BakBone: Fiscal 1Q11 Financial Results

BakBone Software announced its financial results for the first quarter of fiscal 2011, ended June 30, 2010.

First Quarter Fiscal 2011 Financial Highlights:

• Revenues from continuing operations $14.0 million
• Operating income from continuing operations $1.0 million
• Total bookings $11.5 million

"Our first quarter bookings reflect strong demand from Asia, especially Japan, offset by reduced bookings in Europe and North America as compared to the prior year," said Steve Martin, senior vice president, chief financial officer and interim CEO, BakBone. "Japan was especially strong for BakBone. During the recent quarter, we received a commitment for approximately $2 million from a large financial services company in Japan. Approximately 25% of the order is included in our bookings for the first fiscal quarter with the remaining amounts expected over future quarters including the next fiscal year."

"We continue to move aggressively toward an enhanced channel-centric sales model in our North American operations, similar to the one we use for our successful sales efforts in Japan," continued Mr. Martin. "We are working closely with our resellers and distributors to drive additional sales of our NetVault storage offerings in the marketplace."

"NetVault: FASTRecover and NetVault SmartDisk have been well-received, and we continue to enhance these offerings with additional features to ensure that our products are on the leading-edge. For the remainder of fiscal 2011, we will be focused on strengthening our channel-centric sales model and on expanding our presence in the growing markets of the Asia-Pacific region, while maintaining good control of operating expenses. We remain committed to increasing revenues and improving profitability," Mr. Martin concluded.

Fiscal First Quarter Financial Results
The first quarter income statements reflect the continuing operations of BakBone’s core storage business following the closure of the ColdSpark message management business in May of 2010.

Fiscal first quarter 2011 revenues were $14.0 million, $2.6 million below the $16.6 million in revenues in the first quarter of fiscal 2010. Fiscal first quarter 2011 bookings were $11.5 million, $2.1 million below the $13.6 million in bookings in the first quarter of fiscal 2010. Included in the bookings in the prior fiscal year’s first quarter was a $1.5 million contribution from the sale of non-core intellectual property rights to an OEM customer. Excluding this item, bookings in the recent quarter decreased 4% from the comparable quarter last year.

Operating income from continuing operations totaled $1.0 million compared with $1.7 million in the first quarter of fiscal 2010. Excluding the non-recurring contribution from the sale of non-core IP in the first quarter of 2010, operating income from continuing operations in the recent first quarter increased by $0.8 million. Operating expenses from continuing operations decreased by $2.0 million as a result of lower accounting and professional fees as well as strategic cost reductions across most operating functions. The Company reported a net loss of $3,000, or $0.00 per share, compared with net income of $691,000, or $0.01 per share, in the first quarter of the prior fiscal year.

Total cash at June 30, 2010 was $4.9 million, and is net of the payment in June 2010 of approximately $0.5 million in cash consideration to ColdSpark investors under the terms of the purchase agreement. Total common shares issued and outstanding at June 30, 2010 were 80.5 million.