Blackboard Inc. Announces 2006 and 2007 Financial Guidance
WASHINGTON, March 13 /PRNewswire-FirstCall/ -- Blackboard Inc.
(Nasdaq: BBBB) announced today revised financial guidance for the full year
2006 following the completion of the company's merger with WebCT, Inc.
Additionally, Blackboard also provided initial guidance for the full year 2007.
Blackboard's operating results will incorporate the results of operations
for WebCT from March 1, 2006 and will be subject to a preliminary allocation
of purchase price and other purchase accounting adjustments to the February 28,
2006 opening balance sheet.
Outlook for the First Quarter and Full Year 2006
The Company's guidance for the first quarter of 2006 is as follows:
* GAAP revenue of $36.4 to $37.4 million;
* Stock-based compensation expense of approximately $2.2 million;
* GAAP net loss of approximately ($700,000) to GAAP net loss of
($200,000), resulting in GAAP net loss per diluted share of
approximately ($0.02) to ($0.01) per share, which is based on an
estimated 29.7 million diluted shares and an effective tax rate of 33.0
percent; and
* Cash net income of approximately $1.8 to $2.2 million, which excludes
amortization of intangibles, stock-based compensation expense, and the
associated tax impact, resulting in cash net income per diluted share
of approximately $0.06 to $0.08 per share based on an estimated 29.7
million diluted shares and an effective tax rate of 39.5 percent.
The Company's guidance for the full year of 2006 is as follows:
* GAAP revenue of approximately $167.0 to $171.0 million;
* Stock-based compensation expense of approximately $10.6 million;
* GAAP net loss of approximately ($17.4) to ($15.7) million, resulting in
GAAP net loss per diluted share of approximately ($0.58) to ($0.52) per
share, which is based on an estimated 30.1 million diluted shares and
an effective tax rate of 33.0 percent; and
* Cash net income of approximately $900,000 to $2.5 million, which
excludes amortization of intangibles, stock-based compensation expense,
and the associated tax impact, resulting in cash net income per diluted
share of approximately $0.03 to $0.08 per share based on an estimated
30.1 million diluted shares and an effective tax rate of 39.5 percent.
Preliminary Guidance for the Full Year of 2007
* GAAP revenue of approximately $224 to $230 million;
* Stock-based compensation expense of approximately $15 million;
* GAAP net income of approximately $10 to $12 million, resulting in GAAP
net income per diluted share of approximately $0.31 to $0.38 per share,
which is based on an estimated 31.5 million diluted shares; and
* Cash net income of approximately $32 to $34 million, which excludes
amortization of intangibles, stock-based compensation expense, and the
associated tax impact, resulting in cash net income per diluted share
of approximately $1.01 to $1.09 per share based on an estimated 31.5
million diluted shares.
Non-GAAP Financial Measures
This release includes forecasts of the Company's cash net income which is
a non-GAAP financial measure. Management believes that cash net income, which
excludes amortization of intangibles, stock-based compensation expense, and
the associated tax impact, provides useful information to investors regarding
the Company's ongoing financial condition and results of operations. In
addition, management believes that cash net income is useful to investors
because it provides an additional basis for measuring the Company's financial
condition against other periods. Since the Company has historically reported
non-GAAP results to the investment community, management also believes the
inclusion of non-GAAP measure provides consistency in its financial reporting.
However, 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-K
dated February 15, 2006, as well as other filings with the Securities and
Exchange Commission when assessing the Company's financial condition and
results of operations.
Blackboard 2006 Updated Guidance Conference Call
Blackboard will hold a conference call on today at 6:00 p.m. Eastern (3:00
p.m. Pacific) to discuss its updated financial guidance for 2006. Blackboard
management will also be delivering a concurrent slide presentation interested
parties can access the conference call live webcast through the Investor
Relations section of the Company's Web site at http://investor.blackboard.com.
Please access the Web site at least 15 minutes prior to the start of the call
to register, download and install any necessary software.
A replay of the call will be available via telephone from approximately
9:00 p.m. Eastern (6:00 p.m. Pacific) on March 13, 2006 until 11:00 p.m.
Eastern (8:00 p.m. Pacific) on March 20, 2006. 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 13339565.
About Blackboard Inc.
Blackboard Inc. (Nasdaq: BBBB) is a leading provider of enterprise
software applications and related services to the education industry. Founded
in 1997, Blackboard enables educational innovations everywhere by connecting
people and technology. With two product suites, the Blackboard Academic Suite
(TM) and the Blackboard Commerce Suite (TM), Blackboard is used by millions of
people at academic institutions around the globe, including colleges,
universities, K-12 schools and other education providers, as well as textbook
publishers and student-focused merchants that serve education providers and
their students. Blackboard is headquartered in Washington, D.C., with offices
in North America, Europe and Asia.
Forward-Looking Statements
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. Actual results may differ materially from those
indicated by such forward-looking statements as a result of various important
factors, including Blackboard's ability to integrate the business, operations
and personnel of WebCT, Blackboard's ability to retain existing customers and
gain new customers following its merger with WebCT, and the factors discussed
in the "Risk Factors" section of our most recent 10-K filed with the SEC. In
addition, the forward-looking statements included in this press release
represent the Company's views as of March 13, 2006. 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 March 13,
2006.
SOURCE: Blackboard Inc.
CONTACT: Michael J. Stanton, Vice President, Investor Relations of
Blackboard Inc., +1-202-463-4860, ext. 2305