Keynote Systems (Nasdaq:KEYN), the global leader in on-demand mobile and Internet test & measurement solutions for continuously improving the online experience, reported financial results for its fiscal first quarter ended December 31, 2008.
Umang Gupta, chairman and CEO of Keynote, said: “We kicked off 2009 with a strong first quarter, exceeding our revenue and earnings expectations and generating positive operating and free cash flows. Our business did well across the board – in both Mobile and Internet products. This was due primarily to the fact that we had the best quarter in our history for load testing engagements during this holiday season and Keynote SIGOS had a better than expected December resulting in its highest annual bookings to date in calendar 2008.”
First Quarter 2009 Financial Summary
Revenue for the first quarter of fiscal year 2009 was $20.6 million, up from $17.7 million in the first quarter of fiscal year 2008. Under generally accepted accounting principles (GAAP), net income for the first quarter of fiscal year 2009 was $886,000, or $0.06 per diluted share, reflecting top-line growth and better operating efficiencies. This compares to a net loss of $744,000, or $0.04 per share, for the first quarter of fiscal year 2008. The non-GAAP net income for the first quarter of fiscal year 2009 was $2.6 million, or $0.18 per diluted share, compared to $1.1 million, or $0.06 per diluted share, for the first quarter of fiscal year 2008. The Company defines non-GAAP net income as net income adjusted for provision for income tax, stock-based compensation expense, and amortization of purchased intangibles less cash taxes from on-going operations. Non-GAAP net income per share equals non-GAAP net income divided by the diluted weighted average shares outstanding for the period.
Management also believes the non-GAAP figure of earnings before interest, taxes, depreciation and amortization (EBITDA) provides a useful measure of operations. EBITDA for the first quarter of fiscal year 2009 was $3.6 million, or 17% of revenue, compared to $1.5 million, or 8% of revenue, for the first quarter of fiscal year 2008.
Cash Flow and Deferred Revenue Summary
In the first quarter of fiscal year 2009, cash provided by operating activities was $2.0 million, compared to $330,000 in the first quarter of fiscal year 2008. Cash used for purchases of property, equipment and software totaled $661,000 for the first quarter of fiscal year 2009, compared to $1.4 million for the first quarter of fiscal year 2008. Keynote defines free cash flow as cash flow from operations less cash used for purchases of property, equipment, and software and acquired technology. The Company generated free cash flow of $1.4 million, compared to first quarter of fiscal year 2008 in which the Company used $1.0 million of free cash flow. At December 31, 2008, Keynote had $50.9 million in total cash, cash equivalents and short-term investments.
Keynote’s net deferred revenue was $19.8 million at December 31, 2008, compared to $22.3 million at December 31, 2007. Keynote’s gross deferred revenue, defined as the sum of net deferred revenue and unpaid deferred revenue, was $27.6 million at December 31, 2008, compared to $28.8 million at December 31, 2007.
The total shares outstanding, net of treasury shares, at December 31, 2008 was 14.2 million, compared to 17.8 million at December 31, 2007.
Operational Metrics Summary
As of December 31, 2008, Keynote’s total worldwide customer base was approximately 2,800 companies. Keynote currently provides its services to 46 percent of the comScore Media Metrix’s top 50 Web sites and approximately 45 percent of the Fortune 100 companies. As of December 31, 2008, Keynote measured approximately 15,000 Internet pages, as compared to 11,840 Internet pages in the same quarter a year ago.
Expectations for the Second Quarter of Fiscal Year 2009
The statements in this section of this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Keynote currently expects the following for the second fiscal quarter ending March 31, 2009:
- Total revenue is expected to be between $19.0 million and $19.5 million.
- GAAP earnings (loss) per share are expected to be between ($0.02) and $0.02.
- Non-GAAP earnings per share are expected to be between $0.10 and $0.13.
The above guidance was based on the following assumptions. Foreign exchange rates do not change materially. Total stock-based compensation expense and amortization of intangible assets is currently expected to be approximately $1.5 million. Depreciation is expected to be approximately $1.5 million. Interest income, net is expected to be approximately $300,000, assuming no material changes in interest rates and currently planned uses of cash. Cash paid for income taxes from on-going operations is expected to be approximately $50,000. In addition, we expect to make a special cash tax payment of approximately $4.0 million to the German authorities for taxes associated with prior operations and with IP migration that was previously recognized through the fiscal year 2008 provision for income taxes. Basic weighted average shares outstanding are expected to be approximately 14.2 million shares and diluted weighted average shares outstanding are expected to be approximately 14.3 million shares, assuming no additional issuances of equity or equity-related securities and significant changes in the Company’s stock price.
Conference Call
Keynote will host a conference call and simultaneous webcast at 2:00 pm (PST) today, January 27, 2009. To access the call in the U.S., please dial (866) 271-6228; international callers please dial (706) 679-4457, approximately 10 minutes prior to the start of the conference call. The webcast of the call will be available at the investor section of the Company’s web site at www.keynote.com. The replay will be available after the call by telephone by dialing (800) 642-1687 in the U.S. and (706) 645-9291 internationally; the pass code is 80489465. The webcast is at the investor section of the Company’s web site at www.keynote.com.
Forward-Looking Statements
This press release contains forward-looking statements that are not purely historical regarding the Company or management’s intentions, hopes, beliefs, expectations and strategies for the future. Because such statements deal with future events, they are subject to various risks and uncertainties, and actual results could differ materially from the Company’s current expectations.
Forward-looking statements in this release include, but are not limited to, forecasts concerning Keynote’s expected revenue, GAAP and Non-GAAP earnings per share, and the related underlying assumptions in calculating those amounts, future acquisitions and other future financial results. It is important to note that actual outcomes and Keynote’s actual results could differ materially from those in such forward-looking statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the uncertain impact that the current global economic recession will have on Keynote’s business or the businesses of current or potential customers, Keynote’s ability to successfully market and sell its current services to new or existing customers, Keynote’s ability to develop and introduce new services in a timely manner and customer acceptance of new services, the extent to which demand for Keynote’s various services fluctuates and the extent to which revenue from other service lines can increase, the extent to which existing customers renew their subscriptions and purchase additional services, particularly enterprise customers, Keynote’s ability to attract and retain new customers, Keynote’s ability to operate SIGOS and its other international operations and manage related costs successfully, Keynote’s ability to retain key employees, pricing pressure with respect to Keynote’s services, Keynote’s ability to increase sales of its other services, unforeseen expenses, competition in Keynote’s markets, costs associated with any future acquisitions, the effect of acquisitions by competitors in Keynote’s target markets, Keynote’s ability to keep pace with changes in the mobile and Internet infrastructure as well as other technological changes, and the success of Keynote’s international operations. Readers should also refer to the risks outlined in Keynote’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for its fiscal year ended September 30, 2008, and its quarterly reports on Form 10-Q and any current reports on Form 8-K filed during the fiscal year.
All forward-looking statements and reasons why results might differ included in this release are made as of the date of this press release, based on information available to Keynote as of the date of this press release, and Keynote assumes no obligation to update any such forward-looking statement or reasons why results might differ.
Non-GAAP Measures
This press release includes information on Non-GAAP net income, Non-GAAP net earnings per share, EBITDA, free cash flow and gross deferred revenues. These measures are not based on any standardized methodology prescribed by U.S. generally accepted accounting principles (“GAAP”) and are not necessarily comparable to similar measures presented by other companies. Non-GAAP net income is calculated by adjusting GAAP net income for provision for income taxes less cash taxes from on-going operations, stock-based compensation expense and amortization of purchased intangibles. Non-GAAP earnings per share are calculated by dividing Non-GAAP net income by the weighted average number of diluted shares outstanding for the period. Free cash flow is defined as cash flow from operations less cash used for purchases of property, equipment, and software. Gross deferred revenue is defined as the sum of net deferred revenue and unpaid deferred revenue. EBITDA is defined as earnings before interest, taxes, depreciation and amortization. These measures should not be considered in isolation or as a substitute for measures prepared in accordance with GAAP, and because these amounts are not determined in accordance with GAAP, they should not be used exclusively in evaluating the Company’s business and operations. Because the Company has made a number of acquisitions in the past, as well as because of the effect of SFAS 123(R), the Company’s financial statements have changed significantly from prior periods. Accordingly, the Company believes that this non-GAAP information is useful as an additional means for investors to evaluate the Company’s operating performance, when reviewed in conjunction with the Company’s GAAP financial statements. Management also reviews this information as an additional means for measuring the performance of the Company. The Company compensates for these limitations by realizing that these amounts are not determined in accordance with GAAP and therefore, should not be used exclusively in evaluating its business and operations.
About Keynote
About Keynote
Keynote Systems (Nasdaq “KEYN”) is the global leader in on-demand test & measurement solutions for continuously improving the online experience. For over a decade, Keynote has been providing measurement data and testing capabilities that allow companies to understand and improve their customers’ online and mobile experience. Keynote has four test and measurement businesses: Web performance, mobile quality, streaming & VoIP, and customer experience/UX.
Known as The Mobile and Internet Performance Authority™, Keynote has a market-leading infrastructure of 2,600 measurement computers and mobile devices in over 240 locations around the world. Keynote’s 2,800 customers represent top Internet and mobile companies including American Express, Dell, Disney, eBay, E*TRADE, Expedia, Microsoft, SonyEricsson, Sprint, T-Mobile, Verizon, Vodafone and YouTube.
Keynote Systems, Inc. is headquartered in San Mateo, California and can be reached at www.keynote.com or by phone in the U.S. at 1-800-KEYNOTE.
Keynote, The Internet Performance Authority, Perspective and WebEffective are registered trademarks and The Mobile and Internet Performance Authority and True Experience are trademarks of Keynote Systems, Inc. Other trademarks are the property of their respective owners. © 2009 Keynote Systems, Inc.
| Keynote Systems, Inc. and Subsidiaries | ||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||
| (In thousands, except per share data) | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three months ended | ||||||||||||||
| Dec 31 | Sep 30 | Dec 31 | ||||||||||||
| 2008 | 2008 | 2007 | ||||||||||||
| Net revenue: | ||||||||||||||
| Subscription services | $ | 11,473 | $ | 11,909 | $ | 10,872 | ||||||||
| Ratable licenses | 6,043 | 6,787 | 4,002 | |||||||||||
| Professional services | 3,121 | 2,360 | 2,846 | |||||||||||
| Total revenue, net | 20,637 | 21,056 | 17,720 | |||||||||||
| Costs and expenses: | ||||||||||||||
| Costs of revenue: | ||||||||||||||
| Direct costs of subscription services | 2,256 | 1,753 | 2,111 | |||||||||||
| Direct costs of ratable licenses | 1,488 | 2,318 | 1,603 | |||||||||||
| Direct costs of professional services | 1,678 | 1,752 | 1,805 | |||||||||||
| Operations | 2,162 | 2,279 | 2,003 | |||||||||||
| Development | 3,083 | 3,083 | 3,133 | |||||||||||
| Amortization of intangible assets - software | 288 | 303 | 205 | |||||||||||
| Total costs of revenue | 10,955 | 11,488 | 10,860 | |||||||||||
| Sales and marketing | 6,180 | 6,712 | 5,767 | |||||||||||
| General and administrative | 2,820 | 2,320 | 2,487 | |||||||||||
| Excess occupancy income, net | (220 | ) | (323 | ) | (281 | ) | ||||||||
| Amortization of intangible assets - other | 269 | 501 | 537 | |||||||||||
| Total costs and expenses | 20,004 | 20,698 | 19,370 | |||||||||||
| Income (loss) from operations | 633 | 358 | (1,650 | ) | ||||||||||
| Interest income (expense) and other, net | 673 | (384 | ) | 1,150 | ||||||||||
| Income (loss) before provision for income taxes | 1,306 | (26 | ) | (500 | ) | |||||||||
| Provision for income taxes | (420 | ) | (605 | ) | (244 | ) | ||||||||
| Net income (loss) | $ | 886 | $ | (631 | ) | $ | (744 | ) | ||||||
| Net income (loss) per share: | ||||||||||||||
| Basic | $ | 0.06 | $ | (0.05 | ) | $ | (0.04 | ) | ||||||
| Diluted | $ | 0.06 | $ | (0.05 | ) | $ | (0.04 | ) | ||||||
| Weighted average common shares outstanding: | ||||||||||||||
| Basic | 14,186 | 13,980 | 18,237 | |||||||||||
| Diluted | 14,302 | 13,980 | 18,237 | |||||||||||
| Keynote Systems, Inc. and Subsidiaries | ||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| December 31, 2008 | September 30, 2008 | |||||||||
| Assets | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 50,759 | $ | 46,769 | ||||||
| Short-term investments | 178 | 2,562 | ||||||||
| Total cash, cash equivalents and short-term investments | 50,937 | 49,331 | ||||||||
| Accounts receivable | 8,528 | 7,316 | ||||||||
| Prepaids, deferred costs and other current assets | 2,880 | 2,909 | ||||||||
| Inventories | 1,230 | 1,081 | ||||||||
| Deferred tax assets | 1,029 | 1,042 | ||||||||
| Total current assets | 64,604 | 61,512 | ||||||||
| Deferred costs and other long-term assets | 2,748 | 2,788 | ||||||||
| Property and equipment, net | 35,634 | 36,405 | ||||||||
| Goodwill | 64,195 | 64,396 | ||||||||
| Identifiable intangible assets, net | 7,834 | 8,430 | ||||||||
| Deferred tax assets | 1,936 | 2,146 | ||||||||
| Total assets | $ | 176,951 | $ | 175,844 | ||||||
| Liabilities and Stockholders' Equity | ||||||||||
| Current liabilities: | ||||||||||
| Accounts payable | $ | 1,976 | $ | 2,505 | ||||||
| Accrued expenses | 12,800 | 12,767 | ||||||||
| Current portion of capital lease obligation | 14 | 14 | ||||||||
| Notes payable | 255 | 256 | ||||||||
| Deferred revenue | 18,234 | 19,029 | ||||||||
| Total current liabilities | 33,279 | 34,571 | ||||||||
| Long-term portion of capital lease obligation | 13 | 17 | ||||||||
| Deferred rent and other long term liabilities | 2,578 | 2,605 | ||||||||
| Long-term deferred revenue | 1,592 | 904 | ||||||||
| Long-term deferred tax liability | 256 | 236 | ||||||||
| Total liabilities | 37,718 | 38,333 | ||||||||
| Stockholders' equity: | ||||||||||
| Common stock | 14 | 14 | ||||||||
| Additional paid-in capital | 277,115 | 275,316 | ||||||||
| Accumulated deficit | (142,321 | ) | (143,207 | ) | ||||||
| Accumulated other comprehensive income | 4,425 | 5,388 | ||||||||
| Total stockholders' equity | 139,233 | 137,511 | ||||||||
| Total liabilities and stockholders' equity | $ | 176,951 | $ | 175,844 | ||||||
| Keynote Systems, Inc. and Subsidiaries | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||
| (In thousands) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three months ended | ||||||||||||
| Dec 31 | Dec 31 | |||||||||||
| 2008 | 2007 | |||||||||||
| Cash flows from operating activities: | ||||||||||||
| Net income (loss) | $ | 886 | $ | (744 | ) | |||||||
| Adjustments to reconcile net income (loss) to net cash | ||||||||||||
| provided by operating activities: | ||||||||||||
| Depreciation and amortization | 1,991 | 2,029 | ||||||||||
| Stock-based compensation | 1,041 | 1,100 | ||||||||||
| Charges to bad debt and billing adjustment reserves | 137 | 51 | ||||||||||
| Amortization (accretion) of debt investment premium (discount) | 3 | (551 | ) | |||||||||
| Collection of tax credit receivable within deferred tax assets | 181 | - | ||||||||||
| Deferred tax provision | 20 | - | ||||||||||
| Changes in operating assets and liabilities, net | (2,240 | ) | (1,555 | ) | ||||||||
| Net cash provided by operating activities | 2,020 | 330 | ||||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchase of property, equipment and software | (661 | ) | (1,351 | ) | ||||||||
| Payment of acquisition costs for Zandan | (170 | ) | - | |||||||||
| Sales (purchases) of short-term investments, net | 2,380 | 7,528 | ||||||||||
| Net cash provided by (used in) investing activities | 1,549 | 6,177 | ||||||||||
| Cash flows from financing activities: | ||||||||||||
| Payment of capital lease obligations | (4 | ) | (7 | ) | ||||||||
| Repurchase of outstanding common stock | - | (9,815 | ) | |||||||||
| Proceeds from issuance of common stock and exercise of stock options | 752 | 1,595 | ||||||||||
| Net cash provided by (used in) financing activities | 748 | (8,227 | ) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | (327 | ) | 408 | |||||||||
| Net increase (decrease) in cash and cash equivalents | 3,990 | (1,312 | ) | |||||||||
| Cash and cash equivalents at beginning of the period | 46,769 | 42,875 | ||||||||||
| Cash and cash equivalents at end of the period (1) | $ | 50,759 | $ | 41,563 | ||||||||
(1) Excludes $0.2 million and $57.9 million of short-term investments at December 31, 2008 and December 31, 2007, respectively. | ||||||||||||
| Keynote Systems, Inc. and Subsidiaries | ||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | ||||||||||||
| (In thousands, except per share data) | ||||||||||||
| (Unaudited) | ||||||||||||
| Three months ended | ||||||||||||
| Dec 31 | Sep 30 | Dec 31 | ||||||||||
| 2008 | 2008 | 2007 | ||||||||||
| Revenue categories: | ||||||||||||
| Internet Subscriptions | $ | 9,664 | $ | 9,933 | $ | 9,532 | ||||||
| Internet Engagements | 3,121 | 2,360 | 2,846 | |||||||||
| Subtotal Internet Revenue | 12,785 | 12,293 | 12,378 | |||||||||
| Mobile Subscriptions | 1,809 | 1,976 | 1,340 | |||||||||
| Mobile Ratable Licenses | 6,043 | 6,787 | 4,002 | |||||||||
| Subtotal Mobile Revenue | 7,852 | 8,763 | 5,342 | |||||||||
| Total Revenue, Net | $ | 20,637 | $ | 21,056 | $ | 17,720 | ||||||
| Non-GAAP net income and income per share: | ||||||||||||
| GAAP net income (loss) | $ | 886 | $ | (631 | ) | $ | (744 | ) | ||||
| Provision for income taxes | 420 | 605 | 244 | |||||||||
| Stock-based compensation * | 1,042 | 1,171 | 1,100 | |||||||||
| Amortization of intangible assets - other | 269 | 501 | 537 | |||||||||
| Amortization of intangible assets - software | 288 | 303 | 205 | |||||||||
| Non-GAAP income before income tax | 2,905 | 1,949 | 1,342 | |||||||||
| Cash taxes from on-going operations | 294 | 557 | 222 | |||||||||
| Non-GAAP net income | $ | 2,611 | $ | 1,392 | $ | 1,120 | ||||||
| Weighted average common shares outstanding (diluted): | 14,302 | 14,621 | 19,091 | |||||||||
| Non-GAAP income per share | $ | 0.18 | $ | 0.10 | $ | 0.06 | ||||||
| EBITDA: | ||||||||||||
| GAAP net income (loss) | $ | 886 | $ | (631 | ) | $ | (744 | ) | ||||
| Provision for income taxes | 420 | 605 | 244 | |||||||||
| Interest (income) expense and other, net | (673 | ) | 384 | (1,150 | ) | |||||||
| Stock-based compensation * | 1,042 | 1,171 | 1,100 | |||||||||
| Amortization of intangible assets - other | 269 | 501 | 537 | |||||||||
| Amortization of intangible assets - software | 288 | 303 | 205 | |||||||||
| Depreciation | 1,328 | 1,331 | 1,287 | |||||||||
| EBITDA | $ | 3,560 | $ | 3,664 | $ | 1,479 | ||||||
| *Stock-based compensation by category: | ||||||||||||
| Direct costs of ratable licenses | $ | 29 | $ | 63 | $ | 49 | ||||||
| Direct costs of professional services | 80 | 115 | 115 | |||||||||
| Operations | 123 | 163 | 145 | |||||||||
| Development | 230 | 252 | 230 | |||||||||
| Sales and marketing | 365 | 399 | 327 | |||||||||
| General and administrative | 215 | 179 | 234 | |||||||||
| $ | 1,042 | $ | 1,171 | $ | 1,100 | |||||||
| Keynote Systems, Inc. and Subsidiaries | |||||||||||||||
| REVENUE DETAIL | |||||||||||||||
| (In thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
Three months ended | Year ended | ||||||||||||||
Dec 31 | March 31 | June 30 | Sep 30 | Sep 30 | |||||||||||
| FY 2009 | |||||||||||||||
| Internet Subscriptions | $ | 9,664 | $ | - | $ | - | $ | - | $ | 9,664 | |||||
| Internet Engagements | 3,121 | - | - | - | 3,121 | ||||||||||
| Subtotal Internet Revenue | 12,785 | - | - | - | 12,785 | ||||||||||
| Mobile Subscriptions | 1,809 | - | - | - | 1,809 | ||||||||||
| Mobile Ratable Licenses | 6,043 | - | - | - | 6,043 | ||||||||||
| Subtotal Mobile Revenue | 7,852 | - | - | - | 7,852 | ||||||||||
| Total Revenue, Net | $ | 20,637 | $ | - | $ | - | $ | - | $ | 20,637 | |||||
| FY 2008 | |||||||||||||||
| Internet Subscriptions | $ | 9,532 | $ | 9,438 | $ | 9,529 | $ | 9,933 | $ | 38,432 | |||||
| Internet Engagements | 2,846 | 1,937 | 2,631 | 2,360 | 9,774 | ||||||||||
| Subtotal Internet Revenue | 12,378 | 11,375 | 12,160 | 12,293 | 48,206 | ||||||||||
| Mobile Subscriptions | 1,340 | 1,654 | 1,912 | 1,976 | 6,882 | ||||||||||
| Mobile Ratable Licenses | 4,002 | 4,605 | 6,426 | 6,787 | 21,820 | ||||||||||
| Subtotal Mobile Revenue | 5,342 | 6,259 | 8,338 | 8,763 | 28,702 | ||||||||||
| Total Revenue, Net | $ | 17,720 | $ | 17,634 | $ | 20,498 | $ | 21,056 | $ | 76,908 | |||||
| FY 2007 | |||||||||||||||
| Internet Subscriptions | $ | 9,510 | $ | 9,620 | $ | 9,722 | $ | 9,461 | $ | 38,313 | |||||
| Internet Engagements | 3,102 | 2,778 | 3,064 | 2,929 | 11,873 | ||||||||||
| Subtotal Internet Revenue | 12,612 | 12,398 | 12,786 | 12,390 | 50,186 | ||||||||||
| Mobile Subscriptions | 997 | 1,113 | 1,158 | 1,080 | 4,348 | ||||||||||
| Mobile Ratable Licenses | 2,206 | 3,203 | 3,443 | 4,368 | 13,220 | ||||||||||
| Subtotal Mobile Revenue | 3,203 | 4,316 | 4,601 | 5,448 | 17,568 | ||||||||||
| Total Revenue, Net | $ | 15,815 | $ | 16,714 | $ | 17,387 | $ | 17,838 | $ | 67,754 | |||||
| FY 2006 | |||||||||||||||
| Internet Subscriptions | $ | 9,281 | $ | 9,459 | $ | 9,499 | $ | 9,743 | $ | 37,982 | |||||
| Internet Engagements | 3,896 | 2,792 | 2,419 | 3,034 | 12,141 | ||||||||||
| Subtotal Internet Revenue | 13,177 | 12,251 | 11,918 | 12,777 | 50,123 | ||||||||||
| Mobile Subscriptions | 539 | 488 | 855 | 962 | 2,844 | ||||||||||
| Mobile Ratable Licenses | - | - | 1,094 | 1,447 | 2,541 | ||||||||||
| Subtotal Mobile Revenue | 539 | 488 | 1,949 | 2,409 | 5,385 | ||||||||||
| Total Revenue, Net | $ | 13,716 | $ | 12,739 | $ | 13,867 | $ | 15,186 | $ | 55,508 | |||||
| Keynote Systems, Inc. and Subsidiaries | ||||||||||||||||||||
| CASH FLOW FROM OPERATING ACTIVITIES AND FREE CASH FLOW | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three months ended | Year ended | |||||||||||||||||||
| Dec 31 | March 31 | June 30 | Sept 30 | Sept 30 | ||||||||||||||||
| FY 2009 | ||||||||||||||||||||
| Total Revenue | $ | 20,637 | $ | 20,637 | ||||||||||||||||
| Cash Flow from Operations | $ | 2,020 | $ | 2,020 | ||||||||||||||||
| % of Revenue | 10 | % | 10 | % | ||||||||||||||||
| Purchase of PP&E | $ | 661 | $ | 661 | ||||||||||||||||
| Free Cash Flow * | $ | 1,359 | $ | 1,359 | ||||||||||||||||
| % of Revenue | 7 | % | 7 | % | ||||||||||||||||
| FY 2008 | ||||||||||||||||||||
| Total Revenue | $ | 17,720 | $ | 17,634 | $ | 20,498 | $ | 21,056 | $ | 76,908 | ||||||||||
| Cash Flow from Operations | $ | 330 | $ | 2,527 | $ | 1,522 | $ | 565 | $ | 4,944 | ||||||||||
| % of Revenue | 2 | % | 14 | % | 7 | % | 3 | % | 6 | % | ||||||||||
| Purchase of PP&E | $ | 1,351 | $ | 1,034 | $ | 1,602 | $ | 1,878 | $ | 5,865 | ||||||||||
| Free Cash Flow * | $ | (1,021 | ) | $ | 1,493 | $ | (80 | ) | $ | (1,313 | ) | $ | (921 | ) | ||||||
| % of Revenue | -6 | % | 8 | % | 0 | % | -6 | % | -1 | % | ||||||||||
| FY 2007 | ||||||||||||||||||||
| Total Revenue | $ | 15,815 | $ | 16,714 | $ | 17,387 | $ | 17,838 | $ | 67,754 | ||||||||||
| Cash Flow from Operations | $ | 4,680 | $ | 6,847 | $ | 5,883 | $ | 2,970 | $ | 20,380 | ||||||||||
| % of Revenue | 30 | % | 41 | % | 34 | % | 17 | % | 30 | % | ||||||||||
| Purchase of PP&E | $ | 704 | $ | 1,383 | $ | 2,073 | $ | 1,380 | $ | 5,540 | ||||||||||
| Free Cash Flow * | $ | 3,976 | $ | 5,464 | $ | 3,810 | $ | 1,590 | $ | 14,840 | ||||||||||
| % of Revenue | 25 | % | 33 | % | 22 | % | 9 | % | 22 | % | ||||||||||
| FY 2006 | ||||||||||||||||||||
| Total Revenue | $ | 13,716 | $ | 12,739 | $ | 13,867 | $ | 15,186 | $ | 55,508 | ||||||||||
| Cash Flow from Operations | $ | 3,505 | $ | 2,941 | $ | 2,938 | $ | 1,231 | $ | 10,615 | ||||||||||
| % of Revenue | 26 | % | 23 | % | 21 | % | 8 | % | 19 | % | ||||||||||
| Purchase of PP&E | $ | 337 | $ | 1,055 | $ | 792 | $ | 874 | $ | 3,058 | ||||||||||
| Free Cash Flow * | $ | 3,168 | $ | 1,886 | $ | 2,146 | $ | 357 | $ | 7,557 | ||||||||||
| % of Revenue | 23 | % | 15 | % | 15 | % | 2 | % | 14 | % | ||||||||||
| * Keynote defines free cash flow as cash flow from operations less cash used for purchases of property, equipment and software. | ||||||||||||||||||||
| Keynote Systems, Inc. and Subsidiaries | ||||||||||
| DEFERRED REVENUE | ||||||||||
| (In thousands) | ||||||||||
| (Unaudited) | ||||||||||
| December 31, 2008 | September 30, 2008 | December 31, 2007 | ||||||||
| Deferred revenue, net | ||||||||||
| Domestic | $ | 5,658 | $ | 5,982 | $ | 7,198 | ||||
| International | 14,168 | 13,951 | 15,054 | |||||||
| Total | $ | 19,826 | $ | 19,933 | $ | 22,252 | ||||
| Add back: unpaid deferred revenue | ||||||||||
| Domestic | $ | 2,693 | $ | 2,425 | $ | 1,406 | ||||
| International | 5,033 | 2,331 | 5,145 | |||||||
| Total | $ | 7,726 | $ | 4,756 | $ | 6,551 | ||||
| Deferred revenue, gross | ||||||||||
| Domestic | $ | 8,351 | $ | 8,407 | $ | 8,604 | ||||
| International | 19,201 | 16,282 | 20,199 | |||||||
| Total | $ | 27,552 | $ | 24,689 | $ | 28,803 | ||||
Contacts:
Dan Berkowitz, 650-403-3305 (Public
Relations)
dberkowitz@keynote.com
or
Kirsten
Chapman, 415-433-3777 (Investor Relations)
kchapman@lhai.com
