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Absolute Software Reports First Quarter Fiscal 2010 Results

^{Published on 2009-11-02 13:05:54 - Market Wire}
 

 Key Financial Metrics Q1-F2010 Q1-F2009 % change ------------------------------------------------------------------------- Sales Contracts reported(1.a) $19.2M $18.2M +5% Sales Contracts in constant dollars(1.b) $18.3M $18.2M +1% ------------------------------------------------------------------------- Cash from Operating Activities(1.a) $4.3M $9.1M -53% Basic and diluted operating cash per share(1.a) Basic $0.09 $0.19 -50% Diluted $0.09 $0.18 -50% ------------------------------------------------------------------------- Revenue $15.0M $12.1M +24% ------------------------------------------------------------------------- Net loss $(2.0M) $(2.2M) -7% Loss per share (diluted) $(0.04) $(0.05) -20% Q1-F2010 Highlights: - Cash, cash equivalents & investments (including long-term) were $73.9 million at September 30, 2009, up from $68.9 million at June 30, 2009 - Deferred revenue was $99.6 million at September 30, 2009, up from $95.9 million at June 30, 2009 - Increased contracted subscription base by 13% to 4.3 million, from 3.8 million in Q1-F2009 - Expanded international operations with opening of a regional office in Japan and launch of a Japanese offering - Launched Computrace(R) LoJack(R) for Laptops for new Dell Inspiron Mini Nickelodeon Edition notebook - Launched Geofencing capabilities for mobile devices - Announced Computrace support for Windows 7 

 Guidance Absolute previously issued F2010 financial guidance as follows: - Sales Contracts of $80-86 million - Cash from Operating Activities of $12-15 million 

 ABSOLUTE SOFTWARE CORPORATION Consolidated Balance Sheets (Expressed in Canadian dollars) (Unaudited) ------------------------------------------------------------------------- As At September 30, June 30, 2009 2009 -------------- -------------- ASSETS CURRENT Cash and cash equivalents $ 48,167,419 $ 56,078,004 Short-term investments 1,572,973 8,743,861 Accounts receivable, net of allowance for doubtful accounts of $1,846,000 (2009 - $2,387,000) 11,750,674 15,570,780 Prepaid expenses and other 999,769 974,564 Current portion of deferred contract costs 3,709,740 3,609,944 Current portion of future income tax assets 11,401,121 10,646,521 ------------------------------------------------------------------------- 77,601,696 95,623,674 INVESTMENTS 24,184,865 4,076,211 DEFERRED CONTRACT COSTS 3,833,090 3,765,717 PROPERTY AND EQUIPMENT 2,612,558 2,644,275 FUTURE INCOME TAX ASSETS 11,866,473 11,081,073 INTANGIBLE ASSET 95,831 127,775 ------------------------------------------------------------------------- $ 120,194,513 $ 117,318,725 ------------------------------------------------------------------------- ------------------------------------------------------------------------- LIABILITIES CURRENT Accounts payable and accrued liabilities $ 4,547,802 $ 6,775,466 Income tax payable $ 3,035,000 $ 1,575,000 Current portion of accrued warranty 5,508,798 5,288,520 Current portion of deferred revenue, net 48,688,514 46,577,880 ------------------------------------------------------------------------- 61,780,114 60,216,866 ACCRUED WARRANTY 6,212,048 5,963,650 DEFERRED REVENUE, NET 50,939,843 49,278,726 ------------------------------------------------------------------------- 118,932,005 115,459,242 ------------------------------------------------------------------------- SHAREHOLDERS' EQUITY Share capital and other equity 43,205,993 41,988,977 Contributed surplus 27,044,642 26,822,975 Deficit (68,988,127) (66,952,469) ------------------------------------------------------------------------- 1,262,508 1,859,483 ------------------------------------------------------------------------- $ 120,194,513 $ 117,318,725 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ABSOLUTE SOFTWARE CORPORATION Consolidated Statements of Loss and Comprehensive Loss Three months ended September 30, 2009 and 2008 (Expressed in Canadian dollars) (Unaudited) ------------------------------------------------------------------------- 2009 2008 -------------- -------------- REVENUE $ 15,047,060 $ 12,109,048 COST OF GOODS SOLD 3,754,413 3,323,685 ------------------------------------------------------------------------- GROSS MARGIN 11,292,647 8,785,363 ------------------------------------------------------------------------- EXPENSES Sales and marketing 8,169,768 6,924,218 Research and development 1,629,108 1,702,988 General and administration 1,916,999 1,719,761 Investment tax credits (250,000) - Stock-based compensation 586,461 1,560,327 ------------------------------------------------------------------------- 12,052,336 11,907,294 ------------------------------------------------------------------------- OPERATING LOSS (759,689) (3,121,931) ------------------------------------------------------------------------- OTHER INCOME (EXPENSE) Interest and bank charges 157,707 452,143 Foreign exchange gain (loss) (1,399,246) 916,148 Unrealized gain (loss) on investment 135,570 (424,089) ------------------------------------------------------------------------- (1,105,969) 944,202 ------------------------------------------------------------------------- LOSS FOR PERIOD BEFORE INCOME TAXES (1,865,658) (2,177,729) INCOME TAX EXPENSE (170,000) - ------------------------------------------------------------------------- NET LOSS AND COMPREHENSIVE LOSS FOR THE PERIOD (2,035,658) (2,177,729) DEFICIT, BEGINNING OF PERIOD (66,952,469) (56,752,618) DEFICIT, END OF PERIOD $ (68,988,127) $ (58,930,347) ------------------------------------------------------------------------- ------------------------------------------------------------------------- BASIC AND DILUTED LOSS PER SHARE $ (0.04) $ (0.05) ------------------------------------------------------------------------- ------------------------------------------------------------------------- WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED 45,920,705 47,949,560 ------------------------------------------------------------------------- ------------------------------------------------------------------------- ABSOLUTE SOFTWARE CORPORATION Consolidated Statements of Cash Flows Three months ended September 30, 2009 and 2008 (Expressed in Canadian dollars) (Unaudited) ------------------------------------------------------------------------- 2009 2008 -------------- -------------- OPERATING ACTIVITIES Net loss for the period $ (2,035,658) $ (2,177,729) Items not involving cash Amortization of property and equipment 302,638 229,808 Stock-based compensation 586,461 1,560,327 Amortization of intangible asset 31,944 31,943 Future income taxes (1,540,000) - Unrealized loss (gain) on investment (135,570) 424,089 Change in non-cash operating working capital Accounts receivable 3,820,106 5,815,815 Prepaid expenses and other (25,205) 82,987 Deferred contract costs (167,169) (223,249) Accounts payable and accrued liabilities (2,227,664) (276,785) Income tax payable 1,460,000 - Accrued warranty 468,676 859,958 Deferred revenue 3,771,752 2,765,572 ------------------------------------------------------------------------- CASH FROM OPERATING ACTIVITIES 4,310,311 9,092,736 ------------------------------------------------------------------------- INVESTING ACTIVITIES Property and equipment purchased (270,922) (705,899) Proceeds from maturities of short term investments 7,306,458 1,570,571 Purchases of short term investments - (704,876) Purchases of investments (20,108,654) (2,438,554) ------------------------------------------------------------------------- CASH USED IN INVESTING ACTIVITIES (13,073,118) (2,278,758) ------------------------------------------------------------------------- FINANCING ACTIVITIES Issuance of common shares 852,222 893,661 ------------------------------------------------------------------------- CASH FROM FINANCING ACTIVITIES 852,222 893,661 ------------------------------------------------------------------------- NET CASH (OUTFLOW) INFLOW (7,910,585) 7,707,639 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 56,078,004 46,460,299 ------------------------------------------------------------------------- CASH AND CASH EQUIVALENTS, END OF PERIOD $ 48,167,419 $ 54,167,938 ------------------------------------------------------------------------- -------------------------------------------------------------------------