BakBone Software, Inc. (ticker: BKBO, exchange: OTC Bulletin Board (.OB))
News Release -
BakBone Software Reports Sharp Increase in North American Revenues, Reduced Operating Costs in First Quarter Financial Results
SAN DIEGO, CALIFORNIA - August 3, 2001 - BakBone Software Incorporated (TSE: BKB, OTC: BKBOF), a global provider of storage management software, today announced financial and operational results for the company's first quarter ended June 30, 2001.
BakBone reported consolidated revenues of US$1.6 million for the first quarter, an increase of 48 percent from pro forma consolidated revenues for the same period in the previous year. Pro forma information includes results for the three months ended June 30, 2000 and includes the results of operations of Tracer Technologies Inc., an entity acquired in June 2000, for the entire three months ended June 30, 2000. Management cited the expansion of sales efforts for NetVault in North America as a leading contributor to the pro forma increase.
BakBone's aggressive program to reduce expenses resulted in a significant 22 percent reduction in operating expenses from the fourth quarter of last year to the first quarter of this year, contributing to a 25 percent reduction in net loss per share. Net loss for the first quarter was US$5.0 million, or US$0.12 per share, compared with a net loss of US$6.5 million, or US$0.16 per share, for the preceding three-month period. These results are indicative of BakBone's continued efforts to move the company toward profitability.
"My mandate is to increase tangible shareholder value," said Keith Rickard, BakBone's newly appointed President and Chief Executive Officer. "The best and quickest way we can do that is to continue delivering world-class technology to the market, focus on aggressively generating additional sales, and live within our means. That is our plan, and we will continue to implement it over the coming quarters as we grow both BakBone's market share, and value to its investors." In fact, two days ago on August 1st, the company expanded its restructuring efforts, reducing personnel to a level in line with industry norms, and moving to consolidate key management in the San Diego headquarters.
Rickard cited key accomplishments for the quarter, including:
- A 104 percent increase in NetVault revenues in North America over the prior quarter, demonstrating growing demand and acceptance for BakBone's flagship backup/restore software;
- The closing of a US$9.7 million round of funding; and
- Strategic bundling and certification agreements with a wide range of software and hardware leaders, including Brocade (NASDAQ: BRCD), Emulex (NASDAQ: EMLX), Qualstar (NASDAQ: QBAK), Seagate, TurboLinux, and Vixel (NASDAQ: VIXL).
Rickard also noted that revenues for the quarter were lower than initially projected due to a temporary delay in the release of a new, more robust version of MagnaVault®, BakBone's industry-leading near-line and archival software for UNIX-based optical storage systems. The new release, he noted, is scheduled for delivery within several weeks.
Rickard will discuss the quarterly results during an investors' conference call to be held Tuesday, August 7, 2001, at 4:30 p.m. Eastern Daylight Time. Interested parties may participate in the call by dialing 303.262.2175, and requesting the "BakBone Software Shareholder's Meeting."
About BakBone Software, Inc.
BakBone Software (TSE: BKB, OTC: BKBOF) is an international storage management software company that develops and globally distributes high-performance software solutions to the network storage and open systems markets. BakBone's near-line archival and backup/restore software suites provide scalable data protection from the workgroup to the enterprise. Founded in 2000, BakBone Software's products are used by companies worldwide, and are distributed through a network of OEMs and solution providers.
BakBone's corporate headquarters is located at 10145 Pacific Heights Boulevard, San Diego, California 92121. Its stock is listed on the Toronto Stock Exchange and is included on the TSE 300 Composite, S&P/TSE Canadian SmallCap and TSE 200 indices. For more information on BakBone products, call (866) 484-2663, e-mail email@example.com, or access BakBone's web site at www.bakbone.com.
This news release contains forward-looking statements reflecting management's current forecast of certain aspects of the company's future. It is based on current information that we have assessed, but which by its nature is dynamic and subject to rapid and even abrupt changes. Forward-looking statements may include, without limitation, statements by BakBone Software regarding:
- Growth projections for the company, including revenues and net income; and
- The projected rollout of upgraded versions of our products.
BakBone's actual results could differ materially from those stated or implied by our forward-looking statements due to risks and uncertainties associated with our business, including, but not limited to:
- Our dependence on projected purchases by our major customers;
- Our ability to establish and maintain contractual arrangements with storage-centric value-added resellers ("channel partners");
- Competition in all aspects of our business;
- Changes in product or service profit margins due to pricing changes driven by variations in customer demand, competition, or unforeseen factors;
- The effect of general economic, credit and capital market conditions on our business; and
- Our failure to compete or successfully operate planned expansion projects.
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 Canadian Securities Administrators, which is available on the SEDAR disclosure system (www.sedar.com) and/or those risk factors disclosed in the current report filed with the United States Securities and Exchange Commission which may be found at www.sec.gov/edgar.
All future written and oral forward-looking statements made by us or on our behalf are also subject to these factors. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
BakBone Software, the BakBone logo, MagnaVault and NetVault 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 or service marks of, and used to identify, products or services of their respective owners.