Tuesday, July 30, 2013

Stratus Technologies Financial Report for Q1 of Fiscal Year 2014

Stratus Technologies Bermuda Holdings, Ltd., a leading provider of high availability resilient software and hardware technologies and solutions, recently announced its financial results for the first quarter of fiscal year 2014 that ended May 26, 2013.

Its total revenue for quarter-to-date period ended May 26 (Q1) 2013 was $47.5 million compared to $52.5 million in the quarter-to-date period ended May 27, 2012. Net Loss was $6.4 million, compared to a net loss of $2.9 million in the first quarter of fiscal year 2013. The Company reported Adjusted EBITDA, a non-GAAP financial measure, of $10.0 million, or 21% of revenue, compared to $13.2 million, or 25% of revenue, for the same period last year.

Dave Laurello, Stratus CEO and President, commented on this, “"For the first quarter of fiscal year 2014, we delivered growth in our software business due to the Marathon acquisition, and saw continued stability in our Services revenue. At the same time, Stratus was challenged by a year-over-year comparison to an abnormally strong legacy Q1 of fiscal year 2013, currency headwinds that were particularly acute due to 28% of our revenue coming from Japan, and the on-going sluggish server market. As a result, EBITDA was down from a year ago."

Stratus Technologies, Inc. and Stratus Technologies Bermuda Ltd, both wholly-owned subsidiaries of Stratus Technologies Bermuda Holdings, Limited, acquired last year the assets of Marathon Technologies Corporation, a privately held developer of application availability solutions based in Littleton, MA, including all of the intellectual property used in Marathon products.

With that acquisition, Stratus Technologies has solidified its position as leading provider of availability solutions. Laurello continued to express his future outlook for the Company, "We continue to hone our strategy to become the de facto standard for availability in the cloud, and redirect investment to strategic areas such as software and cloud services.” He said that based on conversations with customers and industry analysts, “there is a great need for always-on cloud services and, most importantly, that Stratus is well-positioned to address it.”

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