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Bridgeline Digital Reports Financial Results For The Third Quarter Of Fiscal 2012

Adjusted EBITDA and Adjusted EBITDA per diluted share are defined as earnings before interest, taxes, depreciation and amortization and before stock compensation and impairment charges. Bridgeline uses Adjusted EBITDA as a supplemental measure of our performance that is not required by, or presented in accordance with, accounting principles generally accepted in the United States ("GAAP").

Bridgeline's management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company's financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgments by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, Bridgeline management presents non-GAAP financial measures in connection with GAAP results. Bridgeline urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, which is included in this press release, and not to rely on any single financial measure to evaluate Bridgeline's business.

Our definitions of non-GAAP adjusted net income and Adjusted EBITDA may differ from and therefore may not be comparable with similarly titled measures used by other companies, thereby limiting their usefulness as comparative measure. Because of the limitations that non-GAAP adjusted net income and Adjusted EBITDA have as an analytical tool, investors should not consider them in isolation, or as a substitute for analysis of our operating results as reported under GAAP.

BRIDGELINE DIGITAL, INC.
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(Dollars in thousands, except per share data)
         
         
  Three Months Ended Nine Months Ended
  June 30, June 30,
  2012 2011 2012 2011
Reconciliation of GAAP net loss to         
non-GAAP adjusted net income:        
GAAP net loss  $ (277)  $ (246)  $ (906)  $ (731)
Amortization of intangible assets  184  184  571  582
Impairment of intangible asset  --  --  281  --
Stock-based compensation  101  99  256 286
Non-GAAP adjusted net income (loss)  $ 8  $ 37  $ 202  $ 137
         
         
Reconciliation of GAAP loss per diluted share to      
non-GAAP adjusted earnings per diluted share:        
GAAP net loss per share  $ (0.02)  $ (0.02)  $ (0.07)  $ (0.06)
Amortization of intangible assets  0.01  0.01  0.05  0.05
Impairment of intangible asset  --  --  0.02  --
Stock-based compensation  0.01  0.01  0.02  0.02
Non-GAAP adjusted net income (loss)  $ 0.00  $ 0.00  $ 0.02  $ 0.01
         
Reconciliation of GAAP net loss to Adjusted EBITDA:      
GAAP net loss  $ (277)  $ (246)  $ (906)  $ (731)
Provision for income tax  21  21  90  63
Interest expense (income), net  98  54  234  166
Amortization of intangible assets  184  184  571  582
Impairment of intangible asset  --  --  281  --
Depreciation  262  142  725  454
EBITDA  288  155  995  534
Other amortization  40  88  130  263
Stock-based compensation  101  99  256  286
Adjusted EBITDA  $ 429  $ 342  $ 1,381  $ 1,083
         
         
Reconciliation of GAAP net loss per diluted share to       
Adjusted EBITDA per diluted share:        
GAAP net loss per share  $ (0.02)  $ (0.02)  $ (0.07)  $ (0.06)
Provision for income tax  --   --  0.01  0.01
Interest expense (income), net  0.01  --  0.02  0.01
Amortization of intangible assets  0.01  0.01  0.04  0.05
Impairment of intangible asset  --  --  0.02  --
Depreciation  0.02  0.01  0.06  0.04
Other amortization  --  0.01  0.01  0.02
Stock-based compensation  0.01  0.01  0.02  0.02
Adjusted EBITDA  $ 0.03  $ 0.02  $ 0.11  $ 0.09
         
BRIDGELINE DIGITAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share and per share data)
(Unaudited)
         
  Three Months Ended Nine Months Ended
  June 30, June 30,
  2012 2011 2012 2011
Revenue:        
Web application development services  $ 5,055  $ 5,483  $ 15,804  $ 16,408
Managed service hosting  631  509  1,858  1,476
Subscription and perpetual licenses  686  540  1,899  1,790
Total revenue  6,372  6,532  19,561  19,674
         
Cost of revenue:        
Web application development services  2,611  2,978  8,237  8,955
Managed service hosting  98  94  289  355
Subscription and perpetual licenses  117  161  337  521
Total cost of revenue  2,826  3,233  8,863  9,831
Gross profit  3,546  3,299  10,698  9,843
         
Operating expenses:        
Sales and marketing  1,965  1,631  5,526  5,054
General and administrative  923  1,066  2,924  2,985
Research and development  370  448  1,253  1,300
Depreciation and amortization  446  325  1,296  1,006
Impairment of intangible asset  --  --  281  --
Total operating expenses  3,704  3,470  11,280  10,345
Loss from operations  (158)  (171)  (582)  (502)
Interest income (expense), net  (98)  (54)  (234)  (166)
Loss before income taxes  (256)  (225)  (816)  (668)
Provision for income taxes  21  21  90  63
Net loss  $ (277)  $ (246)  $ (906)  $ (731)
         
Net loss per share:        
Basic and diluted  $ (0.02)  $ (0.02)  $ (0.07)  $ (0.06)
Number of weighted average shares:        
Basic and diluted  12,971,259  12,306,207  12,543,019  12,148,287
     
BRIDGELINE DIGITAL, INC.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share and per share data)
(Unaudited)
     
ASSETS    
  June 30, September 30,
  2012 2011
Current Assets:    
Cash and cash equivalents  $ 1,942  $ 2,528
Accounts receivable and unbilled revenues, net  4,794  4,274
Prepaid expenses and other current assets  661  494
Total current assets  7,397  7,296
Equipment and improvements, net  2,936  1,779
Intangible assets, net  1,706  1,527
Goodwill  21,598  20,122
Other assets  806  685
Total assets  $ 34,443  $ 31,409
     
     
LIABILITIES AND STOCKHOLDERS' EQUITY    
     
Current liabilities:    
Accounts payable  $ 1,160  $ 1,291
Accrued liabilities  1,030  1,081
Accrued earnouts, current  729  295
Debt, current  1,424  1,750
Capital lease obligations, current  235  216
Deferred revenue  1,411  1,169
Total current liabilities  5,989  5,802
Accrued earnouts, net of current portion  990  772
Debt, net of current portion  3,203  3,017
Capital lease obligations, net of current portion  142  215
Other long term liabilities  1,141  395
Total liabilities  $ 11,465  $ 10,201
     
Commitments and contingencies    
     
Stockholders' equity:    
Preferred stock - $0.001 par value; 1,000,000 shares authorized; none issued and outstanding  --  --
Common stock - $0.001 par value; 20,000,000 shares authorized; 15,203,538 and 12,306,207 shares issued and outstanding, respectively  15  12
Additional paid-in-capital  40,819  38,083
Accumulated deficit  (17,676)  (16,770)
Accumulated other comprehensive loss  (180)  (117)
Total stockholders' equity  22,978  21,208
Total liabilities and stockholders' equity  $ 34,443  $ 31,409

About Bridgeline Digital, Inc

Bridgeline Digital is developer of the award-winning iAPPS® Web Engagement Platform and related interactive solutions. 

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