[February 10, 2012] Guidance Software Reports Q4 2011 Financial Results Tweet Feb 10, 2012 (Close-Up Media via COMTEX) -- Guidance Software reported financial results for the fourth quarter and year ended Dec. 31, 2011, setting new highs for revenue and earnings per share. In a release dated Feb. 7, the Company said fourth quarter 2011 financial highlights, calculated in accordance with GAAP, include: -revenue of $29.9 million, an increase of $3.9 million, or 15 percent, from $26.0 million in the fourth quarter of 2010 -product revenue of $16.8 million, an increase of $4.5 million, or 37 percent, from $12.3 million in the fourth quarter of 2010 -GAAP net income of $2.3 million, or $0.09 per share, compared to a GAAP net loss of $0.4 million, or ($0.02) per share, in the fourth quarter of 2010. On a non-GAAP basis, which excludes share-based compensation and amortization of intangibles, the company reported pre-tax net income of $3.9 million, or $0.16 per share, in the fourth quarter of 2011, compared to non-GAAP pre-tax net income of $1.2 million, or $0.05 per share, in the fourth quarter of 2010. Guidance Software President and Chief Executive Officer Victor Limongelli said, "The fourth quarter marked an outstanding finish to 2011, with both revenue and net income reaching all-time highs. Propelling these results is the increasing penetration of our EnCase Enterprise platform. Marking a continuation of the positive momentum we experienced throughout the year, we added an impressive number of new EnCase Enterprise customers: 98 new customers during the fourth quarter and 285 for the full year. With each new EnCase Enterprise customer, we recognize the opportunity to highlight additional products built on top of our platform, including EnCase eDiscovery and EnCase Cybersecurity, as well as our training and professional services offerings. Importantly, the accelerating adoption of our suite of products provides us significant margin expansion in our operating model, as evidenced by our ability to deliver our best-ever fourth quarter non-GAAP operating margin of 13 percent. "Looking ahead, we are very optimistic about our prospects in 2012. Today we announced our entry into a definitive agreement to acquire CaseCentral, a privately held e-discovery leader for Cloud-based review and production software for corporations and law firms. Upon closing, this acquisition will extend Guidance Software's market leadership by delivering a complete and integrated platform for the e-discovery needs of corporate and government customers. We continue to forecast strong top and bottom line growth and expect to further extend our market leadership in 2012 with the release of EnCase Enterprise Version 7 early in the year. We look forward to continuing to deploy the EnCase family of products designed to address the challenges created by the unstructured, unmanaged digital data that prevail throughout today's business corporations and government agencies." Fourth Quarter 2011 Highlights and Recent Noteworthy Events -The company announced that it has signed a definitive agreement to acquire CaseCentral, a privately held e-discovery leader for Cloud-based review and production software for corporations and law firms, for $17.1 million, consisting of $8.3 million in cash and $8.3 million in company common stock and the assumption of $0.5 million in debt, net of cash. Depending on CaseCentral's SaaS revenue growth, Guidance Software may pay up to an additional $33 million in cash over the next three years. The transaction is subject to customary closing conditions and is expected to close during the latter half of the first quarter of 2012. Guidance Software expects the transaction to add approximately $10 million in SaaS revenue in 2012 and expects the transaction to be slightly dilutive to slightly accretive to 2012 non-GAAP EPS and accretive to 2013 non-GAAP EPS. -The company added a record 98 new EnCase Enterprise customers in the fourth quarter of 2011, compared to 32 in the fourth quarter of 2010. The company also added 31 customers of EnCase eDiscovery or EnCase Cybersecurity, both of which are built on the EnCase Enterprise platform. For the full year 2011, the company added 285 new EnCase Enterprise customers, compared to 91 for the full year 2010. -In November 2011, the company announced that EnCase had been named Best Forensic Software by Government Security News as part of its annual homeland security awards competition. -In January 2012, the company unveiled the EnCase Cybersecurity Authorized Technologist program, an exclusive partner offering that includes tools, training and resources that will help drive partner profitability. The CAT program is a pre-sales certification that will allow partners increased opportunity through greater differentiation and enhanced customer relationships. 2012 Financial Outlook: The company is initiating its guidance for the year ended Dec. 31, as follows, and assumes that the acquisition of CaseCentral will occur in the second half of Q1 2012: -Revenue is expected to be in the range of $126 million to $131 million, representing year over year growth of 20 percent to 25 percent -Non-GAAP pre-tax earnings are expected to be approximately $0.35 to $0.42 per share ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]