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Blackboard Inc. Reports Fourth Quarter and Year End 2009 Results

- Fourth Quarter Revenue Increases 18 Percent to $100.0 Million - - Full Year 2009 Revenue Increases 21 Percent to $377.0 Million - -John Kinzer to Succeed Mike Beach as CFO -
WASHINGTON, Feb 03, 2010 /PRNewswire via COMTEX/ -- Blackboard Inc. (Nasdaq: BBBB) today announced financial results for the fourth quarter and year ended December 31, 2009 and guidance for the first quarter and full year 2010.

(Photo: http://www.newscom.com/cgi-bin/prnh/20100203/PH49135 )

Blackboard's fourth quarter revenue was $100.0 million, an increase of 18 percent over the same period in 2008. Product revenue in the fourth quarter was $90.8 million, an increase of 17 percent over the $77.4 million of product revenue in the fourth quarter of last year. Professional services revenue for the quarter was $9.3 million, which represents an increase of 22 percent over the same period in 2008.

GAAP net income was $7.7 million for the fourth quarter of 2009 compared to GAAP net income of $1.8 million in the same period last year. GAAP net income per diluted share was $0.23 compared to GAAP net income per diluted share of $0.06 in the same period last year. Non-GAAP adjusted net income for the fourth quarter of 2009, which excludes the amortization of acquisition-related intangible assets, stock-based compensation, non-cash interest expense, and non-cash patent related impairment expense, all net of taxes, was $16.7 million, resulting in non-GAAP adjusted net income per diluted share of $0.49 compared to non-GAAP adjusted net income of $11.3 million and non-GAAP adjusted net income per diluted share of $0.35 for the fourth quarter of 2008.

Total revenue for the year ended December 31, 2009 was $377.0 million, an increase of 21 percent over the prior year. GAAP net income was $7.9 million for the year ended December 31, 2009 compared to GAAP net loss of ($1.9) million in the same period last year. For the year ended December 31, 2009, GAAP net income per diluted share was $0.24 compared to GAAP net loss per diluted share of ($0.06) for 2008. Non-GAAP adjusted net income for the full year 2009 was $47.0 million, resulting in non-GAAP adjusted net income per diluted share of $1.42 compared to non-GAAP adjusted net income of $34.9 million and non-GAAP adjusted net income per diluted share of $1.10 for 2008.

Additional Financial Highlights from the Fourth Quarter and Full Year 2009

  • Total cash flow from operations was $20.0 million for the fourth quarter of 2009 and $109.9 million for the full year of 2009.
  • Cash and cash equivalents were $167.4 million as of December 31, 2009.
  • Current deferred revenues increased 12 percent year-over-year to $186.7 million as of December 31, 2009.

"This was a very good year for Blackboard resulting in strong revenue and earnings performance and nearly $110 million in operating cash flows," said Michael Chasen, chief executive officer and president of Blackboard. "Our solid financial results were driven by the value our products and services provide to our global client base for the management of their most mission-critical technologies. In addition, throughout the year, the strategic investments we made in our business enabled us to expand our addressable market and meet the growing needs of our client base. We also continue to see strong traction and interest in mobile technologies as institutions are moving more of their technology focus to student handheld smart devices."

Highlights from the Fourth Quarter of 2009

  • Blackboard's new and expanding client relationships in the quarter included:
    • U.S. Higher Education: Bronx Community College, Central Michigan University, Central New Mexico Community College, City University of New York, Indiana University-Purdue University Indianapolis, Kutztown University, Liberty University, Midwestern University, North Dakota University System - University of North Dakota, Ryerson University, St. Augustine's College, University of Oregon and others.
    • International: Chulalongkorn University, Fundacao Armando Alvares Penteado (FAAP), Hartlepool College, INADEH, Interamerican University of Puerto Rico, Liverpool John Moores, South Thames College, SURF, TIO University of Hospitality and Tourism, Vaxjo University and others.
    • K-12: Baltimore City Public Schools (MD), District of Columbia Public Schools (DC), Florida Virtual School (FL), KC Distance Learning (OR), Lexington County School District One (SC), Mississippi Department of Education (MS), Okaloosa County School District (FL), Saskatchewan Ministry of Education, Times Squared Academy (RI) and others.
    • Professional Education (ProEd): Accenture, American Academy of Professional Coders, Appraisal Institute, Comcast, General Dynamics - National Security Education Program, Hallmark College, Herzing College, ICDC College, International Union of Operating Engineers, Novartis, Westwood College and others.
  • Blackboard's enterprise licenses (Blackboard Learn - Enterprise, Blackboard Community Module, Blackboard Content Module, Blackboard Outcomes Module, Blackboard Transact, Blackboard Connect and Blackboard Mobile), totaled 7,693.
  • Blackboard ended 2009 with 5,756 total clients.
  • Blackboard announced a partnership with NBC Learn, the educational arm of NBC News. The new partnership will allow educators and students using the Blackboard Learn platform to access NBC News Archives on demand.
  • Blackboard announced the launch of an application for BlackBerry(R) smartphones. The BlackBerry smartphone application enables many more users to enjoy an enhanced experience while navigating course catalogs and campus maps, e-mailing professors and classmates and receiving real time updates on course schedules, campus events, news and sports with Mobile Central, Blackboard Mobile's flagship suite of applications.

Guidance for the First Quarter of 2010

  • Revenue of $98.6 to $102.6 million;
  • Amortization of acquired intangibles of approximately $8.9 million;
  • Stock-based compensation expense of approximately $5.1 million;
  • GAAP net income of $3.2 to $5.7 million, resulting in GAAP net income per diluted share of $0.09 to $0.16, which is based on an estimated 34.8 million diluted shares, and an estimated effective tax rate of approximately 36 percent;
  • Non-GAAP adjusted net income of $12.5 to $15.1 million, which excludes stock-based compensation expense, amortization of acquisition-related intangible assets, and non-cash interest expense, all net of taxes; and
  • Non-GAAP adjusted net income per diluted share of $0.36 to $0.43 based on an estimated 34.8 million diluted shares and an estimated effective tax rate of approximately 38.5 percent.

Guidance for the Full Year 2010

  • Revenue of $424.0 to $440.0 million;
  • Amortization of acquired intangibles of approximately $32 million;
  • Stock-based compensation expense of approximately $20.2 million;
  • GAAP net income of $23.1 to $33.3 million, resulting in GAAP net income per diluted share of $0.65 to $0.94, which is based on an estimated 35.5 million diluted shares; and an estimated effective tax rate of approximately 36 percent;
  • Non-GAAP adjusted net income of $58.6 to $68.8 million, which excludes stock-based compensation expense, amortization of acquisition-related intangible assets, and non-cash interest expense, all net of taxes;
  • Non-GAAP adjusted net income per diluted share of $1.65 to $1.94 based on an estimated 35.5 million diluted shares and an estimated effective tax rate of approximately 38 percent;
  • Cash flow from operations of $100.0 to $110.0 million; and
  • Capital expenditures of approximately 4 to 5 percent of total revenue.

As of January 1, 2010, Blackboard early adopted Accounting Standards Update (ASU) 2009-13 and ASU 2009-14 and will apply them prospectively. Under the new accounting standards, the revenue and product cost for hardware and software sales in the Blackboard Transact product line will generally be recognized upfront following delivery to customers. Before adoption of the new accounting standards, the Company generally recognized revenues on such sales ratably over a period of time. The adoption of ASU 2009-13 and ASU 2009-14 did not impact the financial results for fiscal year 2009.

John Kinzer to Succeed Mike Beach as Chief Financial Officer Effective March 1, 2010

After more than 8 years at Blackboard, Mike Beach announced that he will retire from his CFO position. John Kinzer will succeed Mike Beach as the Company's CFO effective March 1, 2010. As part of the planned transition process, Mr. Beach will serve in an advisory capacity through the end of the second quarter.

On Mr. Beach's decision, Mr. Chasen stated, "Mike Beach is a personal friend, he has been critical in increasing value for our clients, our partners and our shareholders and I wish him the very best. Mike has built and maintained a stellar finance and accounting organization at all levels and we are fortunate to have John Kinzer as our new chief financial officer. John has worked closely with Mike and me over the years and has been instrumental in driving Blackboard's financial discipline and overall success."

Mr. Kinzer, currently Senior Vice President of Finance, has been with Blackboard since 2001. Mr. Kinzer has been an integral member of the Blackboard management team for more than eight years and played a significant role in all of Blackboard's public financings and all mergers and acquisitions. Prior to joining Blackboard, Mr. Kinzer had increasing management roles for Arthur Andersen, MCI and a technology start-up.

Commenting on his retirement from Blackboard, Mr. Beach stated, "It has been a privilege to work and be associated with my friends and colleagues at Blackboard as well as our analysts and investors. My decision to leave Blackboard has been incredibly difficult for me but is the right decision, and I look forward to spending more time with my family. I am proud of all the things we have been able to accomplish over the years at Blackboard and am confident that John will do a tremendous job over the coming years."

Michael J. Stanton Appointed Treasurer

In addition to Mr. Kinzer's promotion, Michael J. Stanton has been appointed by Blackboard's Board of Directors as Senior Vice President and Treasurer effective March 1, 2010. Mr. Stanton, currently Senior Vice President, has been with Blackboard since 2000 managing a range of responsibilities including the Company's banking and investor relations as well as global treasury operations.





    Blackboard Conference Call
     Information:
    --------------------------


    Domestic:                            +1 (800) 901-5218
    ---------                            -----------------
    International:                       +1 (617) 786-4511
    --------------                       -----------------
    Confirmation Code:                            19394790
    ------------------                            --------




Blackboard will also broadcast its conference call live over the Internet beginning at 4:30 p.m. on February 3, 2010, and interested parties can access the webcast through the Investor Relations section of the Company's Web site at http://investor.blackboard.com.

A replay of the call will be available via telephone from approximately 7:00 p.m. Eastern (4:00 p.m. Pacific) on February 3, 2010 until 11:00 p.m. Eastern (8:00 p.m. Pacific) on February 10, 2010. To listen to the replay, participants in the U.S. and Canada should dial 888-286-8010, and international participants should dial +1 (617) 801-6888. The conference ID for the replay is 96236089.





                                  BLACKBOARD INC.
                   UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
                 (in thousands, except share and per share amounts)

                                 Three Months Ended          Year Ended
                                     December 31             December 31
                                     -----------             -----------
                                  2008        2009        2008        2009
                                  ----        ----        ----        ----
    Revenues:
      Product                  $77,441     $90,775    $283,258    $342,144
      Professional services      7,581       9,259      28,876      34,856
                                -----       -----      ------      ------
    Total revenues              85,022     100,034     312,134     377,000
    Operating expenses:
      Cost of product revenues,
       excludes $4,572 and
       $2,497 for the three
       months ended December 31,
       2008 and 2009,
       respectively, and $17,803
       and $10,649 for the year
       ended December 31, 2008
       and 2009, respectively,
       in amortization of
       acquired technology
       included in amortization
       of intangibles resulting
       from acquisitions shown
       below (1)                21,642      23,913      75,237      90,968
      Cost of professional
       services revenues (1)     4,478       5,005      19,555      20,024
      Research and development
       (1)                      10,389      12,119      40,580      45,967
      Sales and marketing (1)   23,377      24,742      91,076      98,751
      General and
       administrative (1)       12,825      13,911      50,757      56,387
      Patent related (proceeds)
       impairment and other
       costs                         -           -      (3,313)     10,984
      Amortization of
       intangibles resulting
       from acquisitions         9,729       9,266      37,866      34,994
                                 -----       -----      ------      ------
    Total operating expenses    82,440      88,956     311,758     358,075
                                ------      ------     -------     -------
    Income from operations       2,582      11,078         376      18,925
    Other (expense) income:
      Interest expense (2)      (2,987)     (3,122)    (12,061)    (11,999)
      Interest income              406          28       1,893         230
      Other income                 268         350       4,124       1,453
                                   ---         ---       -----       -----
    Income (Loss) before
     benefit (provision) for
     income taxes (2)              269       8,334      (5,668)      8,609
    Benefit (Provision) for
     income taxes                1,489        (620)      3,732        (697)
                                 -----        ----       -----        ----
    Net income (loss) (2)       $1,758      $7,714     $(1,936)     $7,912
                                ======      ======     =======      ======
    Net income (loss) per
     common share: (2)
      Basic                      $0.06       $0.24      $(0.06)      $0.25
                                 =====       =====      ======       =====
      Diluted                    $0.06       $0.23      $(0.06)      $0.24
                                 =====       =====      ======       =====
    Weighted average number
     of common shares:
      Basic                 31,352,994  32,707,631  30,885,908  32,065,700
                            ==========  ==========  ==========  ==========
      Diluted               31,839,631  33,704,096  30,885,908  33,100,858
                            ==========  ==========  ==========  ==========

    (1) Includes the following
     amounts related to stock-
     based compensation:
      Cost of product revenues    $270        $302        $949      $1,225
      Cost of professional
       services revenues            81         127         321         524
      Research and development     230         250         777       1,018
      Sales and marketing        1,354       1,476       5,984       6,101
      General and
       administrative            2,081       1,823       7,096       7,091

    (2) Blackboard adopted ASC 470-20 (Prior authoritative literature: FASB
        Staff Position No. APB 14-1, "Accounting for Convertible Debt
        Instruments that May be Settled in Cash Upon Conversion") effective
        January 1, 2009, which required restatement of prior periods, as
        applicable.  The three months and year ended December 31, 2008 have
        been adjusted to reflect additional amortization of debt discount of
        $1,227 and $4,756, respectively.  Interest expense, Income (Loss)
        before benefit (provision) for income taxes, Net income (loss), and
        Net income (loss) per common share - Basic and Diluted have been
        adjusted accordingly and were previously reported as $(1,760), $1,496,
        $2,985, $0.10 and $0.09, respectively, for the three months ended
        December 31, 2008.  Interest expense, Income (Loss) before benefit
        (provision) for income taxes, Net income (loss), and Net income (loss)
         per common share - Basic and Diluted have been adjusted accordingly
        and were previously reported as $(7,305), $(912), $2,820, $0.09 and
        $0.09, respectively, for the year ended December 31, 2008.



    Reconciliation of GAAP Net income (loss) before benefit (provision) for
     income taxes to Non-GAAP adjusted net income (3):

    GAAP Net income (loss)
     before benefit (provision)
     for income taxes             $269      $8,334     $(5,668)     $8,609
    Add: Non-cash patent
     related impairment              -           -           -       7,447
    Add: Amortization of
     intangibles resulting from
     acquisitions                9,729       9,266      37,866      34,994
    Add: Stock-based
     compensation                4,016       3,978      15,127      15,959
    Add: Non-cash interest
     expense                     1,590       1,565       6,366       6,254
    Adjusted provision for
     income taxes (4)           (4,303)     (6,470)    (18,810)    (26,235)
                                ------      ------     -------     -------
    Non-GAAP adjusted net
     income (5)                $11,301     $16,673     $34,881     $47,028
                               =======     =======     =======     =======
    Non-GAAP adjusted net
     income per common share -
     diluted (5)                 $0.35       $0.49       $1.10       $1.42
                                 =====       =====       =====       =====
    Weighted average number of
     diluted common shares  31,839,631  33,704,096  31,809,544  33,100,858
                            ==========  ==========  ==========  ==========

    (3) Non-GAAP adjusted net income and non-GAAP adjusted net income per
        share are non-GAAP financial measures and have no standardized
        measurement prescribed by generally accepted accounting principles in
        the US (GAAP).  Management believes that both measures provide
        additional useful information to investors regarding the Company's
        ongoing financial condition and results of operations and since the
        Company has historically reported these non-GAAP results they provide
        an additional basis for comparisons to prior periods.  The non-GAAP
        financial measures may not be comparable with similar non-GAAP
        financial measures used by other companies and should not be
        considered in isolation from, or as a substitute for, financial
        information prepared in accordance with GAAP.  The Company provides
        the above reconciliation to the most directly comparable GAAP
        financial measure to allow investors to appropriately consider each
        non-GAAP financial measure.
    (4) Adjusted provision for income taxes is applied at an effective rate of
        approximately 27.6% and 28.0% for the three months ended December 31,
        2008 and 2009, respectively, and approximately 35.0% and 35.8% for the
        year ended December 31, 2008 and 2009, respectively.
    (5) Beginning in fiscal 2009, the Company changed the definition it
        utilizes for non-GAAP adjusted net income.  For the 2008 periods
        presented in the reconciliation of GAAP Net income (loss) before
        benefit (provision) for income taxes to non-GAAP adjusted net income,
        the new definition for non-GAAP adjusted net income is being used
        which excludes the amortization of intangibles resulting from
        acquisitions, stock-based compensation, patent related impairment
        charges, and non-cash interest expense, all net of taxes.






                       BLACKBOARD INC.

       UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS


                              December 31,   December 31,
                                  2008           2009
                                  ----           ----
                                     (in thousands,
                                 except per share amounts)
                           ASSETS
    Current assets:
      Cash and cash
       equivalents              $141,746       $167,353
      Accounts receivable,
       net (6)                    80,018         69,098
      Inventories                  1,783          1,557
      Prepaid expenses and
       other current assets
       (7)                         8,361         14,803
      Deferred tax asset,
       current portion             1,796          2,692
      Deferred cost of
       revenues                    7,126          7,664
                                   -----          -----
        Total current
         assets                  240,830        263,167

    Deferred tax asset,
     noncurrent portion (7)       18,897         18,188
    Investment in common
     stock warrant                 1,990          3,124
    Restricted cash                4,249          3,923
    Property and
     equipment, net               31,950         34,483
    Other assets                     549          1,453
    Goodwill and
     intangible assets,
     net                         338,976        400,596
                                 -------        -------
    Total assets                $637,441       $724,934
                                ========       ========

            LIABILITIES AND STOCKHOLDERS' EQUITY
    Current liabilities:
      Accounts payable            $2,579         $2,360
      Accrued expenses            27,879         28,264
      Deferred rent,
       current portion               345          1,021
      Deferred revenues,
       current portion (6)       166,727        186,702
                                 -------        -------
        Total current
         liabilities             197,530        218,347

    Notes payable, net of
     debt discount (7)           149,923        156,177
    Deferred rent,
     noncurrent portion           10,959         11,507
    Deferred tax
     liability, noncurrent
     portion                           -          1,474
    Deferred revenues,
     noncurrent portion            5,554          5,957
    Stockholders' equity:
      Common stock, $0.01
       par value                     314            332
      Additional paid-in
       capital (7)               356,683        406,750
      Accumulated deficit (7)    (83,522)       (75,610)
                                 -------        -------
    Total stockholders'
     equity                      273,475        331,472
                                 -------        -------
    Total liabilities and
     stockholders' equity       $637,441       $724,934
                                ========       ========

    (6) Certain amounts in the 2008 balance have been reclassified to conform
        to the 2009 presentation.

    (7)  As noted in footnote (2) above, ASC 470-20 required restatement of
         prior periods.  Prepaid expenses and other current assets, Deferred
         tax assets - noncurrent portion, Notes payable, Additional paid-in
         capital, and Accumulated deficit have been adjusted accordingly and
         were previously reported as $8,518, $27,146, $163,172, $344,698, and
         $(76,380), respectively, as of December 31, 2008.






                                BLACKBOARD INC.

                UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                             Year Ended
                                                            December 31
                                                            -----------
                                                           2008      2009
                                                           ----      ----
                                                           (in thousands)
    Cash flows from operating activities
    Net (loss) income (8)                                $(1,936)   $7,912
    Adjustments to reconcile net loss to net cash
     provided by operating activities:
      Deferred income tax benefit                         (8,113)   (5,889)
      Excess tax benefits from stock-based compensation   (2,107)   (3,729)
      Amortization of debt discount (8)                    6,366     6,254
      Depreciation and amortization                       15,703    18,887
      Amortization of intangibles resulting from
       acquisitions                                       37,866    34,994
      Patent related impairment charge                         -     7,447
      Change in allowance for doubtful accounts              161       258
      Stock-based compensation                            15,127    15,959
      Gain on investment in common stock warrant          (3,980)   (1,136)
      Changes in operating assets and liabilities:
        Accounts receivable                              (19,210)   13,371
        Inventories                                          306       226
        Prepaid expenses and other current assets (8)     (2,696)   (6,404)
        Deferred cost of revenues                           (249)     (538)
        Accounts payable                                  (4,018)     (277)
        Accrued expenses                                   4,227     4,129
        Deferred rent                                      9,675     1,224
        Deferred revenues                                 32,713    17,163
                                                          ------    ------
    Net cash provided by operating activities             79,835   109,851

    Cash flows from investing activities
      Purchases of property and equipment                (24,007)  (18,946)
      Payments for patent enforcement costs               (3,552)     (414)
      Purchase of available-for-sale investments               -    (6,586)
      Redemptions of available-for-sale investments            -     6,586
      Proceeds from common stock warrant                   1,990         -
      Acquisitions, net of cash acquired                (132,992)  (93,434)
                                                        --------   -------
    Net cash used in investing activities               (158,561) (112,794)

    Cash flows from financing activities
      Payments on letters of credit                         (530)   (3,474)
      Release of letters of credit                         1,184     3,800
      Excess tax benefits from stock-based compensation    2,107     3,729
      Proceeds from exercise of stock options             11,153    24,495
                                                          ------    ------
    Net cash provided by financing activities             13,914    28,550
                                                          ------    ------
    Net (decrease) increase in cash and cash
     equivalents                                         (64,812)   25,607
    Cash and cash equivalents at beginning of period     206,558   141,746
                                                         -------   -------
    Cash and cash equivalents at end of period          $141,746  $167,353
                                                        ========  ========

    (8)  As noted in footnote (2) above, ASC 470-20 required restatement of
         prior periods.  Net loss, Amortization of debt discount, and Prepaid
         expenses and other current assets have been adjusted accordingly and
         were previously reported as $2,820, $1,653, and $(2,594),
         respectively, for the year ended December 31, 2008.



About Blackboard Inc.

Blackboard Inc. (Nasdaq: BBBB) is a global leader in enterprise technology and innovative solutions that improve the experience of millions of students and learners around the world every day. Blackboard's solutions allow thousands of higher education, K-12, professional, corporate, and government organizations to extend teaching and learning online, facilitate campus commerce and security, and communicate more effectively with their communities. Founded in 1997, Blackboard is headquartered in Washington, D.C., with offices in North America, Europe, Asia and Australia.

Blackboard

Educate. Innovate. Everywhere.

Any statements in this press release about future expectations, plans and prospects for Blackboard and other statements containing the words "believes," "anticipates," "plans," "expects," "will," and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. These forward looking statements include statements about our expected financial results for the first quarter of 2010 and the full year 2010 and other statements about our future financial performance. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including the factors discussed in the "Risk Factors" section of our Form 10-Q filed on November 6, 2009 with the SEC. In addition, the forward-looking statements included in this press release represent the Company's views as of February 3, 2010. The Company anticipates that subsequent events and developments will cause the Company's views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, the Company specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing the Company's views as of any date subsequent to February 3, 2010.

Use of Non-GAAP Financial Measures

This release includes information about the Company's non-GAAP adjusted net income and non-GAAP adjusted net income per share, which are non-GAAP financial measures. Management believes that both measures, which exclude amortization of acquired intangibles, stock-based compensation expense, non-cash interest expense, and non-cash patent related impairment expense, all net of taxes, provide additional useful information to investors regarding the Company's ongoing financial condition and results of operations and aspects of current operating performance that can be effectively managed. Because the Company has historically reported these non-GAAP results to the investment community, management also believes the inclusion of these non-GAAP financial measures provides enhanced comparability in its financial reporting and facilitates investors' understanding of the Company's historic operating trends by providing an additional basis for comparisons to prior periods. In addition, the Company's internal reporting, including information provided to the Company's Audit Committee and Board of Directors, contains non-GAAP measures. The Company has also adopted internal compensation metrics that are determined on a basis that excludes amortization of acquired intangibles, stock-based compensation expense, non-cash interest expense, and non-cash patent related impairment expense, all net of taxes.

A material limitation associated with the use of the above non-GAAP financial measures is that they have no standardized measurement prescribed by GAAP and may not be comparable with similar non-GAAP financial measures used by other companies. The Company compensates for these limitations by providing full disclosure of each non-GAAP financial measure and reconciliation to the most directly comparable GAAP financial measure which investors can use to appropriately consider each financial measure determined under GAAP as well as on the adjusted non-GAAP basis. However, the non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. In addition to the information contained in this release, investors should also review information contained in the Company's Form 10-Q dated November 6, 2009, as well as other filings with the Securities and Exchange Commission when assessing the Company's financial condition and results of operations.

SOURCE Blackboard Inc.