Absolute Software Provides First Quarter Fiscal 2016 Financial Update and Extends Expiration of Substantial Issuer Bid
Company to host conference call at 10:00 a.m. ET
Vancouver, Canada: October 5, 2015 – Absolute® Software Corporation (TSX: ABT) the industry standard for persistent endpoint security and data risk management solutions, today provided an update on its fiscal 2016 first quarter (Q1-F2016) operating results and announced the extension of the expiration of its Substantial Issuer Bid. All dollar figures are unaudited and stated in U.S. dollars, unless otherwise indicated.
For Q1-F2016 ended September 30, 2015, Absolute expects final reported results to reflect the following:
Combined Absolute DDS and Consumer revenue of $21.0 - $21.4 million, representing a year-over-year increase of approximately 4%
Total revenue (including Absolute Manage and Absolute Service) of $23.7 - $24.1 million, representing a year-over-year increase of approximately 3%
Absolute DDS Commercial Annual Contract Value (ACV) Base was relatively consistent with the beginning of the quarter
Net ACV Retention from existing Absolute DDS customers of 99%
Additions to the Absolute DDS Commercial ACV Base from new Absolute DDS customers increased approximately 14% to approximately $0.65 million compared to $0.55 million in Q1-F2015
Combined Absolute DDS and Consumer Billings of $19.2 - $19.6 million, representing a year-over-year decrease of approximately 17%
Total Billings (including Absolute Manage and Absolute Service) of $21.1 - $21.5 million, representing a year-over-year decrease of approximately 18%
Cash from Operating Activities of $4.5 - $4.9 million compared to $8.7 million in Q1-F2015
Management believes that Q1-F2016 results were affected by sales performance disruptions following the North American sales force reorganization that the Company completed in Q4-F2015. Additionally, the year-over-year decline in Q1-F2016 billings reflected a lower level of contract expirations in the quarter. Contract expirations in the quarter were reflective of Absolute’s lower Q1-F2013 billings, as the Company has a multi-year subscription model with an average three-year term.
“We have made substantial changes to our product strategy and the structure of our sales organization. These changes were thoughtful, and necessary to achieve our long-term growth objectives. Despite the short-term disruption resulting from these changes, revenue was up, our Commercial ACV Base remained intact, additions to the ACV Base from new customers were up, and we continued to deliver strong free cash flow. We remain confident in our growth strategy,” stated Geoff Haydon, Chief Executive Officer, Absolute.
For F2016, the Company continues to expect to grow its Commercial ACV Base, revenue and Billings, as related to Absolute DDS. Cash generated from operating activities, excluding income tax-related items, is expected to decline modestly as compared to F2015.
Extension of Substantial Issuer Bid
Absolute has also extended its Substantial Issuer Bid (the “Offer”) that was previously scheduled to expire at 5:00 p.m. (Eastern Time) on October 5, 2015. The Offer will now expire at 5:00 p.m. (Eastern time) on October 20, 2015, unless it is extended further, and remains subject to the terms and conditions set forth in the offer to purchase, issuer bid circular, letter of transmittal and notice of guaranteed delivery, each dated as of August 26, 2015.
Notice of Conference Call
Absolute will hold a conference call to discuss the Company’s preliminary Q1-F2016 results on Monday, October 5, 2015 at 10:00 a.m. ET. All interested parties can join the call by dialing 647-427-7450, or 1-888-231-8191. Please dial-in 15 minutes prior to the call to secure a line. The conference call will be archived for replay until Monday, October 12, 2015 at midnight. To access the archived conference call, please dial 416-849-0833, or 1-855-859-2056 and enter the reservation code 55155680.
A live audio webcast of the conference call will be available at www.absolute.com and http://bit.ly/1OftyVt. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available on the Company’s website for 90 days.
This press release is neither an offer to purchase nor a solicitation of an offer to sell any common shares of the Company. The solicitation and the offer to purchase Shares by Absolute are being made pursuant to the offer to purchase, issuer bid circular, letter of transmittal and notice of guaranteed delivery that Absolute has filed with the Canadian securities regulatory authorities and that Absolute has distributed to its shareholders, copies of which are available on SEDAR at www.sedar.com. These documents contain important information about the Offer and shareholders of Absolute are urged to read them carefully.
Absolute empowers more than 12,000 customers worldwide to protect devices, data, applications, and users against theft or attack — both on and off the corporate network. With the industry’s only tamper-proof endpoint visibility and control solution, Absolute allows IT organizations to enforce asset management, security hygiene, and data compliance for today’s remote digital workforces. Absolute’s patented Persistence®technology is embedded in the firmware of Dell, HP, Lenovo, and 22 other leading manufacturers’ devices for vendor-agnostic coverage, tamper-proof resilience, and ease of deployment. See how it works atwww.absolute.comand follow us at@absolutecorp.