Bridgeline Software, Inc. (Nasdaq:BLSW), a developer of SaaS-based
web application management software and award-winning interactive
technology solutions, today announced financial results for its
first quarter of fiscal December 31, 2010.
Highlights from the first quarter of fiscal 2010
include:
-
Bridgeline has 651 customers, of which 491 or 75% of these
customers paid a monthly subscription fee or a monthly managed
service fee.
-
Annualized recurring revenue, exclusive of managed service
hosting, was $1.2 million for the three months ended December 31,
2009, compared with $1.1 million for the same period one year ago,
an increase of 8%.
-
Non-GAAP adjusted net income of $416 thousand and non-GAAP
adjusted earnings per diluted share of $.04 for the quarter ended
December 31, 2009.
-
Income from operations of $242 thousand, net income of $220
thousand and earnings per diluted share of $.02 for the quarter
ended December 31, 2009.
-
Adjusted EBITDA (Earnings before interest, taxes, depreciation
and amortization) and before stock compensation of $688 thousand
and Adjusted EBITDA per diluted share of $.06 for the quarter ended
December 31, 2009.
-
A balance sheet as of December 31, 2009 with total assets of
$25.4 million and only $5.2 million in total liabilities.
"While our pipeline remains very strong, over the past months we
have seen the ongoing macroeconomic uncertainties cause some of our
customers to delay their planned spending, "stated Thomas Massie,
Chairman and Chief Executive Officer of Bridgeline." In
addition, we have been exclusively focusing our marketing and new
business development efforts towards iAPPS based solutions. This
has been a rapidly growing area of our business that to date has
had tremendous customer traction and we believe has the potential
to drive very strong profitability for Bridgeline."
Recurring Revenue Trends
Of Bridgeline's 651 customers as of December 31, 2009, 491 or
75% paid either a monthly subscription license fee or a managed
service fee. Bridgeline's retention rate of recurring revenue
customers for the three months ended December 31, 2009 was 72%.
On an annualized basis, recurring revenue for the quarter ended
December 31, 2009, was $3.2 million, compared with annualized
recurring revenue of $3.4 million for the same period of the prior
year. Annualized recurring revenue is derived by multiplying the
actual results for the quarter by four.
|
Three Months Ended
December 31
|
|
2009
|
2008
|
Annualized Recurring Revenue
|
$3,155,000
|
$3,435,000
|
Year over Year Change %
|
(8%)
|
|
Retention Rate
|
72%
|
|
Annualized recurring revenue, exclusive of managed service
hosting, was $1.2 million for the three months ended December 31,
2009, compared with $1.1 million for the same period one year ago,
an increase of 8%.
Results of Operations for the Three Months Ended
December 31, 2009, Compared to the Three Months Ended December 31,
2008
For the three months ended December 31, 2009, our revenue was
$5.5 million compared with $6.5 million for the same period of
2008, a decrease of 15%. Gross profit was $3 million compared
with $3.6 million for the same period of 2008, representing a
decrease of 15%. Gross profit margins were 55.5% compared with
55.2% for the same period of 2008. Income from operations was $242
thousand compared with $187 thousand for the same period of
2008. Net income for the three month period increased to $220
thousand from $165 thousand in the same period of
2008. Earnings per diluted share was $.02 for both three month
periods. Non-GAAP adjusted net income was $416 thousand and
non-GAAP adjusted earnings per diluted share was $.04 in for the
three months ended December 31, 2009, compared with $492 thousand
and $.05 for the corresponding period of 2008
For further information, please refer to our annual report on
Form 10-Q for the three months ended December 31, 2009 as filed
with the Securities and Exchange Commission.
Non-GAAP Financial Measures
This press release contains the following non-GAAP financial
measures: non-GAAP adjusted net income, non-GAAP adjusted earnings
per diluted share, Adjusted EBITDA and Adjusted EBITDA per diluted
share.
Non-GAAP adjusted net income and non-GAAP adjusted earnings per
diluted share are calculated as net income or net income per share
on a diluted basis, excluding, where applicable, impairment
charges, amortization of intangible assets, stock based
compensation and the related tax effects.
Adjusted EBITDA and Adjusted EBITDA per diluted share is defined
as earnings before interest, taxes, depreciation and amortization
and before stock compensation and impairment charges
("EBITDA"). Bridgeline uses Adjusted EBITDA as a supplemental
measure of our performance that is not required by, or presented in
accordance with, accounting principles generally accepted in the
United States ("GAAP").
Bridgeline's Management does not consider these non-GAAP
measures in isolation or as an alternative to financial measures
determined in accordance with GAAP. The principal limitation of
these non-GAAP financial measures is that they exclude significant
expenses and income that are required by GAAP to be recorded in the
Company's financial statements. In addition, they are subject to
inherent limitations as they reflect the exercise of judgments by
management about which expenses and income are excluded or included
in determining these non-GAAP financial measures. In order to
compensate for these limitations, Bridgeline management presents
non-GAAP financial measures in connection with GAAP results.
Bridgeline urges investors to review the reconciliation of its
non-GAAP financial measures to the comparable GAAP financial
measures, which are included in this press release, and not to rely
on any single financial measure to evaluate Bridgeline's
business.
Our definitions of non-GAAP adjusted net income and Adjusted
EBITDA may differ from and therefore may not be comparable with
similarly titled measures used by other companies, thereby limiting
its usefulness as a comparative measure. Because of the limitations
that non-GAAP adjusted net income and Adjusted EBITDA have as an
analytical tool, investors should not consider them in isolation,
or as a substitute for analysis of our operating results as
reported under GAAP.
BRIDGELINE SOFTWARE, INC.
|
RECONCILIATION OF GAAP TO NON-GAAP
RESULTS
|
(Dollars in thousands, except share
and per share data)
|
|
|
Three Months Ended
|
|
December 31,
|
|
2009
|
2008
|
Reconciliation of GAAP net income to non-GAAP adjusted net
income
|
|
|
GAAP net income
|
$220
|
$165
|
Amortization of intangible assets
|
141
|
190
|
Stock based compensation
|
70
|
137
|
Tax effect of non-GAAP adjustments
|
(15)
|
—
|
Non-GAAP adjusted net income
|
$416
|
$492
|
|
|
|
Reconciliation of GAAP earnings per diluted share to
non-GAAP
adjusted earnings per diluted share
|
|
|
GAAP earnings per diluted share
|
$.02
|
$.02
|
Amortization of intangible assets
|
.01
|
.02
|
Stock based compensation
|
.01
|
.01
|
Tax effect of non-GAAP adjustments
|
—
|
—
|
Non-GAAP adjusted earnings per diluted share
|
$.04
|
$.05
|
|
|
|
|
|
|
Reconciliation of GAAP net income to Adjusted EBITDA
|
|
|
GAAP net income
|
$220
|
$165
|
Taxes
|
16
|
—
|
Interest
|
6
|
22
|
Amortization of intangible assets
|
141
|
190
|
Depreciation
|
184
|
197
|
EBITDA
|
567
|
574
|
Other amortization
|
51
|
54
|
Stock based compensation
|
70
|
137
|
Adjusted EBITDA
|
$688
|
$765
|
|
|
|
Reconciliation of GAAP net earnings per diluted share to
Adjusted EBITDA per diluted share
|
|
|
GAAP net earnings per diluted share
|
$.02
|
$.02
|
Taxes
|
—
|
—
|
Interest
|
—
|
—
|
Amortization of intangible assets
|
.01
|
.02
|
Depreciation
|
.02
|
.02
|
Other amortization
|
—
|
—
|
Stock based compensation
|
.01
|
.01
|
Adjusted EBITDA per diluted share
|
$.06
|
$.07
|
BRIDGELINE SOFTWARE, INC.
|
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Dollars in thousands, except share and per share
data)
|
|
|
Three Months Ended
|
|
December 31,
|
|
2009
|
2008
|
Revenue:
|
|
|
Web application development services
|
$4,613
|
$5,548
|
Managed service hosting
|
494
|
563
|
Subscription and perpetual licenses
|
372
|
362
|
Total revenue
|
5,479
|
6,473
|
Cost of revenue:
|
|
|
Web application development services
|
2,178
|
2,641
|
Managed service hosting services
|
129
|
134
|
Subscription and perpetual licenses
|
133
|
123
|
Total cost of revenue
|
2,440
|
2,898
|
Gross profit
|
3,039
|
3,575
|
Operating expenses:
|
|
|
Sales and marketing
|
1,250
|
1,630
|
General and administrative
|
1,169
|
1,042
|
Research and development
|
75
|
351
|
Depreciation and amortization
|
303
|
365
|
Total operating expenses
|
2,797
|
3,388
|
Income from operations
|
242
|
187
|
Interest income (expense) net
|
(6)
|
(22)
|
Income before income taxes
|
236
|
165
|
Income taxes
|
16
|
—
|
Net income
|
$220
|
$165
|
|
|
|
Net income per share:
|
|
|
Basic
|
$.02
|
$.02
|
Diluted
|
$.02
|
$.02
|
Number of weighted average shares:
|
|
|
Basic
|
11,182,209
|
10,767,903
|
Diluted
|
11,520,866
|
10,836,253
|
BRIDGELINE SOFTWARE, INC.
|
CONSOLIDATED BALANCE SHEETS
|
(Dollars in thousands, except share and per share data)
|
|
|
ASSETS
|
|
|
December 31,
|
September 30,
|
|
2009
|
2009
|
Current assets:
|
|
|
Cash and cash equivalents
|
$3,076
|
$3,060
|
Accounts receivable and unbilled receivables, net
|
4,056
|
3,468
|
Prepaid expenses and other current assets
|
365
|
320
|
Total current assets
|
7,497
|
6,848
|
Equipment and improvements, net
|
1,327
|
1,448
|
Intangible assets, net
|
1.349
|
1,490
|
Goodwill, net
|
14,369
|
13,899
|
Other assets
|
834
|
570
|
Total assets
|
$25,376
|
$24,255
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
Current liabilities:
|
|
|
Accounts payable
|
$767
|
$714
|
Accrued liabilities
|
1,354
|
1,194
|
Line of credit
|
1,350
|
1,000
|
Capital lease obligations, current
|
57
|
77
|
Deferred revenue
|
1,148
|
890
|
Total current liabilities
|
4,676
|
3,875
|
Capital lease obligations, net of current portion
|
56
|
62
|
Other long term liabilities
|
448
|
414
|
Total liabilities
|
5,180
|
4,351
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
Stockholders' equity:
|
|
|
Preferred stock — $0.001 par value; 1,000,000
shares authorized;
none issued and outstanding
|
—
|
—
|
Common stock — $0.001 par value; 20,000,000 shares
authorized;
11,182,209 and 11,182,209 shares issued and outstanding,
respectively
|
11
|
11
|
Additional paid-in capital
|
35,690
|
35,620
|
Accumulated deficit
|
(15,391)
|
(15,611)
|
Accumulated other comprehensive income
|
(114)
|
(116)
|
Total stockholders' equity
|
20,196
|
19,904
|
Total liabilities and stockholders' equity
|
$25,376
|
$24,255
|
About Bridgeline Software, Inc.
Bridgeline is a developer of SaaS-based web application
management software and award-winning interactive technology
solutions that help organizations optimize business processes. The
iAPPS Product Suite is an innovative SaaS solution that unifies
Content Management, Analytics, eCommerce, and eMarketing
capabilities – enabling business users to swiftly enhance and
optimize the value of their web properties.
Combined with award-winning application development services by
Microsoft Gold Certified development teams, Bridgeline helps
customers to cost-effectively maximize the value of their rapidly
changing web applications. Bridgeline's teams of developers
specialize in web application development, usability engineering,
SharePoint development, rich media development, and search engine
optimization.
Bridgeline is headquartered near Boston with additional
locations in Atlanta, Chicago, Cleveland, Denver, New York,
Washington, D.C., and Bangalore, India. Bridgeline currently has
over 600 customers ranging from middle market organizations to
divisions within Fortune 1,000 companies that include: Healthcore,
Sun Chemical, Marriott International, Berkshire Life, PODS,
Honeywell, Budget Rental Car, Washington Redskins, Berkshire Bank,
National Financial Partners, The William T. Grant Foundation, DTCC,
Cadaret, Grant & Co., National Insurance Crime Bureau, the
American Academy of Pediatrics, and Shaw Industries (a Berkshire
Hathaway company). To learn more about Bridgeline, please visit
www.bridgelinesw.com.
Safe Harbor Statement under the Private Securities
Litigation Reform Act of 1995
All statements included in this press release, other than
statements or characterizations of historical fact, are
forward-looking statements. These forward-looking statements are
based on our current expectations, estimates and projections about
our industry, management's beliefs, and certain assumptions made by
us, all of which are subject to change. Forward-looking statements
can often be identified by words such as "anticipates," "expects,"
"intends," "plans," "predicts," "believes," "seeks," "estimates,"
"may," "will," "should," "would," "could," "potential," "continue,"
"ongoing," similar expressions, and variations or negatives of
these words. These forward-looking statements are not guarantees of
future results and are subject to risks, uncertainties and
assumptions, including, but not limited to, the impact of
the global financial deterioration on our business, our inability
to manage our future growth effectively or profitably, our license
renewal rate, the impact of competition and our ability to maintain
margins or market share, the performance of our products, our
ability to protect our proprietary technology, the security of our
software, our ability to maintain our listing on the Nasdaq Capital
Market, our dependence on our management team and key personnel,
and our ability to hire and retain future key personnel, as
well as other risks described in our filings with the Securities
and Exchange Commission. Any of such risks could cause our
actual results to differ materially and adversely from those
expressed in any forward-looking statement. We expressly disclaim
any obligation to update any forward-looking
statement.
CONTACT: Bridgeline Software, Inc.
Ronald M. Levenson, Executive Vice President & CFO
781-497-3015
rlevenson@bridgelinesw.com
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