GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

GUIDANCE SOFTWARE, INC. Reports Operating Results (10-Q)

November 05, 2009 | About:
10qk

10qk

18 followers
GUIDANCE SOFTWARE, INC. (GUID) filed Quarterly Report for the period ended 2009-09-30.

GUIDANCE SOFTWARE INC. is recognized worldwide as the industry leader in digital investigative solutions. Its EnCase platform provides the foundation for government corporate and law enforcement organizations to conduct thorough network-enabled and court-validated computer investigations of any kind such as responding to eDiscovery requests conducting internal investigations responding to regulatory inquiries or performing data and compliance auditing - all while maintaining the integrity of the data. Validated by numerous courts corporate legal departments government agencies and law enforcement organizations worldwide EnCase has been honored with industry awards and recognition from eWEEK SC Magazine Network Computing and the Socha-Gelbmann survey. Guidance Software, Inc. has a market cap of $120.8 million; its shares were traded at around $5.17 with and P/S ratio of 1.3.

Highlight of Business Operations:

Product revenues decreased by $4.0 million, or 32% for the three months ended September 30, 2009 over the same period in 2008 and decreased by $10.3 million, or 30% for the nine months ended September 30, 2009 over the same period in 2008. Product revenue decreased primarily due to a $2.7 million and a $9.4 million reduction in EnCase® Enterprise license revenues for the three and nine months ended September 30, 2009 and 2008, respectively. We believe the decrease in EnCase® Enterprise license revenues was due to economic pressures and the resulting negative impact in customers purchases.

Services and maintenance revenues decreased by $0.1 million, or 1% for the three months ended September 30, 2009 over the same period in 2008 and decreased $1.9 million, or 6% for the nine months ended September 30, 2009 over the same period in 2008. Professional services revenues decreased by $0.5 million, or 16% and $3.3 million, or 30% for the three and nine months ended September 30, 2009 over the same periods in 2008, respectively, due to reduced demand for both implementation services and eDiscovery services as a result of the decline in sales compared to the prior year. Training revenue decreased by $0.4 million, or 17% and $1.7 million, or 23% for the three and nine months ended September 30, 2009 over the same periods in 2008, respectively, due to reductions in our customers travel and training budgets. During the nine months ended September 30, 2009 we experienced an increased number of customers participating in our On Demand web enabled training courses which has provided a travel free alternative to our customers. Maintenance revenue increased by $0.8 million, or 16% and increased $3.1 million or 23% for the three and nine months ended September 30, 2009 over the same periods in 2008, respectively, as a result of an on-going increase in our installed product base and high annual renewal rates by customers desiring continuing maintenance support on our products.

Read the The complete ReportGUID is in the portfolios of PRIMECAP Management.

About the author:

10qk
GuruFocus - Stock Picks and Market Insight of Gurus

Rating: 3.4/5 (5 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide