|By PR Newswire||
|July 30, 2009 04:05 PM EDT||
MOUNTAIN VIEW, Calif., July 30 /PRNewswire-FirstCall/ -- SourceForge, Inc. (Nasdaq: LNUX) today announced financial results for its second quarter ended June 30, 2009.
Total revenue for the second quarter of 2009 was $11.8 million compared to $11.8 million of revenue for the second quarter of 2008. Net loss for the second quarter of 2009 was $3.6 million or $0.06 per share compared to a net loss of $3.8 million or $0.06 per share, for the same period a year ago. Net loss for the second quarter of 2009 includes a $1.2 million loss resulting from the write-off of internally developed software.
Adjusted EBITDA loss for the second quarter of 2009 was $1.2 million, compared to adjusted EBITDA loss of $0.7 million for the same period a year ago. A reconciliation of our net loss as reported to adjusted EBITDA is included in this release.
"We executed well this quarter, growing each of our businesses from the first quarter and demonstrating early traction in our new strategy," said Scott Kauffman, President & CEO, SourceForge, Inc. "We made good progress on several of our key metrics, including the contribution from premium advertising, RPM, and orders shipped. We accomplished all this while maintaining our focus on our strategic initiatives, and are well positioned as our new strategy continues to take hold."
Second Quarter Highlights:
- Media revenue was $4.3 million for the second quarter of 2009, compared to $5.0 million for the second quarter of 2008. Revenue for the second quarter of 2009 included $1.6 million from our premium advertising products compared to $0.4 million of premium revenue for the same period last year.
- E-commerce revenue was $7.4 million for the second quarter of 2009, compared to $6.8 million for the second quarter of 2008.
- Total cash and investments balance, including restricted cash, at the end of the second quarter of 2009 was $40.5 million.
Supplemental schedules of the Company's quarterly statements of operations and operational statistics for the quarterly periods in the year ended December 31, 2008 and the six months ended June 30, 2009 are available on the Company's web site at http://web.sourceforge.com/cyresults.
A conference call and audio webcast will be held at 2:00 p.m. PT or 5:00 p.m. ET on July 30, 2009 and may be accessed by calling 877-407-8035 or 201-689-8035 or by visiting www.sourceforge.com. Replays of both the telephonic audio and audio webcast will be available for 90 days. To access the conference call replay, dial 877-660-6853 or 201-612-7415, referencing replay account 286 and call ID 328440.
Use of Non-GAAP Financial Measures
In addition to reporting financial results in accordance with generally accepted accounting principles, or GAAP, we also report adjusted EBITDA. Adjusted EBITDA should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. We believe that adjusted EBITDA provides useful information to both management and investors and is an additional measurement which may be used to evaluate our operating performance. Our management and Board of Directors use adjusted EBITDA as part of their reporting and planning process and it is the primary measure we use to evaluate our operating performance. In addition, because we have historically reported non-GAAP earnings to the investment community, from which adjusted EBITDA can be derived, we believe the inclusion of adjusted EBITDA provides consistency in financial reporting. We also believe that the financial analysts who regularly follow and report on us and the business sector in which we compete use adjusted EBITDA to prepare their financial performance estimates, to measure our performance against other sector participants and to project our future financial results.
We define adjusted EBITDA as net loss which is adjusted for interest and other income (expense) net and income taxes as well as stock-based compensation, restructuring charges and depreciation and amortization. The method we use to produce adjusted EBITDA is not computed according to GAAP, is likely to differ from the methods used by other companies and should not be regarded as a substitute for results prepared in accordance with accounting principles generally accepted in the United States. Adjusted EBITDA, as we compute it, excludes certain expenses that we believe are not indicative of our core operating results, as well as income taxes, stock-based compensation and depreciation and amortization. We consider our core operating results to include revenue recorded in a particular period and the related expenses that are intended to directly drive operating income during that period.
The EBITDA calculation excludes interest, income taxes and depreciation and amortization by its nature. In addition, when we compute adjusted EBITDA we exclude stock-based compensation and restructuring charges and other amounts included in the Interest income and other income (expense) net caption as we believe that these amounts represent income and expenses that are not directly related to our core operations. Although some of the items may recur on a regular basis, management does not consider activities associated with these items as core to its operations. With respect to stock-based compensation, we recognize expenses associated with stock-based compensation that require management to make assumptions about our common stock, such as expected future stock price volatility, the anticipated duration of outstanding stock options and awards and the rate at which we recognize the corresponding stock-based compensation expense over the course of future fiscal periods. While other forms of expenses (such as cash compensation, inventory costs and real estate costs) are reasonably correlated to our underlying business and such costs are incurred principally or wholly in the particular fiscal period being reported, stock-based compensation expense is not reasonably correlated to the particular fiscal period in question, but rather is based on expected future events that have no relationship (and in certain instances, an inverse relationship) with how well we currently operate our business. Restructuring costs are excluded from adjusted EBITDA because they represent non-cash charges which are not representative of our core operations.
About SourceForge, Inc.
SourceForge's media and e-commerce web sites connect millions of influential technology professionals and enthusiasts each day. Combining user-developed content and e-commerce, SourceForge is the global technology community's nexus for information exchange, goods for geeks, and open source software distribution and services. SourceForge's network of web sites serves 35 million unique visitors each month* and includes: SourceForge.net, Slashdot, ThinkGeek, Ohloh.net, fossfor.us and freshmeat.net. For more information or to view our media kit online, visit www.sourceforge.com. (*Source: Google Analytics, Coremetrics and Omniture, June 2009).
SourceForge, SourceForge.net, Slashdot, Ohloh, freshmeat, and ThinkGeek are registered trademarks of SourceForge, Inc. in the United States and other countries. All other trademarks or product names are property of their respective owners.
NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations, and involve risks and uncertainties. Forward-looking statements contained herein include statements regarding growth strategies and prospects for SourceForge's online media and e-commerce businesses. Actual results may differ materially from those expressed or implied in such forward-looking statements due to various factors, including: SourceForge's effectiveness at increasing engagement with, and traffic to, its Internet properties; SourceForge's ability to attract and retain qualified personnel; success in designing and offering innovative online advertising programs; decreases or delays in online advertising spending, especially in light of current macroeconomic challenges and uncertainty; SourceForge's effectiveness at planning and managing its e-commerce inventory; SourceForge's ability to achieve and sustain higher levels of revenue; SourceForge's ability to protect and defend its intellectual property rights; rapid technological and market change; unforeseen expenses that SourceForge may incur in future quarters; and competition with, and pricing pressures from larger and/or more established competitors. Investors should consult SourceForge's filings with the Securities and Exchange Commission, www.sec.gov, including the risk factors section of its Annual Report on Form 10-K for the year ended July 31, 2008, and its Quarterly Report on Form 10-Q for the quarter ended March 31, 2009, for further information regarding these and other risks of SourceForge's business. All forward-looking statements included in this press release are based upon information available to SourceForge as of the date hereof, and SourceForge does not assume any obligations to update such statements or the reasons why actual results could differ materially from those projected in such statements.
SOURCEFORGE, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (unaudited) Three Months Six Months Ended Ended June 30, June 30, ---------------- ---------------- 2009 2008 2009 2008 ---- ---- ---- ---- Online Media revenue $4,341 $5,018 $8,118 $9,603 E-commerce revenue 7,444 6,780 14,038 13,583 ----- ----- ------ ------ Net revenue 11,785 11,798 22,156 23,186 ------ ------ ------ ------ Online Media cost of revenue 1,718 1,967 3,625 3,921 E-commerce cost of revenue 6,152 5,207 11,762 10,980 ----- ----- ------ ------ Cost of revenue 7,870 7,174 15,387 14,901 ----- ----- ------ ------ Gross margin 3,915 4,624 6,769 8,285 ----- ----- ----- ----- Operating expenses: Sales and marketing 1,952 2,327 4,267 4,214 Research and development 2,078 1,251 3,672 2,382 General and administrative 2,244 4,085 4,349 6,041 Amortization of intangible assets 27 - 27 - Restructuring costs - 765 - 765 -- --- -- --- Total operating expenses 6,301 8,428 12,315 13,402 ----- ----- ------ ------ Operating loss (2,386) (3,804) (5,546) (5,117) Interest and other income (expense), net (1,231) 14 (5,561) 474 ------ -- ------ --- Loss before income taxes (3,617) (3,790) (11,107) (4,643) Provision (benefit) for income taxes (31) (37) (95) 26 --- --- --- -- Net loss $(3,586) $(3,753) $(11,012) $(4,669) ======= ======= ======== ======= Earnings per share: Basic and diluted $(0.06) $(0.06) $(0.18) $(0.07) ====== ====== ====== ====== Shares used in computing earnings per share: Basic and diluted 59,916 67,506 61,618 67,486 ====== ====== ====== ====== Reconciliation of net loss as reported to adjusted EBITDA: Net loss - as reported $(3,586) $(3,753) $(11,012) $(4,669) Reconciling items: Interest and other income (expense), net 1,231 (14) 5,561 (474) Income taxes (31) (37) (95) 26 Stock-based compensation expense included in COGS 87 85 154 134 Stock-based compensation expense included in Op Ex. 540 1,792 1,154 2,258 Restructuring costs - 765 - 765 Depreciation and amortization 555 484 1,158 940 --- --- ----- --- Adjusted EBITDA $(1,204) $(678) $(3,080) $(1,020) ======= ===== ======= ======= SOURCEFORGE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) (unaudited) June 30, December 31, 2009 2008 ----- ---- ASSETS Current assets: Cash and cash equivalents $30,103 $40,511 Short-term investments, including restricted cash 10,441 563 Accounts receivable, net 3,259 4,418 Inventories 3,264 3,264 Prepaid expenses and other current assets 3,036 1,841 ----- ----- Total current assets 50,103 50,597 Property and equipment, net 2,644 4,748 Long-term investments, including long- term restricted cash - 9,947 Other assets 5,003 8,874 ----- ----- Total assets $57,750 $74,166 ======= ======= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $2,244 $4,021 Accrued restructuring liabilities 2,753 2,862 Deferred revenue 715 591 Accrued liabilities and other 2,102 2,702 ----- ----- Total current liabilities 7,814 10,176 Other long-term liabilities 192 1,423 --- ----- Total liabilities 8,006 11,599 ----- ------ Stockholders' equity: Common stock 61 65 Treasury stock (424) (331) Additional paid-in capital 797,319 799,037 Accumulated other comprehensive income 13 9 Accumulated deficit (747,225) (736,213) -------- -------- Total stockholders' equity 49,744 62,567 ------ ------ Total liabilities and stockholders' equity $57,750 $74,166 ======= ======= SOURCEFORGE, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (unaudited) Six months ended June 30, ------------- 2009 2008 ---- ---- Cash flows from operating activities: Net loss $(11,012) $(4,669) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 1,158 940 Stock-based compensation expense 1,308 2,392 Provision for bad debts 87 80 Provision for excess and obsolete inventory 13 67 Loss on disposal of assets 1,020 1 Loss on sale of investments - 200 Impairment of investments 4,585 108 Non-cash restructuring expense - 765 Changes in assets and liabilities: Accounts receivable 1,077 (544) Inventories (13) 623 Prepaid expenses and other assets 260 (306) Accounts payable (1,784) (2,890) Accrued restructuring liabilities (1,363) (1,325) Deferred revenue 124 (133) Accrued liabilities and other (636) (261) Other long-term liabilities 23 12 -- -- Net cash used in operating activities (5,153) (4,940) ------ ------ Cash flows from investing activities: Purchase of property and equipment (250) (1,639) Purchases of marketable securities - (25,987) Maturities or sale of marketable securities 559 48,540 Acquisitions (2,613) - Proceeds from sale of intangible assets, net 172 - --- -- Net cash (used in) provided by investing activities (2,132) 20,914 ------ ------ Cash flows from financing activities: Proceeds from issuance of common stock 4 18 Repurchase of common stock (3,127) (104) ------ ---- Net cash used in financing activities (3,123) (86) ------ --- Cash flows from discontinued operations: Net cash provided by operating activities - 42 -- -- Net cash provided by discontinued operations - 42 -- -- Net increase (decrease) in cash and cash equivalents (10,408) 15,930 ------- ------ Cash and cash equivalents, beginning of period 40,511 25,037 ------ ------ Cash and cash equivalents, end of period $30,103 $40,967 ======= =======
SOURCE SourceForge, Inc.
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
May. 6, 2015 06:30 PM EDT Reads: 949
@ThingsExpo has been named the Top 5 Most Influential Internet of Things Brand by Onalytica in the ‘The Internet of Things Landscape 2015: Top 100 Individuals and Brands.' Onalytica analyzed Twitter conversations around the #IoT debate to uncover the most influential brands and individuals driving the conversation. Onalytica captured data from 56,224 users. The PageRank based methodology they use to extract influencers on a particular topic (tweets mentioning #InternetofThings or #IoT in this case) takes into account the number and quality of contextual references that a user receives.
May. 6, 2015 06:15 PM EDT Reads: 2,737
17th Cloud Expo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some form of XaaS – software, platform, and infrastructure as a service.
May. 6, 2015 04:45 PM EDT Reads: 835
Enterprise IoT is an exciting and chaotic space with a lot of potential to transform how the enterprise resources are managed. In his session at @ThingsExpo, Hari Srinivasan, Sr Product Manager at Cisco, will describe the challenges in enabling mass adoption of IoT, and share perspectives and insights on architectures/standards/protocols that are necessary to build a healthy ecosystem and lay the foundation to for a wide variety of exciting IoT use cases in the years to come.
May. 6, 2015 04:30 PM EDT Reads: 1,295
Avnet, Inc. has announced that it ranked No. 4 on the InformationWeek Elite 100 – a list of the top business technology innovators in the U.S. Avnet was recognized for the development of an innovative cloud-based training system that serves as the foundation for Avnet Academy – the company’s education and training organization focused on technical training around top IT vendor technologies. The development of this system allowed Avnet to quickly expand its IT-related training capabilities around the world, while creating a new service that Avnet and its IT solution providers can offer to their...
May. 6, 2015 02:45 PM EDT Reads: 1,063
@ThingsExpo has been named the Top 5 Most Influential M2M Brand by Onalytica in the ‘Machine to Machine: Top 100 Influencers and Brands.' Onalytica analyzed the online debate on M2M by looking at over 85,000 tweets to provide the most influential individuals and brands that drive the discussion. According to Onalytica the "analysis showed a very engaged community with a lot of interactive tweets. The M2M discussion seems to be more fragmented and driven by some of the major brands present in the M2M space. This really allows some room for influential individuals to create more high value inter...
May. 6, 2015 12:15 PM EDT Reads: 5,890
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
May. 6, 2015 12:00 PM EDT Reads: 4,536
It's time to put the "Thing" back in IoT. Whether it’s drones, robots, self-driving cars, ... There are multiple incredible examples of the power of IoT nowadays that are shadowed by announcements of yet another twist on statistics, databases, .... Sorry, I meant, Big Data(TM), tiered storage(TM), complex systems(TM), smart nations(TM), .... In his session at WebRTC Summit, Dr Alex Gouaillard, CTO and Co-Founder of Temasys, will discuss the concrete, cool, examples of IoT already happening today, and how mixing all those different sources of visual and audio input can make your life happier ...
May. 6, 2015 11:15 AM EDT Reads: 759
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
May. 6, 2015 11:15 AM EDT Reads: 3,255
The world's leading Cloud event, Cloud Expo has launched Microservices Journal on the SYS-CON.com portal, featuring over 19,000 original articles, news stories, features, and blog entries. DevOps Journal is focused on this critical enterprise IT topic in the world of cloud computing. Microservices Journal offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Follow new article posts on Twitter at @MicroservicesE
May. 6, 2015 11:00 AM EDT Reads: 3,000
Containers and microservices have become topics of intense interest throughout the cloud developer and enterprise IT communities. Accordingly, attendees at the upcoming 16th Cloud Expo at the Javits Center in New York June 9-11 will find fresh new content in a new track called PaaS | Containers & Microservices Containers are not being considered for the first time by the cloud community, but a current era of re-consideration has pushed them to the top of the cloud agenda. With the launch of Docker's initial release in March of 2013, interest was revved up several notches. Then late last...
May. 6, 2015 11:00 AM EDT Reads: 4,030
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
May. 6, 2015 11:00 AM EDT Reads: 5,896
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY., and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. MangoApps provides private all-in-one social intranets allowing workers to securely collaborate from anywhere in the world and from any device. Social, mobile, and easy to use. MangoApps has been named a "Market Leader" by Ovum Research and a "Cool Vendor" by Gartner...
May. 6, 2015 11:00 AM EDT Reads: 4,478
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
May. 6, 2015 10:45 AM EDT Reads: 4,496
In his session at WebRTC Summit, Peter Dunkley, Technical Director at Acision, will look at creating interactive communications via the web by adding messaging, file transfer, and group communication (group chat and audio/video conferencing) into the web experience. He will also discuss potential applications of this technology in areas including B2B, B2C, P2P, and gaming. Peter Dunkley is Technical Director at Acision. He graduated from The University of Edinburgh in 2000 with a BSc (Hons) in Computer Science. After graduation Peter worked on a PSTN switch developing signalling stacks for SS...
May. 6, 2015 10:30 AM EDT Reads: 731
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
May. 6, 2015 10:30 AM EDT Reads: 5,504
What if, during a snow emergency, an on-the-ground sensor could automatically trigger a relevant emergency notification related to snowfall and road impact. And then, after it’s triggered, that notification is delivered intelligently to individuals based on an extensive set of rules designed to alert the most available and capable responders. This “what if” question about “smart highways” is short-sighted. We are already there, and we are only getting started. While mainstream attention is paid to machine-to-machine communications, new technologies are being developed to make these communica...
May. 6, 2015 10:26 AM EDT Reads: 594
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
May. 6, 2015 10:00 AM EDT Reads: 5,666
SYS-CON Media announced today that @WebRTCSummit Blog, the largest WebRTC resource in the world, has been launched. @WebRTCSummit Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. @WebRTCSummit Blog can be bookmarked ▸ Here @WebRTCSummit conference site can be bookmarked ▸ Here
May. 6, 2015 09:45 AM EDT Reads: 3,501
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
May. 6, 2015 09:45 AM EDT Reads: 6,059