Total Revenue of $17.6 Million Increased 6% Compared to Fiscal
Second Quarter 2007
GAAP Loss Per Share Was $0.08 Compared to GAAP Earnings Per
Diluted Share of $0.00 in Fiscal Second Quarter 2007
Non-GAAP Earnings Per Share Were $0.03 Compared to Non-GAAP
Earnings Per Share of $0.08 in the Fiscal Second Quarter 2007
Net Deferred Revenue Was $25.2 Million, Up 29% Compared to
March 31, 2007
5.0 Million Shares of Common Stock Repurchased Since Program
Established in November 2007, Representing 28% of Outstanding
Shares at September 30, 2007
Second Quarter Results Met Company's Previous Revenue and GAAP
Earnings Guidance and Exceeded Non-GAAP Earnings Guidance
SAN MATEO, Calif.--(BUSINESS WIRE)--April 29, 2008--Keynote
Systems (Nasdaq:KEYN), the global leader in on-demand mobile and
Internet test & measurement solutions for continuously improving the
online experience, announced financial results for its fiscal second
quarter ended March 31, 2008.
Umang Gupta, chairman and CEO of Keynote, said: "During the
quarter, our mobile business grew as expected, and we posted $6.3
million in revenue, up 45 percent compared to second quarter 2007. The
mobile business did even better than the revenue would indicate by
contributing strongly to the growth in net deferred revenues, which
reached $25.2 million."
"While the economic climate has impacted our consulting
engagements, our Internet test and measurement (ITM) subscriptions
performed better than anticipated. As expected, our single-page,
single-device revenue has decreased to 16 percent of our total ITM
subscriptions, and we remain on track to reach our estimate of
single-page, single-device revenue contributing only 10 percent of ITM
subscriptions by September 2008. We are encouraged by our ITM
performance, as we were able to generate additional revenue with new
customers and competitive wins especially with our multi-page
transaction and broadband offerings," continued Gupta.
Second Quarter 2008 Financial Summary
Revenue for the second quarter of fiscal year 2008 was $17.6
million, down from $17.7 million in the first quarter of fiscal year
2008 and up from $16.7 million in the second quarter of fiscal year
2007. Net loss for the second quarter of fiscal year 2008 was $1.3
million or $0.08 per share, reflecting the company's continued
investment in sales and marketing. The net loss included a $45,000
charge for estimated income tax expense, $1.2 million in stock-based
compensation expenses, and a $753,000 charge for amortization of
intangible assets required under generally accepted accounting
principles (GAAP). This compared to net loss of $744,000 or $0.04 per
share, for the preceding quarter, which included a $244,000 charge for
estimated income tax expense, $1.1 million in stock-based compensation
expenses, and a $742,000 charge for amortization of intangible assets.
Net income for the second quarter of fiscal year 2007 was $30,000, or
$0.00 per diluted share, which included a $193,000 income tax benefit,
$1.0 million in stock-based compensation expenses, and a $760,000
charge for amortization of intangible assets.
The non-GAAP net income for the quarter was $496,000, or $0.03 per
diluted share, compared to non-GAAP net income of $1.1 million, or
$0.06 per diluted share, for the preceding quarter, and non-GAAP net
income of $1.4 million, or $0.08 per diluted share, for the second
quarter a year ago. The company defines non-GAAP net income as net
income adjusted for provision for income tax, stock-based compensation
expense, and amortization of purchased intangibles less cash tax
expense. Non-GAAP net income per share equals non-GAAP net income
divided by the weighted diluted share count as of the period end.
Cash Flow and Deferred Revenue Summary
In the second quarter of fiscal year 2008, cash provided by
operating activities was $2.5 million compared to $330,000 in the
prior quarter and $6.8 million in the second quarter of 2007. Cash
used for purchases of property, equipment and software totaled $1.0
million for the second quarter of 2008, compared to $1.4 million in
the prior quarter and $1.4 million for the same period last year.
Keynote generated free cash flow, defined as cash flow from operations
less cash used for purchases of property, equipment, and software, of
$1.5 million for the quarter, compared to ($1.0) million in the prior
quarter and $5.5 million for the same period last year.
Keynote's net deferred revenue was $25.2 million at March 31,
2008, up 29 percent from $19.5 million at March 31, 2007. Keynote's
gross deferred revenue, defined as the sum of net deferred revenue and
unpaid deferred revenue, was $31.5 million at March 31, 2008, up 10
percent compared to $28.8 million at December 31, 2007 and up 21
percent from $26.1 million at March 31, 2007.
The company had $55.1 million in total cash, cash equivalents and
short-term investments as of March 31, 2008. During the quarter, the
company repurchased approximately 4.3 million shares for approximately
$50.2 million. The total shares outstanding, net of treasury shares,
as of the end of March 31, 2008 was 13.8 million as compared to 17.4
million as of March 31, 2007.
"We have recently purchased 5 million shares representing 28
percent of our outstanding shares at September 30, 2007. Now we have
reduced our total number of outstanding shares to about half of the
level of shares outstanding five years ago. We have maintained a
strong balance sheet, and we believe our asset mix is well positioned
to fund continuing operations and potential acquisitions," concluded
Gupta.
Operational Metrics Summary
As of March 31, 2008, Keynote's total worldwide customer base was
approximately 2,700 companies. Keynote currently provides its services
to 54 percent of the comScore Media Metrix's top 50 Web sites and
approximately 47 percent of the Fortune 100 companies. As of March 31,
2008, Keynote measured approximately 13,000 Internet pages, as
compared to 10,500 Internet pages in the same quarter a year ago.
Expectations for the Third Quarter of Fiscal Year 2008
The statements in this section of this press release are
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act
of 1934. Keynote currently expects the following for the third fiscal
quarter ending June 30, 2008:
Total revenue is expected to be between $18.5 million and
$19.0 million.
Net loss per share is expected to be between ($0.08) and
($0.03).
Non-GAAP earnings per share are expected to be between $0.00
and $0.05.
The above guidance was based on the following assumptions. Total
stock-based compensation expense and amortization of intangible assets
is currently expected to be approximately $1.9 million. Depreciation
is expected to be approximately $1.4 million. Interest income, net is
expected to be approximately $500,000, assuming no material changes in
interest rates and currently planned use of cash. Cash paid for income
taxes is expected to be approximately $800,000, assuming no changes in
required tax payments. Basic weighted average shares outstanding are
expected to be approximately 13.8 million shares and diluted weighted
average shares outstanding are expected to be approximately 14.1
million shares, assuming no additional issuances of equity or
equity-related securities. This guidance does not reflect the impact
of the recently-announced Zandan acquisition and its associated costs,
which we plan on calling out separately over the next two quarters
until the new subsidiary is well integrated, and we begin the next
fiscal year.
Conference Call
Keynote will host a conference call and simultaneous webcast at
2:00 pm (PDT) today, April 29, 2008. To access the call in the U.S.,
please dial (866) 271-6228; international callers please dial (706)
679-4457, approximately 10 minutes prior to the start of the
conference call. The webcast of the call will be available at the
investor section of the company's web site at www.keynote.com. The
replay will be available after the call by telephone by dialing (800)
642-1687 in the U.S. and (706) 645-9291 internationally; the pass code
is # 42596169. The webcast is at the investor section of the company's
web site at www.keynote.com.
Forward-Looking Statements
This press release contains forward-looking statements that are
not purely historical regarding the Company or management's
intentions, hopes, beliefs, expectations and strategies for the
future. Because such statements deal with future events, they are
subject to various risks and uncertainties, and actual results could
differ materially from the Company's current expectations.
Forward-looking statements in this release include, but are not
limited to, forecasts concerning Keynote's expected total revenue,
GAAP and Non-GAAP earnings or loss per share, and the related
underlying assumptions in calculating those amounts, future
acquisitions and other future financial results. It is important to
note that actual outcomes and Keynote's actual results could differ
materially from those in such forward-looking statements. Factors that
could cause actual results to differ materially include risks and
uncertainties such as Keynote's ability to successfully market and
sell its current services to new or existing customers, Keynote's
ability to develop and introduce new services in a timely manner and
customer acceptance of new services, the extent to which demand for
Keynote's various services fluctuates and the extent to which revenue
from other service lines can increase, the extent to which existing
customers renew their subscriptions and purchase additional services,
particularly enterprise customers, Keynote's ability to attract and
retain customers of SIGOS, Keynote's ability to operate SIGOS and its
other international operations and manage related costs successfully,
Keynote's ability to retain key employees, pricing pressure with
respect to Keynote's services, Keynote's ability to increase sales of
its other services, and the risk that its prior organizational changes
will not result in improved results, unforeseen expenses, competition
in Keynote's markets, costs associated with the Zandan acquisition or
any future acquisitions, the effect of acquisitions by competitors in
Keynote's target markets, Keynote's ability to keep pace with changes
in the mobile and Internet infrastructure as well as other
technological changes, and the success of Keynote's international
operations. Readers should also refer to the risks outlined in
Keynote's reports filed with the Securities and Exchange Commission,
including its Annual Report on Form 10-K for its fiscal year ended
September 30, 2007, and its quarterly reports on Form 10-Q and any
current reports on Form 8-K filed during the fiscal year.
All forward-looking statements and reasons why results might
differ included in this release are made as of the date of this press
release, based on information available to Keynote as of the date of
this press release, and Keynote assumes no obligation to update any
such forward-looking statement or reasons why results might differ.
Non-GAAP Measures
This press release includes information on Non-GAAP net income,
Non-GAAP net earnings per share, free cash flow and gross deferred
revenues. These measures are not based on any standardized methodology
prescribed by U.S. generally accepted accounting principles ("GAAP")
and are not necessarily comparable to similar measures presented by
other companies. Non-GAAP net income is calculated by adjusting GAAP
net income for provision for income taxes less cash tax expense,
stock-based compensation expense and amortization of purchased
intangibles. Non-GAAP earnings per share is calculated by dividing
Non-GAAP net income by the weighted average number of diluted shares
outstanding for the period. Free cash flow is defined as cash flow
from operations less cash used for purchases of property, equipment,
and software. Gross deferred revenue is defined as the sum of net
deferred revenue and unpaid deferred revenue. These measures should
not be considered in isolation or as a substitute for measures
prepared in accordance with GAAP, and because these amounts are not
determined in accordance with GAAP, they should not be used
exclusively in evaluating its business and operations. Because the
Company has made a number of acquisitions in the past, as well as
because of the effect of SFAS 123(R), the Company's financial
statements have changed significantly from prior periods. Accordingly,
the Company believes that this Non-GAAP information is useful as an
additional means for investors to evaluate the Company's operating
performance, when reviewed in conjunction with the Company's GAAP
financial statements. Management also reviews this information as an
additional means for measuring the performance of the Company. The
Company compensates for these limitations by realizing that. The
Company will add this disclosure in future press releases.
About Keynote
Keynote Systems (Nasdaq "KEYN") is the global leader in on-demand
test & measurement solutions for continuously improving the online
experience. As an independent and trusted third-party, Keynote
provides IT and marketing executives with an unbiased view into their
Internet services from around the world. For over a decade, Keynote
has been providing measurement data and testing capabilities that
allow companies to understand and improve their customer's online and
mobile experience. Keynote has four test and measurement businesses:
Web performance, mobile quality, streaming & VoIP, and customer
experience/UX. In addition, Keynote's industry analysis group called
Keynote Competitive Research publishes proprietary studies measuring
customer experience and service levels across a wide range of
industries.
Known as The Mobile and Internet Performance Authority(TM),
Keynote has a market-leading infrastructure of 2,400 measurement
computers and mobile devices in over 240 locations around the world.
Keynote also maintains one of the most representative panels of online
users consisting of 160,000 consumers. Keynote's on-demand,
hassle-free infrastructure allows businesses to access services they
need, when they need them to pinpoint and fix mobile quality and
Internet problems before they impact customers.
Keynote helps over 2,700 corporate customers become "the best of
the best" by helping them improve online business performance and
mobile communications quality. Keynote's customers represent top
Internet and mobile companies including American Express, BP,
Caterpillar, Dell, Disney, eBay, E*TRADE, Expedia, FedEx, Microsoft,
SonyEricsson, Sprint, T-Mobile, Verizon and Vodafone.
Keynote Systems, Inc. is headquartered in San Mateo, California
and can be reached at www.keynote.com or by phone in the U.S. at (650)
403-2400.
Keynote, The Internet Performance Authority and Perspective are
registered trademarks and The Mobile and Internet Performance
Authority and True Experience are trademarks of Keynote Systems, Inc.
Other trademarks are the property of their respective owners. (C) 2007
Keynote Systems, Inc.
Keynote Systems, Inc. and Subsidiaries
----------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three months ended Six months ended
Mar 31 Dec 31 Mar 31 Mar 31 Mar 31
2008 2007 2007 2008 2007
-------------------------- -----------------
Net revenue:
Subscription services $11,092 $10,872 $10,733 $21,964 $21,240
Ratable licenses 4,605 4,002 3,203 8,607 5,409
Professional services 1,937 2,846 2,778 4,783 5,880
-------------------------- -----------------
Total revenue, net 17,634 17,720 16,714 35,354 32,529
Costs and expenses:
Costs of revenue:
Direct costs of
subscription
services 2,225 2,111 2,110 4,336 4,168
Direct costs of
ratable licenses 1,111 1,603 730 2,714 1,813
Direct costs of
professional
services 1,794 1,805 2,207 3,599 4,330
Operations 2,024 2,003 1,948 4,027 3,790
Development 3,160 3,133 2,877 6,293 5,749
Amortization of
intangible assets -
software 211 205 187 416 370
-------------------------- -----------------
Total costs of
revenue 10,525 10,860 10,059 21,385 20,220
Sales and marketing 6,529 5,767 5,037 12,296 9,666
General and
administrative 2,501 2,487 2,378 4,988 4,757
Excess occupancy
income, net (309) (281) (21) (590) (48)
Amortization of
intangible assets -
other 542 537 573 1,079 1,149
-------------------------- -----------------
Total costs and
expenses 19,788 19,370 18,026 39,158 35,744
-------------------------- -----------------
Loss from operations (2,154) (1,650) (1,312) (3,804) (3,215)
Interest income and
other, net 881 1,150 1,149 2,031 2,270
-------------------------- -----------------
Loss before (provision)
benefit for income taxes (1,273) (500) (163) (1,773) (945)
(Provision) benefit for
income taxes (45) (244) 193 (289) 1,239
-------------------------- -----------------
Net (loss) income $(1,318) $ (744) $ 30 $(2,062) $ 294
========================== =================
Net (loss) income per
share:
Basic $ (0.08) $ (0.04) $ 0.00 $ (0.12) $ 0.02
Diluted $ (0.08) $ (0.04) $ 0.00 $ (0.12) $ 0.02
Weighted average common
shares outstanding:
Basic 16,130 18,237 17,284 17,180 17,199
Diluted 16,130 18,237 17,986 17,180 17,827
Keynote Systems, Inc. and Subsidiaries
----------------------------------------------------------------------
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, 2008 September 30, 2007
---------------------------------
Assets
Current assets:
Cash and cash equivalents $ 37,576 $ 42,875
Short-term investments 17,528 65,060
---------------------------------
Total cash, cash equivalents and
short-term investments 55,104 107,935
Accounts receivable 7,552 5,988
Prepaids, deferred costs and other
current assets 3,516 2,703
Inventories 1,463 1,059
Deferred tax assets 4,068 3,922
---------------------------------
Total current assets 71,703 121,607
Deferred costs 1,907 1,301
Property and equipment, net 35,778 35,480
Goodwill 67,357 63,129
Identifiable intangible assets, net 6,817 7,963
---------------------------------
Total assets $ 183,562 $ 229,480
=================================
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 1,590 $ 2,285
Accrued expenses 12,423 11,656
Current portion of capital lease
obligation 19 24
Deferred revenue 24,058 19,824
---------------------------------
Total current liabilities 38,090 33,789
Long-term portion of capital lease
obligation 27 31
Deferred rent and other long term
liabilities 2,027 292
Long-term deferred revenue 1,169 2,136
Long-term deferred tax liability 1,507 2,347
---------------------------------
Total liabilities 42,820 38,595
---------------------------------
Stockholders' equity:
Common stock 17 18
Treasury stock (38,217) (1,151)
Additional paid-in capital 308,959 325,525
Accumulated deficit (142,170) (140,188)
Accumulated other comprehensive
income 12,153 6,681
---------------------------------
Total stockholders' equity 140,742 190,885
---------------------------------
Total liabilities and
stockholders' equity $ 183,562 $ 229,480
=================================
Keynote Systems, Inc. and Subsidiaries
----------------------------------------------------------------------
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
Three months ended Six Months ended
Mar 31 Mar 31 Mar 31 Mar 31
2008 2007 2008 2007
------------------- -------------------
Cash flows from operating
activities:
Net (loss) income $ (1,318) $ 30 $ (2,062) $ 294
Adjustments to reconcile net
income (loss) to net cash
provided by operating
activities:
Depreciation and
amortization 1,321 1,086 2,608 2,179
Stock-based compensation 1,160 1,004 2,260 1,924
Charges to bad debt and
billing adjustment
reserves 47 65 98 148
Amortization (accretion)
of debt investment
premium (discount) 289 (50) (262) (295)
Amortization of
identifiable intangible
assets 753 760 1,495 1,519
Deferred tax benefit - (1,412) - (887)
Changes in operating
assets and liabilities,
net 272 5,364 (1,283) 6,645
------------------- -------------------
Net cash provided by
operating activities 2,524 6,847 2,854 11,527
------------------- -------------------
Cash flows from investing
activities:
Purchase of property,
equipment and software (1,033) (1,383) (2,384) (2,087)
Purchase of businesses and
assets, net - - - (307)
Earnout payment for
acquisition of business - (10,587) - (10,587)
Sales (purchases) of short-
term investments, net 40,450 (4,967) 47,978 (3,934)
------------------- -------------------
Net cash provided by
(used in) investing
activities 39,417 (16,937) 45,594 (16,915)
------------------- -------------------
Cash flows from financing
activities:
Payment of capital lease
obligations (7) (8) (14) (23)
Repurchase of outstanding
common stock (49,156) - (58,971) -
Proceeds from issuance of
common stock and exercise
of stock options 1,477 2,545 3,072 3,290
------------------- -------------------
Net cash provided by
(used in) financing
activities (47,686) 2,537 (55,913) 3,267
------------------- -------------------
Effect of exchange rate
changes on cash and cash
equivalents 1,758 117 2,166 200
------------------- -------------------
Net decrease in cash and cash
equivalents (3,987) (7,436) (5,299) (1,921)
Cash and cash equivalents at
beginning of the period 41,563 51,177 42,875 45,662
------------------- -------------------
Cash and cash equivalents at
end of the period (1) $ 37,576 43,741 $ 37,576 $ 43,741
=================== ===================
(1) Excludes $17.5 million and $49.5 million of short-term investments
at March 31, 2008 and March 31, 2007, respectively.
Keynote Systems, Inc. and Subsidiaries
----------------------------------------------------------------------
GAAP TO NON-GAAP RECONCILIATION
(In thousands, except per share data)
(Unaudited)
Three months ended Six months ended
Mar 31 Dec 31 Mar 31 Mar 31 Mar 31
2008 2007 2007 2008 2007
-------- -------- -------- -------- --------
Revenue categories:
Internet Subscriptions $ 8,881 $ 8,877 $ 9,040 $17,758 $17,924
Internet Engagements 1,019 1,596 1,333 2,615 2,830
-------- -------- -------- -------- --------
Subtotal Internet Revenue 9,900 10,473 10,373 20,373 20,754
Mobile Subscriptions 1,654 1,340 1,113 2,994 2,110
Mobile Ratable Licenses 4,605 4,002 3,203 8,607 5,409
-------- -------- -------- -------- --------
Subtotal Mobile Revenue 6,259 5,342 4,316 11,601 7,519
CEM Subscriptions 557 655 580 1,212 1,207
CEM Engagements 918 1,250 1,445 2,168 3,049
-------- -------- -------- -------- --------
Subtotal CEM Revenue 1,475 1,905 2,025 3,380 4,256
-------- -------- -------- -------- --------
Total Revenue, net $17,634 $17,720 $16,714 $35,354 $32,529
======== ======== ======== ======== ========
Non-GAAP net income
(loss) and income (loss)
per share:
GAAP net (loss) income $(1,318) $ (744) $ 30 $(2,062) $ 294
Provision (benefit) for
income taxes 45 244 (193) 289 (1,239)
Stock-based
compensation (a) 1,160 1,100 1,004 2,260 1,924
Amortization of
intangible assets -
other 542 537 573 1,079 1,149
Amortization of
intangible assets -
software 211 205 187 416 370
Non GAAP income before
income tax 640 1,342 1,601 1,982 2,498
Cash tax expense 144 222 240 366 586
-------- -------- -------- -------- --------
Non GAAP net income $ 496 $ 1,120 $ 1,361 $ 1,616 $ 1,912
======== ======== ======== ======== ========
Weighted average common
shares outstanding
(diluted): 16,459 19,091 17,986 17,765 17,827
Non GAAP income per share $ 0.03 $ 0.06 $ 0.08 $ 0.09 $ 0.11
(a) Stock-based compensation by category:
Direct costs of ratable
licenses $ 66 $ 49 $ 40 $ 115 $ 81
Direct costs of
professional services 124 115 128 239 264
Operations 178 145 144 323 290
Development 274 230 209 504 419
Sales and marketing 413 327 316 740 596
General and
administrative 105 234 167 339 274
-------- -------- -------- -------- --------
$ 1,160 $ 1,100 $ 1,004 $ 2,260 $ 1,924
======== ======== ======== ======== ========
Keynote Systems, Inc. and Subsidiaries
----------------------------------------------------------------------
REVENUE DETAIL
(In thousands)
(Unaudited)
Three months ended Year ended
Dec 31 March 31 June 30 Sept 30 Sept 30
------- -------- ------- ------- ----------
FY 2008
Internet Subscriptions $ 8,877 $ 8,881 $ - $ - $ 17,758
Internet Engagements 1,596 1,019 - - 2,615
------- -------- ------- ------- ----------
Subtotal Internet Revenue 10,473 9,900 - - 20,373
Mobile Subscriptions 1,340 1,654 - - 2,994
Mobile Ratable Licenses 4,002 4,605 - - 8,607
------- -------- ------- ------- ----------
Subtotal Mobile Revenue 5,342 6,259 - - 11,601
CEM Subscriptions 655 557 - - 1,212
CEM Engagements 1,250 918 - - 2,168
------- -------- ------- ------- ----------
Subtotal CEM Revenue 1,905 1,475 - - 3,380
------- -------- ------- ------- ----------
Total Revenue, Net $17,720 $ 17,634 $ - $ - $ 35,354
======= ======== ======= ======= ==========
FY 2007
Internet Subscriptions $ 8,884 $ 9,040 $ 9,129 $ 8,858 $ 35,911
Internet Engagements 1,497 1,333 1,720 1,426 5,976
------- -------- ------- ------- ----------
Subtotal Internet Revenue 10,381 10,373 10,849 10,284 41,887
Mobile Subscriptions 997 1,113 1,158 1,080 4,348
Mobile Ratable Licenses 2,206 3,203 3,443 4,368 13,220
------- -------- ------- ------- ----------
Subtotal Mobile Revenue 3,203 4,316 4,601 5,448 17,568
CEM Subscriptions 626 580 593 603 2,402
CEM Engagements 1,605 1,445 1,344 1,503 5,897
------- -------- ------- ------- ----------
Subtotal CEM Revenue 2,231 2,025 1,937 2,106 8,299
------- -------- ------- ------- ----------
Total Revenue, Net $15,815 $ 16,714 $17,387 $17,838 $ 67,754
======= ======== ======= ======= ==========
FY 2006
Internet Subscriptions $ 8,782 $ 8,876 $ 8,909 $ 9,096 $ 35,663
Internet Engagements 1,127 905 714 1,103 3,849
------- -------- ------- ------- ----------
Subtotal Internet Revenue 9,909 9,781 9,623 10,199 39,512
Mobile Subscriptions 539 488 855 962 2,844
Mobile Ratable Licenses - - 1,094 1,447 2,541
------- -------- ------- ------- ----------
Subtotal Mobile Revenue 539 488 1,949 2,409 5,385
CEM Subscriptions 499 583 590 647 2,319
CEM Engagements 2,769 1,887 1,705 1,931 8,292
------- -------- ------- ------- ----------
Subtotal CEM Revenue 3,268 2,470 2,295 2,578 10,611
------- -------- ------- ------- ----------
Total Revenue, Net $13,716 $ 12,739 $13,867 $15,186 $ 55,508
======= ======== ======= ======= ==========
FY 2005
Internet Subscriptions $ 8,625 $ 8,783 $ 9,160 $ 8,883 $ 35,451
Internet Engagements 822 1,082 881 1,026 3,811
------- -------- ------- ------- ----------
Subtotal Internet Revenue 9,447 9,865 10,041 9,909 39,262
Mobile Subscriptions 803 338 442 585 2,168
CEM Subscriptions 595 531 441 432 1,999
CEM Engagements 2,743 2,431 2,541 2,548 10,263
------- -------- ------- ------- ----------
Subtotal CEM Revenue 3,338 2,962 2,982 2,980 12,262
------- -------- ------- ------- ----------
Total Revenue, Net $13,588 $ 13,165 $13,465 $13,474 $ 53,692
======= ======== ======= ======= ==========
Keynote Systems, Inc. and Subsidiaries
----------------------------------------------------------------------
DEFERRED REVENUE
(In thousands)
(Unaudited)
March 31, 2008 December 31, 2007 March 31, 2007
-------------- ----------------- --------------
Deferred revenue, net
Domestic $ 6,818 $ 7,198 $ 6,639
International 18,409 15,054 12,903
-------------- ----------------- --------------
Total $ 25,227 $ 22,252 $ 19,542
Add back: unpaid
deferred revenue
Domestic $ 2,276 $ 1,406 $ 4,608
International 4,043 5,145 1,993
-------------- ----------------- --------------
Total $ 6,319 $ 6,551 $ 6,601
Deferred revenue,
gross
Domestic $ 9,094 $ 8,604 $ 11,247
International 22,452 20,199 14,896
-------------- ----------------- --------------
Total $ 31,546 $ 28,803 $ 26,143
CONTACT: Keynote Systems, Inc.
Dan Berkowitz, 650-403-3305 (Public Relations)
dberkowitz@keynote.com
or
for Keynote Systems, Inc.
Kirsten Chapman, 415-433-3777 (Investor Relations)
kchapman@lhai.com
SOURCE: Keynote Systems, Inc.