Black Duck Software Enters 2011 on Upswing, Powered by Growth in Black Duck Suite Sales, Channel Expansion, Acquisitions

2010 yielded accelerating sales growth and market share increases over a strong 2009; cash-flow positive for the year

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Jan 19, 2011, 09:12 ET

WALTHAM, Mass., Jan. 19, 2011 /PRNewswire/ -- Black Duck Software, the leading global provider of products and services for accelerating software development through the managed use of open source software, is entering 2011 with substantial momentum, coming off of a very strong 2010 that saw the company's streak of 30+ percent growth in year-over-year sales continue, complemented by significant channel expansion and two acquisitions. The company, which has been cash-flow positive since Q4 2009, has averaged 36 percent compound annual growth over the years 2008-2010.

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Sales of the company's Black Duck Suite rose significantly in 2010, reflecting larger-scale enterprise deployments, as did services delivered across all categories -- M&A, deployment and internal code scanning assessments. Several key trends, including the global economic recovery; widespread use of Free and Open Source Software (FOSS) in mainstream software development in the electronics, embedded systems, mobile, and enterprise IT segments; the growth in cloud computing and re-architecting of software programs for cloud deployment, ''and the rise of enterprise involvement in FOSS communities -- all helped fuel Black Duck's growth.

Black Duck saw expansion in its international distribution channels in 2010, marked by a 71 percent growth in partner sales over 2009, a company record for partner involvement. New international resellers and partners include Hitachi Systems & Services, Ltd., Fujitsu Middleware Ltd. and credativ.

The company added 52 new customers in the quarter, including National Instruments, Pegasystems, and Qosmos (France). Total new customers added in 2010 was an impressive 169, bringing the roster of Black Duck customers to well over 800.

Fourth quarter 2010 milestones included:

Black Duck acquired SpikeSource, a provider of software tools and services to automate application component identification and assess security vulnerability.
Black Duck acquired Ohloh.net. Ohloh, the largest free public directory of open source software and a vibrant web community, contains information on open source projects aggregated from over 250,000 public repositories and forums. Black Duck is retaining the Ohloh brand and will combine Ohloh with its industry-leading Koders.com code search website to establish a comprehensive, free resource for the Ohloh, FOSS and developer communities.
Black Duck partnered with credativ. The partnership with credativ, the largest independent provider of open source software consulting and services, adds depth to Black Duck's portfolio of expert open source services and capabilities available to its customers.
Black Duck enhanced Code Sight™. The Code Sight source code search engine was integrated with the Mercurial and Bazaar SCM systems, simplifying code search indexing for Mercurial and Bazaar users.
Black Duck enhanced its code-scanning capabilities with the addition of IBM® Rational® AppScan Source Edition (SE). Adding AppScan to Black Duck's Software IP Assessment Services brings an additional dimension to the security analysis offered as part of the service.

"2010 was the year Black Duck completed its transformation from provider of compliance products to the FOSS enablement company, delivering a complete portfolio of products and services across the software development lifecycle," said Tim Yeaton, Black Duck Software president and CEO. "The FOSS world is changing fast and we are responding. For example, development communities are increasingly important to enterprise developers, so we acquired Ohloh.net to create a destination for developers to learn about, find and use FOSS. Cloud services and security are critical, so we acquired SpikeSource to expand our capabilities in these areas. As commercial software development continues to expand its use of FOSS as part of a multi-source development model, Black Duck is positioned to be the trusted advisor and advocate for developers, enterprises and FOSS communities worldwide."

About Black Duck Software

Black Duck Software is the leading provider of strategy, products and services for automating the management, governance and secure use of free and open source software (FOSS), at enterprise scale, in a multi-source development process. Black Duck® powers Koders.com, the industry's leading code search engine for open source; Ohloh.net, the largest FOSS community and free public directory of open source, and The Olliance Group, the leading open source business and strategy consulting firm. Among the 400 largest software companies in the world, according to Softwaremag.com, the company is headquartered near Boston and has offices in San Mateo, London, Paris, Frankfurt, Hong Kong, Tokyo and Beijing. For more information, visit www.blackducksoftware.com.

Black Duck, Know Your Code and the Black Duck logo are registered trademarks of Black Duck Software, Inc. in the United States and other jurisdictions. Koders is a trademark of Black Duck Software, Inc. All other trademarks are the property of their respective holders.

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