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St. Bernard Software Reports First Quarter 2007 Financial Results

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Submitted by admin on 5/15/2007 @ 4:03 PM
Companies mentioned in this article: St. Bernard Software

St. Bernard Software, Inc. (BULLETIN BOARD: SBSW) , a global provider of security and hosted office solutions for small and midsize businesses (SMBs), today announced its financial results for the first quarter ended March 31, 2007.

First Quarter Highlights

* St. Bernard's leading product, iPrism, experienced 55% year-over-year billings growth

* Launched LivePrism On-Demand Product, acquiring over 70 new customers

* Expanded EMEA presence with new office in the Netherlands

* Won Info Security "2007 Global Product Excellence Award for Customer Trust"

* Re-branded St. Bernard, including adoption of a new logo

* Divested assets of legacy UpdateExpert product

Financial Results

Revenue in the first quarter was $5.4 million and exceeded the high end of the $4.2 to $4.8 million guidance previously provided, compared to Q1'06 revenue of $5.3 million. Revenue for our core products, iPrism and LivePrism was 29% higher in Q1'07 vs Q1'06. During the first quarter of 2007 the company completed the sale of the UpdateExpert product line. The sale resulted in a $3.7 million gain consisting of an acceleration of $2.6 million of deferred revenue and cash in the amount of $1.2 million. The gain associated with the sale of UpdateExpert is included in Other Expense (Income) and not included in the company's operating revenue.

Total cost of sales in the first quarter was $1.6 million, up $200,000 over the first quarter of 2006.

Operating expenses were $8.4 million for the first quarter of 2007, an increase of $3.3 million over the same period in 2006. The increase in operating expenses for Q1'07 vs Q1'06 include $1.5 million in sales & marketing and $1.5 million in general & administrative.

Loss per share for the first quarter was $0.06, compared to the $0.13 loss per share reported for the first quarter of 2006. St. Bernard Software's cash balance was $1.2 million at March 31, 2007.

Financial Discussion

"We have successfully completed the chapter of change here at St. Bernard, and positioned the company to execute on our aggressive growth plan with two core products, iPrism and LivePrism," said Vince Rossi, CEO of St. Bernard Software. "Throughout the last three quarters we have positioned the company to attack a largely unsolved problem common to the small and medium size businesses around the world. Simply stated, a lack of IT resources and security knowledge continue to be significant challenges our customers face. Our new product suites, iPrism and LivePrism, are specifically designed to address and solve these important problems for our customers. IPrism continues to generate significant customer adoption as it grew 27% year-over- year in new acquisition billings, and we are equally excited about our recent launch of LivePrism, our On-Demand Messaging Security Service.

Operating expenses were high compared to the billings generated during Q1. These expenses are primarily associated with our new LivePrism business and are a direct result of inves ent in capacity to serve a growing business. Although we anticipate good sales growth for LivePrism, we expect operating expenses for LivePrism to remain high when compared to sales for the next few quarters.

We believe we have built a strong foundation for growth in 2007 and beyond and remain very excited about the opportunities that lie ahead," added Rossi.

Conference Call Information

What: St. Bernard's First Quarter 2007 Financial Results Conference Call

When: Tuesday, May 15th at 2:00pm PT (5:00 pm ET)

Dial In Number: 800-218-0204 (US and Canada) 303-262-2137 (International) Company name, 'St. Bernard'

Webcast: To listen to the live Webcast, use the following link: http://www.videonewswire.com/event.asp?id=39138 Or, log onto www.stbernard.com under the Investor Relations section.

Web Replay: 30 days

Call Replay: A replay of the conference call will be available at www.stbernard.com in the Investor Relations area of the site starting two hours after the call through Tuesday, May 22, 2007 at 11:59 pm PT

Replay Number: 800-405-2236 or 303-590-3000 (International) and enter the pass code: 11088442#

For the conference call, please dial-in five minutes in advance to ensure a proper connection. Questions and answers will be taken only from participants on the line. For the Webcast, please allow 15 minutes to register, download and install any necessary software.

About St. Bernard Software

St. Bernard (BULLETIN BOARD: SBSW) is a global provider of comprehensive security and hosted office solutions for small and midsize businesses (SMBs). St. Bernard also provides the SMB market with a broad range of flexible and integrated hosted solutions, including secure content management, messaging continuity and collaboration.

The company's award-winning products deliver innovative security solutions that offer the best combination of ease-of-use, performance and value. Established in 1995 with headquarters in San Diego, CA and international offices in the United Kingdom, Australia and the Netherlands, St. Bernard sells and supports its products directly and through solution partners worldwide. For more information, please visit www.stbernard.com.