Absolute announces Normal Course Issuer Bid Application
VANCOUVER, Oct. 9 /CNW/ - Absolute(R) Software Corporation ("Absolute" or
the "Company") (TSX: ABT), announces preliminary financial results for the
first quarter of fiscal year 2009 (Q1-F2009), ended September 30, 2008. The
Company also introduces fiscal 2009 guidance for Sales Contracts(1) and cash
from operations and announces a normal course issuer bid application.
Based on preliminary financial data, Q1-F2009 Sales Contracts are
expected to be in a range of $18-$18.5 million and cash from operations is
expected to be in a range of $8.9-$9.1 million.
"The unprecedented turbulence in global markets during the past month has
created broad economic uncertainty which in turn led to an abrupt and
unforeseen impact on our business at the end of Q1," said John Livingston,
Chairman and CEO of Absolute. "With a significant portion of our Sales
Contracts typically coming in the last two weeks of a quarter, volatile market
activity in September resulted in a number of large deals being put on hold at
the end of the period. While we believe that a good portion of this business
may still be won during the current fiscal year, these developments had a
negative and material impact on our first quarter Sales Contracts."
Mr. Livingston added: "In an effort to provide greater visibility into
our outlook for fiscal 2009, we are taking this opportunity to issue Sales
Contract and cash flow guidance for the fiscal year. Based on the current
economic environment, we are taking a cautious approach to our forecasts. For
fiscal 2009 we are expecting Sales Contracts in the range of $82-$90 million,
and cash from operations in the range of $27-$33 million, reflecting Cash
Margins(1) of 33-37%, down from our prior range of 35-40%. We will no longer
provide guidance on subscription and Cash Margin targets, but will continue to
report these numbers on a quarterly basis."
Mr. Livingston continued: "While we are disappointed to report Q1 Sales
Contracts below both our and the market's expectations, we believe that the
fundamental condition of our business and finances, and the caliber of our
leadership team are as strong as they have ever been. The breadth, maturity
and stability of our strategic partnerships, customer base, patented
technology and service offerings make us the leader in the growing computer
and data security services market at a time when we believe significant
opportunities for further market penetration exist. Our balance sheet has more
than $70 million in cash and investments and we have no debt, which combined
with our strong cash flow margins gives us a solid foundation to manage
through this challenging environment and to execute on our growth plan."
Absolute will report its complete first quarter fiscal 2009 results on
November 4, 2008.
Absolute will hold a brief webcast and conference call to discuss its
preliminary results at 1:30 pm Pacific Time today, October 9, 2008. The
dial-in numbers for participants are 416-644-3418 or 1-800-732-0232. A taped
replay will be available until October 16, 2008. To access the archived
conference call, please dial 416-640-1917 or 1-877-289-8525 and enter the
reservation code 21285835 followed by the number sign.
A live audio webcast will be available at www.absolute.com and
Normal Course Issuer Bid Application:
Absolute also announces that its Board of Directors has approved
submission of an application for a normal course issuer bid under which
Absolute may acquire up to 4,145,512 million of its common shares (equal to
10% of its public float) over the next year.
The normal course issuer bid requires approval of the Toronto Stock
Exchange (TSX). If approved, any purchases would be made on the open market
through the facilities of the TSX in accordance with regulatory requirements.
Absolute would cancel any common shares purchased pursuant to the normal
course issuer bid.
(1) Absolute refers to "Sales Contracts" (invoiced sales or bookings in
the period) as a revenue measure, and "Cash from Operations" and "Cash
Margins" (Cash from Operations divided by Sales Contracts) as a profitability
measures. Sales Contracts and Cash Margins are non-standard measures under
Generally Accepted Accounting Principals ("GAAP"). Absolute considers Sales
Contracts and cash from operations to be key top line performance metrics as
substantially all Sales Contracts in each quarter are deferred on the balance
sheet, while most of the related costs are expensed in that same quarter.
Refer to the Business Model section in our Fiscal 2008 Management Discussion
and Analysis for more details.
About Absolute Software
Absolute Software Corporation (TSX: ABT) is the leader in computer theft
recovery, data protection and Secure Asset Tracking solutions. Absolute
Software provides organizations and consumers with solutions in the areas of
regulatory compliance, data protection and theft recovery. The Company's
Computrace software is embedded in the firmware of computers by global
leaders, including Dell, Fujitsu, Gateway/MPC, General Dynamics Itronix, HP,
Lenovo, Motion, Panasonic and Toshiba, and the Company has reselling
partnerships with these OEMs and others, including Apple. For more information
about Absolute Software and Computrace, visit www.absolute.com.
This press release contains forward-looking statements that involve risks
and uncertainties. These forward-looking statements relate to, among other
things, a continuing, or increased need for our services, the attainment of
certain subscription targets and company performance, products, the ability of
the Company to achieve its Sales Contract and cash from operations guidance
figures, the ability of the Company to successfully execute on its growth
strategies, including attracting new retail partners, the demand for our
products increasing outside of the North American markets, stable currency
valuations, the stabilization of worldwide financial markets, the
stabilization and improvement of the overall global business climate, receipt
of approval from the TSX for the normal course issuer bid, and other
expectations, intentions and plans contained in this press release that are
not historical fact. When used in this press release, the words "plan,"
"expect," "believe," and similar expressions generally identify
forward-looking statements. These statements reflect our current expectations.
They are subject to a number of risks and uncertainties, including, but not
limited to, changes in technology and general market conditions. In light of
the many risks and uncertainties you should understand that we cannot assure
you that the forward-looking statements contained in this press release will
(C) 2008 Absolute Software Corporation. All rights reserved. Computrace,
Secure Asset Tracking and Absolute are registered trademarks of Absolute
Software Corporation. Computrace U.S. patents No. 5,715,174, No. 5,764,892,
No. 5,802,280, No. 5,896,497, No. 6,244,758, No. 6,269,392, No. 6,300,863, and
No. 6,507,914, Canadian patents No. 2,284,806 and No. 2,205,370, U.K. patents
No. EP793823 and No. GB2338101, German patent No. 695 125 34.6-08, Australian
patent No. 699045, and Japan patent No. JP4067035. The Toronto Stock Exchange
has neither approved nor disapproved of the information contained in this news
For further information:
For further information: John Livingston, Chief Executive Officer,
(email@example.com) or Phone: (604) 730-9851; Rob Chase, Chief Financial
Officer, (firstname.lastname@example.org) or Phone: (604) 730-9851; Dave Mason, Investor
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