BakBone Software Announces Fourth Quarter and Full Year Fiscal 2010 Financial Results

SAN DIEGO, June 10 /PRNewswire-FirstCall/ -- BakBone Software® (OTC Bulletin Board: BKBO), a leading provider of storage and data protection software, today 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

"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.

Conference Call Information

The Company has scheduled a conference call for today, June 10, 2010, at 2:00 p.m. PT to discuss the results for the quarter ended March 31, 2010. The call will be hosted by Steve Martin, Interim CEO and Chief Financial Officer of BakBone.  

To access the conference call, please dial 800-854-3238; internationally, dial 706-634-9547 (Passcode: 76750537). This call will also be webcast and can be accessed at www.bakbone.com by clicking on "Company Info" and then "Investor Relations." The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.

About BakBone Software

BakBone makes data protection a simple, straightforward process with an award-winning product suite. From real-time data protection to deduplication, disk-based and tape backup and application protection, BakBone's solutions manage resources across all platforms, providing improved operational efficiency, reduced system downtime, improved data and application availability and enhanced security to support the business growth of enterprise environments. For more information about BakBone, visit www.bakbone.com or email [email protected].

Safe Harbor

This press release contains express and/or implied forward-looking statements including, without limitation, statements regarding anticipated financial results and market developments that involve risks, uncertainties, assumptions and other factors, which, if they do not materialize or prove correct, could cause BakBone's results to differ materially from historical results, or those expressed or implied by such forward-looking statements. The potential risks and uncertainties may include, but are not limited to: risks that the costs of exiting the ColdSpark business will be higher than anticipated; risks that the ongoing weak economic and market conditions, particularly in North America, could continue to lead to reduced spending on information technology products; competition in our target markets; potential capital needs; management of future growth and expansion; the development, implementation and execution of the Company's strategic vision; risk of third-party claims of infringement; protection of proprietary information; customer acceptance of the Company's existing and newly introduced products and fee structures; the success of the Company's brand development efforts; risks associated with strategic alliances; reliance on distribution channels; product concentration; need to develop new and enhanced products; potential product defects; our ability to hire and retain qualified employees and key management personnel; and risks associated with changes in domestic and international market conditions and the entry into and development of international markets for the Company's products. Our forward-looking statements should be considered in the context of these and other risk factors disclosed in our most recent report filed with the Securities and Exchange Commission, which may be found at www.sec.gov, as well as those risk factors disclosed in our current report filed with the relevant Canadian securities regulators, which is available on SEDAR at www.sedar.com. All future written and oral forward-looking statements made by us or on our behalf are also subject to these factors. BakBone assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made, other than as required under applicable securities laws.

BakBone®, BakBone Software®, NetVault®, Application Plugin Module™, BakBone logo®, Integrated Data Protection™, NetVault: SmartDisk™, Asempra®, FASTRecover™, ColdSpark® and SparkEngine™ are all trademarks or registered trademarks of BakBone Software, Inc., in the United States and/or in other countries. All other brands, products or service names are or may be trademarks, registered trademarks or service marks of, and used to identify, products or services of their respective owners.

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SOURCE BakBone Software