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BakBone Software Reports First Quarter Fiscal Year 2005 Results
* BakBone Software investor relations web site www.bakbone.com
SAN DIEGO, Aug. 16 /PRNewswire-FirstCall/ -- BakBone Software (TSX: BKB; OTC
Bulletin Board: BKBOF), a global provider of data protection software, today
reported financial and operating results for its first quarter ended June 30,
2004.
(Logo: http://www.newscom.com/cgi-bin/prnh/20031120/SDBAKLOGO)
Financial Highlights
Revenues for the first quarter were $7.9 million, compared to revenues of $5.5
million for the same period a year ago, a 42 percent increase. Revenues
consisted of $5.5 million in licensing revenues, an increase of 22 percent over
$4.5 million for the same period a year ago, and $2.0 million in service
revenues, an increase of 102 percent over the $1.0 million reported for the
first quarter fiscal 2004. Net loss for the quarter ended June 30, 2004 was
$1.0 million, or $0.02 per basic and diluted share, compared to a net loss for
the first quarter a year ago of $1.8 million, or $0.03 per basic and diluted
share.
In North America, total revenues for this quarter increased 27 percent to $3.1
million from $2.4 million in Q1 fiscal 2004. Total revenues for the Pacific
Rim region increased 51 percent to $2.7 million this quarter from $1.8 million
for the quarter ended June 30, 2003. In the EMEA region (Europe, Middle East
and Africa) total revenues grew 57 percent to $2.1 million from $1.3 million
for the same period a year earlier.
"While the June quarter has historically been a sequentially flat quarter for
our business, it was a more challenging quarter than anticipated coming into
fiscal 2005," said Keith Rickard, president and CEO. "However, our ability to
substantially grow Pacific Rim and EMEA revenues during a time when overall IT
spending in the U.S. has slowed is attributable to the quality OEM, reseller
and global solution provider relationships we have developed worldwide. We
increased our R&D spending during the quarter and intend to continue this trend
throughout fiscal 2005 as we strengthen our NetVault product and service
offerings. Our focus is long-term and our commitment is to expand BakBone's
share of the data backup and recovery market globally."
Operating expenses in the first quarter were $8.1 million as compared to $6.3
million for the same period a year ago, an increase of $1.8 million or 29
percent. Included in first quarter general and administrative expenses were
charges totaling $774,000 consisting of $479,000 related to an abandoned public
offering of the Company's securities in the U.S., which was initiated in March
of this year, as well as additional fees paid to auditors of $295,000
pertaining to the Company's May 2004 restatement, U.S. GAAP conversion, and its
first Form 10-K filing with the Securities and Exchange Commission in June
2004.
Excluding the $774,000 in charges related to the abandoned public offering and
audit-related items, general and administrative expenses for the first fiscal
quarter were $1.7 million, an increase of $243,000 or 17 percent as compared to
general and administrative expenses of $1.5 million during the same quarter
last year, which met the Company's expectations for the first fiscal quarter.
Overall, cash and cash equivalents decreased $700,000 in the first quarter
fiscal 2005, to $18.7 million, from $19.4 million as of March 31, 2004.
"In March of this year, we took steps to seek a listing on the NASDAQ," stated
Rickard. "Simultaneous with our seeking shareholder approval for a reverse
stock split to achieve the $5 minimum share price criteria for a NASDAQ
listing, we also initiated the registration process to seek funding from the
capital markets to strengthen our balance sheet, provide capital for potential
acquisitions, and increase liquidity for our stock. Due to the impact on our
share price resulting from the restatement of prior year financials, as well as
current market conditions, we have determined that we will not pursue a public
offering at this time. The Board continues to monitor the progress of the
Company closely, as well as market conditions, to identify the next appropriate
course of actions with respect to transitioning the Company to a major U.S.
exchange."
"Fiscal 2005 will be a pivotal year for the Company as we leverage all
resources to increase our brand recognition, OEM and alliance partnerships,
customer adoption, and technology wins," added Rickard. "We want to reiterate
that we expect fiscal year 2005 revenues to be in the range of $40 million to
$42 million. However, in view of the charges incurred as a result of our
abandoned public offering and additional audit-related fees, we are adjusting
our EPS guidance to $0.03 to $0.05 on a fully diluted share basis."
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. Pacific Time today; 4:30 p.m. Eastern Time,
is available to all investors.
The telephone dial-in number to access the live call is 800-256-6003 (domestic)
or 415-908-6241 (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 until Thursday, August 19 at 5:00 p.m. Pacific
Time at 800-633-8284 (domestic) or 402-977-9140 (international), passcode
21205179.
A real-time audio web broadcast can be accessed at the BakBone corporate web
site at http://www.bakbone.com/. For those unable to listen to the live
broadcast, the webcast will be archived through Friday, August 27.
About BakBone Software, Inc.
BakBone Software (OTC Bulletin Board: BKBOF; TSX: BKB) is a leading
international data protection 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 size 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, interested companies can learn more about BakBone's
products and services at http://www.bakbone.com/ or email .
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
Securities and Exchange Commission, which is available at http://www.sec.gov/
and our most recent report filed with the Canadian Securities Administrators,
which can be accessed on the SEDAR disclosure system at http://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. The accompanying consolidated statements
of operations and consolidated balance sheets are an integral part of this
announcement.
Note Regarding Use of Non-GAAP Financial Measures
Certain of the information set forth herein, including general and
administrative expenses excluding certain items, may be considered non-GAAP
financial measures. BakBone believes this information is useful to investors
because it provides a basis for measuring the company's available capital
resources, the operating performance of the company's business and the
company's cash flow, excluding non-recurring items that would normally be
included in the most directly comparable measures calculated and presented in
accordance with generally accepted accounting principles. The company's
management uses these non-GAAP financial measures along with the most directly
comparable GAAP financial measures in evaluating the company's operating
performance and capital resources and cash flow. Non-GAAP financial measures
should not be considered in isolation from, or as a substitute for, financial
information presented in compliance with GAAP, and non-financial measures as
reported by the company may not be comparable to similarly titled amounts
reported by other companies.
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
BAKBONE SOFTWARE INCORPORATED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(unaudited)
Three months ended June 30,
2003 2004
Revenues $5,517 $7,852
Cost of revenues 796 834
Gross profit 4,721 7,018
Operating expenses:
Sales and marketing 3,563 4,004
Research and development 1,126 1,629
General and administrative 1,457 2,474
Stock-based compensation* 153 3
Amortization of intangible assets 14 14
Total operating expenses 6,313 8,124
Operating loss (1,592) (1,106)
Interest (expense) income , net (38) 29
Foreign exchange (loss) gain , net (5) 106
Loss before income taxes (1,635) (971)
Provision for income taxes 128 65
Net loss $(1,763) $(1,036)
Net loss per common share:
Basic and diluted $(0.03) $(0.02)
Weighted-average common shares
outstanding:
Basic and diluted 58,621,216 64,523,199
* Stock-based compensation includes
the following:
Research and development $107 $3
General and administrative 46 --
$153 $3
BAKBONE SOFTWARE INCORPORATED
CONSOLIDATED BALANCE SHEETS
(in thousands, except share data)
March 31, June 30,
2004 2004
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $19,399 $18,699
Accounts receivable, net of allowance
for doubtful accounts of $135 and $238,
respectively 7,383 6,956
Other assets 1,286 1,207
Total current assets 28,068 26,862
Property and equipment, net 1,942 1,839
Intangible assets, net 111 97
Goodwill 4,269 4,269
Other assets 787 701
Total assets $35,177 $33,768
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $926 $1,129
Accrued liabilities 4,078 3,764
Current portion of deferred revenue 6,877 6,148
Total current liabilities 11,881 11,041
Deferred revenue, excluding current portion 2,930 3,583
Other liabilities 42 27
Total liabilities 14,853 14,651
Commitments and contingencies
Shareholders' equity:
Series A convertible preferred stock,
no par value, 22,000,000 shares
authorized, 18,000,000 shares issued and
outstanding, liquidation preference of
$20,650 and $20,088, respectively 11,160 11,160
Share capital, no par value, unlimited
shares authorized, 64,526,608 and
64,527,858 shares issued and outstanding,
respectively 154,916 154,917
Employee benefit trust (5) (5)
Deferred compensation (12) (9)
Accumulated deficit (145,475) (146,511)
Accumulated other comprehensive loss (260) (435)
Total shareholders' equity 20,324 19,117
Total liabilities and shareholders'
equity $35,177 $33,768
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DATASOURCE: BakBone Software, Inc.
CONTACT: Karen Silva, Director of Investor Relations of BakBone
Software, Inc., +1-858-795-7525,
Web site: http://www.bakbone.com/