BakBone: Fiscal 4Q10 Financial Results

BakBone Software announced its financial results for the fourth quarter and full fiscal year of 2010, ended March 31, 2010.

Included in the fiscal fourth quarter and full year results was a $12.6 million non-recurring, non-cash charge for the impairment of goodwill, intangible, and other assets related to the Company’s ColdSpark division.

Fourth Quarter Fiscal 2010 Financial Highlights

• Consolidated Revenues: $14.7 million
• Consolidated Net Loss: $(12.2) million
• Storage Management Revenues: $14.4 million
• Storage Management Operating Income: $1.9 million
• Storage Management Bookings: $13.7 million

"With the closing of ColdSpark, we are fully focused on driving our storage management business. During the fourth fiscal quarter, we experienced growing demand for our NetVault product suite, demonstrated by growth in new customers worldwide," said Steve Martin, senior vice president, Chief Financial Officer and Interim CEO, BakBone. "Our new NetVault: FASTRecover and NetVault: SmartDisk offerings have expanded the breadth of our product line, providing us with additional storage solutions to sell to our customer base. We hit our bookings target with $14.1 million for the quarter, which included approximately $375,000 for the discontinued ColdSpark business."

"We took steps during the quarter to reduce personnel costs in select areas of the company to align the BakBone team to better serve the needs of our channel partners and end user customers," Mr. Martin continued. "The entire organization is now directed at driving revenues of our core backup and storage business and improving profitability from continuing operations."

Fiscal Fourth Quarter Financial Results
Fiscal fourth quarter 2010 revenues of $14.7 million were two percent above revenues in the fourth quarter of fiscal 2009. The Company reported a net loss of $12.2 million, or $(0.14) per share, in the recent fourth quarter compared with a net loss of $0.9 million, or $(0.01) per share, in the fourth quarter last year. ColdSpark was acquired on May 14, 2009, following the close of the fourth quarter of fiscal 2009, and therefore there is no contribution from the division in the fiscal fourth quarter or the full year 2009 results.

Storage management revenues for the fiscal fourth quarter 2010 totaled $14.4 million, virtually unchanged from the $14.4 million in revenues in the fourth quarter of the prior year. Operating income for the storage management business was $1.9 million in the fiscal fourth quarter 2010 compared with an operating loss of $0.3 million in the fourth quarter of fiscal 2009. Storage management net income was $1.7 million for the fiscal fourth quarter 2010.

Fiscal 2010 Financial Results
For the full fiscal year 2010, revenues totaled $61.9 million, 10% above the $56.0 million in revenues in fiscal 2009. The Company reported a net loss for fiscal 2010 of $9.8 million, or $(0.12) per share, compared with a net loss of $5.5 million, or $(0.08) per share, for fiscal 2009. Bookings for fiscal 2010 totaled $56.5 million.

Storage management revenues totaled $60.8 million for fiscal 2010, an increase of 9% over revenues in fiscal 2009. Operating income for the storage management business was $7.6 million in fiscal 2010 compared with an operating loss of $6.1 million in the prior fiscal year. Storage management net income increased to $7.0 million.

Total cash at March 31, 2010 was $5.0 million.