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Softek Posts Record Revenues With Nonstop Data Mobility Solutions; Achieves Fourth Consecutive Quarter of Positive EBITDA Results

Posted on: Tuesday, 2 May 2006, 12:00 CDT

Softek(R) Storage Solutions, the leader in Nonstop Data Mobility(TM) software solutions, today announced it achieved record revenues during the fourth quarter of fiscal year 2006, ending March 31, 2006. Results represented the eighth consecutive period of record quarterly revenues and the fourth consecutive quarter of positive earnings before interest, taxes, depreciation and amortization (EBITDA).

Softek's fourth quarter new license revenues increased 44 percent over the prior year's fourth quarter and 35 percent sequentially. Total fourth quarter revenues increased 30 percent on a year-over-year basis and were 18 percent higher compared to the immediately preceding quarter.

With new license revenues up 58 percent, fiscal year 2006 revenues for Softek were 24 percent greater than the prior year. The company's maintenance renewals remained strong at 95 percent.

"Our consistent financial performance is due to customer adoption and recognition that Softek's family of Nonstop Data Mobility solutions solves a pervasive, and much overlooked, key storage administration function -- moving business data online without application disruption," said Steven Murphy, president and CEO at Softek. "It is gratifying to see that the strategy we laid down over the last few years is driving profitable growth. Our simple, unified approach is reducing the cost, complexity and risk of moving data over any distance - regardless of server platform or storage array vendor - while maximizing application availability for our customers. This year, we also matured our go-to-market model, featuring broader and deeper relationships with all tier one Original Storage Manufacturers (OSM's) and storage array suppliers. This channel and multi-platform model has been the foundation of our profitable growth in the expanding data mobility market. "

Fourth Quarter Highlights

During the quarter, Softek simplified and unified its data migration product suite, enhanced its OSM partner relationships and furthered the company's liquidity to promote future growth.

Softek simplified and unified its suite of on-line data migration software for distributed mainframe and open system environments behind one brand -- Transparent Data Migration Facility (TDMF(R)). The company also announced new features and enhanced functionality within the company's enterprise data mobility suite for both open systems and mainframe environments. Softek TDMF IP was launched, which allows data migrations over distance within Unix and Windows environments. The company also expanded functionality for the Logical Data Migration Facility (LDMF) data migration software by supporting movement of datasets regardless of vendor or specific storage array.

Softek leveraged its multi-vendor, heterogeneous enterprise data mobility offerings with several key partners, including Sun, IBM, HP, EMC, HDS and Fujitsu.

Softek expanded its relationship with Sun Microsystems so that Sun and its reseller partners can now more quickly and easily install and activate Sun and StorageTek storage arrays using Softek TDMF. Softek also celebrated its tenth anniversary of supplying IBM Global Services with Softek TDMF as an essential tool to move customer data to IBM storage arrays and achieved Advanced Optimized partner status in the IBM PartnerWorld program. In addition, Softek TDMF was selected to be a key component of Fujitsu Limited's data migration capabilities to move data to Fujitsu ETERNUS storage systems in Asia and North America.

Furthermore, Softek strengthened the company's balance sheet via a $10 million credit facility from ORIX Venture Finance, a leading provider of expansion capital to mid- to late stage venture backed companies. The credit facility will assist Softek in fueling faster growth as the company continues to enhance its Nonstop Data Mobility software suite to an expanding global customer base, including the defacto gold standard software for host-based data migrations: Softek TDMF.

About Softek

Softek(R) provides Nonstop Data Mobility(TM) software that enables a simple and unified approach to moving live data - over any distance, regardless of server platform or storage array vendor. Our Nonstop Data Mobility(TM) solutions reduce the cost, complexity and risk of moving data, thereby increasing application availability and providing customers greater choice.

Since 1996, the majority of Fortune 1000 companies have turned to Softek to move petabytes of data.

Softek Storage Solutions Corporation is an independent software company based in Northern Virginia. Partners include EMC, Fujitsu, HDS, HP, IBM and Sun, in addition to distributors and resellers worldwide. For further information, visit www.softek.com.

Softek and TDMF are registered trademarks, and Nonstop Data Mobility is a trademark, of Softek Storage Solutions Corp. All other products, services and company names mentioned herein may be trademarks of their respective owners.

Source: Business Wire

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