SOURCE: Black Duck Software

Black Duck Software

April 27, 2009 09:36 ET

Black Duck Software Rides Open Source Momentum to Continued Growth in Q1

Growth of 42% Confirms Acceleration of Open Source Use by Developers

WALTHAM, MA--(Marketwire - April 27, 2009) - With 42 percent growth in bookings performance and 27 percent growth in services for the Q1 2009 period, Black Duck Software, the leading global provider of products and services for accelerating software development through the managed use of open source software, is benefiting from growing interest in -- and adoption of -- open source technology, the company reported today.

Despite downward economic pressures affecting much of the technology industry, Black Duck closed major deals with three global enterprises, and many other deals with existing and new clients, enabling the company to maintain its steady growth.

Contributing to Black Duck's continued strong performance is the increased awareness among software development managers of the benefits of multi-source development, in which enterprises manage the use of open source code in software projects that are based on in-house developed code, often augmented by commercial products and/or outsourced development.

Among the milestones Black Duck achieved in the first quarter were:

-- Timothy Yeaton joins as CEO. Yeaton, an executive with more than 25 years of software industry experience, joined Black Duck as CEO and President. Most recently Chief Marketing Officer of EqualLogic, a privately-held storage systems vendor which was acquired by Dell in 2007 for $1.4B, Yeaton's track record in the open source community includes stints as senior vice president of worldwide marketing and general manager of enterprise products at open source software leader Red Hat, where he drove the acquisition of JBoss.

-- Philip Odence joins as VP of business development. Odence, who is charged with expanding Black Duck's partner ecosystem, has spent 15 years building strategic alliances and partner relationships. He came to Black Duck from Empirix, a leader in carrier VoIP, contact center and Web application testing and monitoring where he served as VP of business development. He was responsible for the firm's alliance program, developing strategic partnerships with market leaders such as Genesys, Avaya and Sonus Networks, starting up new businesses and supporting M&A activities. Prior to that, Odence worked as Vice President at High Performance Systems. He began his career at Teradyne. Odence holds an AB in engineering science and an MS in system simulation from Dartmouth College.

-- Announcement March 9th of the Black Duck Suite, a comprehensive management platform that provides new levels of automation and efficiency for software development organizations using open source components at significant scale for software development.

-- A $9.5 million round of financing, with return investments from all current investors -- General Catalyst Partners, Fidelity Ventures, Flagship Ventures, Focus Ventures, Intel Capital, SAP Ventures and Red Hat -- plus new investor Gold Hill Capital.

-- New customer growth. The company added 18 new customers to its roster in Q1, ending the quarter with more than 640 customers. New customers reflect particular strength in the mobile and telecommunications sectors.

-- Continued enhancements to Koders.com. Black Duck continues to enhance the open source search engine, increasing the size of its database by 30 percent to 2 billion lines of code governed by open source and other licenses.

"Interest in open source software (OSS) is accelerating, but more importantly adoption is accelerating and that's what drives our business," observes Tim Yeaton, Black Duck Software president and CEO. "We see customer interest in expanded OSS use, as well as the need for management tools to ensure effective automation of what are typically cumbersome and error-prone manual methods for search, selection, validation, and ongoing monitoring of OSS. These factors, along with the customer need to continue innovation even in a tight budget climate, contributed to our continued growth."

About Black Duck Software

Black Duck Software is the leading global provider of products and services for accelerating software development through the managed use of open source and third-party code. Black Duck™ enables companies to shorten time-to-market and reduce development and maintenance costs while mitigating the risks and challenges associated with open source reuse, including hidden license obligations, security vulnerabilities, unsupported open source and version proliferation. The company is headquartered near Boston and has offices in San Francisco, Amsterdam and Hong Kong, as well as distribution partners throughout the world. For more information, visit www.blackducksoftware.com.

Black Duck, Know Your Code and the Black Duck logo are registered trademarks of Black Duck Software, Inc. in the United States and other jurisdictions. Koders is a trademark of Black Duck Software, Inc. All other trademarks are the property of their respective holders.