BakBone: Fiscal 3Q09 Financial Results

BakBone Software, Inc. announced its financial results for the third quarter ended December 31, 2008.

“During the fiscal third quarter, the BakBone team executed our strategy of delivering to customers cost efficient data protection solutions that are mission-critical in good and bad economic times,” said Jim Johnson, President and CEO, BakBone. “As a result, we generated sequential bookings growth of 11% and year over year revenue growth of 10%. Our bookings were flat with the third quarter of fiscal 2008, although last year’s quarter was favorably impacted by a transaction with a single customer valued at approximately $1.9 million. In addition, we lowered our operating costs.”

For the quarter ended December 31, 2008, total revenue, which consists of software revenue and maintenance and professional services revenue, increased 10% to $14.3 million from $13.0 million in the third quarter of fiscal year 2008 and 5.6% from $13.6 million in the second quarter of fiscal 2009. The operating loss was $1.0 million in the third quarter of fiscal year 2009 compared to $1.3 million in the third quarter of fiscal year 2008. Net income totaled $0.7 million, or $0.01 per diluted share, in the third quarter of fiscal year 2009 compared with a net loss of $0.6 million or ($0.01) per diluted share, in the third quarter of fiscal year 2008. The difference in the operating loss and net income was primarily due to foreign exchange gains.

Cash used in operating activities was $0.4 million in the nine months ended December 31, 2008, an improvement of $2.2 million from the comparable nine month period of fiscal 2008. Total cash at December 31, 2008 totaled $7.8 million, a decrease of approximately $0.7 million from September 30, 2008 related primarily to the timing of customer collections as well as professional fees associated with the Company’s past due financial filings.

For the nine months ended December 31, 2008, revenue totaled $41.6 million as compared with $37.1 million for the nine months ended December 31, 2007. Net loss totaled $4.3 million, or ($0.07) per share, for the nine months of fiscal year 2009 compared with a net loss of $6.6 million or ($0.10) per share, for the nine months of fiscal year 2008.

“Last week, we completed the filing of our 2007 and 2008 audited financial results along with the first two quarters of fiscal 2009, which were important milestones for our Company,” said Steve Martin, senior vice president and chief financial officer, BakBone. “Today’s on-time reporting of third quarter financial results, as well as our filing of the application to revoke cease trade orders in Canada, illustrates progress toward our goal of implementing best practice shareholder communications and reporting.”