HAMILTON, BERMUDA -- (Marketwired) -- 07/15/13 -- Stratus Technologies Bermuda Holdings Ltd. (together with its consolidated subsidiaries, "Stratus" or the "Company"), the leading provider of high availability solutions, today announced financial results for the first quarter of fiscal year 2014 ended May 26, 2013.
•Q1 Revenue: $47.5 million •Q1 Net Loss: $6.4 million •Q1 Adjusted EBITDA: $10.0 million
Commenting on the quarter, Dave Laurello, Stratus CEO and President, said, "For the first quarter of fiscal year 2014, we delivered growth in our software business due to the Marathon acquisition, and saw continued stability in our Services revenue. At the same time, Stratus was challenged by a year-over-year comparison to an abnormally strong legacy Q1 of fiscal year 2013, currency headwinds that were particularly acute due to 28% of our revenue coming from Japan, and the on-going sluggish server market. As a result, EBITDA was down from a year ago."
Looking toward the future, Laurello added, "We continue to hone our strategy to become the de facto standard for availability in the cloud, and redirect investment to strategic areas such as software and cloud services. Early conversations with customers and industry analysts confirm there is a great need for always-on cloud services and, most importantly, that Stratus is well-positioned to address it. While I expect software and cloud services to be the foundation of our future growth, we are in the midst of a transition which will take time."
Total revenue for the quarter-to-date period ended May 26, 2013 was $47.5 million as compared to $52.5 million in the quarter-to-date period ended May 27, 2012. This is a 10% decrease as reported, and a 4% decrease at constant currency. Profit from operations was $6.9 million compared to $10.8 million for the same period last year. Net loss was $6.4 million, compared to a net loss of $2.9 million in the first quarter of fiscal year 2013. Net loss for the quarter-to-date periods ended May 26, 2013 and May 27, 2012 include a net loss on change in fair value of embedded derivatives of $0.1 million and $0.3 million respectively. The Company reported Adjusted EBITDA, a non-GAAP financial measure, of $10.0 million, or 21% of revenue, compared to $13.2 million, or 25% of revenue, for the same period last year. This represents a gross decrease of 25% compared to the prior year, or 11% at constant currency. Please refer to the reconciliation of Adjusted EBITDA to Generally Accepted Accounting Principles ("GAAP") financial measures in the attached, unaudited "Consolidated Statements of Operations."
First Quarter Results Conference Call
A conference call to review first quarter financial results will be held today, July 15, 2013, at 1:30 p.m. Eastern Time, and may be accessed by calling 1-877-941-0844 (U.S. only) or 1-480-629-9835 with a conference ID of 4628627. A recording of this conference call will be available later today at 1-800-406-7325 (U.S. only) or 1-303-590-3030 with a conference ID of 4628627 for 30 days.
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