Absolute Software Reports Fiscal 2013 Second Quarter Results

Device Management and Data Security products fueling top line growth 
VANCOUVER, Feb. 12, 2013 /CNW/ - Absolute® Software Corporation ("Absolute" 
or the "Company") (TSX: ABT), the industry standard for persistent endpoint 
security and management solutions for computers, laptops and ultra-portable 
devices - and the data they contain, today announced its financial results for 
the three and six months ended December 31, 2012. All financial statements are 
prepared in accordance with International Financial Reporting Standards 
("IFRS") and are reported in U.S. dollars. 
 _____________________________________________________________________
|Key Financial  |    Q2  |    Q2  |   %    |   YTD  |   YTD  |   %    |
|Metrics        |  F2013 |  F2012 | change |  F2013 |  F2012 | change |
|_______________|________|________|________|________|________|________|
|Sales Contracts|        |        |        |        |        |        |
|((1))          |  $22.5M|  $20.7M|     +8%|  $43.1M|  $46.1M|    (6)%|
|_______________|________|________|________|________|________|________|
|Cash from      |        |        |        |        |        |        |
|operating      |        |        |        |        |        |        |
|activities     |   $4.2M|   $6.0M|   (30)%|   $9.6M|  $11.5M|   (17)%|
|_______________|________|________|________|________|________|________|
|Operating cash |        |        |        |        |        |        |
|per share((2)) |        |        |        |        |        |        |
|_______________|________|________|________|________|________|________|
|   (basic)     |   $0.10|   $0.14|   (29)%|   $0.22|   $0.27|   (19)%|
|   (diluted)   |   $0.10|   $0.14|   (29)%|   $0.22|   $0.26|   (15)%|
|_______________|________|________|________|________|________|________|
|Revenue        |  $20.6M|  $18.4M|    +12%|  $40.3M|  $36.6M|    +10%|
|_______________|________|________|________|________|________|________|
|Adjusted       |        |        |        |        |        |        |
|Operating      |        |        |        |        |        |        |
|Income((3))    |   $3.5M|   $2.9M|    +23%|   $4.9M|   $5.6M|   (11)%|
|_______________|________|________|________|________|________|________|
|Net income     |        |        |        |        |        |        |
|(loss)         |   $1.3M|   $1.5M|   (15)%|   $1.7M| $(0.4)M|      nm|
|_______________|________|________|________|________|________|________|
|Net income     |        |        |        |        |        |        |
|(loss) per     |        |        |        |        |        |        |
|share          |        |        |        |        |        |        |
|   (basic and  |        |        |        |        |        |        |
|diluted)       |   $0.03|   $0.03|       -|   $0.04| $(0.01)|      nm|
|_______________|________|________|________|________|________|________|
|Cash, cash     |        |        |        |        |        |        |
|equivalents    |        |        |        |        |        |        |
|and            |        |        |        |        |        |        |
|investments    |  $57.1M|  $62.2M|    (8)%|  $57.1M|  $62.2M|    (8)%|
|_______________|________|________|________|________|________|________|
|Deferred       |        |        |        |        |        |        |
|revenue        | $128.3M| $120.5M|     +6%| $128.3M| $120.5M|     +6%|
|_______________|________|________|________|________|________|________| 
(1)(2)(3) - Please refer to "Non-IFRS Measures and Definitions" 
Q2 F2013 Highlights 


    --  Sales Contracts increased 8% to $22.5 million from $20.7
        million in Q2 F2012.
    --  Commercial Sales Contracts increased 12% to $20.9 million from
        $18.7 million in Q2 F2012, driven primarily by strong
        healthcare and corporate sales activity.
    --  Sales of Device Management and Data Security products were up
        36% compared to Q2 F2012, growing to 44% of total sales.
    --  Cash from Operating Activities was $4.2 million compared to
        $6.0 million in Q2 F2012.
    --  Adjusted Operating Income increased 23% to $3.5 million from
        $2.9 million in Q2 F2012.
    --  Signed a $3.5 million Computrace contract with a Fortune 100
        healthcare customer.
    --  Announced expanded data protection capabilities with new
        Absolute Secure Drive features.
    --  Broadened management product line with the acquisition of
        LiveTime Software, a SaaS and on-premise IT Service Management
        provider for $8.0 million cash plus contingent consideration.
    --  Repurchased 2,186,600 common shares under the Company's Normal
        Course Issuer Bid ("NCIB") for a total cost of $10,612,000.
        Subsequent to quarter end, announced the renewal of Company's
        NCIB for the period of January 25, 2013 to January 24, 2014.
    --  Subsequent to quarter end, declared a quarterly dividend of
        CAD$0.05 per common share.

"We continue to gain sales traction with corporate and healthcare customers, 
as they increasingly realize the benefits our offerings provide for 
governance, risk management and regulatory compliance," said John Livingston, 
CEO of Absolute. "This trend fueled our Sales Contract growth in the quarter, 
including the signing of the largest contract in our history with a Fortune 
100 healthcare company. More broadly, the marketplace continues to go mobile. 
From inception, Absolute has focused on solving mobile computing security and 
management challenges. With the addition of Absolute Service and continuing 
wins for our persistence technology on Windows and Android tablets, we 
continue to expand our offerings to manage and protect any device on any 
platform. This remains unique in the new mobile IT paradigm."

"Looking toward the remainder of fiscal 2013, while we are encouraged by our 
second quarter Device Management and Data Security growth, we believe the 
challenges we experienced in the education vertical in the first half of the 
year, mainly due to reduced PC shipments for one-to-one student programs, will 
persist. As such, our expectation for a slight year-over-year decline in Sales 
Contracts and cash from operations remains unchanged. However, as evidenced by 
our declaration of a quarterly dividend, we are confident in our strategic 
positioning and prospects for continued growth over the long-term."

Q2 F2013 and F2013 YTD Financial Review
Q2 F2013 Sales Contracts were $22.5 million, up 8% from $20.7 million in Q2 
F2012. The year-over-year increase was largely driven by strength in the 
corporate and healthcare verticals, with Absolute closing a multi-million deal 
with a major healthcare customer in the quarter. F2013 Year-to-date ("YTD") 
Sales Contracts were $43.1 million, down 6% from $46.1 million for the same 
period in F2012, reflecting a challenging PC industry environment during the 
first half of the fiscal year, particularly in the education vertical.

Commercial Sales Contracts for Absolute's flagship Theft Management 
products((5) )were $11.7 million for Q2 F2013. This was down 2% from $11.9 
million in Q2 F2012. YTD Commercial Sales Contracts for theft management 
products were $24.6 million, down 15% from $29.0 million in YTD F2012. Demand 
for these products is correlated with PC sales in the education market, which 
led to the year-over-year declines. However, the softness in the education 
sector was partially offset by advances in the Corporate and Healthcare 
verticals, which Absolute has targeted as expansion opportunities.

Q2 F2013 Commercial Sales Contracts from Absolute's Device Management and Data 
Security products((6)) were $9.2 million, up 36% from $6.8 million in Q2 
F2012. For the YTD period, Commercial Sales Contracts from device management 
and data security products were $15.0 million, up 19% from $12.6 million for 
the same period in F2012. The year-over-year improvements for the quarter and 
the YTD period reflect an increase in sales across all of the Company's Device 
management and Security products, including the Company's multi-million dollar 
contract win in the healthcare space.

International Sales Contracts were $2.5 million in Q2 F2013 (11% of total 
Sales Contracts) down 43% from $4.4 million in Q2 F2012 (21% of total Sales 
Contracts). YTD International Sales Contracts were $5.2 million (12% of total 
Sales Contracts), down 21% from $6.6 million (14% of total Sales Contracts) 
for the same period in F2012. The Q2 and YTD year-over-year reductions relate 
to a significant sale in Australia that was included in the Company's Q2 F2012 
results.

For Q2 F2013, Sales Contracts for consumer solutions were $1.6 million (7% of 
total Sales Contracts), down 24% from $2.1 million (10% of total Sales 
Contracts), in Q2 F2012. YTD consumer Sales Contracts were $3.5 million (8% of 
total Sales Contracts), down 20% from $4.4 million (10% of total Sales 
Contracts), for the same period in F2012.

Revenue for Q2 F2013 was $20.6 million, a 12% increase from $18.4 million in 
Q2 F2012. Indicative of the Company's Software-as-a-Service (SaaS) business 
model, revenue primarily represents the amortization of deferred revenue 
balances from recurring term license sales. YTD revenue was $40.3 million, a 
10% increase from $36.6 million for the same period in F2012. As a result of 
the SaaS business model, a majority of revenue (88% for the YTD period) was 
from the drawdown of deferred revenue balances accumulated to the end of the 
prior fiscal year.

Adjusted Operating Expenses((3)) for Q2 F2013 were $17.1 million. This was up 
10% from $15.5 million in Q2 F2012. The year-over-year change was due to 
increased investment levels, particularly in sales, marketing, and research 
and development. The Company initiated these increased spending levels near 
the end of F2012. YTD Adjusted Operating Expenses were $35.4 million, up 14% 
from $31.0 million for the same period in F2012.

Absolute generated Adjusted Operating Income((4)) of $3.5 million in Q2 F2013. 
This was up 23% from $2.9 million in Q2 F2012 due to higher revenue, which was 
offset in part by increased investment in the business. YTD Adjusted Operating 
Income was $4.9 million, down 11% from $5.6 million for the same period in 
F2012, reflecting the net impact of higher YTD F2013 revenue and the Company's 
increased investment in the business.

Absolute recorded net income of $1.3 million, or $0.03 per share, in Q2 F2013, 
compared to $1.5 million, or $0.03 per share, in Q2 F2012. YTD net income was 
$1.7 million, or $0.04 per share, compared to a net loss of $(0.4) million or 
$(0.01) per share for the same period in F2012. YTD net income included a 
foreign exchange gain of $0.5 million compared to a foreign exchange loss of 
$1.2 million for the same period in F2012.

Cash from operating activities was $4.2 million for Q2 F2013, down 30% from 
$6.0 million in Q2 F2012. YTD cash from operating activities was $9.6 
million, down 17% from $11.5 million for the same period in F2012.

At December 31, 2012, Absolute had cash, cash equivalents and investments of 
$57.1 million compared to $69.9 million at June 30, 2012. Significant uses of 
cash in the quarter included the acquisition of LiveTime and the repurchase of 
stock under the Company's NCIB.

Outlook
The Company's F2013 outlook remains unchanged. Management believes that the 
Company will continue to face challenging market conditions through the 
remainder of F2013. As a result, management continues to expect sales 
contracts for F2013 to be slightly below F2012 levels. Management remains 
committed to taking a balanced approach to operational investments, but also 
expects cash generated from operating activities to decline modestly compared 
to F2012.

Quarterly Filings
Management's discussion and analysis ("MD&A"), consolidated financial 
statements and notes thereto for Q2 F2013 can be obtained today from 
Absolute's corporate website at www.absolute.com. The documents will also be 
available at www.sedar.com.

Notice of Conference Call
Absolute Software will hold a conference call to discuss the Company's Q2 
F2013 results on Tuesday, February 12, 2013 at 2:00 p.m. PT (5:00 p.m. ET). 
All interested parties can join the call by dialing 647-427-7450, or 
1-888-231-8191. Please dial-in 15 minutes prior to the call to secure a 
line. The conference call will be archived for replay until Tuesday, 
February 19, 2013 at midnight.

A live audio webcast of the conference call will be available at 
www.absolute.com and www.newswire.ca. Please connect at least 15 minutes 
prior to the conference call to ensure adequate time for any software download 
that may be required to join the webcast. An archived replay of the webcast 
will be available for 365 days at www.newswire.ca. To access the archived 
conference call, please dial 416-849-0833, or 1-855-859-2056 and enter the 
reservation code 93075560.

Non-IFRS Measures and Definitions
Throughout this press release, we refer to a number of measures which we 
believe are meaningful in the assessment of the Company's performance. All 
these metrics are non-standard measures under International Financial 
Reporting Standards ("IFRS"), and are unlikely to be comparable to similarly 
titled measures reported by other companies. Readers are cautioned that the 
disclosure of these items is meant to add to, and not replace, the discussion 
of financial results or cash flows from operations as determined in accordance 
with IFRS. For a discussion of the purpose of these non-IFRS measures, 
please refer to the Company's Fiscal 2013 Q2 MD&A on SEDAR at www.SEDAR.com.

These measures, as well as their method of calculation or reconciliation to 
IFRS measures, are as follows:

1)      Sales Contracts
        See the "Subscription Business Model" section of the MD&A for a
        detailed discussion of why we believe Sales Contracts (also
        known as "bookings") provide a meaningful performance metric. 
        Sales Contracts are included in deferred revenue (see Note 8 of
        the Notes to the Interim Condensed Consolidated Financial
        Statements), and result from invoiced sales of our products and
        services.
         

2)      Basic and diluted Cash from Operating Activities per share
        As a result of the nature of our revenues (please refer to
        "Subscription Business Model" in the MD&A), we use Cash from
        Operating Activities as a measure of profitability.
        Accordingly, we believe that Cash from Operating Activities per
        share is a meaningful indicator of profitability per share.
        Cash from Operating Activities per share is calculated by
        dividing Cash from Operating Activities by the average number
        of shares outstanding for the period (basic), or using the
        treasury stock method (diluted).
         

3)      Adjusted Operating Expenses
        A number of significant non-cash expenses are reported in our
        Cost of Revenue and Operating Expenses.  Management believes
        that analyzing these expenses exclusive of these non-cash items
        provides a useful measure of the cash invested in the
        operations of its business. The non-cash items excluded in the
        determination of Adjusted Operating Expenses are share-based
        compensation and amortization of acquired intangible assets.
        For a description of the reasons these items are adjusted,
        please refer to the Fiscal 2013 Q2 MD&A.
         

4)      Adjusted Operating Income
        Management believes that analyzing operating results exclusive
        of significant non-cash items provides a useful measure of the
        Company's performance. Adjusted Operating Income refers to IFRS
        operating (loss) income excluding charges for share-based
        compensation and amortization of acquired intangible assets.
         

5)      Theft Management products
        Management defines the Company's theft management product line
        as Computrace products that include an investigations and
        recovery services component.
         

6)      Device Management and Data Security products
        Management defines the Company's device management and data
        security product line as are defined as our Absolute Manage and
        Absolute Secure Drive products, as well as Computrace products
        that do not include an investigations and recovery services
        component (for example, Absolute Track and Computrace Data
        Protection).
         

About Absolute Software
Absolute Software Corporation (TSX: ABT) is the industry standard in 
persistent endpoint security and management for computers, laptops and 
ultra-portable devices. The Company, a leader in device security and 
management tracking for more than 18 years, has over 30,000 customers 
worldwide. Positioned as a Visionary vendor in Gartner, Inc.'s Magic Quadrant 
for Client Management Tools, Absolute's solutions - Computrace, Absolute 
Manage, Absolute Secure Drive, and Computrace LoJack for Laptops - provide 
organizations with actionable intelligence to prove compliance, securely 
manage BYOD, and deliver comprehensive visibility and control over all of 
their devices and data. The Company's Computrace persistence technology is 
embedded in the firmware of computers, netbooks, and tablets by global 
leaders, including Acer, ASUS, Dell, Fujitsu, HP, Lenovo, Motion, Panasonic, 
Samsung, and Toshiba, and the Company has reselling partnerships with these 
OEMs and others, including Apple. For more information about Absolute 
Software, visit www.absolute.com.

This press release contains forward-looking statements that involve risks and 
uncertainties. These forward-looking statements relate to, among other things, 
the expected performance, functionality and availability of our services and 
products, and other expectations, intentions and plans contained in this press 
release that are not historical fact. When used in this press release, the 
words "plan," "expect," "believe," and similar expressions generally identify 
forward-looking statements. These statements reflect our current expectations. 
They are subject to a number of risks and uncertainties, including, but not 
limited to, changes in technology and general market conditions. In light of 
the many risks and uncertainties you should understand that we cannot assure 
you that the forward-looking statements contained in this press release will 
be realized.

©2013 Absolute Software Corporation. All rights reserved. Computrace and 
Absolute are registered trademarks of Absolute Software Corporation. LoJack is 
a registered trademark of LoJack Corporation, used under license by Absolute 
Software Corporation. LoJack Corporation is not responsible for any content 
herein. U.S. patents No. 5,715,174, No. 5,764,892, No. 5,802,280, No. 
5,896,497, No. 6,087,937, No. 6,244,758, No. 6,269,392, No. 6,300,863, No. 
6,507,914, No. 7,818,557, No. 7,818,803, No. 7,945,709, No. 8,062,380, No. 
8,234,359, No. 8,241,369, No. 8,307,055 and No. 8,332,953. Canadian patents 
No. 2,211,735, No. 2,284,806, and No. 2,205,370. U.K. patents No. EP0793823, 
No. GB2298302, and No. GB2338101. German patent No. 69512534. Australian 
patent No. 699045. Japanese patent No. JP4067035. The Toronto Stock Exchange 
has neither approved nor disapproved of the information contained in this news 
release.

ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Financial Position
(Expressed in United States dollars) (Unaudited)
                                                           
                                  December 31, 2012       June 30, 2012
                                                                       

ASSETS                                                                 
                                                                       

CURRENT                                                                

  Cash and cash                 $        40,578,280     $    45,412,147
  equivalents

  Short-term                              4,048,559           8,642,435
  investments

  Trade and other                        16,778,027          18,105,369
  receivables

  Prepaid expenses and                    1,669,101           2,010,165
  other
                                         63,073,967          74,170,116

INVESTMENTS                              12,487,224          15,875,256

PROPERTY AND EQUIPMENT                    1,493,486           1,561,495

DEFERRED INCOME TAX                      20,818,708          19,848,221
ASSETS

INTANGIBLE ASSETS AND                    23,846,449          18,256,872
GOODWILL
                                $       121,719,834     $   129,711,960
                                                                       

LIABILITIES                                                            
                                                                       

CURRENT                                                                

  Trade and other               $         6,930,406     $     7,016,921
  payables

  Acquisition payable -                           -           1,657,949
  LANrev

  Accrued warranty                          520,000             590,000

  Deferred revenue -                     66,900,135          63,173,264
  current
                                         74,350,541          72,438,134

DEFERRED REVENUE                         61,377,203          62,038,434
                                        135,727,744         134,476,568

CONTINGENCIES                                                          
                                                                       

SHAREHOLDERS'                                                          
DEFICIENCY

  Share capital                          36,870,729          38,625,463

  Equity reserve                         36,833,038          35,751,185

  Deficit                              (87,711,677)        (79,141,256)
                                       (14,007,910)         (4,764,608)
                                $       121,719,834     $   129,711,960
                                                         
                                                         

ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Operations and Comprehensive Income (Loss)
Three and six months ended December 31, 2012 and 2011
(Expressed in United States dollars) (Unaudited)
                                                                               
                                 Three months ended                  Six months ended
                                    December 31,                       December 31,
                               2012             2011             2012             2011
                                                                                         
                                                                                         

REVENUE                  $ 20,570,200     $ 18,350,606     $ 40,337,120     $  36,597,113
                                                                                         

COST OF REVENUE             4,773,136        5,024,860        9,643,826        10,081,185
                                                                                         

GROSS MARGIN               15,797,064       13,325,746       30,693,294        26,515,928
                                                                                         

OPERATING                                                                  
EXPENSES                                                                                 

  Sales and                                                                
  marketing                 9,528,431        7,947,965       19,029,972        15,731,775

  Research and                                                             
  development               3,309,587        2,799,391        6,466,156         5,596,806

  General and                                                              
  administration            1,278,330        1,649,845        3,916,446         3,464,671

  Investment tax                                                           
  credits                   (300,000)        (575,000)        (700,000)       (1,150,000)

  Share-based                                                              
  compensation                570,637          626,943        1,146,922         1,323,756
                           14,386,985       12,449,144       29,859,496        24,967,008
                                                                                         

OPERATING INCOME            1,410,079          876,602          833,798         1,548,920
                                                                                         

OTHER INCOME                                                               
(EXPENSE)                                                                                

  Interest                                                                 
  income, net                  41,355          150,842          126,262           297,325

  Foreign                                                                  
  exchange
  (loss) gain                  45,450          689,724          542,768       (1,173,024)

  (Loss) gain on                                                           
  investments                       -          192,615         (29,627)           192,615
                               86,805        1,033,181          639,403         (683,084)
                                                                                         

NET INCOME                                                                 
BEFORE INCOME
TAXES                       1,496,884        1,909,783        1,473,201           865,836
                                                                                         

INCOME TAX                                                                 
(EXPENSE)
RECOVERY                    (223,964)        (420,097)          270,487       (1,260,097)
                                                                                         

NET INCOME                                                                 
(LOSS) AND
COMPREHENSIVE
   INCOME (LOSS)         $  1,272,920     $  1,489,686     $  1,743,688     $   (394,261)
                                                                                         

BASIC AND                                                                  
DILUTED INCOME
(LOSS)
   PER SHARE             $       0.03     $       0.03     $       0.04     $      (0.01)
                                                                                         

WEIGHTED AVERAGE                                                           
NUMBER OF COMMON


SHARES
OUTSTANDING,
BASIC                      42,525,098       43,199,412       43,084,300        43,302,821 
                                                                          


                                                                             

ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Changes in Shareholders' Deficiency
(Expressed in United States dollars) (Unaudited)
                                                                                             
                                Share Capital                                                           
                     Number of                                                           
                      Common                              Equity
                      shares             Amount          reserve            Deficit             Total
                                                                                                        

BALANCE, JUNE                       $                 $                $                 
30, 2011             43,680,498        34,640,517       34,431,802       (74,766,754)     $  (5,694,435)

Shares issued                                                                            
on options
exercised               203,125           699,661        (222,058)                  -            477,603

Shares issued                                                                            
under
Employee
Share
Purchase Plan            93,502           308,313                -                  -            308,313

Shares                                                                                   
repurchased
and cancelled
under the
   Normal
Course Issuer
Bid                   (742,500)         (795,829)                -        (2,212,465)        (3,008,294)

Shares                                                                                   
committed to
be
repurchased
under the
   Normal
Course Issuer
Bid                           -         (236,534)                -          (729,199)          (965,733)

Shares issued                                                                            
on
acquisition
payable                 166,666           827,434         -                         -            827,434

Share-based                                                                              
compensation                  -                 -        1,323,756                  -          1,323,756

Net loss and                                                                             
total
comprehensive
loss                          -                 -                -          (394,261)          (394,261)

BALANCE,                            $                 $                $                 
DECEMBER 31,
2011                 43,401,291        35,443,562       35,533,500       (78,102,679)     $  (7,125,617)

Shares issued                                                                            
on options
exercised               535,912         3,013,771        (936,737)                  -          2,077,034

Shares issued                                                                            
under
Employee
Share
Purchase Plan            81,600           289,218                -                  -            289,218

Shares                                                                                   
repurchased
and cancelled
under the
   Normal
Course Issuer
Bid                   (261,000)         (121,088)                -           (16,952)          (138,040)

Share-based                                                                              
compensation                  -                 -        1,154,422                  -          1,154,422

Net loss and                                                                             
total
comprehensive
loss                          -                 -                -        (1,021,625)        (1,021,625)

BALANCE, JUNE                       $                 $                $                 
30, 2012             43,757,803        38,625,463       35,751,185       (79,141,256)     $  (4,764,608)

Shares issued                                                                            
on options
exercised                36,075           197,724         (65,069)                  -            132,655

Shares issued                                                                            
under
Employee
Share
Purchase Plan            77,610           321,493                -                  -            321,493

Shares                                                                                   
repurchased
and cancelled
under the
   Normal
Course Issuer
Bid                 (2,794,700)       (3,101,385)                -       (10,314,109)       (13,415,494)

Shares issued                                                                            
on
acquisition
payable                 166,668           827,434         -                         -            827,434

Share-based                                                                              
compensation                  -                 -        1,146,922                  -          1,146,922

Net income                                                                               
and total
comprehensive
income                        -                 -                -          1,743,688          1,743,688

BALANCE,                            $                 $                $                 
DECEMBER 31,
2012                 41,243,456        36,870,729       36,833,038       (87,711,677)     $ (14,007,910)
                                                                                             
                                                                                           

ABSOLUTE SOFTWARE CORPORATION
Consolidated Statements of Cash Flows
Three and six months ended December 31, 2012 and 2011
(Expressed in United States dollars) (Unaudited)
                                                                                
                               Three months ended                     Six months ended
                                  December 31,                          December 31,
                            2012              2011               2012              2011
                                                                                          

OPERATING                                                                     
ACTIVITIES                                                                                

  Net income         $                  $                 $                  $
  (loss)                  1,272,920         1,489,686          1,743,688         (394,261)

  Items not                                                                   
  involving cash                                                                          
    Amortization                                                              
    of property
    and
    equipment               340,856           305,531            671,775           622,038
    Amortization                                                              
    of acquired
    intangible
    assets                1,535,230         1,349,357          2,945,075         2,686,213
    Amortization                                                              
    of
    intangible
    assets -
    contract
    costs and
    brand                 1,486,016         1,339,807          2,906,191         2,808,710
    Share-based                                                               
    compensation            570,637           626,943          1,146,922         1,323,756
    Deferred                                                                  
    income taxes           (76,036)         (154,903)          (970,487)           110,097
    Loss (gain)                                                               
    on
    investments                   -         (192,615)             29,627         (192,615)
    Unrealized                                                                
    foreign
    exchange
    loss (gain)                   -         (622,135)          (277,892)         1,335,904
    Non-cash                                                                  
    interest and
    amortization
       of
    investment
    premium                 (8,814)           126,428            193,287           140,257

  Change in                                                                   
  non-cash
  working
  capital                                                                                 
    Trade and                                                                 
    other
    receivables         (1,431,282)         1,982,233          1,474,672         (594,667)
    Prepaid                                                                   
    expenses and
    other                   288,796            71,225            341,064          (40,996)
    Intangible                                                                
    assets -
    contract
    costs and
    brand
    additions           (1,845,410)       (1,562,115)        (3,235,845)       (3,222,499)
    Trade and                                                                 
    other
    payables                225,139         (999,035)          (105,592)       (2,268,932)
    Accrued                                                                   
    warranty               (60,000)          (80,000)           (70,000)         (110,000)
    Deferred                                                                  
    revenue               1,948,375         2,366,944          2,780,639         9,339,150
                                                                                          

CASH FROM                                                                     
OPERATING
ACTIVITIES                4,246,429         6,047,351          9,573,126        11,542,155

INVESTING                                                                     
ACTIVITIES                                                                                

  Purchase of                                                                 
  property and
  equipment               (234,215)         (140,037)          (544,820)         (263,568)

  Acquisition of                                                              
  LiveTime              (8,000,000)                 -        (8,000,000)                 -

  Purchase of                                                                 
  intangible
  assets                          -         (300,069)           (25,000)         (300,069)

  Acquisition                                                                 
  payable
  (LANrev)                (833,333)         (833,333)          (833,333)         (833,333)

  Proceeds from                                                               
  sales and
  maturities of
  short-term
  investments                     -         1,851,614          8,039,727         1,851,614
                                                                                          

CASH (USED IN)                                                                
FROM INVESTING
ACTIVITIES              (9,067,548)           578,175        (1,363,426)           454,644

FINANCING                                                                     
ACTIVITIES                                                                                

  Repurchase of                                                               
  common shares
  for
  cancellation         (10,612,354)         (236,216)       (13,415,494)       (3,013,781)

  Issuance of                                                                 
  common shares             116,558           366,695            454,126           785,916
                                                                                          

CASH (USED IN)                                                                
FROM FINANCING
ACTIVITIES             (10,495,796)           130,479       (12,961,368)       (2,227,865)
                                                                                          

FOREIGN EXCHANGE                                                              
EFFECT ON CASH            (112,905)           157,973           (82,199)          (80,132)
                                                                                          

(DECREASE)                                                                    
INCREASE IN CASH
AND CASH
EQUIVALENTS            (15,429,820)         6,913,978        (4,833,867)         9,688,802
                                                                                          

CASH AND CASH                                                                 
EQUIVALENTS,
BEGINNING OF
PERIOD                   56,008,100        32,641,565         45,412,147        29,866,741
                                                                                          

CASH AND CASH        $                  $                 $                  $
EQUIVALENTS, END
OF PERIOD                40,578,280        39,555,543         40,578,280        39,555,543
                                                                          



Public Relations: Andrea Holland, HORN Group andrea.holland@horngroup.com or 
415-905-4009 or Marina Guy, Absolute Software mguy@absolute.comor 
604.730.9851 x107

Investor Relations: Kristen Dickson, MSc, TMX | Equicom 
kdickson@equicomgroup.com or 416.815.0700 x273 or Dave Mason, CFA, TMX | 
Equicom dmason@equicomgroup.com or416.815.0700 x237

SOURCE: Absolute Software Corporation

To view this news release in HTML formatting, please use the following URL: 
http://www.newswire.ca/en/releases/archive/February2013/12/c5010.html

CO: Absolute Software Corporation
ST: British Columbia
NI: SOF ERN CONF 

-0- Feb/12/2013 21:00 GMT