BakBone: Fiscal 1Q10 Financial Results

BakBone Software Incorporated announced its financial results for the first quarter of fiscal 2010, ended June 30, 2009.

First Quarter Fiscal 2010 financial
and operational highlights include:

• GAAP Revenues $16.7 million
• Operating Income $1.1 million
• Net Income $691 thousand
• Net Income per Share $0.01
• Total Bookings $13.6 million
• Acquisition of Asempra technology assets on May 1, 2009
• Acquisition of ColdSpark Message Management business on May 13, 2009

“Our financial results for the first quarter of fiscal 2010 demonstrate solid progress in our efforts to drive revenue growth and profitability,” said Jim Johnson, president and CEO, BakBone. “We generated bookings of $13.6 million, double-digit revenue growth, strong improvements in operating income and positive GAAP net income."

“These financial accomplishments were achieved while we quickly integrated the Asempra technology into our NetVault product line and began to drive the ColdSpark market opportunity. In the second week of June, we announced the availability of our new NetVault: FASTRecover solution, which provides disk-based, real-time data protection for Microsoft Exchange, SQL Server and Windows file systems. This newly positioned product, based on Asempra’s technology, has been gaining traction in the market place as customers look for cost-effective, disk-based solutions to eliminate backup windows and protect application data,” Johnson continued.

“With ColdSpark, this week we announced our first major win in the healthcare vertical. The customer, a state-based healthcare network, estimates their first year savings objective with ColdSpark’s new paperless healthcare solution is close to $0.5 million, and if this is achieved, the organization could attain a full return on their investment in the ColdSpark solution in under 12 months. Given the nature of this customer we believe there are other significant opportunities in this sector that we are actively pursuing, and we expect this market and the healthcare vertical in general to be very promising for the company moving forward."

“In July, ColdSpark introduced an expanded version of its Compliance Catalyst solution, enabling customers to easily migrate between different e-mail archiving solutions and vendors. To further maximize our opportunity with ColdSpark, we have expanded our sales staff in several key vertical markets, including healthcare and systems integration, where we believe there is substantial demand for ColdSpark’s unique technology,” said Johnson. “We are excited about the opportunities ColdSpark presents to build out our Universal Data Management strategy as we expand our reach into the large and growing enterprise message management markets.”

BakBone’s Universal Data Management (UDM) strategy encompasses a unique three-pronged approach for managing data within a corporate environment, whether that data is at rest or in motion. UDM provides customers with solutions for Message Management, Integrated Data Protection and Centralized Policy Management.

“Finally, we are on track to introduce several new products in calendar 2009 that we believe will be distinguished in the market and help us drive additional revenue. We remain confident about our prospects in fiscal 2010 and continue to anticipate bookings of approximately $62 to $64 million for the fiscal year as well as positive EBITDA,” concluded Johnson.

Financial Results
Total revenue grew 22% to $16.7 million in the first quarter of fiscal 2010 from $13.7 million in the first quarter of fiscal 2009. Included in first quarter of fiscal 2010 revenue was a $1.5 million booking associated with the sale of non-core intellectual property rights to an OEM customer. Excluding this $1.5 million revenue item, first quarter revenue increased 11% from the prior year’s first quarter. Operating income totaled $1.1 million in the first quarter of fiscal 2010, despite the inclusion of approximately $700,000 of transaction costs associated with the Asempra and ColdSpark acquisitions. This compares favorably with an operating loss of $2.7 million in the prior year’s first quarter. The Company reported net income of $691,000, or $0.01 per share, in the recent first quarter compared with a net loss of $3.3 million, or ($0.05) per share, in the first quarter last year.

Total cash at June 30, 2009, was $7.8 million.