Total revenue for the first quarter of 2009 was $62.0 million, compared to $69.4 million in the prior year period. License revenue for Q1 was $11.2 million, compared to $17.0 million in the first quarter of 2008. Maintenance and support revenue in the first quarter of 2009 was $30.6 million, an increase from $28.1 million in Q1 2008. Consulting services revenue for Q1 was $20.1 million, compared to $24.3 million in the prior year period.
GAAP net income for the first quarter of 2009 was $2.7 million, or $0.06 per diluted share, compared to $4.0 million, or $0.09 per diluted share, in the first quarter of 2008. Non-GAAP net income for the first quarter of 2009 was $5.6 million, or $0.13 per diluted share, compared to $6.2 million, or $0.14 per diluted share, in the first quarter of 2008.
Non-GAAP net income excludes the net-of-tax impact of stock-based compensation, expenses associated with the Company's 2005 recapitalization, amortization of acquired intangible assets and restructuring charges.
“While the challenging economic environment impacted our Q1 revenues, we continued to drive operational improvements and cost reductions to maximize our profitability and deliver strong cash flow,” said Kevin Parker, president and CEO of Deltek.
“Although the economic environment will continue to influence near-term purchasing decisions across the entire software industry, our overall pipeline remains healthy, our customer engagement remains high and our competitive position continues to be very strong. While our revenue results will continue to be impacted by the tough economic climate, we are committed to maximizing our profitability and cash flow.”
Recent Highlights
- Q1 operating cash flow was $17.4 million, resulting in a cash balance of $43.0 million at March 31, 2009. During Q1, Deltek also reduced its indebtedness by $10.2 million.
- On April 3, 2009, the Company filed a Registration Statement on Form S-3 with the Securities and Exchange Commission for a proposed $60 million rights offering to shareholders of record as of April 14, 2009. The offering involves non-transferable subscription rights to purchase up to 20 million shares of the Company’s common stock at a price of $3.00 per share. On April 30, 2009, the Company filed an amendment to this Registration Statement relating to the proposed rights offering.
- In May, Deltek will host its annual customer conference, Insight 2009, the largest gathering of project-focused professionals in the world. Deltek recently announced the significant expansion of the Insight program to incorporate a new forum – “The Stimulus & Beyond: Navigating the Brave New World.” This unique event will provide government contractors and architecture, engineering and construction (AEC) firms with valuable real-world strategies and tools on winning business in this new era of government spending. Deltek’s Insight conference will be held May 12-15, 2009 in Orlando, Florida. For additional information, please visit www.deltekinsight.com.
- Deltek recently announced a partnership with Lumigent Technologies, an industry leader in IT governance and compliance control systems for financial applications. The addition of Lumigent’s applications to Deltek’s broad portfolio of solutions for government contractors further strengthens IT governance and data security.
Conference Call Information
Deltek will host a conference call at 5:00 p.m. Eastern Standard Time today to discuss the Company’s first quarter results. To access this call, dial 1-877-381-6419 in North America and 1-706-643-9496 outside North America. No password is required to join the call. The conference call also can be accessed through the Investor Relations section of Deltek’s website ( http://investor.deltek.com). Those unable to participate in the live call may hear a replay through May 7, 2009 by dialing 1-800-642-1687 in North America and 1-706-645-9291 outside North America (pass code: 95013771). The replay also will be available through May 7, 2009 on Deltek’s website.
About Deltek
Deltek (NASDAQ: PROJ) is the leading provider of enterprise applications software designed specifically for project-focused businesses. For more than two decades, our software applications have enabled organizations to automate mission-critical business processes around the engagement, execution and delivery of projects. More than 12,000 customers worldwide rely on Deltek to measure business results, optimize performance, streamline operations and win new business. For more information, visit www.deltek.com.
Use of Non-GAAP Financial Measures
This press release and the related conference call described above
contain certain non-GAAP financial measures, including non-GAAP net
income, non-GAAP operating income and margin and adjusted EBITDA. The
Company defines non-GAAP net income as GAAP net income before the
net-of-tax impact of stock-based compensation, expenses associated with
the Company's 2005 recapitalization, amortization of acquired intangible
assets and restructuring charges. Non-GAAP operating income and margin
is defined as GAAP operating income before the pre-tax impact of
stock-based compensation, expenses associated with the Company's 2005
recapitalization, amortization of acquired intangible assets and
restructuring charges. Adjusted EBITDA is defined as GAAP net income
before interest expenses (net of interest income), provision for income
taxes, depreciation, amortization, stock-based compensation, expenses
associated with the Company's 2005 recapitalization and restructuring
charges.
