Nov. 3, 2009 (PR Newswire) -- WASHINGTON, Nov. 3 /PRNewswire-FirstCall/ -- Blackboard Inc. (Nasdaq: BBBB) today announced financial results for the third quarter ended September 30, 2009 and updated guidance for the fourth quarter and the full year of 2009.

Total revenue for the quarter ended September 30, 2009 was $98.4 million, an increase of 18 percent over the third quarter of 2008. Product revenues for the quarter were $87.9 million, an increase of 18 percent over the third quarter of 2008, while professional services revenues for the quarter were $10.5 million, an increase of 20 percent over the third quarter of 2008. The increase in revenue was driven by strong growth in Blackboard's professional services and managed hosting offerings.

GAAP net income was $4.3 million, resulting in net income per diluted share of $0.13 for the third quarter of 2009 compared to net income of $885,000 and net income per diluted share of $0.03 for the third quarter of 2008. Non-GAAP adjusted net income for the third quarter of 2009, which excludes the amortization of acquisition-related intangible assets, stock-based compensation, and non-cash interest expense, all net of taxes, was $13.3 million, resulting in non-GAAP adjusted net income per diluted share of $0.40 compared to non-GAAP adjusted net income of $10.2 million and non-GAAP adjusted net income per diluted share of $0.32 for the third quarter of 2008.

Additional Financial Highlights from the Third Quarter of 2009

    --  Total cash flow from operations was $76.0 million for the third quarter
of 2009, representing a 26% increase compared to the third quarter last
year.

    --  Cash and cash equivalents were $132.0 million as of September 30, 2009.

"We are pleased with our financial results in the third quarter which exceeded our prior guidance. Cash flow from operations during the quarter was a record for the Company, driven by our strong renewal rates during our peak renewal quarter," said Michael Chasen, CEO and President of Blackboard Inc. "We experienced solid demand for our products and services and continued to experience a growing sales pipeline. We were particularly pleased with the adoption of some of our newer products like Blackboard Mobile(TM), which strengthens our overall positioning in the market and fills a vital need for our clients seeking better ways to serve constituents."

Highlights from the Third Quarter of 2009

--  A few of Blackboard's new and expanded client relationships in the
quarter included:
--  U.S. Higher Education: Alamance Community College, Arizona State
University, Baylor University, Binghamton University, Carlow
University, Des Moines Area Community College, Florida A&M
University, Grambling State University, Hinds Community College,
Louisiana Community and Technical College System, Louisiana State
University, North Carolina Central University, South Orange County
Community College, Texas A&M University-San Antonio, University of
Southern Mississippi, University of Washington and others.
--  International: Delft University of Technology, Emirates College,
Hong Kong Institute of Education, King Faisal University, King Saud
University, Manchester University, Radboud University, Regent's
College in London, University of Bristol, University of Central
Lancashire and others.
--  K-12: Irving ISD, KC Distance Learning, Mead School District, Newark
Public Schools, Omaha Public Schools, Pomona Unified School
District, Queen Anne's County Public Schools, Santa Monica-Malibu
Unified School District, Spokane Public Schools, Tangipahoa Parish
School Board and others.

--  Professional Education (ProEd): Air University, Capella University,
Central Intelligence Agency, Defense Information School, Defense
Language Institute, Grand Canyon University, Joint Special
Operations University, National Academy of Medical Coding
Specialists, National Intelligence University and others.

    --  Blackboard announced the launch of the Blackboard Mobile platform.
Blackboard Mobile allows education institutions to deliver a rich set of
campus life services and content to mobile devices, uniquely branded for
each institution, to better connect current students, parents, faculty,
prospective students and alumni to the campus experience.

Outlook for the Fourth Quarter and Full Year of 2009

Fourth Quarter of 2009:

--  Revenue of $96.7 to $99.7 million;
--  Stock-based compensation expense of approximately $4.0 million;
--  Amortization of acquired intangibles of approximately $9.3 million;
--  GAAP net income of $4.2 million to $6.4 million;
--  GAAP net income per diluted share of $0.12 to $0.19, which is based on
an estimated 33.7 million diluted shares, and an estimated effective tax
rate of approximately 28 percent;
--  Non-GAAP adjusted net income of $13.3 to $15.5 million, which excludes
the amortization of acquisition-related intangible assets, stock-based
compensation, and non-cash interest expense, all net of taxes; and

--  Non-GAAP adjusted net income per diluted share of $0.40 to $0.46 based
on an estimated 33.7 million diluted shares and an estimated effective
tax rate of approximately 35 percent.

Full Year 2009:

--  Revenue of $373.6 to $376.6 million;
--  Stock-based compensation expense of approximately $16.0 million;
--  Amortization of acquired intangibles of approximately $35.0 million;
--  GAAP net income of $4.4 to $6.5 million;
--  GAAP net income per diluted share of $0.13 to $0.20, which is based on
an estimated 32.5 million diluted shares and an estimated effective tax
rate of approximately 28 percent;
--  Non-GAAP adjusted net income of $44.1 to $46.3 million, which excludes
the amortization of acquisition-related intangible assets, stock-based
compensation, non-cash interest expense, and non-cash patent related
impairment charge, all net of taxes;
--  Non-GAAP adjusted net income per diluted share of $1.34 to $1.41 based
on an estimated 32.8 million diluted shares and an estimated effective
tax rate of approximately 38 percent; and

--  Cash flow from operations of $95.0 to $105.0 million.

Conference Call

Blackboard will broadcast its third quarter conference call live over the Internet today beginning at 4:30 p.m. (Eastern). Interested parties can access the webcast through the Investor Relations section of the Company's Web site at http://investor.blackboard.com.

A replay of the call will be available via telephone at approximately 7:00 p.m. (ET) on November 3, 2009. To listen to the replay, participants in the U.S. and Canada should dial 888-286-8010, and international participants should dial +1 (617) 801-6888.