• Nov 15, 2013
  • Quinn Murphy

Bridgeline Digital Reports Fourth Quarter Revenue of $6.7 million and Positive Adjusted EBITDA

BURLINGTON, Mass., Nov. 15, 2013 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ:BLIN), a provider in cloud-based Web Content Management, eCommerce and Marketing Automation software, announced revenue for the fourth quarter ended September 30, 2013 was $6.7 million and the Company generated positive Adjusted EBITDA. The Company expects to release its full fiscal fourth quarter results in early December.

Selected Fourth Quarter 2013 Highlights:

  • Revenue in the fourth quarter of 2013 was $6.7 million compared to $6.7 million in the fourth quarter of 2012.
  • Subscription and perpetual license revenue increased 108% to $1.3M in the fourth quarter, when compared to the fourth quarter of 2012.
  • Revenue from our core business, which includes iAPPS and the ElementsLocal platform increased 30% compared to the fourth quarter of 2012.
  • Revenue from legacy non-iAPPS related customers declined 61% or $1.4M compared to the fourth quarter of 2012.
  • Recurring revenue increased 38% in the fourth quarter to $1.5 million, compared to the fourth quarter of 2012.

Fiscal 2014 Outlook

“For Fiscal 2014, revenue is expected to be approximately $28 million, an increase from $24.5 million in fiscal 2013 and I expect to generate positive Adjusted EBITDA for the fiscal year. In fiscal 2014 our revenue projection includes a projected increase of the Company’s core business to increase approximately 32% from fiscal 2013 and a reduction of non-iAPPS related legacy revenue of approximately $2.5 million. Fiscal 2014 will really help validate the type of growth Company we are” said Thomas Massie, President and CEO of the Company.

As of the date of this release, the Company’s auditors have not completed their audit of the consolidated financial statements for the year ended September 30, 2013. During the course of the audit, the Company or its auditors may identify items that would require adjustments, which may be material, to the information presented above. As a result, the information presented above constitutes forward-looking information and is subject to risks and uncertainties, including possible adjustments to preliminary operating results.

Bridgeline Digital will release the detailed financial results for the fourth quarter and its fiscal year ended September 30, 2013 in early December. On that day, Thomas Massie, the Company's Chief Executive Officer and Michael Prinn, the Company's Chief Financial Officer, will host a live conference call to discuss the financial results.

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 are defined as earnings before interest, taxes, depreciation and amortization and before stock compensation and impairment charges. 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 is 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 their usefulness as 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.

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 weakness in the U.S. and international economies on our business, our inability to manage our future growth effectively or profitably, fluctuations in our revenue and quarterly results, our license renewal rate, the impact of competition and our ability to maintain margins or market share, the limited market for our common stock, the volatility of the market price of our common stock, the performance of our products, our ability to respond to rapidly evolving technology and customer requirements, our ability to protect our proprietary technology, the security of our software, our dependence on our management team and key personnel, our ability to hire and retain future key personnel, our ability to maintain an effective system of internal controls, or risks associated with our contracts with the U.S. federal government, 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.

About Bridgeline Digital

Bridgeline Digital, The Digital Engagement Company™, helps customers maximize the performance of their full digital experience - from websites and intranets to online stores and campaigns. Bridgeline's Unbound (formerly iAPPS®) platform deeply integrates Web Content Management, eCommerce, eMarketing, Social Media management, and Web Analytics to help marketers deliver digital experiences that attract, engage, nurture and convert their customers across all channels. Headquartered in Burlington, Mass., Bridgeline has thousands of quality customers that range from small- and medium-sized organizations to Fortune 1000 companies. To learn more, please visit www.bridgeline.com or call (800) 603-9936.

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