Q4 Fiscal 2011 Financials

Dec 29, 2011 Quinn Murphy Bridgeline Digital Reports Financial Results for the Fourth Quarter and Year Ended September 30, 2011 BURLINGTON, Mass., Dec. 29, 2011 (GLOBE NEWSWIRE) -- Bridgeline Digital, Inc. (NASDAQ:BLIN), a provider in cloud-based Web Content Management, eCommerce and Marketing Automation software, announced financial results for its fourth quarter and year ended September 30, 2011.For fiscal 2011, Bridgeline Digital completed a record revenue year with annual sales of $26.3 million. In addition, Bridgeline has achieved record sales of iAPPS licenses with year over year growth of 47%. iAPPS has been embraced by hundreds of quality customers globally. Some of the best-known brand-name Companies in the world have standardized their mission critical websites or online stores on the award winning iAPPS Product Suite. In fiscal 2011 Bridgeline Digital generated $1.5 million of positive EBITDA and the Company generated $800 thousand in cash from operations. Bridgeline Digital’s balance sheet has over $31 million dollars in assets, only $10 million dollars in liabilities and over $21 million dollars in stockholder equity.“Despite the uncertainties of the macroeconomic environment, we are pleased to have completed a record year led by strong iAPPS growth, while continuing to achieve positive non-GAAP income and EBITDA.” said Bridgeline Digital’s President and Chief Executive Officer Thomas Massie. “iAPPS is in a strong leadership position in a dynamic marketplace, and customers continue to recognize iAPPS’ unique value proposition.”Highlights from the Fourth Quarter 2011 (ended September 30,2011) include:In Q4 2011, 68 iAPPS licenses were sold compared to 24 licenses in Q4 2010, an increase of 183%. A total of 428 iAPPS Licenses have been sold since the first iAPPS module was launched.In Q4 2011, revenue from subscription, perpetual licenses and managed service hosting increased 14% to $1.128 million compared to $992 thousand for Q4 of 2010.In Q4 2011, non-GAAP adjusted net income was $250 thousand compared with non-GAAP adjusted net income of $3 thousand for Q4 2011.In Q4 2011, adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization and stock-based compensation) was $444 thousand compared to $45 thousand for Q4 of 2010.Highlights from the Fiscal Year 2011 (ended September 30, 2011) include:In fiscal 2011, revenue increased 11% to $26.3 million compared to $23.6 million for fiscal 2010.In fiscal 2011, revenue from subscription, perpetual licenses and managed service hosting increased 19% to $4.4 million compared to $3.7 million for fiscal 2010.In fiscal 2011, a record number of iAPPS licenses were sold – 213 new licenses, a 47% increase over fiscal 2010.In fiscal 2011, new bookings were $26M, compared to $21M of new bookings in fiscal 2010. This is a year over year increase of 24%.In fiscal 2011, adjusted EBITDA (Earnings before interest, taxes, depreciation and amortization and stock-based compensation) was $1.5 million.In fiscal 2011, over $800 thousand of cash was generated from operating activities. This was accomplished while Bridgeline’s total liabilities were reduced from $11.1 million to $10.2 million, a decrease of $900 thousand. In addition, in fiscal 2011, over $700 thousand of infrastructure investments were made to our iAPPS SaaS/Cloud based hosting environment.In 2011, the iAPPS product suite was selected as a finalist for two CODiE awards – Best Content Management Solution, globally and Best Electronic Commerce Solution, globally.In 2011, Editors of KMWorld magazine selected iAPPS as the trend setting product of the year.In 2011, Bridgeline Digital received four Interactive Media Awards, three IAC Awards from the Web Marketing Association, and four Horizon Interactive Awards for excellence in the development of interactive technology solutions.In 2011, B2B Magazine named Bridgeline Digital as one of the top interactive technology companies in America.Fiscal 2012 OutlookBridgeline Digital expects Fiscal 2012 revenues to be in the range of $27 million to $29 million. This revenue estimate reflects a reduction of approximately $1.5 million of low gross margin government subcontracting revenue the Company no longer plans to service. This planned reduction will be replaced by higher gross margin iAPPS related revenue.In addition the company expects to continue to generate positive non-GAAP income and positive Adjusted EBITDA for fiscal 2012.Bridgeline Digital recently signed an agreement with a strategic Fortune 500 Company. We believe this alliance will be a significant catalyst for iAPPS and Bridgeline for years to come. Due to the nature of iAPPS integration lead times, Bridgeline doesn’t 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 MeasuresThis 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 DIGITAL, INC.RECONCILIATION OF GAAP TO NON-GAAP RESULTS (Dollars in thousands, except share and per share data)Three Months Ended September 30,Twelve Months Ended September 30,2011201020112010Reconciliation of GAAP net income to non-GAAP adjusted net incomeGAAP net (loss) income$(51)$(652)$(782)$(377)Acquisition, integration and other one-time costs 48 305 48 522 Amortization of intangible assets183188765619Stock based compensation70162356449Tax effect of non-GAAP adjustments---(48)Non-GAAP adjusted net (loss) income$250$3$387$1,165Reconciliation of GAAP (loss) per diluted share to non-GAAP adjusted earnings per diluted shareGAAP net (loss) income per share$(0.00)$(0.06)$(0.06)$(0.03)Acquisition, integration and other one-time costs 0.00 0.03 - 0.05Amortization of intangible assets0. based compensation0. effect of non-GAAP adjustments-----(0.01)Non-GAAP adjusted net income$0.02$0.00$0.03$0.10Reconciliation of GAAP net (loss) to Adjusted EBITDAGAAP net(loss)income$(51)$(652)(782)(377)Provision for income tax(39)212473Interest expense (income), net544821165Amortization of intangible assets183188765619Depreciation149193603759EBITDA287(202)8211,139Other amortization8785350271Stock based compensation70162356449Adjusted EBITDA$444$45$1,527$1,859Reconciliation of GAAP net (loss)per diluted share to Adjusted EBITDA per diluted shareGAAP net (loss)income per share$(0.00)$(0.06)$(0.06)$(0.03)Provision for income tax----Interest expense (income), net--0.02-Amortization of intangible assets0. amortization0. based compensation0. EBITDA $0.04$0.00$0.13$0.17BRIDGELINE DIGITAL, INC.CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except share and per share data)Three Months Ended September 30,Twelve Months Ended September 30,2011201020112010Revenue:Web application development services$5,465$5,900$21,873$19,851Managed service hosting5304812,0061,931Subscription and perpetual licenses5985112,3881,776Total revenue6,5936,89226,26723,558Cost of revenue:Web application development services2,9163,16611,87110,021Managed service hosting services88221443603Subscription and perpetual licenses160105681583Total cost of revenue3,1643,49212,99511,207Gross profit3,4293,40013,27212,351Operating expenses:Sales and marketing1,6842,1156,7385,962General and administrative8901,1703,8754,416Research and development5663421,866926Depreciation and amortization3343561,3401,286Total operating expenses3,4743,98313,81912,590(loss)Income from operations(45)(583)(547)(239)Interest income (expense) net(45)(48)(211)(65)(loss)Income before income taxes(90)(631)(758)(304)Provision for income taxes(39)212473Net (loss) income$(51)$(652)$(782)$(377)Net (loss)income per share:Basic and diluted$(0.00)$(0.06)$(0.06)$(0.03)Number of weighted average shares:Basic and diluted12,306,20711,188,20812,187,76711,186,187BRIDGELINE DIGITAL, INC.CONSOLIDATED BALANCE SHEETS(Dollars in thousands, except share and per share data)September 30, 2011September 30, 2010AssetsCurrent assets:Cash and cash equivalents$2,528$3,045Accounts receivable and unbilled receivables, net4,2743,929Prepaid expenses and other current assets494351Total current assets7,2967,325Equipment and improvements, net1,7791,171Intangible assets, net1,5272,292Goodwill, net20,12220,036Other assets685900Total assets$31,409$31,724LIABILITIES AND STOCKHOLDERS’ EQUITYCurrent liabilities:Accounts payable$1,291$1,270Accrued liabilities1,0811,024Accrued earnouts, current295900Debt, current1,7502,475Capital lease obligations, current21650Deferred revenue1,169899Total current liabilities5,8026,618Accrued earnouts, net of current portion7721,073Debt, net of current portion3,0173,025Capital lease obligations, net of current portion21511Other long term liabilities395341 Total liabilities 10,201 11,068Commitments and contingenciesShareholders’ 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; 12,306,207 and 11,182,208 shares issued and outstanding,respectively1211Additional paid-in capital38,01236,749Accumulated deficit(16,770)(15,988)Accumulated other comprehensive income(117)(116)Total stockholders’ equity21,20820,656Total liabilities and stockholders’ equity$31,409$31,724About 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.

   Discover How Bridgeline Can Grow Your Business

Contact us