BOSS Completes Successful Turnaround of St. Bernard Software (SBSW.OB)
March 11, 2009
BOSS Corporation is proud and honored to play an instrumental role in the successful transformation of St. Bernard Software, Inc. BOSS was hired in October 2007 by the CEO and Board of Directors to execute a financial and operational turn-around of a near bankrupt public company. Over an 18 month period, BOSS successfully transformed St. Bernard from an insolvent technology company to a growing, cash flow positive business with a desire to succeed.
BOSS is proud to report the following successes during our leadership:
- Increased operational results from a cash loss of $3 million in the fourth quarter 2007 to over $1 million in positive cash flow within the fourth quarter 2008.
- Increased core business * sales by almost 20% by partnering with the EVP of Sales and Marketing to improve marketing effectiveness and sales morale.
- Implemented new operational process and procedures that dramatically streamlined business process and improved operational efficiencies resulting in over a 30% reduction in personnel.
- Obtained critical $3.5 million debt financing to accomplish the turn-around and minimize dilution to existing shareholders.
- Negotiated settlements in over $1.2 million in trade debt for approximately $200,000 that improved liquidity and freed up cash to focus on business growth.
- Subleased half the corporate facility and closed two offices within Europe resulting in over $4 million in annual savings.
- Improved product quality from a 20% annual failure rate to 2% failure rate decreasing warranty costs and improved customer satisfaction.
- Improved the financial controls and systems resulting in the removal of the Sarbanes Oxley material control weakness and decreased public company costs by 50%.
- Following the operational changes, successfully removed the Going Concern within St. Bernard's financial statements greatly improving shareholder confidence.
- Settled shareholder lawsuit resulting in a favorable outcome for the Company.
BOSS's involvement resulted in the following changes to the operating results of St. Bernard Software, Inc. as announced within St. Bernard's Q4 and Year End 2008 Press Release.
- Subscription revenues from core products increased 14%.
- Appliance revenues from core products increased 28%.
- Q4 2008 revenues of $5.1 million exceeded guidance range of $4.6 - $4.8 million.
- Cost of sales decreased 31%.
- Operating expenses decreased 48%.
- Executed on the cost reduction and right-sizing strategy to align the company's cost structure with the new company strategy and operating plan resulting in an 85% reduction of operating loss compared to 2007.
- Achieved positive cash flow of $754,000 for 2008 and $1.3 million for Q4 2008.
- Accounts payable decreased $1.8 million.
During December 2008, Vince Rossi, CEO at St. Bernard Software, Inc. stated: "BOSS provided the necessary financial and operational leadership that was lacking in prior years. BOSS became a positive force within St. Bernard and dramatically transformed the business from operating losses to significant operating cash flow. Their actions led to the restoration of faith within our banks, auditors and stockholders. They became a very trustworthy asset to me and I am proud of the success we had together."
Scott Broomfield, Chairman of Audit Committee at St. Bernard Software, Inc. stated: "BOSS brought credibility and execution to a challenging turn-around and immediately gained confidence with the board, auditors, lenders and the entire finance team. Their actions resulted in the successful removal of our going concern and material weakness within our financial statements and internal controls. The operational changes and financial results were quick and completely necessary to improve the financial viability of the business."
BOSS could not be more pleased with the partnership we built with St. Bernard Software, Inc. John Burke, BOSS, President and CEO, "It was an honor to work with St. Bernard and their management team. They built their business over many years and it was a true pleasure to showcase our talents in optimizing their quality asset. The financial results and positive operational changes presented within their financial statements is the best score card for the role we played."
About St. Bernard
St. Bernard Software develops and markets Internet security appliances and services that empower IT professionals to effectively, efficiently and intelligently manage their enterprise's Internet-based resources. Originally founded in 1995 as a market-leader in data security with its flagship product, Open File Manager(TM), the company is now recognized for delivering today's #1 Web filtering and security appliance, iPrismĘ. With millions of end users worldwide in more than 5,000 enterprises, educational institutions, SMB, and government agencies, St. Bernard strives to deliver simple, high performance solutions that offer excellent value to our customers.
Based in San Diego, California, St. Bernard (OTC BB:SBSW.OB - News) markets its solutions through a network of value added resellers, distributors, system integrators, OEM partners and directly to end users. For more information about St. Bernard Software, visit www.stbernard.com.
* Core business revenues exclude revenues from the sale of the Company's Update Export product in January of 2007 and Open File Manager in July of 2007.