BakBone Software Reports Fourth Quarter and Full Year Fiscal 2009 Financial Results.

Fourth Quarter Bookings of $13.9 Million; Conference Call Today at 2:00 p.m. PT

SAN DIEGO -- BakBone Software, Incorporated (OTCBB: BKBO), a leading provider of Universal Data Management solutions, today announced its financial results for the fourth quarter and full fiscal year ended March 31, 2009.

Fourth Quarter Fiscal 2009 Financial Highlights include:

GAAP Revenues               <  <  <


$14.4 million













Net Loss                    <  <  <


($0.9) million













Net Loss per Share          <  <  <


($0.01)













Total Bookings              <  <  <


$13.9 million













Non-GAAP Operating Income1  <  <  <


$0.9 million

"Our fiscal fourth quarter financial results represented a solid finish to a very productive year for BakBone," said Jim Johnson, president and CEO, BakBone. "We completed several long-standing corporate priorities, including bringing our financial filings current and working with Canadian regulators to lift the cease trade orders so that our Canadian shareholders can once again trade their shares. We continued to implement new product enhancements and features, which allowed the Company to finish the year with $57.7 million in bookings and to generate GAAP revenue growth of 10% for the fiscal year.

"Our team is working hard to capitalize on opportunities throughout the world for our core product lines as we execute our growth strategy. Our recent acquisitions are part of our overall goal to increase our product portfolio and our industry presence. The ColdSpark acquisition enables us to enter the rapidly growing enterprise message management market with a unique set of technologies that help customers manage and control their e-mail and messaging environments based upon pre-defined policies. Corporate e-mail continues to be the most used system in many companies, accounting for more than 50% of network traffic in many environments, and this creates numerous compliance and data security challenges that companies need to address when leveraging these systems. The technology acquired from Asempra expands our disk-based, real-time data protection capabilities for Microsoft Exchange, SQL Server and Windows file servers, and minimizes the amount of time customers spend on recovering lost data. We recently launched NetVault: FASTRecover, the BakBone solution based on certain technologies acquired from Asempra. Through these acquisitions and our emergence as a leader in Universal Data Management, we are expanding our market opportunities, and we expect to begin to demonstrate our growth potential in the latter part of this fiscal year. At this point, we currently expect to generate approximately $62 to $64 million in bookings for fiscal 2010," concluded Johnson.

Financial Results

For the quarter ended March 31, 2009, total revenue, which consists of software revenue and maintenance and professional services revenue, increased 5% to $14.4 million from $13.7 million in the fourth quarter of fiscal year 2008. The operating loss was $0.3 million in the fourth quarter of fiscal year 2009 and included a $1.2 million charge for the negotiated settlement of an overpayment of royalties from an OEM customer. The adjusted non-GAAP operating income of $0.9 million in the fourth quarter of fiscal 2009 compares favorably to the $2.1 million operating loss in the fourth quarter of fiscal year 2008. The GAAP net loss totaled $0.9 million, or ($0.01) per share, in the fourth quarter of fiscal year 2009 compared with a net loss of $1.2 million or ($0.02) per share, in the fourth quarter of fiscal year 2008.

Cash provided from operating activities was $1.5 million in the fiscal year ended March 31, 2009, an improvement of $2.5 million from fiscal 2008. Total cash at March 31, 2009, totaled $8.7 million, an increase of approximately $0.9 million from December 31, 2008, relating primarily to the increase in operating income. The $1.2 million general and administrative expense charge related to the negotiated settlement is reflected at the net present value of the cash offsets due over the next three years from future customer royalty revenues.

For the fiscal year ended March 31, 2009, revenue totaled $56.0 million as compared with $50.9 million for the fiscal year ended March 31, 2008. Net loss totaled $5.5 million, or ($0.08) per share, for the fiscal year ended March 31, 2009, compared with a net loss of $8.1 million or ($0.13) per share, for the fiscal year ended March 31, 2008.

1Use of Non-GAAP Financial Measures

Certain of the information set forth herein, including non-GAAP operating income, may be considered non-GAAP financial measures. BakBone believes this information is useful to investors because it provides a basis for measuring BakBone's available capital resources, the operating performance of BakBone's business and BakBone's cash flow, excluding the negotiated settlement of an overpayment of royalties from an OEM customer that would normally be included in the most directly comparable measures calculated and presented in accordance with Generally Accepted Accounting Principles. BakBone's management uses these non-GAAP financial measures along with the most directly comparable GAAP financial measures in evaluating BakBone's operating performance, capital resources and cash flow. Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by BakBone may not be comparable to similarly titled amounts reported by other companies.

Conference Call Information

The Company has scheduled a conference call for June 23, 2009 at 2:00 p.m. PT to discuss the results for the quarter ended March 31, 2009. The call will be hosted by Jim Johnson, CEO of BakBone and Steve Martin, CFO of BakBone.

To access the conference call, please dial 800-854-3238; internationally, dial 706-634-9547 (Passcode: 14172008). This call will also be webcast and can be accessed at www.bakbone.com by clicking on "Company Info" and then "Investor Relations." The webcast is also being distributed through the Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson's individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password-protected event management site.

About BakBone Software

BakBone Software is the leader in Universal Data Management. This provides a data-centric approach to integrating data protection, centralizing policy management and managing organizations' messaging infrastructure to optimize performance, increase data availability and improve corporate compliance. Learn more about BakBone's Universal Data Management vision at www.bakbone.com or email [e-mail].

Safe Harbor

This press release contains forward-looking statements including, without limitation, statements regarding anticipated revenue growth and market developments that involve risks, uncertainties, assumptions and other factors, which, if they do not materialize or prove correct, could cause BakBone's results to differ materially from historical results, or those expressed or implied by such forward-looking statements. The potential risks and uncertainties may include, but are not limited to: risks that the anticipated benefits of the acquisitions will not be achieved; risks that the identified pipeline will not result in anticipated revenues and bookings; risks that the integrations will take longer, cost more or result in more management distraction than anticipated; risks that future resale of the shares issued in the acquisitions will have an adverse impact on the trading price of the BakBone common shares; the deteriorating economic and market conditions that could lead to reduced spending on information technology products; competition in our target markets; potential capital needs; management of future growth and expansion; the development, implementation and execution of the Company's Universal Data Management strategic vision; risk of third-party claims of infringement; protection of proprietary information; customer acceptance of the Company's existing and newly introduced products and fee structures; and the success of BakBone's brand development efforts; risks associated with strategic alliances; reliance on distribution channels; product concentration; need to develop new and enhanced products; potential product defects; our ability to hire and retain qualified employees and key management personnel; and risks associated with changes in domestic and international market conditions and the entry into and development of international markets for the Company's products. Our forward-looking statements should be considered in the context of these and other risk factors disclosed in our most recent report filed with the Securities and Exchange Commission, which may be found at www.sec.gov, as well as those risk factors disclosed in our current report filed with the relevant Canadian securities regulators, which is available on SEDAR at www.sedar.com. All future written and oral forward-looking statements made by us or on our behalf are also subject to these factors. BakBone assumes no obligation to update any forward-looking statement to reflect events or circumstances arising after the date on which it was made, other than as required under applicable securities laws.

BakBone[R], BakBone Software[R], NetVault[R], Application Plugin Module[TM], BakBone logo[R], Integrated Data Protection[TM], NetVault: SmartDisk[TM], Asempra[R], FASTRecover, ColdSpark[R] and Spark Engine are all trademarks or registered trademarks of BakBone Software, Inc., in the United States and/or in other countries. All other brands, products or service names are or may be trademarks, registered trademarks or service marks of, and used to identify, products or services of their respective owners.

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