Tuesday, Absolute Software Corp. (ABT.TO), computer theft recovery and data protection solutions provider, reported narrower third quarter loss, as revenues rose 35% year-on-year. Going forward, the company affirmed sales contracts outlook and cash from operations for the full year.
Absolute's third quarter net loss narrowed to C$1.1 million or C$0.02 per share from C$1.3 million or C$0.03 per share in same period last year. Excluding stock-based compensation and restructuring charges, net loss was C$0.6 million, compared to net income of C$0.1 million a year ago.
The company reported operating cash per share of C$0.06 for the quarter, down from C$0.13 in the comparable period last year.
Quarterly revenues rose 35% to C$13.65 million from C$10.12 million in the comparable period last year.
Rob Chase, chief financial officer of Absolute, said, "Performance of our key financial metrics was inline with our expectations for the quarter. While year-over-year results have been impacted by the economic downturn, we continue to invest in the business in order to best position the Company for future growth and to capitalize on the economic rebound when it occurs."
Sales contracts, on reported basis, increased to C$16.9 million in the quarter from C$15.0 million a year ago, while sales contracts in constant currency declined to C$13.6 million from C$15.0 million in previous year.
In constant dollar terms, sales contracts declined 10% for the quarter, compared to the same period last year, due to reduced consumer sales relating to bundle sales with a particular PC OEM partner.
The company noted that despite overall economic conditions, commercial sales were up 9% for the quarter in constant dollar terms compared to the same periods last year.
Absolute's cash from operations for the quarter totaled C$3.1 million, compared to C$6.6 million in the same period last year.
The company's contracted subscription base rose 41% to 4.1 million from 2.9 million at the end of third quarter last year.
Absolute's net loss for the year-to-date period widened to C$18.7 million or C$0.39 per share from C$6.1 million or C$0.13 per share in the comparable period last year, primarily due to a one time C$12.0 million stock-based compensation charge in the second quarter of 2009.
Excluding stock-based compensation and restructuring charges, year-to-date net loss was C$2.6 million, down from C$2.7 million last year.
Operating cash per share for the nine-month period dipped to C$0.31 from C$0.49 in the comparable period a year ago.
Revenue improved 46% to C$38.9 million from C$26.6 million in the corresponding nine-month period last year.
During the year, Absolute repurchased 3.3 million shares for a total of C$10.6 million. After the share repurchases, at March 31, 2009, Absolute's cash, cash equivalents and investments, including long term, were C$67.2 million, compared to C$64.0 million at June 30, 2008.
John Livingston, chairman and chief executive officer, said, "While uncertainty over the economy's direction persists, we believe we are on track to meet our financial guidance for fiscal 2009."
The company reaffirmed its fiscal 2009 sales contracts outlook in the range of C$70 million - C$75 million, and cash from operations of C$16 million - C$18 million.
ABT.TO is trading at C$4.60, down C$0.39 or 7.82%, on a volume of about 309 thousand shares.
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