[August 17, 2017] |
|
Absolute Reports Fiscal 2017 Fourth Quarter and Annual Financial Results
Absolute®
(TSX:ABT), the standard for endpoint visibility and control, today
announced financial results for the three months and fiscal year ended
June 30, 2017. All dollar figures are unaudited and stated in U.S.
dollars, unless otherwise indicated.
"Over the course of fiscal 2017, we made significant progress on the
execution of our long-term growth and profitability objectives,
including the achievement of eight percent commercial recurring revenue
growth. We also began to realize the benefits of sustained R&D
investments with the introduction of new enterprise-class solutions that
address urgent customer demands," stated Mr. Geoff Haydon, Chief
Executive Officer, Absolute. "The introduction of new capabilities such
as always-connected IT asset management, self-healing and mobile
endpoint security, and continuous data protection drove customer
expansion and the acquisition of prominent new customers. It also led to
a significant increase in our pipeline, positioning us for further
expected growth and stronger expected cash flow in fiscal 2018."
Q4-F2017 and Fiscal Year Highlights
Financial
-
Q4-F2017 revenue was $23.2 million, representing a year-over-year
increase of 5%. Annual revenue was $91.2 million, representing a
year-over-year increase of 6% over F2016 Absolute Data and Device
Security ("DDS") segment revenue.
-
Commercial recurring revenue in Q4-F2017 increased 8% year-over-year
to $21.9 million, while commercial non-recurring and consumer revenue
was $1.3 million compared to $1.8 million in Q4-F2016.
-
Annual commercial recurring revenue increased 8% over the prior year
to $85.4 million. Commercial non-recurring and consumer revenue was
$5.8 million in F2017 compared to $6.8 million in the prior year.
-
The DDS Commercial Annual Contract Value ("ACV") Base(1) of
$87.8 million increased 6% or $4.8 million year-over-year and was down
$0.4 million sequentially.
-
The enterprise and healthcare portion of the ACV Base increased 10%
year-over-year and was unchanged sequentially. The education and
government portion of the ACV Base increased by 2% year-over-year and
was down $0.4 million sequentially. Enterprise and healthcare
customers represented 49% of the June 30, 2017 ACV Base, compared to
47% in the prior year.
-
Net ACV Retention(1) from existing Absolute DDS customers
was 99% during Q4-F2017 compared to 100% in Q4-F2016.
-
Incremental ACV from New DDS Customers(1) was $0.8 million
in Q4-F2017 compared to $1.8 million in Q4-F2016. Annual ACV from New
Customers was $4.4 million, of which 72% was derived from the
enterprise and healthcare vertical, compared to $4.3 million in the
prior year, of which 55% was from the enterprise and healthcare
vertical.
-
Adjusted EBITDA(2) in Q4-F2017 was $2.0 million, or 9% of
revenue, compared to $1.9 million, or 9% of revenue, in the prior year
period. For the annual period, Adjusted EBITDA was $7.9 million,
representing 9% of revenue compared to $11.1 million, or 12% of
revenue in the prior year.
-
Cash generated from operating activities in Q4-F2017 was $0.7 million
compared to cash used in operating activities of $1.6 million in the
prior year period. For the annual period, cash generated from
operating activities was $1.0 million compared to $4.9 million in the
prior year period. Prior to the payment of reorganization charges,
income tax payments and divestiture costs, cash from operating
activities was $7.0 million in F2017 compared to $9.0 million in F2016.
-
Total DDS Billings(4) in Q4-F2017 were $29.4 million
representing a year-over-year decrease of 2%. For the fiscal year, DDS
Billings were $91.6 million, representing a year-over-year increase of
3%.
Technology and Product
-
Delivered market-defining product enhancements including Security
Posture and Data Risk dashboards for at-a-glance measures of endpoint
health, risk, and compliance-both on and off the corporate network.
This enables customers to assess their endpoint security posture,
calculate and mitigate data risk, prove compliance and strengthen
resiliency.
-
Strengthened our technology partnership with Microsoft by integrating
Absolute's unmatched endpoint and data visibility with Microsoft AIP's
ability to control and secure files and to provide advanced user-based
access control of proprietary data without impacting end user
productivity.
-
Debuted Absolute Application Persistence, which extends our embedded
self-healing Persistence technology to third-party endpoint management
and security applications. This enables IT security professionals to
ensure that critical applications can be instantly and automatically
repaired to be resilient to malicious attacks or insider threats.
-
Provided faster endpoint data remediation capabilities so that
customers can take immediate action when at-risk data is detected on a
device. This includes the ability to promptly freeze multiple devices
or covertly delete multiple data files before they are accessed.
-
Delivered the first version of Device Usage Reporting, a new offering
in our Absolute Device Analytics framework that allows customers to
log device usage rates and user activity on each device to properly
assess device configuration by users and improve performance.
-
Completed integration with HPE Security ArcSight security information
and event management (SIEM), Splunk Enterprise SIEM, and IBM Security
QRadar SIEM products to provide seamless endpoint visibility and
contextual insights to the majority of the Gartner SIEM Magic Quadrant
Leaders.
-
Joined the EdgeX Foundry to help advance and unify standards in IoT
and edge computing space.
Operations and Corporate
-
Announced an enterprise-wide deployment of Absolute DDS on more than
100,000 endpoint devices at one of the largest hospital systems in the
United States.
-
Expanded research and development capacity in Vietnam and Vancouver,
including the opening of a new Vietnam development center,
incorporation of a Vietnamese subsidiary. We closed the quarter with
71 R&D-focused employees in Vietnam and 164 in North America.
-
Appointed security industry veteran Todd Chronert to lead enterprise
sales for the Americas region.
-
Paid a quarterly dividend of CAD$0.08 per share on our common shares
during Q4-F2017 and paid total dividends of CAD$0.32 during the fiscal
year.
|
Summary of Key Financial Metrics
|
|
USD Millions, except per share data
|
|
Q4
|
|
|
|
YTD
|
|
|
|
F2017
|
|
F2016
|
|
Change
|
|
F2017
|
|
F2016
|
|
Change
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
DDS Segment(1)
|
|
$
|
23.2
|
|
|
$
|
22.0
|
|
|
5
|
%
|
|
$
|
91.2
|
|
|
$
|
86.0
|
|
|
6
|
%
|
Total
|
|
$
|
23.2
|
|
|
$
|
22.0
|
|
|
5
|
%
|
|
$
|
91.2
|
|
|
$
|
88.8
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA(2)(3)
|
|
$
|
2.0
|
|
|
$
|
1.9
|
|
|
4
|
%
|
|
$
|
7.9
|
|
|
$
|
11.1
|
|
|
(28
|
%)
|
As a percentage of revenue
|
|
|
9
|
%
|
|
|
9
|
%
|
|
|
|
|
9
|
%
|
|
|
12
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (Loss) Income
|
|
$
|
(2.1
|
)
|
|
$
|
(1.2
|
)
|
|
(72
|
%)
|
|
$
|
(5.0
|
)
|
|
$
|
9.7
|
|
|
(151
|
%)
|
Per share (basic)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.03
|
)
|
|
|
|
$
|
(0.13
|
)
|
|
$
|
0.24
|
|
|
|
Per share (diluted)
|
|
$
|
(0.05
|
)
|
|
$
|
(0.03
|
)
|
|
|
|
$
|
(0.13
|
)
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash from (used in) operating activities
|
|
$
|
0.7
|
|
|
$
|
(1.6
|
)
|
|
145
|
%
|
|
$
|
1.0
|
|
|
$
|
4.9
|
|
|
(79
|
%)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends paid
|
|
$
|
2.3
|
|
|
$
|
2.4
|
|
|
(0
|
%)
|
|
$
|
9.5
|
|
|
$
|
9.3
|
|
|
2
|
%
|
Per share (CAD)
|
|
$
|
0.08
|
|
|
$
|
0.08
|
|
|
-
|
|
|
$
|
0.32
|
|
|
$
|
0.31
|
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash, equivalents, and investments
|
|
$
|
32.9
|
|
|
$
|
47.6
|
|
|
(31
|
%)
|
|
|
|
|
|
|
Total assets
|
|
$
|
98.3
|
|
|
$
|
114.7
|
|
|
(14
|
%)
|
|
|
|
|
|
|
Deferred revenue
|
|
$
|
138.4
|
|
|
$
|
138.0
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares outstanding
|
|
|
39.7
|
|
|
|
38.9
|
|
|
2
|
%
|
|
|
|
|
|
|
|
(1)
|
|
As a result of the divestiture of the Absolute Manage and Absolute
Service business unit on October 5, 2015, the Data and Device
Security operating segment solely comprises Absolute's ongoing
operations. This measure is specifically related to our DDS
operating segment.
|
|
|
|
(2)
|
|
Please refer to "Non-IFRS Measures and Definitions".
|
|
|
|
(3)
|
|
Adjusted EBITDA in the year to date period of F2016 included a $1.0
million contribution from the Absolute Manage and Absolute Service
business unit. This business unit was disposed in Q2-F2016.
|
|
|
|
F2018 Corporate Outlook
For F2018, the Company expects new solution and product releases
combined with continued sales productivity improvements to drive growth
in revenue and the underlying commercial ACV base. This growth is
expected to be driven primarily by the North American enterprise and
healthcare verticals, with lower growth rates expected in the education
and government verticals.
Revenue
The Company expects total revenue of $96.8 million to $99.2 million,
representing 6% to 9% annual revenue growth.
Adjusted EBITDA
The Company expects Adjusted EBITDA margins of 9% to 11%,
reflecting margin expansion, which is partially offset by the negative
impact of the stronger Canadian dollar on the Company's Canadian-based
expenditures.
Cash Flow
The Company expects growth in operating cash flow margins. Cash from
operations is expected to be in the range of 13% to 16% of revenue.
Capital expenditures are expected to be between $3.0 million and $3.5
million, relatively consistent with capital expenditures of $3.4 million
in F2017.
Quarterly Dividend
On July 20, 2017, Absolute declared a quarterly dividend of CAD$0.08 per
share on the Company's common shares. The dividend is payable in cash on
August 25, 2017 to shareholders of record at the close of business on
August 4, 2017.
Quarterly Filings
Management's discussion and analysis ("MD&A") and consolidated financial
statements and the notes thereto for the fiscal year ended June 30, 2017
can be obtained today from Absolute's corporate website at www.absolute.com.
The documents will also be available at www.sedar.com.
Notice of Conference Call
Absolute will hold a conference call to discuss the Company's Q4-F2017
results on Thursday, August 17, 2017 at 5:00 p.m. ET. All interested
parties can join the call by dialing 647-427-7450, or 1-888-231-8191.
Please dial-in 15 minutes prior to the call to secure a line. The
conference call will be archived for replay until Thursday, August 24,
2017 at midnight ET. To access the archived conference call, please dial
416-849-0833 or 1-855-859-2056 and enter the reservation code 55781496.
A live audio webcast of the conference call will be available at www.absolute.com
and http://bit.ly/2w7gN9L.
Please connect at least 15 minutes prior to the conference call to
ensure adequate time for any software download that may be required to
join the webcast. An archived replay of the webcast will be available on
the Company's website for 90 days.
Non-IFRS Measures and Definitions
Throughout this press release, the Company refers to a number of
measures which the Company believes are meaningful in the assessment of
the Company's performance. All these metrics are non-standard measures
under International Financial Reporting Standards ("IFRS"), and are
unlikely to be comparable to similarly titled measures reported by other
companies. Readers are cautioned that the disclosure of these items is
meant to add to, and not replace, the discussion of financial results or
cash flows from operations as determined in accordance with IFRS. For a
discussion of the purpose of these non-IFRS measures, please refer to
the Company's June 30, 2017 MD&A on SEDAR at www.SEDAR.com.
These measures, as well as their method of calculation or reconciliation
to IFRS measures, are as follows:
1) Commercial ACV Base, Net ACV Retention, and ACV from New Customers
As the majority of the Company's customer contracts are sold under
multi-year term licenses, there is a significant lag between the timing
of the Billing and the associated revenue recognition. As a result, the
Company focuses on the aggregate annualized value of its subscriptions
under contract, measured by Annual Contract Value ("ACV"), as an
indicator of its future revenues.
Commercial ACV Base measures the amount of recurring annual revenue
Absolute will receive from its commercial customers under contract at a
point in time, and therefore is an indicator of the Company's future
revenue streams. Net ACV Retention measures the percentage increase or
decrease in the Commercial ACV Base at the end of a period for the
customers that comprised the Commercial ACV Base at the beginning of the
same period. This metric provides insight into the effectiveness of
Absolute's customer retention and expansion functions. ACV from New
Customers measures the addition to the Commercial ACV base from sales to
new commercial DDS customers during the quarter.
We believe that increases in the amount of ACV from New Customers, and
improvement in the Company's Net ACV Retention, will grow our Commercial
ACV Base and, in turn, our future revenues.
2) Adjusted EBITDA
Management believes that analyzing operating results exclusive of
significant non-cash items or items not controllable in the period
provides a useful measure of the Company's performance. The term
Adjusted EBITDA refers to earnings before deducting interest and
investment gains (losses), income taxes, amortization of acquired
intangible assets and property and equipment, foreign exchange gain or
loss, share-based compensation, and restructuring and reorganization
charges and post-retirement benefits. The items excluded in the
determination of Adjusted EBITDA are share-based compensation,
amortization of acquired intangibles, amortization of property and
equipment, and restructuring and reorganization charges and certain
post-retirement benefits.
3) Adjusted Operating Expenses
A number of significant non-cash or non-recurring expenses are reported
in the Company's Cost of Revenue and Operating Expenses. Management
believes that analyzing these expenses exclusive of these non-cash or
non-recurring items provides a useful measure of the cash invested in
the operations of its business. The items excluded in the determination
of Adjusted Operating Expenses are share-based compensation,
amortization of acquired intangible assets, amortization of property and
equipment, and restructuring and reorganization charges and certain
post-retirement benefits. For a description of the reasons these items
are adjusted, please refer to the "Non-IFRS Measures" section of the
June 30, 2017 MD&A.
4) Billings
See the "Non-IFRS Measures" section of the June 30, 2017 MD&A for a
detailed discussion of why the Company believes Cash from Operating
Activities is a meaningful performance metric, and the material impact
that Billings has on this measure. Billings are included in deferred
revenue (see Note 10 of the Notes to the Consolidated Financial
Statements), and result from invoiced sales of the Company's products
and services.
About Absolute
Absolute is the new standard for endpoint visibility and control,
delivering always-connected IT asset management and self-healing
endpoint security to protect devices, data, applications and users - on
and off the network. Bridging the gap between IT operations and
security, only Absolute gives enterprises visibility they can act on to
assess every endpoint, remediate vulnerabilities and at-risk data, and
ensure compliance in the face of insider and external threats.
Absolute's patented Persistence technology is already embedded in the
firmware of more than one billion PC and mobile devices and trusted by
approximately 18,000 customers worldwide.
Forward-Looking Statements
This press release contains forward-looking statements and financial
outlook that involve risks and uncertainties. These forward-looking
statements and financial outlook relate to, among other things, the
expected performance, functionality and availability of the Company's
services and products, and other expectations, intentions and plans
contained in this press release that are not historical facts. When used
in this press release, the words "plan," "expect," "believe," and
similar expressions generally identify forward-looking statements. These
statements reflect the Company's current expectations. They are subject
to a number of risks and uncertainties, including, but not limited to,
changes in technology and general market conditions. In light of the
many risks and uncertainties readers of the press release should
understand that Absolute cannot assure them that the forward-looking
statements and financial outlook contained in this press release will be
realized. Furthermore, the forward-looking statements and financial
outlook contained in this press release are made as at the date hereof
and the Company does not undertake any obligation to update publicly or
to revise any of the included forward-looking statements and financial
outlook, whether as a result of new information, future events or
otherwise, except as may be required by applicable securities laws.
©2017 Absolute Software Corporation. All rights reserved. Absolute and
Persistence are registered trademarks of Absolute Software Corporation.
For patent information, visit www.absolute.com/patents.
The Toronto Stock Exchange has neither approved nor disapproved of the
information contained in this news release.
|
ABSOLUTE SOFTWARE CORPORATION
|
Consolidated Statements of Financial Position
|
(Expressed in United States dollars) (Unaudited)
|
|
|
|
June 30, 2017
|
|
June 30, 2016
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
CURRENT
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
32,511,093
|
|
|
$
|
23,092,852
|
|
Short-term investments
|
|
|
366,789
|
|
|
|
11,637,085
|
|
Trade and other receivables
|
|
|
19,460,872
|
|
|
|
21,138,351
|
|
Income tax receivable
|
|
|
83,487
|
|
|
|
-
|
|
Prepaid expenses and other
|
|
|
2,419,881
|
|
|
|
2,379,234
|
|
|
|
|
54,842,122
|
|
|
|
58,247,522
|
|
INVESTMENTS
|
|
|
-
|
|
|
|
12,821,302
|
|
PROPERTY AND EQUIPMENT
|
|
|
6,304,152
|
|
|
|
5,853,222
|
|
DEFERRED INCOME TAX ASSETS
|
|
|
22,286,804
|
|
|
|
22,353,391
|
|
INTANGIBLE ASSETS AND GOODWILL
|
|
|
14,894,518
|
|
|
|
15,382,262
|
|
|
|
$
|
98,327,596
|
|
|
$
|
114,657,699
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
|
|
|
CURRENT
|
|
|
|
|
Trade and other payables
|
|
$
|
13,079,456
|
|
|
$
|
13,942,922
|
|
Income tax payable
|
|
|
-
|
|
|
|
5,990,927
|
|
Accrued warranty
|
|
|
570,000
|
|
|
|
460,000
|
|
Deferred revenue - current
|
|
|
72,361,648
|
|
|
|
72,464,399
|
|
|
|
|
86,011,104
|
|
|
|
92,858,248
|
|
|
|
|
|
|
DEFERRED REVENUE
|
|
|
66,040,653
|
|
|
|
65,509,763
|
|
|
|
|
152,051,757
|
|
|
|
158,368,011
|
|
COMMITMENTS
|
|
|
|
|
CONTINGENCIES
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' DEFICIENCY
|
|
|
|
|
Share capital
|
|
|
64,875,130
|
|
|
|
58,607,382
|
|
Equity reserve
|
|
|
36,254,893
|
|
|
|
36,732,175
|
|
Treasury shares
|
|
|
(499,443
|
)
|
|
|
-
|
|
Deficit
|
|
|
(154,354,741
|
)
|
|
|
(139,049,869
|
)
|
|
|
|
(53,724,161
|
)
|
|
|
(43,710,312
|
)
|
|
|
$
|
98,327,596
|
|
|
$
|
114,657,699
|
|
|
|
|
|
|
|
|
|
|
|
ABSOLUTE SOFTWARE CORPORATION
|
Consolidated Statements of Operations and Comprehensive (Loss)
Income
|
Three months and year ended June 30, 2017 and 2016
|
(Expressed in United States dollars) (Unaudited)
|
|
|
|
Three months ended
|
|
Year ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
REVENUE
|
|
$
|
23,184,480
|
|
|
$
|
22,014,524
|
|
|
$
|
91,210,550
|
|
|
$
|
88,798,508
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUE
|
|
|
3,612,129
|
|
|
|
3,796,794
|
|
|
|
14,450,858
|
|
|
|
13,827,785
|
|
|
|
|
|
|
|
|
|
|
GROSS MARGIN
|
|
|
19,572,351
|
|
|
|
18,217,730
|
|
|
|
76,759,692
|
|
|
|
74,970,723
|
|
|
|
|
|
|
|
|
|
|
OPERATING EXPENSES
|
|
|
|
|
|
|
|
|
Sales and marketing
|
|
|
10,862,189
|
|
|
|
11,329,061
|
|
|
|
44,381,582
|
|
|
|
44,834,872
|
|
Research and development
|
|
|
4,347,797
|
|
|
|
2,957,048
|
|
|
|
17,524,536
|
|
|
|
12,396,394
|
|
General and administration
|
|
|
3,304,667
|
|
|
|
2,796,982
|
|
|
|
12,851,255
|
|
|
|
10,304,742
|
|
Share-based compensation
|
|
|
743,888
|
|
|
|
1,075,013
|
|
|
|
3,971,161
|
|
|
|
4,668,476
|
|
|
|
|
19,258,541
|
|
|
|
18,158,104
|
|
|
|
78,728,534
|
|
|
|
72,204,484
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME (LOSS)
|
|
|
313,810
|
|
|
|
59,626
|
|
|
|
(1,968,842
|
)
|
|
|
2,766,239
|
|
|
|
|
|
|
|
|
|
|
OTHER (EXPENSE) INCOME
|
|
|
|
|
|
|
|
|
Interest income, net
|
|
|
8,200
|
|
|
|
60,074
|
|
|
|
81,546
|
|
|
|
292,602
|
|
Foreign exchange loss
|
|
|
(79,296
|
)
|
|
|
(58,350
|
)
|
|
|
(119,881
|
)
|
|
|
(684,225
|
)
|
Gain on disposal of business unit
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
14,098,066
|
|
|
|
|
(71,096
|
)
|
|
|
1,724
|
|
|
|
(38,335
|
)
|
|
|
13,706,443
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (LOSS) BEFORE INCOME TAXES
|
|
|
242,714
|
|
|
|
61,350
|
|
|
|
(2,007,177
|
)
|
|
|
16,472,682
|
|
|
|
|
|
|
|
|
|
|
INCOME TAX EXPENSE
|
|
|
(2,335,000
|
)
|
|
|
(1,276,000
|
)
|
|
|
(2,944,000
|
)
|
|
|
(6,744,000
|
)
|
|
|
|
|
|
|
|
|
|
NET (LOSS) INCOME AND
COMPREHENSIVE (LOSS) INCOME
|
|
$
|
(2,092,286
|
)
|
|
$
|
(1,214,650
|
)
|
|
$
|
(4,951,177
|
)
|
|
$
|
9,728,682
|
|
|
|
|
|
|
|
|
|
|
BASIC (LOSS) INCOME PER SHARE
|
|
$
|
(0.05
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
(0.13
|
)
|
|
$
|
0.24
|
|
DILUTED (LOSS) INCOME PER SHARE
|
|
$
|
(0.05
|
)
|
|
$
|
(0.03
|
)
|
|
$
|
(0.13
|
)
|
|
$
|
0.23
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC
|
|
|
39,183,227
|
|
|
|
38,827,732
|
|
|
|
39,082,732
|
|
|
|
40,486,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ABSOLUTE SOFTWARE CORPORATION
|
Consolidated Statement of Changes in Shareholders' Deficiency
|
(Expressed in United States dollars) (Unaudited)
|
|
|
|
Share Capital
|
|
|
|
|
|
|
|
|
|
|
Number of
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
|
|
|
|
Equity
|
|
Treasury
|
|
|
|
|
|
|
shares
|
|
Amount
|
|
reserve
|
|
shares
|
|
Deficit
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE, JUNE 30, 2015
|
|
44,862,344
|
|
$
|
59,607,392
|
|
$
|
35,322,483
|
|
$
|
-
|
|
$
|
(108,066,367)
|
|
$
|
(13,136,492)
|
Shares issued on options exercised
|
|
884,050
|
|
|
4,969,839
|
|
|
(1,751,984)
|
|
|
-
|
|
|
-
|
|
|
3,217,855
|
Shares issued under Employee Share Purchase Plan
|
|
125,861
|
|
|
621,880
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
621,880
|
Shares issued under Phantom Share Unit plan
|
|
160,552
|
|
|
1,516,167
|
|
|
(1,100,692)
|
|
|
-
|
|
|
-
|
|
|
415,475
|
Shares repurchased and cancelled under the Normal Course Issuer Bid
|
|
(901,500)
|
|
|
(422,002)
|
|
|
-
|
|
|
-
|
|
|
(847,333)
|
|
|
(1,269,335)
|
Shares repurchased and cancelled under the Substantial Issuer Bid
|
|
(6,250,000)
|
|
|
(7,685,894)
|
|
|
-
|
|
|
-
|
|
|
(30,603,647)
|
|
|
(38,289,541)
|
Share-based compensation expense
|
|
-
|
|
|
-
|
|
|
4,262,368
|
|
|
-
|
|
|
-
|
|
|
4,262,368
|
Dividends paid
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9,261,204)
|
|
|
(9,261,204)
|
Net income and total comprehensive income
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9,728,682
|
|
|
9,728,682
|
BALANCE, JUNE 30, 2016
|
|
38,881,307
|
|
$
|
58,607,382
|
|
$
|
36,732,175
|
|
$
|
-
|
|
$
|
(139,049,869)
|
|
$
|
(43,710,312)
|
Shares issued on options exercised
|
|
661,838
|
|
|
4,039,782
|
|
|
(1,313,196)
|
|
|
-
|
|
|
-
|
|
|
2,726,586
|
Shares issued under Employee Share Purchase Plan
|
|
84,455
|
|
|
361,477
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
361,477
|
Shares issued under Phantom Share Unit plan
|
|
327,145
|
|
|
2,281,206
|
|
|
(2,281,206)
|
|
|
-
|
|
|
-
|
|
|
-
|
Shares issued under Performance and Restricted Share Unit plan
|
|
7,104
|
|
|
35,131
|
|
|
(35,131)
|
|
|
-
|
|
|
-
|
|
|
-
|
Shares repurchased and cancelled under the Normal Course Issuer Bid
|
|
(280,100)
|
|
|
(449,848)
|
|
|
-
|
|
|
-
|
|
|
(876,845)
|
|
|
(1,326,693)
|
Treasury shares repurchased under the Normal Course Issuer Bid
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(499,443)
|
|
|
-
|
|
|
(499,443)
|
Share-based compensation expense
|
|
-
|
|
|
-
|
|
|
3,152,251
|
|
|
-
|
|
|
-
|
|
|
3,152,251
|
Dividends paid
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9,476,850)
|
|
|
(9,476,850)
|
Net loss and total comprehensive loss
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(4,951,177)
|
|
|
(4,951,177)
|
BALANCE, JUNE 30, 2017
|
|
39,681,749
|
|
$
|
64,875,130
|
|
$
|
36,254,893
|
|
$
|
(499,443)
|
|
$
|
(154,354,741)
|
|
$
|
(53,724,161)
|
|
|
ABSOLUTE SOFTWARE CORPORATION
|
Consolidated Statements of Cash Flows
|
Three months and year ended June 30, 2017 and 2016
|
(Expressed in United States dollars) (Unaudited)
|
|
|
|
Three months ended
|
|
Year ended
|
|
|
June 30,
|
|
June 30,
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net (loss) income
|
|
$
|
(2,092,286
|
)
|
|
$
|
(1,214,650
|
)
|
|
$
|
(4,951,177
|
)
|
|
$
|
9,728,682
|
|
Items not involving cash
|
|
|
|
|
|
|
|
|
Amortization of property and equipment
|
|
|
808,239
|
|
|
|
644,696
|
|
|
|
2,971,483
|
|
|
|
2,255,603
|
|
Amortization of acquired intangible assets
|
|
|
108,750
|
|
|
|
125,761
|
|
|
|
204,676
|
|
|
|
631,120
|
|
Amortization of intangible assets - contract costs and brand
|
|
|
2,250,650
|
|
|
|
2,173,513
|
|
|
|
9,017,238
|
|
|
|
7,921,629
|
|
Share-based compensation
|
|
|
743,888
|
|
|
|
1,075,013
|
|
|
|
3,971,161
|
|
|
|
4,262,364
|
|
Deferred income taxes
|
|
|
1,368,574
|
|
|
|
(1,572,000
|
)
|
|
|
66,587
|
|
|
|
(1,847,000
|
)
|
Gain on disposal of business unit
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(14,098,066
|
)
|
Transaction fees on disposal of business unit
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,257,910
|
)
|
Amortization of investment premium
|
|
|
1,567
|
|
|
|
257,312
|
|
|
|
468,452
|
|
|
|
696,032
|
|
Change in non-cash working capital
|
|
|
|
|
|
|
|
|
Trade and other receivables
|
|
|
(7,798,007
|
)
|
|
|
(10,028,453
|
)
|
|
|
1,677,479
|
|
|
|
(237,386
|
)
|
Income taxes receivable
|
|
|
146,662
|
|
|
|
1,508,139
|
|
|
|
(3,450,524
|
)
|
|
|
3,948,796
|
|
Prepaid expenses and other
|
|
|
(29,194
|
)
|
|
|
(84,992
|
)
|
|
|
(40,647
|
)
|
|
|
(178,373
|
)
|
Intangible assets - contract costs and brand additions
|
|
|
(2,769,286
|
)
|
|
|
(3,212,196
|
)
|
|
|
(8,642,571
|
)
|
|
|
(10,388,335
|
)
|
Trade and other payables
|
|
|
1,715,210
|
|
|
|
601,109
|
|
|
|
(800,721
|
)
|
|
|
1,619,648
|
|
Accrued warranty
|
|
|
80,000
|
|
|
|
110,000
|
|
|
|
110,000
|
|
|
|
90,000
|
|
Deferred revenue
|
|
|
6,167,899
|
|
|
|
8,063,228
|
|
|
|
428,139
|
|
|
|
1,726,754
|
|
|
|
|
|
|
|
|
|
|
CASH FROM (USED IN) OPERATING ACTIVITIES
|
|
|
702,666
|
|
|
|
(1,553,520
|
)
|
|
|
1,029,575
|
|
|
|
4,873,558
|
|
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(319,175
|
)
|
|
|
(1,683,055
|
)
|
|
|
(4,287,421
|
)
|
|
|
(3,370,497
|
)
|
Purchase of intangible assets
|
|
|
(160,000
|
)
|
|
|
-
|
|
|
|
(160,000
|
)
|
|
|
(225,000
|
)
|
Proceeds from disposal of business unit
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
11,046,737
|
|
Income taxes paid on disposal of business unit
|
|
|
-
|
|
|
|
5,000,000
|
|
|
|
(2,623,890
|
)
|
|
|
-
|
|
Proceeds from investments
|
|
|
-
|
|
|
|
-
|
|
|
|
13,218,146
|
|
|
|
16,700,000
|
|
Proceeds from sale of investments
|
|
|
-
|
|
|
|
-
|
|
|
|
10,405,000
|
|
|
|
-
|
|
Purchase of investments
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(201,124
|
)
|
|
|
|
|
|
|
|
|
|
CASH (USED IN) FROM INVESTING ACTIVITIES
|
|
|
(479,175
|
)
|
|
|
3,316,945
|
|
|
|
16,551,835
|
|
|
|
23,950,116
|
|
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Repurchase of common shares for cancellation
|
|
|
-
|
|
|
|
(423,780
|
)
|
|
|
(1,326,693
|
)
|
|
|
(43,501,944
|
)
|
Dividends paid
|
|
|
(2,349,244
|
)
|
|
|
(2,360,025
|
)
|
|
|
(9,476,850
|
)
|
|
|
(9,261,204
|
)
|
Purchase of treasury shares
|
|
|
-
|
|
|
|
-
|
|
|
|
(499,443
|
)
|
|
|
-
|
|
Issuance of common shares
|
|
|
370,035
|
|
|
|
471,417
|
|
|
|
3,127,733
|
|
|
|
3,658,654
|
|
|
|
|
|
|
|
|
|
|
CASH USED IN FINANCING ACTIVITIES
|
|
|
(1,979,209
|
)
|
|
|
(2,312,388
|
)
|
|
|
(8,175,253
|
)
|
|
|
(49,104,494
|
)
|
|
|
|
|
|
|
|
|
|
FOREIGN EXCHANGE EFFECT ON CASH
|
|
|
61,798
|
|
|
|
(52,077
|
)
|
|
|
12,084
|
|
|
|
(731,878
|
)
|
|
|
|
|
|
|
|
|
|
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(1,693,920
|
)
|
|
|
(601,040
|
)
|
|
|
9,418,241
|
|
|
|
(21,012,698
|
)
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
|
|
|
34,205,013
|
|
|
|
23,693,892
|
|
|
|
23,092,852
|
|
|
|
44,105,550
|
|
|
|
|
|
|
|
|
|
|
CASH AND CASH EQUIVALENTS, END OF PERIOD
|
|
$
|
32,511,093
|
|
|
$
|
23,092,852
|
|
|
$
|
32,511,093
|
|
|
$
|
23,092,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
View source version on businesswire.com: http://www.businesswire.com/news/home/20170817006001/en/
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