Welcome!

Perl Authors: Jyoti Bansal, Liz McMillan, Mike Hicks, RealWire News Distribution, Bob Gourley

News Feed Item

SourceForge Reports Second Quarter 2009 Financial Results

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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
SYS-CON Events announced today that Hitachi Data Systems, a wholly owned subsidiary of Hitachi LTD., will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City. Hitachi Data Systems (HDS) will be featuring the Hitachi Content Platform (HCP) portfolio. This is the industry’s only offering that allows organizations to bring together object storage, file sync and share, cloud storage gateways, and sophisticated search an...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
The age of Digital Disruption is evolving into the next era – Digital Cohesion, an age in which applications securely self-assemble and deliver predictive services that continuously adapt to user behavior. Information from devices, sensors and applications around us will drive services seamlessly across mobile and fixed devices/infrastructure. This evolution is happening now in software defined services and secure networking. Four key drivers – Performance, Economics, Interoperability and Trust ...
Most technology leaders, contemporary and from the hardware era, are reshaping their businesses to do software in the hope of capturing value in IoT. Although IoT is relatively new in the market, it has already gone through many promotional terms such as IoE, IoX, SDX, Edge/Fog, Mist Compute, etc. Ultimately, irrespective of the name, it is about deriving value from independent software assets participating in an ecosystem as one comprehensive solution.
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm.
SYS-CON Events announced today that CollabNet, a global leader in enterprise software development, release automation and DevOps solutions, will be a Bronze Sponsor of SYS-CON's 20th International Cloud Expo®, taking place from June 6-8, 2017, at the Javits Center in New York City, NY. CollabNet offers a broad range of solutions with the mission of helping modern organizations deliver quality software at speed. The company’s latest innovation, the DevOps Lifecycle Manager (DLM), supports Value S...
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Five years ago development was seen as a dead-end career, now it’s anything but – with an explosion in mobile and IoT initiatives increasing the demand for skilled engineers. But apart from having a ready supply of great coders, what constitutes true ‘DevOps Royalty’? It’ll be the ability to craft resilient architectures, supportability, security everywhere across the software lifecycle. In his keynote at @DevOpsSummit at 20th Cloud Expo, Jeffrey Scheaffer, GM and SVP, Continuous Delivery Busine...
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
SYS-CON Events announced today that Hitachi, the leading provider the Internet of Things and Digital Transformation, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd., offers an integrated portfolio of services and solutions that enable digital transformation through enhanced data management, governance, mobility and analytics. We help globa...
SYS-CON Events announced today that T-Mobile will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. As America's Un-carrier, T-Mobile US, Inc., is redefining the way consumers and businesses buy wireless services through leading product and service innovation. The Company's advanced nationwide 4G LTE network delivers outstanding wireless experiences to 67.4 million customers who are unwilling to compromise on ...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in compute, storage and networking technologies, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/...
With billions of sensors deployed worldwide, the amount of machine-generated data will soon exceed what our networks can handle. But consumers and businesses will expect seamless experiences and real-time responsiveness. What does this mean for IoT devices and the infrastructure that supports them? More of the data will need to be handled at - or closer to - the devices themselves.
SYS-CON Events announced today that DatacenterDynamics has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY. DatacenterDynamics is a brand of DCD Group, a global B2B media and publishing company that develops products to help senior professionals in the world's most ICT dependent organizations make risk-based infrastructure and capacity decisions.
NHK, Japan Broadcasting, will feature the upcoming @ThingsExpo Silicon Valley in a special 'Internet of Things' and smart technology documentary that will be filmed on the expo floor between November 3 to 5, 2015, in Santa Clara. NHK is the sole public TV network in Japan equivalent to the BBC in the UK and the largest in Asia with many award-winning science and technology programs. Japanese TV is producing a documentary about IoT and Smart technology and will be covering @ThingsExpo Silicon Val...
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal ...
Grape Up is a software company, specialized in cloud native application development and professional services related to Cloud Foundry PaaS. With five expert teams that operate in various sectors of the market across the USA and Europe, we work with a variety of customers from emerging startups to Fortune 1000 companies.