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Absolute Reports Fiscal 2018 Fourth Quarter and Annual Financial Results - F2018 Revenue Rises to $93.6 Million (U.S.)
Tuesday, August 14, 2018Company Profile | Follow Company
Reports 12% Growth in Enterprise ACV Base(1) and 13% Q4 Adjusted EBITDA(2) Margin
Vancouver, BC, August 14, 2018--(T-Net)--Absolute (TSX: ABT), an endpoint visibility and control company, today announced financial results for the three months and fiscal year ended June 30, 2018. All dollar figures are unaudited and stated in U.S. dollars, unless otherwise indicated.
"Our fourth-quarter performance was highlighted by continued momentum within our Enterprise sales teams, including particularly strong performances in the healthcare, financial services and professional services verticals," said Steve Munford, interim chief executive officer at Absolute.
"Moving into our new fiscal year, we expect to increase our emphasis on these verticals while leveraging our strong OEM channel relationships to drive new customer acquisition opportunities. Incremental investments in these focus areas will be funded within our existing cost structure, meaning continued operating margin expansion as our top line continues to grow."
Key Financial Metrics
Products and Organizational Developments
Summary of Key Financial Metrics
F2019 Corporate Outlook
The Company's outlook for F2019 is as follows:
Quarterly Dividend
On July 23, 2018, the Company declared a quarterly dividend of CAD$0.08 per share on its common shares, payable in cash on August 23, 2018, to shareholders of record at the close of business on August 2, 2018.
Quarterly Filings
Management's Discussion and Analysis (MD&A) and Consolidated Financial Statements and the notes thereto for the fiscal year ended June 30, 2018 can be obtained today from Absolute's corporate website at www.absolute.com. The documents will also be available at www.sedar.com.
About Absolute
Absolute provides visibility and resilience for every endpoint with self-healing endpoint security and always-connected IT asset management to protect devices, data, applications and users — on and off the network. Bridging the gap between security and IT operations, only Absolute gives enterprises visibility they can act on to protect every endpoint, remediate vulnerabilities, and ensure compliance in the face of insider and external threats. Absolute's patented Persistence technology is already embedded in the firmware of PC and mobile devices and trusted by over 12,000 customers worldwide. For the latest information, visit www.absolute.com and follow us at @absolutecorp.
Contact:
Media and Analyst Relations
Darah Patton, InkHouse
absolute@inkhouse.com or 1 317 695 5630
Investor Relations
Joo-Hun Kim, MKR Group
joohunkim@mkrir.com or 1 212 868 6760
ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Financial Position
(Expressed in United States dollars) (Unaudited)
ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Operations and Comprehensive Income (Loss)
Three months and year ended June 30, 2018 and 2017
(Expressed in United States dollars) (Unaudited)
ABSOLUTE SOFTWARE CORPORATION
Condensed Consolidated Statement of Changes in Shareholders' Deficiency
(Expressed in United States dollars) (Unaudited)
ABSOLUTE SOFTWARE CORPORATION
Condensed Consolidated Statements of Cash Flows
Three months and year ended June 30, 2018 and 2017
(Expressed in United States dollars) (Unaudited)
Non-IFRS Measures and Definitions
Throughout this press release, the Company refers to a number of measures that the Company believes are meaningful in the assessment of the Company's performance. All these metrics are nonstandard measures under International Financial Reporting Standards (-IFRS-), and are unlikely to be comparable to similarly titled measures reported by other companies. Readers are cautioned that the disclosure of these items is meant to add to, and not replace, the discussion of financial results or cash flows from operations as determined in accordance with IFRS. For a discussion of the purpose of these non-IFRS measures, please refer to the Company's June 30, 2018 MD&A on SEDAR at www.sedar.com.
These measures, as well as their method of calculation or reconciliation to IFRS measures, are as follows:
Commercial ACV Base measures the amount of recurring annual revenue Absolute will receive from its commercial customers under contract at a point in time, and therefore is an indicator of the Company's future revenue streams. Net ACV Retention measures the percentage increase or decrease in the Commercial ACV Base at the end of a period for the customers that made up the Commercial ACV Base at the beginning of the same period. This metric provides insight into the effectiveness of Absolute's customer retention and expansion functions. ACV from New Customers measures the addition to the Commercial ACV Base from sales to new commercial customers during the quarter.
We believe that increases in the amount of ACV from New Customers, and improvement in the Company's Net ACV Retention, will grow our Commercial ACV Base and, in turn, our future revenues.
Management believes that analyzing operating results exclusive of significant noncash items or items not controllable in the period provides a useful measure of the Company's performance. The term "Adjusted EBITDA" refers to earnings before deducting interest and investment gains (losses), income taxes, amortization of acquired intangible assets and property and equipment, foreign exchange gain or loss, share-based compensation, and restructuring and reorganization charges and post-retirement benefits. The items excluded in the determination of Adjusted EBITDA are share-based compensation, amortization of acquired intangibles, amortization of property and equipment, and restructuring and reorganization charges and certain post-retirement benefits.A number of significant noncash or nonrecurring expenses are reported in the Company's Cost of Revenue and Operating Expenses. Management believes that analyzing these expenses exclusive of these noncash or nonrecurring items provides a useful measure of the cash invested in the operations of its business. The items excluded in the determination of Adjusted Operating Expenses are share-based compensation, amortization of acquired intangible assets, amortization of property and equipment, and restructuring and reorganization charges and certain post-retirement benefits. For a description of the reasons these items are adjusted, please refer to the "Non-IFRS Measures" section of the June 30, 2018, MD&A.Forward-Looking Statements
This press release contains forward-looking statements and financial outlook that involve risks and uncertainties. These forward-looking statements and financial outlook relate to, among other things, the expected performance, functionality and availability of our services and products, and other expectations, intentions and plans contained in this press release that are not historical facts. 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 and financial outlook contained in this press release will be realized. Furthermore, the forward-looking statements and financial outlook contained in this press release are made as at the date hereof and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements or financial outlook, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.
©2018 Absolute Software Corporation. All rights reserved. Absolute and Persistence are registered trademarks of Absolute Software Corporation. For patent information, visit www.absolute.com/patents. The Toronto Stock Exchange has neither approved nor disapproved of the information contained in this news release.
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