Keynote Announces First Fiscal Quarter 2012 Results

Keynote Systems (News - Alert), a company specializing in Internet and mobile cloud monitoring, has announced its financial results for its first fiscal quarter ended Dec.31, 2011, which include results from the acquisition of DeviceAnywhere (News - Alert).

The company’s financial results show that the revenue was $33.1 million for the first fiscal quarter of 2012, compared to $24.8 million in the first fiscal quarter of 2011.

Whereas, the revenue from Keynote-DeviceAnywhere was $4.1 million in the first fiscal quarter of 2012 and the deferred revenue at the date of acquisition was reduced by approximately $2.0 million for acquisition related adjustments, of which approximately $600,000 impacted first quarter revenue.

Umang Gupta, Chairman and CEO of Keynote, said that the company has delivered strong first quarter results across all its businesses reflecting growth supported by positive seasonality and the secular trends, including growth in ecommerce and cloud computing, continue to drive activity in their Internet business, which yielded record revenue.

“Our Keynote-SIGOS business grew in the quarter and benefited from some early project acceptances. Keynote-DeviceAnywhere performed to expectations after factoring in acquisition-related accounting adjustments, and we look forward to opportunities we see in the enterprise mobile testing market," Gupta added.

The company experienced an increase in the total costs and expenses for the quarter which was $27.6 million, compared to $21.2 million which was primarily due to $5.7 million of expenses associated with the Keynote-DeviceAnywhere acquisition, which included $1.5 million of amortization of purchased intangibles, acquisition expenses and stock-based compensation.

Overall, Keynote earned $40.0 million in cash, cash equivalents, and short-term investments at the end of Dec. 31, 2011. Net deferred revenue was $17.4 million by Dec. 31, 2011, compared to $18.5 million on Sept.30, 2011. The total shares outstanding at both Dec. 31, 2011 and Sep. 30, 2011 were 17.3 million.

In addition, the company has also approved a quarterly cash dividend of $0.06 per common share, payable March 15, 2012 to common stockholders of record at the close of business on March 1, 2012.