BluePoint Data Storage: Fiscal 3Q08 Financial Results

BluePoint Data Storage, Inc., provider of managed server, electronic storage, systems availability, and data protection services, announced 33% growth in revenue from $1.5M in Q3 2007, to $2.0M for Q3 2008 (fiscal quarter ending September 30th). In addition, the Company reports a 39% increase in gross profit dollars from $651K in Q3 2007, to $901K for Q3 2008. All amounts are reported in U.S. Dollars.

Net loss of $84K for Q3 2008 (versus $293K loss for Q3 2007) included non-cash amortization expense of $134K related to the acquisition of Champion Managed Services, Inc. that was acquired on the November, 3 2006, and $150K in non-cash depreciation expense (Q3 2008) on the Company’s long-term computer equipment and other fixed assets ($225K for Q1 2007). Therefore, earnings before interest, taxes, depreciation and amortization (or, EBITDA) was a positive $205K ($124K in Q3 2007).

Commenting on the results, Paul Sachse, President and CEO said: "Our top-line growth was strong with significant improvements in gross profit margin contribution. Depreciation expense went down as a result of older equipment being fully-depreciated and replaced periodically with more productive, less costly technology. Our proprietary Unite and Osmosis Technologies are also beginning to make gross profit margin contributions. As we improve these platforms we expect margin contributions to grow".