Friday, July 01, 2005
BakBone Software: 8-Ks and such
May, 3, 2005: More delays. Some results: $19.5 million cash. Free cash flow (from ops) positive for all of 2005. 1000 new global customers.
- In Pac Rim: Ministry of Land Resources (China) and Shell Malaysia and Brunei (SE Asia), State Warehousing and Distribution (Australia), Sasken (India), Ministry of Constructions and Transportations (Korea), Toppan Printing, Sumitomo Trading and Hitachi Joho, a subsidiary of Hitachi IT Systems (Japan)
- In North America (NA): Whole Foods Markets, AZ Biltmore, Tradeware, Mind Institute, Citadel Software, University of Virginia, Americhem, Whitman College, Dark Horse Comics and eHealth
- In Europe, Middle East, Africa (EMEA): Christian Dior, Versatel, Enertel, Takeda Pharma GmbH Aachen, Luftfahrtgesellschaft Airlines GmbH, the best known airlines in Germany after Lufthansa Airlines which is already a NetVault customer
New support for Mac Tiger OS.
NetVault 7.4 due in Q4 05.
They want to get re-listed.
Feb 11, 2005: delisted!
Jan 31, 2005:
First, coming into an organization that had recently restated prior financial statements, changed its independent audit firm, and continues to face delays in its financial reporting has been a challenge, but not an insurmountable one. As a result of these delays, some shareholders, customers and especially competitors have questioned the viability of our business and our growth prospects.$19.2 million in cash, no debt, positive cash flow from ops so far.
- In Pac Rim : Daum Communications Corp., Korea’s largest Internet provider, Tokyo University, Mitsubishi Electronics, SONY Computer Entertainment, Oil and Gas Corp of India, China DongGuan Government Information Center, Coca Cola, ABN AMRO Morgan, and the State Bank of Vietnam
- In North America (NA) : Primus, Texas A&M University, North Texas Tollway Authority, Plexus Corp., Coram Healthcare, and the City of Durham
- In Europe, Middle East, Africa (EMEA) : Shell Oil in both the NA and EMEA regions, Trinity Mirror Group, Tupperware, Ricoh Germany, Hannover Leasing, and Brighton University
- 25 percent of the total value of new bookings in NA was derived from repeat customers with 75 percent coming from new customers – this compares to 10 percent from repeat customers and 90 percent from new customers just one year ago – a clear indicator that current customers are continuing to buy BakBone products. Specific to the competitive landscape in NA, the majority of all transactions continue to be Veritas replacements.
- Our operating system breakdown for bookings in the US and EMEA regions reflect Microsoft at 55-60 percent, Linux at 30-35 percent, Unix at 5-10 percent, with the balance representing other operating systems.
- BakBone continues to be an industry leader in the worldwide backup and recovery for Linux deployments with a market share of 79 percent in Japan, according to Techno Systems Research. With its announcement of support for Novell’s SUSE Linux Enterprise Server 9, BakBone continues to embrace a first-to-market approach to operating system and platform support. Today, NetVault currently supports more Linux distributions (12 worldwide) and architectures (x86, Opteron x86-64 extended systems, IBM Power PC4 and OpenPower) than any of our competition.
- We announced strategic product relationships with both IBM and Sun Microsystems moving us closer to building stronger ties to tier one hardware players. Additional announcements with Snap Appliance/Adaptec and Network Appliance continue to reinforce our strength in network attached storage (NAS) environments.
- the Company is doing additional analysis to review and determine the fair value of the various software components it sells and the allocation of discounts given to individual customers. This analysis must be completed prior to finalizing the revenue recognition review specific to these two areas. We are making progress with this analytical study, albeit extremely time and labor-intensive, which potentially may include thousands of transactions on a global basis. Once this analysis is complete, the results will be provided to our independent auditors for their review.
Dec 23, 2004: Re-statement! The pf stock conversion benefit was calculated wrong, among other problems.
The beneficial conversion feature amount should be calculated based on the difference between the conversion price of the Preferred Stock and the fair value of the common stock into which the Preferred Stock is convertible (the “Intrinsic Value”)....Terrible. And there's never just one cochroach.
The amount of the beneficial conversion feature should have been determined based on the date the Company received shareholder approval for the issuance of the Preferred Stock (the “Measurement Date”), as opposed to the date the Company formally entered into the Preferred Stock financing arrangement with the preferred shareholder. In addition, the amount of the beneficial conversion feature should be based on the Intrinsic Value on the Measurement Date, as opposed to basing the amount on an allocation method that effectively allocated the Intrinsic Value between the Preferred Stock and the underlying beneficial conversion feature. The original beneficial conversion feature amount calculated and recorded by the Company was approximately $7.2 million. The Company estimates that the corrected calculation will result in an amount of approximately $13.6 million.
On December 17, 2004, KPMG advised the Company it believes that revenue recognized during the first fiscal quarter ended June 30, 2004, the final quarter reviewed by KPMG in its capacity as the Company’s independent auditor, was recorded in error.
...related to a single end user contract and was recognized upon the execution of a contract amendment with the end user customer in April 2004. KPMG has advised the Company that it believes the related amount should have been recorded in deferred revenue on the Company’s balance sheet as of June 30, 2004. The Company has not completed its assessment of the revenue recognition on the related amount which is estimated to not exceed $500,000.
Dec 10, 2005: Delisted in Canada!
Nov 2, 2005: "Resignation"
Effective as of October 31, 2004, Keith Rickard resigned as our President and Chief Executive Officer....Don't let the door hit you on the way out.
Jim Johnson is now in charge.
Mr. Johnson was most recently chief technology officer of SoftBrands, Inc., and president of SoftBrands, Inc. Hospitality Group, a privately held software company specializing in the hospitality and manufacturing markets. Prior to joining SoftBrands in 2001, Mr. Johnson was senior vice president of Sterling Commerce, Inc., a former NYSE-listed company specializing in electronic commerce software and services that was acquired by SBC. Mr. Johnson was also the president of the Asia Pacific Group of Sterling Commerce. Mr. Johnson also held numerous senior positions with Sterling Software, Inc. prior to its acquisition by Computer Associates, including senior vice president, president of the Asia Pacific Group, executive vice president of business development, and president of Sterling’s Softlabs Division.Oct 25, 2004: Deloitte and Touche are the new auditors.
Oct 12, 2004: KPMG resigned as auditors, giving no reason.
We were previously principal accountants for BakBone Software, Inc. and, under the date of June 25, 2004, we reported on the consolidated financial statements of BakBone Software, Inc. as of and for the years ended March 31, 2004, and 2003. On October 5, 2004, we resigned. We have read BakBone Software, Inc.’s statements included under Item 4.01 of its Form 8-K dated October 12, 2004, and we agree with such statements, except we are not in a position to agree or disagree with the Company’s statements made in the penultimate paragraph or the attached Exhibit 99.1 [the press release from BakBone].Aug 31, 2004: Errors in financial statements for 2002 and 2003! Restated 10-K
These financial statements did not properly reflect the treatment of certain revenue recognition, stock-based compensation charges, and operating expenses relating to a lease liability. Several additional adjustments were also identified.(See next post for the diff between original 10-K and restated version)
UPDATE: 7/5/05: Wow, the stock jumped 15.79% today. What's up with that?