Exhibit 99.01
Keynote Reports Fiscal Fourth Quarter & Year-End 2010 Results
- Total Revenue was $20.5 Million for the Fourth Quarter 2010 Compared to $19.7 Million in the Same Period a Year Ago
- GAAP Earnings per Share was $0.08 for the Fourth Quarter 2010 Compared to $0.04 in the Same Period a Year Ago
- Cash from Operations Reached $4.8 Million for the Fourth Quarter 2010 Compared to $1.4 Million in the Same Period a Year Ago
- Revenue, GAAP Earnings Per Share and Non-GAAP Earnings Per Share Met or Exceeded Company Guidance
- Board Approved a 20% Increase in Quarterly Cash Dividend from $0.05 per Share to $0.06 per Share
SAN MATEO, Calif.--(BUSINESS WIRE)--November 8, 2010--Keynote® Systems (NASDAQ:KEYN), the global leader in Internet and mobile cloud monitoring, reported financial results for its fourth fiscal quarter and year-ended September 30, 2010.
Umang Gupta, Chairman and CEO of Keynote, said: “In the fiscal fourth quarter, we saw strong signs of growth from both our Internet and mobile businesses for the third quarter in a row. The fiscal fourth quarter Internet business revenue increased 10%, compared to the same quarter a year ago, and our mobile subscriptions revenue in the fourth quarter grew for the seventh consecutive quarter, a 29% increase year-over-year. We strengthened our balance sheet by adding almost $6 million in cash and investments during the quarter. In addition, we increased our gross deferred revenue, a leading indicator of momentum in our mobile business, by approximately $5 million compared to the same period a year ago.”
Fourth Quarter 2010 Financial Summary
Revenue for the fourth fiscal quarter of 2010 was $20.5 million, compared to $19.7 million in the fourth fiscal quarter of 2009. Under generally accepted accounting principles (GAAP), operating income for the fourth fiscal quarter of 2010 was $1.1 million, compared to $562,000 in the fourth fiscal quarter of 2009. Net income for the fourth fiscal quarter of 2010 was $1.2 million, or $0.08 per diluted share, compared to net income of $537,000, or $0.04 per diluted share, for the fourth fiscal quarter of 2009.
Non-GAAP net income for the fourth fiscal quarter of 2010 was $2.4 million, or $0.16 per diluted share, compared to $2.4 million, or $0.16 per diluted share, for the fourth fiscal quarter of 2009. The company defines non-GAAP net income (loss) as GAAP net income (loss) adjusted for the provision for income taxes, stock-based compensation expense, and amortization of purchased intangibles, less cash taxes from on-going operations. Non-GAAP earnings (loss) per share equals non-GAAP net income (loss) divided by the diluted weighted average shares outstanding for the period.
Management also believes the non-GAAP figure of adjusted earnings before interest income, taxes, depreciation, amortization, stock-based compensation, and other income (expenses), net (Adjusted EBITDA) provides a useful measure of operations. Adjusted EBITDA for the fourth fiscal quarter of 2010 was $3.6 million, or 17% of revenue, compared to $3.1 million, or 16% of revenue, in the fourth fiscal quarter of 2009.
Cash provided by operating activities for the fourth fiscal quarter of 2010 was $4.8 million, compared to $1.4 million in the fourth fiscal quarter of 2009. Keynote defines free cash flow as cash flow from operations less cash used for purchases of property, equipment, software and acquired technology. The company generated free cash flow of $4.0 million in the fourth fiscal quarter of 2010, compared to $531,000 in the fourth fiscal quarter of 2009.
At September 30, 2010, Keynote had $66.4 million in total cash, cash equivalents and short-term investments. Keynote’s net deferred revenue was $21.5 million at September 30, 2010, compared to $18.8 million at September 30, 2009. Keynote’s gross deferred revenue, defined as the sum of net deferred revenue and unpaid deferred revenue, was $27.2 million at September 30, 2010, compared to $22.3 million at September 30, 2009.
The total shares outstanding at September 30, 2010 was 14.9 million, compared to 14.5 million at September 30, 2009.
Fiscal 2010 Financial Summary
Revenue for fiscal year 2010 was $79.9 million, compared to $80.1 million for fiscal year 2009. Operating income for fiscal year 2010 was $2.2 million, compared to $2.9 million in fiscal year 2009. Interest income and other income (expenses), net for fiscal year 2010 was $351,000, compared to $1.3 million in fiscal year 2009, reflecting lower interest rates and the effects of foreign currency fluctuations. Net income for fiscal year 2010 was $1.7 million, or $0.11 per diluted share, compared to a net income of $3.3 million, or $0.23 per diluted share, for fiscal year 2009. Non-GAAP net income for fiscal year 2010 was $7.6 million, or $0.51 per diluted share, compared to non-GAAP net income of $10.8 million, or $0.75 per diluted share, for fiscal year 2009.
Cash provided by operating activities for fiscal year 2010 was $12.7 million, compared to $8.8 million for fiscal year 2009, which included a $4.1 million cash payment to the German tax authority for taxes associated with fiscal year 2008 operations and the migration of intellectual property from Germany to the United States. In fiscal year 2010, Adjusted EBITDA was $12.3 million, or 15% of revenue, compared to $14.4 million, or 18% of revenue, for fiscal year 2009.
Quarterly Cash Dividend
The board of directors approved a 20% increase in our quarterly cash dividend from $0.05 per common share to $0.06 per common share, payable December 15, 2010 to common stockholders of record at the close of business on December 1, 2010.
Expectations for the First Quarter of Fiscal Year 2011
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 first fiscal quarter of 2011:
- Total revenue is expected to be between $21.8 million and $22.3 million.
- GAAP earnings per diluted share are expected to be between $0.06 and $0.09.
- Non-GAAP earnings per diluted share are expected to be between $0.16 and $0.19.
The above guidance is based on the following assumptions. Foreign exchange rates do not change materially. Total stock-based compensation expense and amortization of intangible assets is expected to be approximately $1.4 million. Depreciation is expected to be approximately $1.1 million. Interest income and other income (expense), net, is expected to be approximately $75,000, assuming no material changes in interest rates, foreign exchange rates and currently planned uses of cash. Cash taxes paid from on-going operations is expected to be $150,000. Diluted weighted average shares outstanding are expected to be approximately 15.2 million shares, assuming no additional issuances of equity or equity-related securities and significant changes in the company’s stock price. The adoption of ASU 2009-13 (formerly Emerging Issues Task Force (EITF) 08-1) and ASU 2009-14 (formerly EITF 09-3) effective October 1, 2010, is expected to have an immaterial impact on our fiscal first quarter 2011 results.
Conference Call
Keynote will host a conference call and simultaneous Webcast at 2:00 pm (PST) today, November 8, 2010. To access the call in the U.S., please dial (800) 471-6718; international callers please dial (630) 691-2735. Callers may provide the following confirmation number 28163661 to access the call more quickly, and are encouraged to dial into the call 10 to 15 minutes early to prevent any delays in joining. The Webcast of the call will be available at the investor section of the company’s website at www.keynote.com. The replay will be available after the call by telephone by dialing (888) 843-7419 in the U.S. and (630) 652-3042 internationally; the pass code is 28163661.
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 future growth, expected revenue, GAAP and Non-GAAP earnings per share, and the related underlying assumptions in calculating those amounts, the impact of new accounting standards 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 global economic conditions 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 continue to increase, the risk that the increase in Keynote’s Internet Revenue for the past two quarters may not be sustained, 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 its 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, the impact of changes in foreign exchange rates, which can be significant, 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, 2009, 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 earnings per share, Adjusted 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 (loss) is calculated by adjusting GAAP net income (loss) for the provision for income taxes less cash taxes from on-going operations, stock-based compensation expense and amortization of purchased intangibles. Non-GAAP earnings (loss) per share are calculated by dividing Non-GAAP net income (loss) 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 to purchase of property, equipment, and software. Gross deferred revenue is defined as the sum of net deferred revenue and unpaid deferred revenue. Adjusted EBITDA is defined as earnings before interest income, taxes, depreciation, amortization, stock-based compensation and other income (expense), net. 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. 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
Keynote Systems (NASDAQ: "KEYN") is the global leader in solutions for continuously improving the Internet and mobile experience. Founded in 1995, Keynote provides testing, monitoring and measurement products and services for a variety of enterprises such as online portals, e-commerce sites, B2B sites, mobile operators and mobile infrastructure providers. Keynote products and services help companies improve customer experience in four areas: Web performance, mobile quality, streaming and real user experience testing.
Known as The Mobile and Internet Performance Authority™, Keynote has a market-leading "on-demand" infrastructure of over 3,000 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, AT&T, Disney, eBay, E*TRADE, Expedia, Google, Microsoft, SonyEricsson, T-Mobile and Vodafone.
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®, DataPulse®, CustomerScope®, Keynote CE Rankings®, Keynote Customer Experience Rankings®, Perspective®, Keynote Red Alert®, Keynote Traffic Perspective®, Keynote WebEffective®, The Internet Performance Authority®, MyKeynote® , SIGOS®, SITE®, Keynote™, The Mobile & Internet Performance Authority™, Screen Sensing Technology and Keynote FlexUse™ are trademarks or registered trademarks of Keynote Systems, Inc. in the United States and/or other countries. All other trademarks are the property of their respective owners. © 2010 Keynote Systems, Inc.
| Keynote Systems, Inc. and Subsidiaries | ||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| Sep 30, | June 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||||||
| 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||
| Net revenue: | ||||||||||||||||||||
| Subscription services | $ | 13,029 | $ | 11,950 | $ | 11,328 | $ | 48,860 | $ | 45,597 | ||||||||||
| Ratable licenses | 5,297 | 5,159 | 6,275 | 22,203 | 24,623 | |||||||||||||||
| Professional services | 2,187 | 2,164 | 2,134 | 8,788 | 9,887 | |||||||||||||||
| Total revenue, net | 20,513 | 19,273 | 19,737 | 79,851 | 80,107 | |||||||||||||||
| Costs and expenses: | ||||||||||||||||||||
| Costs of revenue: | ||||||||||||||||||||
| Direct costs of subscription services | 2,274 | 2,109 | 1,982 | 8,720 | 8,655 | |||||||||||||||
| Direct costs of ratable licenses | 1,741 | 1,677 | 1,528 | 6,870 | 6,079 | |||||||||||||||
| Direct costs of professional services | 1,462 | 1,457 | 1,492 | 5,737 | 5,958 | |||||||||||||||
| Operations | 1,900 | 1,935 | 1,911 | 7,661 | 8,264 | |||||||||||||||
| Development | 2,894 | 2,968 | 3,049 | 11,978 | 12,186 | |||||||||||||||
| Amortization of intangible assets - software | 419 | 433 | 294 | 1,585 | 1,160 | |||||||||||||||
| Total costs of revenue | 10,690 | 10,579 | 10,256 | 42,551 | 42,302 | |||||||||||||||
| Sales and marketing | 6,469 | 6,296 | 5,701 | 25,469 | 23,863 | |||||||||||||||
| General and administrative | 2,630 | 2,652 | 2,615 | 10,460 | 10,332 | |||||||||||||||
| Excess occupancy income, net | (545 | ) | (323 | ) | (291 | ) | (1,487 | ) | (1,020 | ) | ||||||||||
| Amortization of intangible assets - other | 142 | 146 | 259 | 626 | 1,050 | |||||||||||||||
| Lease termination costs | - | - | 635 | - | 635 | |||||||||||||||
| Total costs and expenses | 19,386 | 19,350 | 19,175 | 77,619 | 77,162 | |||||||||||||||
| Income (loss) from operations | 1,127 | (77 | ) | 562 | 2,232 | 2,945 | ||||||||||||||
| Interest income and other, net | 145 | (47 | ) | 184 | 351 | 1,331 | ||||||||||||||
| Income (loss) before provision for income taxes | 1,272 | (124 | ) | 746 | 2,583 | 4,276 | ||||||||||||||
| Provision for income taxes | (108 | ) | (191 | ) | (209 | ) | (897 | ) | (1,019 | ) | ||||||||||
| Net income (loss) | $ | 1,164 | $ | (315 | ) | $ | 537 | $ | 1,686 | $ | 3,257 | |||||||||
| Net income (loss) per share: | ||||||||||||||||||||
| Basic | $ | 0.08 | $ | (0.02 | ) | $ | 0.04 | $ | 0.11 | $ | 0.23 | |||||||||
| Diluted | $ | 0.08 | $ | (0.02 | ) | $ | 0.04 | $ | 0.11 | $ | 0.23 | |||||||||
| Weighted average common shares outstanding: | ||||||||||||||||||||
| Basic | 14,910 | 14,799 | 14,468 | 14,708 | 14,323 | |||||||||||||||
| Diluted | 15,161 | 14,799 | 14,628 | 14,969 | 14,394 | |||||||||||||||
| Keynote Systems, Inc. and Subsidiaries | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| (In thousands) | |||||||||
| (Unaudited) | |||||||||
September 30, | September 30, | ||||||||
| Assets | |||||||||
| Current assets: | |||||||||
| Cash, cash equivalents and short-term investments | $ | 66,352 | $ | 57,968 | |||||
| Accounts receivable, net | 9,094 | 6,403 | |||||||
| Prepaids, deferred costs and other current assets | 3,571 | 3,517 | |||||||
| Inventories | 1,286 | 1,222 | |||||||
| Deferred tax assets | 3,749 | 2,913 | |||||||
| Total current assets | 84,052 | 72,023 | |||||||
| Deferred costs and other long-term assets | 1,599 | 3,024 | |||||||
| Property and equipment, net | 33,432 | 34,778 | |||||||
| Goodwill | 63,166 | 66,078 | |||||||
| Identifiable intangible assets, net | 3,914 | 6,255 | |||||||
| Deferred tax assets | 359 | 61 | |||||||
| Total assets | $ | 186,522 | $ | 182,219 | |||||
| Liabilities and Stockholders' Equity | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 1,748 | $ | 1,147 | |||||
| Accrued expenses | 7,945 | 8,466 | |||||||
| Deferred revenue | 19,539 | 17,661 | |||||||
| Total current liabilities | 29,232 | 27,274 | |||||||
| Deferred rent and other long term liabilities | 3,605 | 3,344 | |||||||
| Long-term deferred revenue | 1,926 | 1,167 | |||||||
| Long-term deferred tax liability | 395 | 414 | |||||||
| Total liabilities | 35,158 | 32,199 | |||||||
| Stockholders' equity: | |||||||||
| Common stock | 15 | 14 | |||||||
| Additional paid-in capital | 286,761 | 282,653 | |||||||
| Accumulated deficit | (137,928 | ) | (139,614 | ) | |||||
| Accumulated other comprehensive income | 2,516 | 6,967 | |||||||
| Total stockholders' equity | 151,364 | 150,020 | |||||||
| Total liabilities and stockholders' equity | $ | 186,522 | $ | 182,219 | |||||
| Keynote Systems, Inc. and Subsidiaries | ||||||||||||||||||||
| GAAP TO NON-GAAP RECONCILIATION | ||||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||||||
| Sep 30, | June 30, | Sep 30, | Sep 30, | Sep 30, | ||||||||||||||||
| 2010 | 2010 | 2009 | 2010 | 2009 | ||||||||||||||||
| Revenue categories: | ||||||||||||||||||||
| Internet Subscriptions | ||||||||||||||||||||
| Web Measurement | $ | 7,105 | $ | 6,584 | $ | 6,370 | $ | 26,452 | $ | 26,772 | ||||||||||
| Other | 3,154 | 2,648 | 2,812 | 12,036 | 10,810 | |||||||||||||||
| Internet Engagements | 2,187 | 2,164 | 2,134 | 8,788 | 9,887 | |||||||||||||||
| Subtotal Internet Revenue | 12,446 | 11,396 | 11,316 | 47,276 | 47,469 | |||||||||||||||
| Mobile Subscriptions | 2,770 | 2,718 | 2,146 | 10,372 | 8,015 | |||||||||||||||
| Mobile Ratable Licenses | 5,297 | 5,159 | 6,275 | 22,203 | 24,623 | |||||||||||||||
| Subtotal Mobile Revenue | 8,067 | 7,877 | 8,421 | 32,575 | 32,638 | |||||||||||||||
| Total Revenue, Net | $ | 20,513 | $ | 19,273 | $ | 19,737 | $ | 79,851 | $ | 80,107 | ||||||||||
| Non-GAAP net income and income per share: | ||||||||||||||||||||
| GAAP net income (loss) | $ | 1,164 | $ | (315 | ) | $ | 537 | $ | 1,686 | $ | 3,257 | |||||||||
| Provision for income taxes | 108 | 191 | 209 | 897 | 1,019 | |||||||||||||||
| Stock-based compensation * | 818 | 757 | 992 | 3,365 | 4,392 | |||||||||||||||
| Amortization of intangible assets - other | 142 | 146 | 259 | 626 | 1,050 | |||||||||||||||
| Amortization of intangible assets - software | 419 | 433 | 294 | 1,585 | 1,160 | |||||||||||||||
| Non-GAAP income before income tax | 2,651 | 1,212 | 2,291 | 8,159 | 10,878 | |||||||||||||||
| Cash taxes from on-going operations | (205 | ) | (57 | ) | 112 | (544 | ) | (78 | ) | |||||||||||
| Non-GAAP net income | $ | 2,446 | $ | 1,155 | $ | 2,403 | $ | 7,615 | $ | 10,800 | ||||||||||
| Weighted average diluted common shares outstanding: | 15,161 | 15,062 | 14,628 | 14,969 | 14,394 | |||||||||||||||
| Non-GAAP income per share | $ | 0.16 | $ | 0.08 | $ | 0.16 | $ | 0.51 | $ | 0.75 | ||||||||||
| Adjusted EBITDA: | ||||||||||||||||||||
| GAAP net income (loss) | $ | 1,164 | $ | (315 | ) | $ | 537 | $ | 1,686 | $ | 3,257 | |||||||||
| Provision for income taxes | 108 | 191 | 209 | 897 | 1,019 | |||||||||||||||
| Interest income and other, net | (145 | ) | 47 | (184 | ) | (351 | ) | (1,331 | ) | |||||||||||
| Stock-based compensation * | 818 | 757 | 992 | 3,365 | 4,392 | |||||||||||||||
| Amortization of intangible assets - other | 142 | 146 | 259 | 626 | 1,050 | |||||||||||||||
| Amortization of intangible assets - software | 419 | 433 | 294 | 1,585 | 1,160 | |||||||||||||||
| Depreciation | 1,081 | 1,064 | 990 | 4,462 | 4,854 | |||||||||||||||
| Adjusted EBITDA | $ | 3,587 | $ | 2,323 | $ | 3,097 | $ | 12,270 | $ | 14,401 | ||||||||||
| *Stock-based compensation by category: | ||||||||||||||||||||
| Direct costs of ratable licenses | $ | 11 | $ | 12 | $ | 27 | $ | 72 | $ | 78 | ||||||||||
| Direct costs of professional services | 95 | 81 | 103 | 353 | 494 | |||||||||||||||
| Operations | 112 | 102 | 130 | 440 | 554 | |||||||||||||||
| Development | 174 | 199 | 224 | 778 | 969 | |||||||||||||||
| Sales and marketing | 308 | 299 | 364 | 1,244 | 1,580 | |||||||||||||||
| General and administrative | 118 | 64 | 144 | 478 | 717 | |||||||||||||||
| $ | 818 | $ | 757 | $ | 992 | $ | 3,365 | $ | 4,392 | |||||||||||
| Keynote Systems, Inc. and Subsidiaries | |||||||||||||||
| REVENUE DETAIL | |||||||||||||||
| (In thousands) | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| Dec 31 | March 31 | June 30 | Sept 30 | Sept 30 | |||||||||||
| FY 2010 | |||||||||||||||
| Internet Subscriptions | |||||||||||||||
| Web Measurement | $ | 6,170 | $ | 6,593 | $ | 6,584 | $ | 7,105 | $ | 26,452 | |||||
| Other | 3,665 | 2,569 | 2,648 | 3,154 | 12,036 | ||||||||||
| Internet Engagements | 2,544 | 1,893 | 2,164 | 2,187 | 8,788 | ||||||||||
| Subtotal Internet Revenue | 12,379 | 11,055 | 11,396 | 12,446 | 47,276 | ||||||||||
| Mobile Subscriptions | 2,374 | 2,510 | 2,718 | 2,770 | 10,372 | ||||||||||
| Mobile Ratable Licenses | 5,956 | 5,791 | 5,159 | 5,297 | 22,203 | ||||||||||
| Subtotal Mobile Revenue | 8,330 | 8,301 | 7,877 | 8,067 | 32,575 | ||||||||||
| Total Revenue, Net | $ | 20,709 | $ | 19,356 | $ | 19,273 | $ | 20,513 | $ | 79,851 | |||||
| FY 2009 | |||||||||||||||
| Internet Subscriptions | |||||||||||||||
| Web Measurement | $ | 7,209 | $ | 6,572 | $ | 6,621 | $ | 6,370 | $ | 26,772 | |||||
| Other | 2,455 | 2,761 | 2,782 | 2,812 | 10,810 | ||||||||||
| Internet Engagements | 3,121 | 2,308 | 2,324 | 2,134 | 9,887 | ||||||||||
| Subtotal Internet Revenue | 12,785 | 11,641 | 11,727 | 11,316 | 47,469 | ||||||||||
| Mobile Subscriptions | 1,809 | 2,008 | 2,052 | 2,146 | 8,015 | ||||||||||
| Mobile Ratable Licenses | 6,043 | 5,915 | 6,390 | 6,275 | 24,623 | ||||||||||
| Subtotal Mobile Revenue | 7,852 | 7,923 | 8,442 | 8,421 | 32,638 | ||||||||||
| Total Revenue, Net | $ | 20,637 | $ | 19,564 | $ | 20,169 | $ | 19,737 | $ | 80,107 | |||||
| FY 2008 | |||||||||||||||
| Internet Subscriptions | |||||||||||||||
| Web Measurement | $ | 6,828 | $ | 6,798 | $ | 6,863 | $ | 7,348 | $ | 27,837 | |||||
| Other | 2,704 | 2,640 | 2,666 | 2,585 | 10,595 | ||||||||||
| 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 | |||||||||||||||
| Web Measurement | $ | 6,658 | $ | 6,836 | $ | 7,021 | $ | 6,781 | $ | 27,296 | |||||
| Other | 2,852 | 2,784 | 2,702 | 2,680 | 11,018 | ||||||||||
| Internet Engagements | 3,102 | 2,778 | 3,063 | 2,929 | 11,872 | ||||||||||
| 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 | |||||
| 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 2010 | ||||||||||||||||||||
| Total Revenue | $ | 20,709 | $ | 19,356 | $ | 19,273 | $ | 20,513 | $ | 79,851 | ||||||||||
| Cash Flow from Operations | $ | (95 | ) | $ | 1,749 | $ | 6,272 | $ | 4,805 | $ | 12,731 | |||||||||
| % of Revenue | (0 | %) | 9 | % | 33 | % | 23 | % | 16 | % | ||||||||||
| Purchase of PP&E | $ | 775 | $ | 653 | $ | 961 | $ | 840 | $ | 3,229 | ||||||||||
| Free Cash Flow * | $ | (870 | ) | $ | 1,096 | $ | 5,311 | $ | 3,965 | $ | 9,502 | |||||||||
| % of Revenue | (4 | %) | 6 | % | 28 | % | 19 | % | 12 | % | ||||||||||
| FY 2009 | ||||||||||||||||||||
| Total Revenue | $ | 20,637 | $ | 19,564 | $ | 20,169 | $ | 19,737 | $ | 80,107 | ||||||||||
| Cash Flow from Operations | $ | 2,020 | $ | 1,249 | $ | 4,151 | $ | 1,379 | $ | 8,799 | ||||||||||
| % of Revenue | 10 | % | 6 | % | 21 | % | 7 | % | 11 | % | ||||||||||
| Purchase of PP&E | $ | 661 | $ | 736 | $ | 1,199 | $ | 848 | $ | 3,444 | ||||||||||
| Free Cash Flow * | $ | 1,359 | $ | 513 | $ | 2,952 | $ | 531 | $ | 5,355 | ||||||||||
| % of Revenue | 7 | % | 3 | % | 15 | % | 3 | % | 7 | % | ||||||||||
| FY 2008 | ||||||||||||||||||||
| Total Revenue | $ | 17,720 | $ | 17,634 | $ | 20,498 | $ | 21,056 | $ | 76,908 | ||||||||||
| Cash Flow from Operations | $ | 330 | $ | 2,527 | $ | 1,522 | $ | 901 | $ | 5,280 | ||||||||||
| % of Revenue | 2 | % | 14 | % | 7 | % | 4 | % | 7 | % | ||||||||||
| Purchase of PP&E | $ | 1,351 | $ | 1,034 | $ | 1,602 | $ | 4,435 | $ | 8,422 | ||||||||||
| Free Cash Flow * | $ | (1,021 | ) | $ | 1,493 | $ | (80 | ) | $ | (3,534 | ) | $ | (3,142 | ) | ||||||
| % of Revenue | (6 | %) | 8 | % | (0 | %) | (17 | %) | (4 | %) | ||||||||||
| 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 | % | ||||||||||
| * Keynote defines free cash flow as cash flow from operations less cash used for purchases of property, equipment, software and acquired technology. | ||||||||||||||||||||
| Keynote Systems, Inc. and Subsidiaries | |||||||||
| DEFERRED REVENUE | |||||||||
| (In thousands) | |||||||||
| (Unaudited) | |||||||||
| September 30, 2010 | June 30, 2010 | September 30, 2009 | |||||||
| Deferred revenue, net | |||||||||
| Domestic | $ | 4,631 | $ | 5,249 | $ | 5,880 | |||
| International | 16,834 | 13,211 | 12,948 | ||||||
| Total | 21,465 | 18,460 | 18,828 | ||||||
| Add back: unpaid deferred revenue | |||||||||
| Domestic | 2,584 | 2,224 | 1,665 | ||||||
| International | 3,191 | 4,536 | 1,810 | ||||||
| Total | 5,775 | 6,760 | 3,475 | ||||||
| Deferred revenue, gross | |||||||||
| Domestic | 7,215 | 7,473 | 7,545 | ||||||
| International | 20,025 | 17,747 | 14,758 | ||||||
| Total | $ | 27,240 | $ | 25,220 | $ | 22,303 | |||
CONTACT:
Keynote Systems, Inc.
Kirsten Chapman, 415-433-3777 (Investor Relations)
kchapman@lhai.com
Dan Berkowitz, 650-403-3305 (Public Relations)
dberkowitz@keynote.com