WOBURN, Mass., May 11, 2009 (GLOBE NEWSWIRE) -- Bridgeline Software, Inc. (Nasdaq:BLSW), a developer of SaaS-based web application management software and award-winning interactive business technology solutions, today announced record results for its second fiscal quarter and six months ended March 31, 2009.
Highlights from the second quarter of fiscal 2009 include:
* Revenue of $6,099,000 for the quarter ended on March 31, 2009, representing a 13% increase over revenue of $5,398,000 for the same quarter one year earlier. Recurring revenue grew 46% from Q208 to Q209. * Customer base increased to 679 customers, a 29% increase from 528 customers a year ago. Of the Company's 679 customers, 414 or 61% pay Bridgeline Software a monthly subscription fee or a monthly managed service fee. * Record net income for the quarter ended March 31, 2009 of $218,000, representing a 95% increase over net income of $112,000 for the same quarter one year earlier. This represents $0.02 per diluted share versus $0.01 per diluted share a year ago. * Cash generated from operations of $749,000 for the quarter ended March 31, 2009 compared to cash generated from operations of $103,000 for the same three month period a year ago. * EBITDA (earnings before interest, taxes, depreciation, and amortization) before stock compensation was $697,000 for the quarter ended March 31, 2009 compared with EBITDA of $547,000 for the same three month period one year earlier, representing a 27% increase. This represents $0.06 per diluted share of EBITDA, consistent with $0.06 per diluted share of EBITDA a year ago. * Balance sheet remains strong with a current ratio of 1.4 to 1. As of March 31, 2009 Bridgeline Software had over $24.5 million in total assets and $5.4 million in total liabilities.
Highlights from the first six months of fiscal 2009 include:
* Revenue for the six months ended March 31, 2009 was $12,572,000, representing a 31% increase over revenue of $9,601,000 for the same six month period in fiscal 2008. * Net income for the six months ended March 31, 2009 increased 157% to $383,000, as compared to $149,000 of net income from the same six month period one year earlier. This represents $0.04 per diluted share versus $0.02 per diluted share a year ago. * Cash generated from operations was $1,851,000 for the first six months ended March 31, 2009 compared to cash generated from operations of $78,000 for the same six month period a year ago. * EBITDA before stock compensation for the six month period ending March 31, 2009 was $1,462,000, as compared with EBITDA of $861,000 from the same six month period one year earlier, representing a 70% increase. This represents $0.13 per diluted share of EBITDA, compared to $0.09 per diluted share of EBITDA a year ago.
"New bookings and new iAPPS software licenses in Q209 were robust," stated Thomas Massie, Chairman and Chief Executive Officer of Bridgeline Software. "In today's challenging economic environment, we believe the cost efficiencies and productivity gains offered by Bridgeline Software become even more relevant for both current and future customers."
Results of Operations for the three-months ended March 31, 2009
Bridgeline Software recorded revenue of $6.1 million in the quarter ended March 31, 2009, an increase of $700 thousand or 13% compared to the same period of the prior year. Bridgeline Software posted operating income for the quarter ended March 31, 2009 of $251,000 compared to operating income of $116,000 for the same quarter of the prior year. Bridgeline Software posted net income for the quarter ended March 31, 2009 of $218,000 or $0.02 per diluted share versus net income of $112,000 or $0.01 per diluted share for the same quarter in fiscal 2008.
Results of Operations for the six-months ended March 31, 2009
Bridgeline Software recorded revenue of $12.6 million for the six months ended March 31, 2009, an increase of $3.0 million, or 31% compared to the same period of the prior year. The Company posted operating income for the six months ended March 31, 2009 of $438,000 compared to $125,000 for the same period of the prior year. The Company posted net income for the six months ended March 31, 2009 of $383,000 or $0.04 per diluted share versus $149,000 or $0.02 per diluted share in the same period of the previous year.
Recurring Revenue Trends
On an annualized basis, recurring revenue for the quarter ended March 31, 2009 was $3.4 million compared to annualized recurring revenue for the same period of the prior year of $2.3 million, representing an increase of 46%. Annualized figures are derived by multiplying the actual results for the quarter by four.
Recurring revenue is revenue from customers who pay Bridgeline Software a monthly subscription fee or a monthly managed service fee. Of Bridgeline Software's 679 customers as of March 31, 2009, 414 or 61% pay a monthly subscription fee or a monthly managed service fee. Bridgeline's retention rate of such clients during the quarter ended March 31, 2009 was 87%.
Q209 Q208
------------- -------------
Annualized Recurring Revenue $3,368 $2,305
Year over Year Growth % 46%
Retention Rate 87%
Bridgeline Software, Inc.
Condensed Consolidated Statements of Operations
(Dollars in thousands except per share data-unaudited)
Three Months Ended Six Months Ended
------------------------- -------------------------
March 31, March 31, March 31, March 31,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Revenue $ 6,099 $ 5,398 $ 12,572 $ 9,601
Cost of revenue 2,682 2,459 5,580 4,481
------------ ------------ ------------ ------------
Gross profit 3,417 2,939 6,992 5,120
------------ ------------ ------------ ------------
Operating
expenses:
Sales &
marketing 1,628 1,672 3,258 2,739
General &
administra-
tive 1,027 779 2,069 1,524
Research &
development 284 132 635 298
Depreciation &
amortization 227 240 592 434
------------ ------------ ------------ ------------
Total operating
expenses 3,166 2,823 6,554 4,995
------------ ------------ ------------ ------------
Income from
operations 251 116 438 125
Interest and
other income
(expense) (13) (4) (35) 24
------------ ------------ ------------ ------------
Income before
income taxes 238 112 403 149
Income taxes 20 -- 20 --
------------ ------------ ------------ ------------
Net income $ 218 $ 112 $ 383 $ 149
============ ============ ============ ============
Net income per
share:
Basic $ 0.02 $ 0.01 $ 0.04 $ 0.02
============ ============ ============ ============
Diluted $ 0.02 $ 0.01 $ 0.04 $ 0.02
============ ============ ============ ============
Number of
weighted
average shares:
Basic 11,012,808 9,250,265 10,891,537 8,965,411
============ ============ ============ ============
Basic and
diluted 11,058,933 9,349,102 10,938,201 9,067,113
============ ============ ============ ============
EBITDA results
(Note 1)
Add:
Interest and
tax expense $ 31 $ 14 $ 53 $ 32
Depreciation
and
amortization 303 289 744 493
Stock-based
compensation 145 132 282 187
------------ ------------ ------------ ------------
EBITDA before
stock compen-
sation and
other non-
recurring
charges $ 697 $ 547 $ 1,462 $ 861
============ ============ ============ ============
EBITDA per
diluted share $ 0.06 $ 0.06 $ 0.13 $ 0.09
============ ============ ============ ============
Note 1: EBITDA (earnings before interest, taxes, depreciation and
amortization) before stock compensation and other non-recurring
charges, including impairment charges ("EBITDA") is a Non-GAAP
Financial Measure. We use 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 present EBITDA before stock compensation and other
non-recurring charges because we consider it an important
supplemental measure of our performance by adjusting net income or
loss primarily for the non-cash charges and other non-recurring
charges. Because the use of EBITDA before stock compensation and
other non-recurring charges 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, except share and per share data- unaudited)
ASSETS
March 31, September 30,
2009 2008
------------- -------------
Current assets:
Cash and cash equivalents $ 2,740 $ 1,911
Accounts receivable (less allowance for
doubtful accounts of $321 and $380,
respectively) 3,445 4,086
Unbilled receivables 791 1,576
Prepaid expenses and other current assets 430 467
------------- -------------
Total current assets 7,406 8,040
Equipment and improvements, net 1,727 1,763
Definite-lived intangible assets, net 1,773 2,980
Goodwill 13,007 10,725
Other assets 614 751
------------- -------------
Total assets $ 24,527 $ 24,259
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,185 $ 1,770
Accrued liabilities 1,820 1,860
Line of credit 1,000 1,000
Capital lease obligations, current 76 105
Deferred revenue 1,220 1,176
------------- -------------
Total current liabilities 5,301 5,911
Capital lease obligations, less current
portion 99 139
Other long term liabilities -- 19
------------- -------------
Total liabilities 5,400 6,069
------------- -------------
Commitments and contingencies
Shareholders' 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:
11,074,856 and 10,665,533 shares
issued and outstanding, respectively 11 11
Additional paid-in capital 35,228 34,647
Accumulated deficit (15,986) (16,369)
Accumulated other comprehensive income (126) (99)
------------- -------------
Total shareholders' equity 19,127 18,190
------------- -------------
Total liabilities and shareholders'
equity $ 24,527 $ 24,259
============= =============
Bridgeline Software, Inc.
Consolidated Statements of Cash Flows
(in thousands- unaudited)
Six months ended
March 31,
2009 2008
------------- -------------
Cash flows from operating activities:
Net income $ 383 $ 149
Adjustments to reconcile net income to
net cash provided by operating
activities:
Depreciation 402 249
Amortization of intangible assets 342 210
Stock-based compensation 282 187
Changes in operating assets and
liabilities, net of acquired assets and
liabilities:
Accounts receivable and unbilled
receivables 1,003 70
Other assets 37 (303)
Accounts payable and accrued
liabilities (642) 1
Deferred revenue 44 (485)
------------- -------------
Total adjustments 1,468 (71)
------------- -------------
Net cash provided by operating
activities 1,851 78
------------- -------------
Cash flows from investing activities:
Acquisitions, net of cash acquired -- (924)
Contingent acquisition payments (587) (440)
Equipment and improvements expenditures (376) (338)
------------- -------------
Net cash used in investing activities (963) (1,702)
------------- -------------
Cash flows from financing activities:
Proceeds from bank line of credit 2,000 --
Principal payments on bank line of credit (2,000) --
Principal payments on capital leases (69) (104)
------------- -------------
Net cash used in financing activities (69) (104)
------------- -------------
Net increase (decrease) in cash and cash
equivalents 819 (1,728)
Effect of exchange rate on cash 10 --
------------- -------------
Cash and cash equivalents at beginning of
the period 1,911 5,219
------------- -------------
Cash and cash equivalents at end of the
period $ 2,740 $ 3,491
============= =============
Supplemental cash flow information:
Cash paid for:
Interest $ 35 $ 32
============= =============
Income taxes $ 13 $ --
============= =============
Non-cash activities:
Issuance of common stock for
acquisitions $ -- $ 1,772
============= =============
Issuance of common stock for
contingent acquisition payments $ 301 $ 133
============= =============
Purchase of capital equipment through
capital leases $ -- $ 70
============= =============
About Bridgeline Software, Inc
Bridgeline Software is a developer of web application management software and award-winning interactive business 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 interactive technology services by Microsoft Gold Certified development teams, Bridgeline Software helps customers to cost-effectively maximize the value of their rapidly changing web applications. Bridgeline Software's teams of developers specialize in web application development, usability engineering, SharePoint development, rich media development, and search engine optimization.
Bridgeline Software is headquartered near Boston with additional locations in Atlanta, Chicago, Cleveland, Denver, New York, Washington, D.C., and Bangalore, India. Bridgeline Software currently has over 600 customers ranging from middle market organizations to divisions within Fortune 1,000 companies that include: Healthcore, The Bank of New York Mellon, Marriott International, Berkshire Life, PODS, Honeywell, Budget Rental Car, Washington Redskins, Sun Chemical, AARP, National Financial Partners, The Packard Foundation, DTCC, Cadaret, Grant & Co., National Insurance Crime Bureau, the American Academy of Pediatrics, and the Georgia Lottery. 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," "aims," "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 Annual Report on Form 10-KSB as well as our other 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.