After yesterday's announcement, a few people speculated that we made the changes out of some financial desperation. We are a privately-held company so we don't make our financials available to the public. However, I will give you a few important facts so that such speculation does not create a lot of unnecessary worry.
Last year, more specifically the second half of last year, was challenging for most businesses. For many, revenues dropped dramatically requiring immediate and drastic cost reductions which resulted in significant job losses that continue this year. One of my favorite quotes is from Warren Buffet who said, "Only when the tide goes out do you discover who's been swimming naked." As it turns out, there was an awful lot of naked swimming going on last year. And when the economy falters, it impacts most businesses because there's less money being spent and as a result, the current of the economy flows more slowly. I started to notice something in April, but wrote it off as a bad quarter until September when it became obvious to everyone that the global economy was in trouble.
Last year was challenging for us and we did have to make some cuts as a result. But they were necessary and this year, despite the current global economic crisis, things are looking much better for us. Sales have exceeded our projections and are in fact higher than they were for the same year-to-date period last year. That's important because the economy had not yet gone into crisis at this point last year. Even more important are new license sales, which are already stronger than expected this year. We are profitable for 2009 and are cash flow positive.
So why are we making the changes we announced yesterday? Like any smart company, we are always looking at how we can make changes to our offerings to make them more attractive and generate more revenue. We are, after all, a for-profit company. The new product line-up and pricing are more appropriate, and by having more clearly segmented editions, we can target features to specific types of users to make REALbasic even more attractive.
I founded this company at near the peak of the internet boom at a time when Java was shiny and new. People thought I was crazy. Fortunately, some friends and family believed in me, and I was able to get REALbasic off the ground. We have had no significant additional investment since then and are entirely self-funded. We have been doing this now for more than ten years and plan to continue for many years to come. I hope this will alleviate any concerns you might have about our longevity.