BakBone: Fiscal 2Q10 Financial Results

(in US$ millions)	2Q09	2Q10	6 mo. 09	6 mo. 10
Revenues	13.6	15.2	27.3	31.9
*Growth*		+12%		*+17%*
Net income (loss)	(1.9)	1.1	(5.2)	1.8

Bakbone Software, Inc. announced its financial results for the second quarter of fiscal 2010 ended September 30, 2009.

Second Quarter Fiscal 2010 financial
and operational highlights include:

GAAP Revenues: $15.2 million
Operating Income: $0.9 million
Net Income: $1.1 million
Net Income per Share: $0.01
Total Bookings: $13.6 million

"We continued to generate solid revenue growth and improved profitability," said Jim Johnson, president and CEO, BakBone. "Our GAAP results were driven by continued strong sales performance in Asia and Europe and new revenue contributions from ColdSpark as well as operational cost efficiencies in the second quarter of this fiscal year."

"The bookings related to our acquisitions are growing. In mid-June, we launched the NetVault: FASTRecover solutions, our new disk-based, real-time data protection products for Microsoft Exchange, SQL Server and Windows file systems based on Asempra’s technology. We have received good customer interest in the new products and expect them to be meaningful contributors to future financial results."

"ColdSpark continues to expand its capabilities in enterprise messaging and infrastructure. In October, we released new versions of the ColdSpark SparkEngine(, Compliance Catalyst and MailFusion products that expand policy management and workflow integration for enterprise message management. We continue to aggressively pursue additional customers in the financial services, healthcare and other regulated industries that will benefit from the more powerful corporate compliance features offered by the ColdSpark solutions. Our relationship with the large healthcare client that we announced in August is going well and we are implementing the ColdSpark product throughout its system. We are optimistic about our prospects for additional new customers in the vertical markets we are targeting," Johnson continued.

As planned, in mid-October BakBone introduced the newest version of the Company’s flagship product NetVault: Backup and new disk-based backup and deduplication options with NetVault: SmartDisk. NetVault: SmartDisk is based on BakBone’s Open Data Protection Platform, which will offer more affordable, long-term disk-based storage to customers, with features such as data deduplication.

"BakBone is continuing to execute on its growth strategy – introducing proprietary, innovative software solutions, expanding its markets and driving revenue. We are pleased with our momentum and remain optimistic about the outlook for continued financial progress this fiscal year. Recognizing that the ColdSpark business is based on large orders with somewhat unpredictable timing, we continue to expect total bookings for fiscal 2010 in the range of $62 to $64 million," Johnson concluded.

Financial Results
Total revenue grew 12% to $15.2 million in the second quarter of fiscal 2010 from $13.6 million in the second quarter of fiscal 2009. Operating income totaled $0.9 million in the second quarter of fiscal 2010 compared with an operating loss of $2.0 million in the second quarter of the prior fiscal year. The increase in operating income in the second quarter ended September 30, 2009, was the result of higher revenue and a significant reduction in general and administrative costs primarily associated with accounting and auditing fees incurred in the prior fiscal year.

The Company reported net income of $1.1 million, or $0.01 per share, in the second quarter compared with a net loss of $1.9 million, or ($0.03) per share, in the second quarter last year.

Total cash at September 30, 2009, totaled $6.5 million.