BakBone: Fiscal 2Q09 Financial Results

BakBone Software, Inc. reported its worldwide bookings (1) and cash position for its second quarter of fiscal year 2009.

For the second quarter of fiscal year 2009 ended September 30, 2008, total worldwide bookings were $14 million from the sale of software licenses and maintenance contracts. This represents a decrease of approximately two percent from bookings of $14.2 million as reported for the first quarter of fiscal year 2009 and approximately a four percent increase from $13.5 million for the second quarter in fiscal year 2008.

BakBone’s total cash balance as of September 30, 2008 was $8.5 million as compared to $10 million as of June 30, 2008. In connection with the completion and filing of the 2004 through 2006 audited financial statements in the quarter, the Company paid significant professional services fees that contributed to the decline in the cash balance at September 30, 2008.

Cost Reduction Initiatives
On Friday, November 7th, 2008, BakBone implemented cost reduction initiatives that included a reduction in headcount. BakBone reduced its global employee base by 12% and has implemented additional cost-cutting measures in order to reduce operating costs.

"In light of the current global economic environment, we believe that BakBone must carefully manage its cash flow," said Jim Johnson, chief executive officer, BakBone. "We intend to face future challenges with a proactive approach that should retain the core integrity of BakBone."

__________________________________________________
(1) Bookings, which is not a GAAP metric, represent the total value of contracts signed or orders received during the period. The revenue associated with bookings will be recognized in accordance with BakBone’s revenue recognition practices. The Company utilizes bookings information to manage operations, but it is not intended to replace GAAP accounting.