• May 11, 2012
  • Burlington, MA

Bridgeline Reports Financial Results for the Second Quarter of Fiscal 2012

BURLINGTON, Mass., May 11, 2012 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ:BLIN), The Digital Engagement Company™, today announced financial results for its second quarter and six month period ended March 31, 2012.

Second Quarter Highlights:

  • Revenue in the second quarter of 2012 was $6.7 million, compared to revenue of $6.6 million in the second quarter of 2011.
  • iAPPS related revenue increased 54% to $4.3 million, compared to $2.8 million in the second quarter of 2011.
  • Recurring revenue increased 21% to $1 million, compared to $826 thousand in the second quarter of 2011.
  • Total gross profit margin increased to 56% compared to 51% in the second quarter of 2011.
  • Adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization and stock-based compensation) increased 105% to $524 thousand compared to $256 thousand in the second quarter of 2011.
  • Non-GAAP net income was $120 thousand compared to a loss of $67 thousand in the second quarter of 2011.

First Six Months Highlights:

  • Revenue in the first six months of 2012 was $13.2 million, compared to revenue of $13.1 million in the first six months of 2011.
  • iAPPS related revenue increased 41% to $7.9 million, compared to $5.6 million in the first six months of 2011.
  • Recurring revenue increased 25% to $2 million, compared to $1.6 million in the first six months of 2011.
  • Total gross profit margin increased to 54% compared to 50% in the first six months of 2011.
  • Adjusted EBITDA increased 28% to $952 thousand compared to $741 thousand in the first six months of 2011.
  • Non-GAAP net income was $193 thousand compared to $100 thousand in the first six months of 2011.

Fiscal 2012 Outook

Bridgeline Digital expects Fiscal 2012 revenue to be in the range of $27 million to $28 million. The Company’s revenue strategy will continue to focus on higher gross margin iAPPS driven opportunities, while discontinuing relationships with lower margin based customers. This strategy reflects a reduction of approximately $2.5 million of revenue generated in fiscal 2011 from lower margin, non-iAPPS related customer relationships.

In addition, the Company expects to continue to generate positive non-GAAP income and positive Adjusted EBITDA for fiscal 2012.

Bridgeline Digital recently signed a multi-year agreement with a strategic Fortune 500 Company. We believe this alliance will be a significant catalyst for Bridgeline and iAPPS for years to come. Due to the nature of iAPPS selling cycles and integration lead times, Bridgeline does not believe it will see a financial impact of the newly formed iAPPS alliance until its fiscal fourth quarter of 2012. Bridgeline plans to announce the details of the powerful iAPPS alliance in mid 2012.

Non-GAAP Financial Measures

This press release contains the following non-GAAP financial measures: non-GAAP adjusted net income/(loss), non-GAAP adjusted earnings/(loss) per diluted share, Adjusted EBITDA and Adjusted EBITDA per diluted share.

Non-GAAP adjusted net income/(loss) and non-GAAP adjusted earnings/(loss) per diluted share are calculated as net income/(loss) or net income/(loss) per share on a diluted basis, excluding, where applicable, amortization of intangible assets, stock-based compensation, restructuring charges, preferred stock dividends and any related tax effects. 

Adjusted EBITDA and Adjusted EBITDA per diluted share are defined as earnings before interest, taxes, depreciation and amortization, stock-based compensation charges, restructuring charges, preferred stock dividends and any related tax effects. Bridgeline uses non-GAAP adjusted net income/(loss) and Adjusted EBITDA as supplemental measures of our performance that are 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 financial performance.

Our definitions of non-GAAP adjusted net income/(loss) 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 measures. As a result 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," or 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 ability to maintain our listing on the NASDAQ Capital market, the ability to raise capital, 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, or our ability to maintain an effective system of internal controls 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.

Contact:
Bridgeline Digital, Inc.:                                                            
Michael D. Prinn                                             
Chief Financial Officer                                   
781.497.3016                                      
mprinn@bridgeline.com   

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