BLKB » Topics » Our quarterly financial results fluctuate and might be difficult to forecast and, if our future results are below either any guidance we might issue or the expectations of public market analysts and investors, the price of our common stock might decline.

These excerpts taken from the BLKB 10-K filed Mar 2, 2009.

Our quarterly financial results fluctuate and might be difficult to forecast and, if our future results are below either any guidance we might issue or the expectations of public market analysts and investors, the price of our common stock might decline.

Our quarterly revenue and results of operations are difficult to forecast. We have experienced, and expect to continue to experience, fluctuations in revenue and operating results from quarter to quarter. As a result, we believe that quarter-to-quarter comparisons of our revenue and operating results are not necessarily meaningful and that such comparisons might not be accurate indicators of future performance. The reasons for these fluctuations include but are not limited to:

 

   

the size and timing of sales of our software, including the relatively long sales cycles associated with many of our larger software sales;

 

   

budget and spending decisions by our customers;

 

   

market acceptance of new products we release;

 

   

market acceptance of products we acquire;

 

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the amount and timing of operating costs related to the expansion of our business, operations and infrastructure;

 

   

changes in our pricing policies or our competitors’ pricing policies;

 

   

seasonality in our revenue;

 

   

general economic conditions; and

 

   

costs related to acquisitions of technologies or businesses.

Our operating expenses, which include sales and marketing, research and development and general and administrative expenses, are based on our expectations of future revenue and are, to a large extent, fixed in the short term. If revenue falls below our expectations in a quarter and we are not able to quickly reduce our operating expenses in response, our operating results for that quarter could be adversely affected. It is possible that in some future quarter our operating results may be below either any guidance we might issue or the expectations of public market analysts and investors and, as a result, the price of our common stock might fall.

Our quarterly financial results fluctuate and might be difficult to
forecast and, if our future results are below either any guidance we might issue or the expectations of public market analysts and investors, the price of our common stock might decline.

STYLE="margin-top:6px;margin-bottom:0px">Our quarterly revenue and results of operations are difficult to forecast. We have experienced, and expect to continue to experience, fluctuations in revenue and
operating results from quarter to quarter. As a result, we believe that quarter-to-quarter comparisons of our revenue and operating results are not necessarily meaningful and that such comparisons might not be accurate indicators of future
performance. The reasons for these fluctuations include but are not limited to:

 







  

the size and timing of sales of our software, including the relatively long sales cycles associated with many of our larger software sales;

 







  

budget and spending decisions by our customers;

 







  

market acceptance of new products we release;

 







  

market acceptance of products we acquire;

 


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the amount and timing of operating costs related to the expansion of our business, operations and infrastructure;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

changes in our pricing policies or our competitors’ pricing policies;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

seasonality in our revenue;

 







  

general economic conditions; and

 







  

costs related to acquisitions of technologies or businesses.

SIZE="2">Our operating expenses, which include sales and marketing, research and development and general and administrative expenses, are based on our expectations of future revenue and are, to a large extent, fixed in the short term. If revenue
falls below our expectations in a quarter and we are not able to quickly reduce our operating expenses in response, our operating results for that quarter could be adversely affected. It is possible that in some future quarter our operating results
may be below either any guidance we might issue or the expectations of public market analysts and investors and, as a result, the price of our common stock might fall.

FACE="Times New Roman" SIZE="2">Our services and subscription revenue produces substantially lower gross margins than our license revenue, and an increase in services and/or subscription revenue relative to license revenue would harm our
overall gross margins.

Our services revenue, which includes fees for consulting, implementation, training, data and technical services and
analytics, was approximately 33%, 36% and 32% of our revenue for 2008, 2007 and 2006, respectively. Our services revenue has substantially lower gross margins than our product license revenue. An increase in the percentage of total revenue
represented by services revenue would adversely affect our overall gross margins.

Certain of our services are contracted under fixed fee arrangements,
which we base on estimates. If our estimated fees are less than our actual costs, our operating results would be adversely affected. Services revenue as a percentage of total revenue has varied significantly from quarter to quarter due to
fluctuations in licensing revenue, economic changes, changes in the average selling prices for our products and services, our customers’ acceptance of our products and our sales force execution. In addition, the volume and profitability of
services can depend in large part upon:

 







  

competitive pricing pressure on the rates that we can charge for our services;

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

the complexity of the customers’ information technology environment and the existence of multiple non-integrated legacy databases;

 







  

the resources directed by customers to their implementation projects; and

STYLE="font-size:6px;margin-top:0px;margin-bottom:0px"> 







  

the extent to which outside consulting organizations provide services directly to customers.

STYLE="margin-top:12px;margin-bottom:0px">Our subscription revenue, which includes fees for providing access to hosted applications, application hosting services and access to certain data services and our
online subscription training offerings, has experienced the largest percentage revenue growth over the last three years. Subscription revenue was approximately 16%, 10% and 6% of our revenue for 2008, 2007 and 2006, respectively. Our subscription
revenue has substantially lower gross margins than our product license revenue. An increase in the percentage of total revenue represented by subscription revenue would adversely affect our overall gross margins. If nonprofits in general, and
specifically our customers and prospects, desire to adopt our subscription offerings much more rapidly than we currently anticipate and we are unable to respond in a timely fashion, we could encounter significant effects to our business, including
substantial capital expenditures, reduction in profitability, decrease in revenue growth and/or we could become potentially less competitive, resulting in a loss of market share.

FACE="Times New Roman" SIZE="2">Any erosion of our margins for our services and/or subscription revenue or any adverse changes in the mix of our license versus service and subscription revenue would adversely affect our operating results.

 


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This excerpt taken from the BLKB 10-K filed Feb 29, 2008.

Our quarterly financial results fluctuate and might be difficult to forecast and, if our future results are below either any guidance we might issue or the expectations of public market analysts and investors, the price of our common stock might decline.

Our quarterly revenue and results of operations are difficult to forecast. We have experienced, and expect to continue to experience, fluctuations in revenue and operating results from quarter to quarter. As a result, we believe that quarter-to-quarter comparisons of our revenue and operating results are not necessarily meaningful and that such comparisons might not be accurate indicators of future performance. The reasons for these fluctuations include but are not limited to:

 

   

the size and timing of sales of our software, including the relatively long sales cycles associated with many of our larger software sales;

 

   

budget and spending decisions by our customers;

 

   

market acceptance of new products we release;

 

   

market acceptance of product we acquire;

 

   

the amount and timing of operating costs related to the expansion of our business, operations and infrastructure;

 

   

changes in our pricing policies or our competitors’ pricing policies;

 

17


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Index to Financial Statements
   

seasonality in our revenue;

 

   

general economic conditions; and

 

   

costs related to acquisitions of technologies or businesses.

Our operating expenses, which include sales and marketing, research and development and general and administrative expenses, are based on our expectations of future revenue and are, to a large extent, fixed in the short term. If revenue falls below our expectations in a quarter and we are not able to quickly reduce our operating expenses in response, our operating results for that quarter could be adversely affected. It is possible that in some future quarter our operating results may be below either any guidance we might issue or the expectations of public market analysts and investors and, as a result, the price of our common stock might fall.

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