BakBone Software Reports First Quarter Fiscal 2011 Financial Results

SAN DIEGO, Aug. 5 /PRNewswire-FirstCall/ -- BakBone Software® (OTC Bulletin Board: BKBO), a leading provider of storage and data protection software, today announced its financial results for the first quarter of fiscal 2011, ended June 30, 2010.

"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.

Conference Call Information

The Company has scheduled a conference call for today, August 5, 2010, at 2:00 p.m. PT to discuss the results for the quarter ended June 30, 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 (Passcode: 90772190). This call will also be webcast and can be accessed at www.bakbone.com by clicking on "Company Info" and then "Investor Relations."  An audio replay of the call will be available for seven days following the call at 800-642-1687 for U.S. callers or 706-645-9291 for those calling outside the U.S. (Passcode: 90772190). The archived webcast will also be available at the same website location.

Note Regarding Use of Non-GAAP Financial Measures

Certain of the information set forth herein, including non-GAAP measures for operating income from continuing operations excluding a non-recurring revenue item, may be considered non-GAAP financial measures. BakBone believes the presentation of these non-GAAP financial measures is useful to investors because it provides a basis for understanding of BakBone's historical financial and operating performance, capital resources and cash flow, excluding non-recurring items. BakBone's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating the Company's operating performance and capital resources and cash flow. The presentation of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the company's financial information presented in compliance with GAAP, and non-GAAP financial measures as reported by BakBone may be different from non-GAAP financial measures used by other companies.

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®, and FASTRecover™ 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