Carbonite: Preliminary Fiscal 1Q15 Financial Results

Carbonite, Inc. announced preliminary financial results for the first quarter ending March 31, 2015, indicating strong bookings and revenue for the period.

In addition, the company announced that its board of directors has concluded its strategic alternatives exploration process, which began earlier this year.

Preliminary 1Q15 Financial Results and Guidance for 2015
Carbonite expects first quarter revenue to exceed the high end of the previously provided guidance range of $31.9 million – $32.1 million and expects a smaller non-GAAP net loss per share than the previously provided guidance range of ($0.09) – ($0.07) per share.

The company also reaffirmed annual guidance that total revenue for the full year 2015 will be within or above the range of $137-$138 million, non-GAAP earnings per share will be within or above the range of $0.08 – $0.10, non-GAAP gross margin will increase approximately 200 basis points over 2014 and free cash flow will be in the range of $16-$18 million.

These preliminary, unaudited results are based on management’s initial review of operations for the quarter ended March 31, 2015 and remain subject to completion of the company’s standard quarterly closing and review process.

“I am extremely pleased to share our preliminary results for the first quarter of 2015,” said Mohamad Ali, president and CEO. “We saw excellent performance across our product portfolio, including greater than 40% year over year growth in SMB bookings, which comprised approximately 36% of total bookings compared to 28% in the prior year quarter, and 2% year over year growth in consumer bookings. I look forward to discussing our progress and my vision for capitalizing on the tremendous opportunities in the global BC market following the release of our first quarter earnings on April 28, 2015.”

Cnclusion of Strategic Alternatives Review Process
On January 9, 2015, Carbonite announced that its board of directors had authorized the exploration of a broad range of strategic alternatives, including a possible sale of the company. The company retained Deutsche Bank Securities Inc., Foley & Lardner LLP and Sidley Austin LLP to facilitate a comprehensive review to maximize value for shareholders. As part of this process Carbonite engaged with a number of potential strategic and financial acquirers, resulting in several companies signing confidentiality agreements and engaging in due diligence over the past three months. After discussions with interested parties, the interests expressed were unlikely to lead to an acquisition of the entire company and did not present an attractive alternative to the company’s stand-alone plan. As a result, the board of directors unanimously determined that it is in the best interest of Carbonite and its shareholders to continue its present strategic course toward increased value creation for shareholders.

“We ran a robust process under the direction of our board of directors and independent advisors to ensure that all options available to deliver optimum shareholder value were thoroughly explored,” said Todd Krasnow, lead independent director. “We always remain open and willing to engage in these types of discussions, and while we will not be sharing specific details about the process, the board is confident that under Mohamad Ali’s leadership, and through the execution of our strategic plan, Carbonite is well positioned to become the leading provider of cloud and hybrid BC solutions for SMBs and deliver greater shareholder value.“