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

May 04, 2010 | About:
10qk

10qk

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GUIDANCE SOFTWARE, INC. (GUID) filed Quarterly Report for the period ended 2010-03-31.

Guidance Software, Inc. has a market cap of $144.5 million; its shares were traded at around $5.91 with and P/S ratio of 1.9. GUID is in the portfolios of PRIMECAP Management, Jim Simons of Renaissance Technologies LLC.

Highlight of Business Operations:

Product revenues of $8.4 million for the first quarter of 2010 were flat compared to the first quarter of 2009. Although macroeconomic conditions have stabilized since the first six months of 2009 and improved for our commercial customer during the first quarter of 2010 compared to the first quarter of 2009, economic pressures continued to negatively impact revenues from our public sector customers during the current quarter. Encase® Enterprise license revenues increased slightly by $0.4 million, offset by a $0.3 million decrease in Encase® Forensic license and subscription revenues.

Services and maintenance revenue for the first quarter of 2010 was $11.0 million, an increase of $0.7 million or 6% from $10.3 million for the first quarter of 2009. Professional services revenues for the first quarter of 2010 was $3.0 million, an increase of $0.2 million or 9% from $2.8 million for the first quarter of 2009. The increase was primarily due to an increase in demand for our eDiscovery services. Training revenue for the first quarter of 2010 was $1.9 million, an increase of $0.2 million or 8% from $1.7 million in the first quarter of 2009. The increase was primarily due to less restrictive travel and training budgets of our customers resulting in an increase in attendance of our customer training events. Maintenance and other revenue for the first quarter of 2010 was $6.0 million, an increase of $0.2 million or 5% from $5.8 million for the first quarter of 2009. The increase was primarily 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.

Total cost of services and maintenance revenue for the first quarter of 2010 was $4.2 million, a decrease of $0.6 million or 12% from $4.8 million in the first quarter of 2009. The decrease was primarily due to lower compensation and benefits costs associated with the decrease in headcount in these areas. Services and maintenance gross margin for the first quarter of 2010 increased to 61.3%, compared to 53.2% in the first quarter of 2009. The increase in gross margin was primarily a result of higher professional services utilization rates and reduced expenses.

Read the The complete Report

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