBONE SOFTWARE INCORPORATED Condensed Consolidated Balance Sheets (in thousands) Fiscal Period Ended Ã‚Â March 31, 2010 March 31, 2009 ASSETS Current assets: Ã‚Â Ã‚Â Ã‚Â Ã‚Â Cash and cash equivalents Ã‚Â $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â 4,903 $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â 8,398 Ã‚Â Ã‚Â Ã‚Â Ã‚Â Restricted cash 51 264 Ã‚Â Ã‚Â Ã‚Â Ã‚Â Accounts receivable, net 10,582 9,646 Ã‚Â Ã‚Â Ã‚Â Ã‚Â Prepaid expenses and other assets 739 1,159 Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Total current assets 16,275 19,467 Property and equipment, net 2,020 2,713 Intangible assets, net 1,814 824 Goodwill 7,615 7,615 Other assets 946 939 Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Total assets $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â 28,670 $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â 31,558 LIABILITIES AND SHAREHOLDERSÃ¢â‚¬â„¢ DEFICIT Current liabilities: Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Accounts payable and accrued liabilities $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â 7,942 $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â 9,603 Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Current portion of acquisition consideration payable 809 - Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Current portion of deferred revenue 44,337 44,081 Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Total current liabilities 53,088 53,684 Deferred revenue, excluding current portion 44,840 47,684 Acquisition consideration payable, excluding current portion 6,037 - Other liabilities 697 1,337 Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Total liabilities 104,662 102,705 ShareholdersÃ¢â‚¬â„¢ deficit (75,992) (71,147) Total liabilities and shareholdersÃ¢â‚¬â„¢ deficit $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â 28,670 $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â 31,558 BAKBONE SOFTWARE INCORPORATED Condensed Consolidated Statements of Operations (in thousands, except per share data) Three months ended March 31, Twelve months ended March 31, 2010 2009 2010 2009 (unaudited) Revenues: License and service $ Ã‚Â 14,749 $ 14,414 $ 60,368 $ 56,020 Other - - 1,500 - Total revenues 14,749 14,414 61,868 56,020 Cost of revenues 1,696 1,655 6,570 7,121 Gross profit 13,053 12,759 55,298 48,899 Operating expenses: Sales and marketing 6,378 6,226 26,393 27,010 Research and development 3,474 2,416 13,159 11,220 General and administrative 2,668 4,401 12,402 16,751 Impairment of goodwill and intangible assets 12,450 - 12,450 - Total operating expenses 24,970 13,043 64,404 54,981 Operating loss (11,917) (284) (9,106) (6,082) Other non-operating (expense) income (268) (492) (817) 985 Loss before income taxes (12,185) (776) (9,923) (5,097) (Benefit from) provision for income taxes (2) 107 (171) 354 Net loss $ (12,183) $ Ã‚Â Ã‚Â (883) $ (9,752) $ (5,451) Net loss per common share: Basic and diluted $ Ã‚Â Ã‚Â (0.14) $ Ã‚Â (0.01) $ Ã‚Â (0.12) $ Ã‚Â (0.08) Weighted-average common shares outstanding: Basic and diluted 84,176 64,610 84,176 64,615 BAKBONE SOFTWARE INCORPORATED Condensed Consolidated Statements of Cash Flows (in thousands) Twelve months ended March 31, 2010 2009 Cash flows from operating activities: Net lossÃ‚Â $ (9,752) $ (5,451) Adjustments to reconcile net loss to net cash used in (provided by) operating activities: Impairment of goodwill and intangible assets 12,450 - Depreciation and amortization 2,519 1,626 Non-cash interest expense 565 - Operating expenses funded by financing arrangement 320 178 Stock-based compensation 210 260 Provision for bad debt 131 258 Loss on disposal of capital assets 12 20 Other changes in assets and liabilities (8,582) 4,595 Net cash (used in) provided by operating activities (2,127) 1,486 Cash flows from investing activities: Cash paid for acquisitions, net of cash received (1,014) - Capital expenditures (423) (836) Release of restricted cash 325 227 Net cash used in investing activities (1,112) (609) Cash flows from financing activities: Payments on capital lease obligations (228) (239) Payments on long-term debt obligations (523) (681) Net cash used in financing activities (751) (920) Effect of exchange rates on cash and cash equivalents 495 (1,055) Net decrease in cash and cash equivalents (3,495) (1,098) Cash and cash equivalents, beginning of period 8,398 9,496 Cash and cash equivalents, end of period $ Ã‚Â 4,903 $ Ã‚Â 8,398 BAKBONE SOFTWARE INCORPORATED Reconciliation of Bookings to U.S. GAAP Revenue (1) (in thousands) Three months ended March 31, Twelve months ended March 31, 2010 2009 2010 2009 (unaudited) Revenues sourced from current period bookings: Total bookings for the period $ 14,107 $ 13,894 $ 56,502 $ 57,738 Bookings deferred into subsequent periods (13,123) (12,867) (40,753) (43,461) Revenues from current period bookings 984 1,027 15,749 14,277 Revenues sourced from prior period bookings: 13,765 13,387 46,119 41,743 Total revenues recognized in the period $ 14,749 $ 14,414 $ 61,868 $ 56,020 (1) Ã‚Â We define bookings as the gross dollars invoiced through the sale of software licenses, maintenance contracts and professional services. We utilize bookings information as an operations measure, but it is not intended to replace U.S. GAAP accounting. Under the ratable revenue recognition method, license bookings are recognized as revenue over the appropriate period (generally three to five years). In general, variations in revenues period-over-period are affected by the amortization of current and prior period license bookings. Accordingly, we believe that trends in current and historical bookings are key factors in analyzing our operating results. BAKBONE SOFTWARE INCORPORATED Statement of Operations by Reporting Segment (in thousands, except per share data) Three months ended Twelve months ended March 31, 2010 March 31, 2010 Storage Message Storage Message Management Management Consolidated Management Management Consolidated (unaudited) (unaudited) Revenues: License and service $ Ã‚Â Ã‚Â Ã‚Â 14,366 $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â 383 $ Ã‚Â Ã‚Â Ã‚Â 14,749 $ Ã‚Â Ã‚Â Ã‚Â 59,324 $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â 1,044 $ Ã‚Â Ã‚Â Ã‚Â 60,368 Other - - - 1,500 - 1,500 Total revenues 14,366 383 14,749 60,824 1,044 61,868 Cost of revenues 1,482 214 1,696 5,774 796 6,570 Gross profit 12,884 169 13,053 55,050 248 55,298 Operating expenses: Sales and marketing 5,840 538 6,378 24,786 1,607 26,393 Research and development 2,945 529 3,474 11,418 1,741 13,159 General and administrative 2,193 475 2,668 11,234 1,168 12,402 Impairment of goodwill and intangible assets - 12,450 12,450 - 12,450 12,450 Total operating expenses 10,978 13,992 24,970 47,438 16,966 64,404 Operating income (loss) 1,906 (13,823) (11,917) 7,612 (16,718) (9,106) Other non-operating expense (266) (2) (268) (808) (9) (817) Income (loss) before income taxes 1,640 (13,825) (12,185) 6,804 (16,727) (9,923) (Benefit from) provision for income taxes (7) 5 (2) (176) 5 (171) Net income (loss) $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â 1,647 $ Ã‚Â Ã‚Â Ã‚Â (13,830) $ Ã‚Â Ã‚Â Ã‚Â (12,183) $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â 6,980 $ Ã‚Â Ã‚Â Ã‚Â (16,732) $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â (9,752) Net income (loss) per common share: Basic and diluted $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â (0.14) $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â (0.12) Diluted $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â (0.14) $ Ã‚Â Ã‚Â Ã‚Â Ã‚Â Ã‚Â (0.12) Weighted-average common shares outstanding: Basic 84,176 84,176 Diluted 84,176 84,176 SOURCE BakBone Software I do my own DD, you should too. It's how you learn. All statements are my own opinion.