Blackbaud, Inc. Announces Second Quarter 2006 Results and Third Quarter 2006 Dividend

Blackbaud, Inc. Announces Second Quarter 2006 Results and Third Quarter 2006 Dividend

CHARLESTON, S.C.--(BUSINESS WIRE)--Aug. 7, 2006--Blackbaud, Inc. (Nasdaq: BLKB), the leading provider of software and related services designed specifically for nonprofit organizations, today announced financial results for its second quarter, ended June 30, 2006.

For the quarter ended June 30, 2006, Blackbaud reported total revenue of $48.8 million, an increase of 14% compared with the second quarter of 2005. License revenue increased 11% to $9.2 million, services revenue increased 11% to $15.7 million, and maintenance and subscriptions revenue increased 17% to $22.5 million over the comparable period.

Marc Chardon, Chief Executive Officer of Blackbaud, stated, "We are very pleased with the Company's performance in the second quarter, highlighted by better-than-expected revenue and profitability. We believe the breadth and depth of Blackbaud's product portfolio and distribution model is a key competitive advantage and was a primary factor in our strong performance in the second quarter."

Chardon continued, "We also believe there is a large, untapped market for state-of-the-art technology that helps nonprofit organizations improve their efficiency, donor relationships and ability to raise money to support their missions. In addition to the exciting opportunity that we continue to see for our existing solutions, we have recently identified several new nonprofit market opportunities that we believe we can successfully target that will allow us to expand our addressable market. As an example, we plan to develop solutions to bring a greater level of effectiveness to the direct-response marketing needs of many large non profit organizations."

Blackbaud's income from operations and net income, determined in accordance with generally accepted accounting principles ("GAAP"), were $12.4 million and $7.7 million, respectively, for the second quarter of 2006 compared with income from operations of $9.0 million and net income of $8.5 million in the same period last year. GAAP diluted earnings per share were $0.17 for the quarter ended June 30, 2006, compared with $0.18 in the same period last year. The decline in the Company's earnings in the second quarter 2006 compared with the second quarter 2005 was principally the result of $2.9 million of state tax credits recognized in the 2005 quarter that were not repeated in 2006.

For the quarter ended June 30, 2006, non-GAAP income from operations and net income, which exclude stock-based compensation expense, amortization of intangibles arising from business combinations and certain state tax credits, were $14.6 million and $9.0 million, respectively. This represents growth of 19% in non-GAAP income from operations and 16% in non-GAAP net income, compared with the second quarter 2005. Non-GAAP earnings per share were $0.20 for the quarter ended June 30, 2006 compared with $0.16 in the same period last year. A reconciliation of GAAP to non-GAAP results has been provided in the financial statement tables included in this press release. An explanation of these measures is also included below under the heading "Non-GAAP Financial Measures."

Blackbaud had cash and cash equivalents of $30.9 million at June 30, 2006, an increase of $14.4 million compared to the end of the prior quarter. The increase in cash was primarily the result of strong cash flow from operations.

Timothy V. Williams, Chief Financial Officer of Blackbaud, stated, "The Company delivered its highest non-GAAP operating margin in two years, while at the same time we were also investing in strategic initiatives to help grow the business for the long-term. Our cash flow generation also remains strong, enabling us to continue to return cash to our stockholders in order to maximize stockholder value."

Third Quarter Dividend

Blackbaud announced today that its Board of Directors has declared a third quarter dividend of $0.07 per share payable on September 15, 2006 to stockholders of record on August 28, 2006.

Conference Call Details

Blackbaud will host a conference call today, August 7, 2006, at 5:00 p.m. (EST) to discuss the Company's financial results, operations and related matters. To access this call, dial 800-819-9193 (domestic) or 913-981-4911 (international). A replay of this conference call will be available through August 14, 2006, at 888-203-1112 (domestic) or 719-457-0820 (international). The replay passcode is 3784878. A live webcast of this conference call will be available on the "Investor Relations" page of the Company's Web site, and a replay will be archived on the Web site as well.

About Blackbaud

Blackbaud is the leading global provider of software and related services designed specifically for nonprofit organizations. More than 15,000 organizations -- including the American Red Cross, Bowdoin College, the Chesapeake Bay Foundation, the Crohn's & Colitis Foundation of America, the Detroit Zoological Society, Episcopal High School, Help the Aged, the New York Philharmonic, and United Way of America -- use Blackbaud products and consulting services for fundraising, financial management, business intelligence, and school administration. Blackbaud's solutions include The Raiser's Edge(R), The Financial Edge(TM), The Education Edge(TM), The Patron Edge(R), Blackbaud(R) NetCommunity(TM), The Information Edge(TM), The Researcher's Edge(TM), WealthPoint(TM), and ProspectPoint(TM), as well as a wide range of consulting and educational services. Founded in 1981, Blackbaud is headquartered in Charleston, South Carolina, and has operations in Toronto, Ontario; London, England; Glasgow, Scotland; and Sydney, Australia. For more information, visit www.blackbaud.com.

Blackbaud, the Blackbaud logo, The Raiser's Edge, The Financial Edge, The Education Edge, The Patron Edge, Blackbaud NetCommunity, The Information Edge, The Researcher's Edge, WealthPoint, and ProspectPoint are trademarks or registered trademarks of Blackbaud, Inc.

See 11350 other posts submitted by John Warner. Find articles, people, and videos related to: Information Technology