WOBURN, Mass., May 1, 2008 (PRIME NEWSWIRE) -- Bridgeline Software, Inc. (Nasdaq:BLSW), a developer of SaaS-based web application management software and award-winning web applications, today announced record results for its second fiscal quarter and six months ended March 31, 2008.
Highlights from the second quarter of fiscal 2008 results include:
-- Achieved record revenues of $5,398,000 for the quarter ended March
31, 2008, representing a 143% increase over Bridgeline Software's
revenues of $2,223,000 for the same quarter one year earlier.
-- The Company's customer base as of March 31, 2008 has increased to
528 customers, which is a 272% increase from 142 customers a year
ago. Of the Company's 528 customers, 369 or 70% pay Bridgeline
Software a monthly subscription fee or a monthly managed service
fee.
-- Net income for the quarter ended March 31, 2008 was $112,000,
versus a net loss of -$698,000 from the same three month period
one year earlier.
-- EBITDA before stock compensation for the quarter ended March 31,
2008 was $547,000, versus an EBITDA loss of -$185,000 from the
same three month period one year earlier.
-- Balance sheet remains strong with a current ratio of 2.6:1. As of
March 31, 2008 the Company had over $28 million in total assets,
and $3.2 million in total liabilities
Highlights from the first six months of fiscal 2008 results include:
-- Revenues for the six months ended March 31, 2008 were $9,601,000,
versus revenues of $4,532,000 for the same six month period in
fiscal 2007, representing a 112% increase.
-- Net income for the six months ended March 31, 2008 was $149,000,
versus a net loss of -$1,328,000 from the same six month period
one year earlier.
-- EBITDA before stock compensation for the six month period ended
March 31, 2008 was $861,000, versus an EBITDA loss of -$299,000
from the same six month period one year earlier.
"Bridgeline has delivered another outstanding quarter highlighted by strong revenue growth, record customer additions, and improved profitability," stated Thomas Massie, Chairman and Chief Executive Officer of Bridgeline Software. "We believe the level of traction and interest in our on-demand software products from our installed customer base is significant, and as we add more customers and products, the opportunity for continued growth becomes greater."
Results of Operations for the three-months ended March 31, 2008
Bridgeline Software recorded revenue of $5.4 million in the quarter ended March 31, 2008, an increase of $3.2 million, or 143% compared to the same period of the prior year. The Company posted operating income for the quarter ended March 31, 2008 of $116,000 compared to an operating loss of -$357,000 in the same quarter of the prior year. The Company posted net income for the quarter ended March 31, 2008 of $112,000 or $0.01 per diluted share versus a net loss of -$698,000 or -$0.16 per diluted share in the same quarter of the previous year.
Results of Operations for the six-months ended March 31, 2008
Bridgeline Software recorded revenue of $9.6 million for the six months ended March 31, 2008, an increase of $5.1 million, or 112% compared to the same period of the prior year. The Company posted operating income for the six months ended March 31, 2008 of $125,000 compared to an operating loss of -$642,000 for same period of the prior year. The Company posted net income for the six months ended March 31, 2008 of $149,000 or $0.02 per diluted share versus a net loss of -$1,328,000 or -$0.31 per diluted share in the same period of the previous year.
Recurring Revenue Trends
Of the Company's 528 customers, 369 or 70% pay Bridgeline Software a monthly subscription fee or a monthly managed service fee. Recurring revenue is revenue from customers who pay Bridgeline Software a monthly subscription fee or a monthly managed service fee.
On an annualized basis, recurring revenues for the quarter ended March 31, 2008 were $2.2 million compared to annualized recurring revenues for the same period of the prior year of $644,000, representing a year over year increase of 249%. Annualized figures are derived by multiplying the actual results for the quarter by four.
Bridgeline Software's retention rate of such clients during the quarter ended March 31, 2008 was 97%.
Q207 Q208
Annualized Recurring Revenues $644,000 $2,248,000
Sequential Growth from fiscal Q108 18%
Year over Year Growth % 249%
Retention Rate 97%
Bridgeline Software, Inc.
Condensed Consolidated Statements of Operations
(Dollars in thousands except per share data)
Three Months Ended Six Months Ended
------------------- -------------------
March 31, March 31, March 31, March 31,
2008 2007 2008 2007
--------- --------- --------- ---------
Revenue $ 5,398 $ 2,223 $ 9,601 $ 4,532
Cost of revenue 2,459 1,015 4,481 2,156
--------- --------- --------- ---------
Gross profit 2,939 1,208 5,120 2,376
--------- --------- --------- ---------
Operating expenses:
Sales & marketing 1,672 787 2,739 1,576
General & administrative 779 530 1,524 991
Research & development 132 191 298 346
Depreciation &
amortization 240 57 434 105
--------- --------- --------- ---------
Total operating expenses 2,823 1,565 4,995 3,018
--------- --------- --------- ---------
Income / (loss) from
operations 116 (357) 125 (642)
Interest income (expense) (4) (341) 24 (686)
--------- --------- --------- ---------
Income / (loss) before
income taxes 112 (698) 149 (1,328)
Income taxes -- -- -- --
--------- --------- --------- ---------
Net income / (loss) $ 112 $ (698) $ 149 $ (1,328)
========= ========= ========= =========
Net income / (loss) per
share:
Basic $ 0.01 $ (0.16) $ 0.02 $ (0.31)
========= ========= ========= =========
Diluted $ 0.01 $ (0.16) $ 0.02 $ (0.31)
========= ========= ========= =========
Number of weighted average
shares:
Basic 9,250,265 4,276,409 8,965,411 4,275,107
Basic and diluted 9,349,102 4,276,409 9,067,113 4,275,107
EBITDA results (Note 1)
Add:
Interest expense $ 14 $ 341 $ 32 $ 686
Depreciation and
amortization 289 87 493 167
Stock-based compensation 132 85 187 176
--------- --------- --------- ---------
EBITDA before stock
compensation and other
non-recurring charges $ 547 $ (185) $ 861 $ (299)
========= ========= ========= =========
EBITDA per diluted share $ 0.06 $ -0.04 $ 0.09 $ -0.07
========= ========= ========= =========
Note 1: EBITDA before stock compensation is a Non-GAAP Financial
Measurement. We use earnings before interest, taxes, depreciation and
amortization ("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"). We define
EBITDA before stock compensation as net income before interest, taxes,
depreciation, amortization and stock-based compensation. We present
EBITDA before stock compensation because we consider it an important
supplemental measure of our performance by adjusting net income or
loss primarily for non-cash and other non-recurring charges. Because
the use of EBITDA before stock compensation facilitates comparisons of
our historical operating performance on a more consistent basis, we
use this measure for business planning and analysis purposes, in
assessing acquisition opportunities and in determining how potential
external financing sources are likely to evaluate our business. In
addition, we believe this measure provides the investor with an
accurate measure of our ability to meet our future cash flow
requirements.
Bridgeline Software, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
March 31, September 30,
2008 2007
------------- -------------
Assets
Current assets:
Cash and cash equivalents $ 3,491 $ 5,219
Accounts receivables and other current
assets 4,343 3,439
------------- -------------
Total current assets 7,834 8,658
Other assets 1,651 1,234
Intangible assets, net 2,321 1,441
Goodwill 16,536 14,426
------------- -------------
Total assets $ 28,342 $ 25,759
============= =============
Liabilities and stockholders' equity
Current liabilities:
Current liabilities and accrued
expenses $ 3,072 $ 2,719
------------- -------------
Total current liabilities 3,072 2,719
Other liabilities 178 165
------------- -------------
Total liabilities 3,250 2,884
Stockholders' equity:
Preferred stock - $0.001 par value;
1,000,000 shares authorized; none
issued and outstanding -- --
Common stock - $.001 par value;
20,000,000 shares authorized, 9,489,160
and 8,648,950 shares issued and
outstanding, respectively 10 9
Additional paid-in capital 30,968 28,908
Accumulated other comprehensive income 25 18
Accumulated deficit (5,911) (6,060)
------------- -------------
Total stockholders' equity 25,093 22,875
Total liabilities and stockholders'
equity $ 28,342 $ 25,759
============= =============
About Bridgeline Software, Inc.
Bridgeline Software is a developer of SaaS-based web application management software and award-winning web applications that help organizations optimize business processes. The iAPPS(r) Framework and Product Suite are innovative SaaS solutions that unify 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, Bridgeline Software helps customers cost-effectively accommodate the rapidly changing needs of mission-critical web applications. Bridgeline Software's teams of developers specialize in web application development, information architecture, usability engineering, SharePoint development, rich media development, and search engine optimization.
Bridgeline Software is headquartered near Boston with additional locations in Atlanta, Chicago, Cleveland, Minneapolis, New York, Washington D.C., and Bangalore, India. We are a recipient of the Inc. 500 award for America's fastest growing companies and currently have over 500 customers ranging from middle market organizations to divisions of Fortune 1,000 companies. To learn more about Bridgeline Software, 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 the risks described in our filings with the Securities and Exchange Commission, that 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.