Bridgeline Software Reports Record Sales for Fourth Quarter and Fiscal Year 2007
BURLINGTON, Mass., Dec. 7, 2007 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ:BLIN), a provider in cloud-based Web Content Management, eCommerce and Marketing Automation software, announced results for its fourth quarter and for its fiscal year ended September 30, 2007.Highlights from the fiscal fourth quarter and twelve month fiscal year 2007 results include:
Bridgeline Software achieved record revenues of $4,151,000 for the quarter ended September 30, 2007 representing a 91% increase over Bridgeline Software’s revenues of $2,176,000 for the same quarter of 2006
Bridgeline Software achieved net income of $23,000 for the quarter ended September 30, 2007, versus a net loss of $1,111,000, over the same quarter of 2006. In addition, we achieved $294,000 in EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) before stock compensation and non-recurring charges for the quarter ending September 30, 2007, versus a loss of $586,000 over the same period of 2006.
Bridgeline Software achieved record revenues of $11,151,000 for the fiscal year ended September 30, 2007 representing a 35% increase over Bridgeline Software’s revenues of $8,235,000 for the same period of 2006Bridgeline Software now has over 350 customers, 66% of which pay monthly subscription or monthly managed services fees.
In addition 43% of total revenues are generated from Fortune 1,000 customers.
Thomas L. Massie, President and Chief Executive Officer of Bridgeline Software commented, “We are excited with our continued rapid growth, generation of positive cash flow from operations, and recent expansions into the Atlanta and Chicago markets.” Mr. Massie continued to say, “Our SaaS based web application management software, iAPPS, has received excellent customer reception. We are confident iAPPS will become a cornerstone in the foundation of Bridgeline and we believe it will enhance our growth and recurring revenue strategy”.
Results of Operations for the quarter ended September 30, 2007Bridgeline Software recorded revenue of $4.1 million in the quarter ended September 30, 2007, an increase of $2.0 million, or 91% compared to the same period of the prior year. The Company posted operating income for the quarter ended September 30, 2007, of $37 thousand compared to an operating loss of $793 thousand in the same quarter of the prior year. The Company posted net income for the quarter ended September 30, 2007 of $23 thousand or less than one cent ($0.00) per diluted share versus a net loss of $1.1 million or ($0.26) per diluted share in the same quarter of the previous year. The increase in net income was primarily attributable to an increase in revenues offset by an increase in stock-based compensation expense and in research and development costs associated with the development of the iAPPS product line.
Results of Operations for the fiscal year ended September 30, 2007Bridgeline Software recorded revenue of $11.2 million in the fiscal year ended September 30, 2007, an increase of $2.9 million, or 35% compared to the same period of the prior year. The Company posted an operating loss for the fiscal year ended September 30, 2007, of $1.0 million compared to an operating loss of $810 thousand in fiscal year 2006. The Company posted a net loss for the fiscal year ended September 30, 2007 of $1.9 million or ($0.36) per diluted share versus a net loss of $1.4 million or ($0.36) per diluted share in the previous fiscal year. The increase in net loss was primarily attributable to increases in stock-based compensation expenses, interest costs, legal, accounting and consulting fees related to the Company’s initial public offering, as well as an increase in product development costs.
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 1995All 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. Bridgeline Software, Inc.
Condensed Consolidated Statements of Operations (Dollars in thousands except per share data)
Three Months EndedTwelve Months EndedSeptember 30,2007September 30,2006September 30,2007September 30,2006Revenue$4,151$2,176$11,151$8,235Cost of revenue 1,657 967 5,020 3,809Gross profit 2,494 1,209 6,131 4,426Operating expenses: Sales and marketing 1,220 1,245 3,488 3,227 General and administrative 998 695 2,858 1,833 Technology development 239 62 791 176Total operating expenses 2,457 2,002 7,137 5,236Income / (loss) from operations 37 (793) (1,006) (810)Interest expense (14) (318) (891) (638)Income / (loss) before income taxes 23 (1,111) (1,897) (1,448)Income taxes - - - -Net income / (loss)$23$(1,111)$(1,897)$(1,448) Net income / (loss) per share:Basic and diluted$0.00$(0.26)$(0.36)$(0.36) Number of weighted average shares: Basic 8,238,725 4,283,833 5,285,787 4,046,278 Diluted 8,632,116 4,283,833 5,285,787 4,046,278 EBITDA results (Note 1)Add: Interest expense$47$318$924$638 Depreciation and amortization 156 100 402 305 Stock-based compensation 68 - 332 4 Other non-recurring charges – consulting fees - 107 168 119 EBITDA before stock compensation and other non-recurring charges$294$(586)$(71)$(382)EBITDA per share$0.03$(0.14)$(0.01)$(0.09) Note 1: EBITDA before stock compensation and other non-recurring charges 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 and other non-recurring charges as net income before interest, taxes, depreciation, amortization and stock-based compensation. 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. Other non-recurring charges primarily include monthly consulting fees paid for advisory services in connection with business combination opportunities. During fiscal 2007, this agreement was renegotiated and fees are only paid upon the success of a business combination. 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) September 30, 2007September 30, 2006AssetsCurrent assets: Cash and cash equivalents$5,188$591 Accounts receivables and other current assets 3,439 1,482Total current assets 8,627 2,073 Other assets 1,234 1,102Intangible assets, net 1,441 303Goodwill 14,426 6,346 Total assets$25,728$9,824 Liabilities and stockholders’ equityCurrent liabilities: Short term debt, net of discount$-$2,497 Current liabilities and accrued expenses 2,688 1,596Total current liabilities 2,688 4,093 Other liabilities 165 99Total liabilities 2,853 4,192Stockholders’ 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, 8,648,949 and 4,273,833 shares issued and outstanding, respectively 9 4Additional paid-in capital 28,926 9,791Accumulated deficit (6,060) (4,163)Total stockholders’ equity 22,875 5,632 Total liabilities and stockholders’ equity$25,728$9,824 About Bridgeline DigitalBridgeline 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.