IceWEB: Fiscal 1Q10 Financial Results

IceWEB, Inc., provider of building blocks for cloud storage networks and purpose built appliances, announced record non-GAAP profitability for the fiscal 2010 first quarter for the period ended December 31, 2009. The Company reported non-GAAP adjusted income of $1,240,737. The Company reported a non-GAAP adjusted loss of $(282,817) in the year earlier period. The company reports results on both a GAAP and a non-GAAP basis. Non-GAAP results exclude the impact of equity-based compensation and amortization of intangible assets, and includes the unrealized gain on marketable securities.

Gross margin increased to 54.5% in the fiscal first quarter from 27.2% in the year earlier period, due primarily to increased sales of high margin data storage business units. Storage revenue accounted for approximately 91% of the Company’s revenue compared to the year-earlier period, when sales of storage products accounted for 24.2% of revenue.

“The 2010 fiscal first quarter represented another step in our transition to becoming a leading provider of cutting-edge storage solutions,” said John R. Signorello, IceWEB’s Chief Executive Officer. “Sales momentum through our partners has increased since the beginning of the year, and we expect revenue and operating results to continue to improve throughout the balance of the calendar year.”

Non-GAAP Financial Measures
In this release, the Company’s adjusted net income is not presented in accordance with generally accepted accounting principles (GAAP) and is not intended to be used in lieu of GAAP presentations of results of operations. This measure is presented because management believes it provides additional information to investors with respect to the performance of our fundamental business activities. Adjusted net income is a Non-GAAP financial measure and should not be viewed as an alternative to GAAP measures of performance. Management believes the most directly comparable GAAP financial measure for adjusted net income is net income and has provided a reconciliation of adjusted net income to net income at the end of this release. GAAP net loss for the quarter was $1,259,277 or ($0.02) per share based on 78.3 million weighted average shares outstanding. This compares to a GAAP net loss of $659,034 or ($0.02) per share for the first quarter of fiscal 2009.