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Selectica Announces First Quarter Financial Results
Posted by: gurufocus (IP Logged)
Date: August 11, 2009 04:27PM

Press Release: Selectica Announces First Quarter Financial Results

SAN JOSE, Calif.--(BUSINESS WIRE)--Selectica, Inc. (Nasdaq: SLTC), a leading provider of enterprise contract lifecycle management and sales configuration solutions, today announced financial results for its first quarter for the period ending June 30, 2010.

Highlights:

  • 14 contract lifecycle management transactions, including both new customers and existing customers making additional commitments.
  • $3.2 million total revenue, with half of new customers choosing a SaaS offering.
  • Executed a restructuring in June that will align future costs with future revenues.

“We made progress this quarter in executing to our plan by adding new customers and continuing to improve our cost structure,” said Brenda Zawatski, co-chair of Selectica. “With over 50% of the reductions occurring in SG&A, we expect our quarterly operating expenses to decrease to approximately $3 million by the end of the year. We entered the current quarter with a strong pipeline, and we have begun to see the benefits of the recent restructuring.”

Revenue for the first quarter of fiscal 2010 was $3.2 million, compared to $5.4 million for the fourth quarter of fiscal 2009 and $3.8 million for the first quarter of fiscal 2009. Net loss for the first quarter of fiscal 2010 was $3.0 million, or $(0.07) per share, compared to a net loss of $1.5 million, or $(0.03) per share, in the fourth quarter of fiscal 2009 and a net loss of $2.2 million, or $(0.08) per share, in the first quarter of fiscal 2009. Cash, cash equivalents, and short-term investments were $20.0 million as of June 30, 2009.

Contract lifecycle management solutions revenue for the first quarter of 2010 was $1.8 million, or 57% of total revenues, compared with $1.8 million, or 48% of total revenue, for the first quarter of fiscal 2009. Sales configuration revenue for the first fiscal quarter of 2010 was $1.4 million, or 43% of total revenues, compared with $1.9 million, or 52% of total revenue, for the first fiscal quarter of 2009.

Conference Call:

Selectica will host a conference call to discuss its financial results today at 5:00 p.m. EDT (2:00 p.m. PDT). To access the conference call by phone, dial (800) 762-8795. The conference call will also be webcast live via the Internet and can be accessed on the investor relations section of the company\'s website (www.selectica.com). An archive of the webcast will be available in the same location shortly after the completion of the call.

About Selectica, Inc.

Selectica (NASDAQ:SLTC) provides Global 2000 companies with solutions that automate complex contract management and sales configuration processes. Selectica\'s enterprise solutions streamline critical business functions including sales, procurement, and corporate governance, and enable companies to eliminate risk, increase revenue, and cut costs. Selectica customers represent leaders in manufacturing, technology, retail, healthcare, and telecommunications, including Bell Canada, Cisco, Covad Communications, Fujitsu, Hitachi, International Paper, ManTech, Levi Strauss & Co., Qwest Communications, and Rockwell Automation. For more information, visit www.selectica.com.

Forward Looking Statements

Certain statements in this release and elsewhere by Selectica are forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the Company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of Company operations, or the performance or achievements of the Company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to the on-going global recession; fluctuations in demand for Selectica\'s products and services; government policies and regulations, including, but not limited to those affecting the Company\'s industry; and risks related to the Company\'s past stock granting policies and related restatement of financial statements. Selectica undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional risk factors concerning the Company can be found in the Company\'s most recent Form 10-K, and other reports filed by the Company with the Securities and Exchange Commission.

SELECTICA, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
   
 
Three Months Ended
June 30,
2009
June 30,
2008
 
Revenues:
License $ 432 $ 756
Services   2,783     3,010  
Total revenues   3,215     3,766  
 
Cost of revenues:
License 51 51
Services   1,386     1,187  
Total cost of revenues   1,437     1,238  
 
Gross profit   1,778     2,528  
 
Operating expenses:
Research and development 1,043 1,147
Sales and marketing 1,199 1,760
General and administrative 1,458 1,065
Litigation settlement 5 114
Professional fees related to corporate governance review 347 -
Restructuring 824 380
Professional fees related to stock option investigation   -     19  
Total operating expenses   4,876     4,485  
 
Operating loss (3,098 ) (1,957 )
 

Interest and other income (expense), net

  (121 )   (216 )
 
Loss before provision for income taxes (3,219 ) (2,173 )

Provision (benefit) for income taxes

  (179 )   17  
Net loss $ (3,040 ) $ (2,190 )
 
Basic and diluted net loss per share $ (0.07 ) $ (0.08 )
 
Reconciliation to non-GAAP net loss
Net loss $ (3,040 ) $ (2,190 )
Litigation settlement 5 114
Professional fees related to corporate governance review 347 -
Restructuring 824 380
Professional fees related to stock option investigation   -     19  
Non-GAAP net loss $ (1,864 ) $ (1,677 )
   
Non-GAAP basic and diluted net loss per share $ (0.04 ) $ (0.06 )
 

Weighted average shares outstanding for basic and diluted net loss per share

  45,441     28,585  
 
SELECTICA, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
   
 
June 30,
2009
March 31,
2009
 
ASSETS
Current assets
Cash and cash equivalents $ 19,828 $ 23,256
Short-term investments 197 196
Accounts receivable 3,763 5,598
Prepaid expenses and other current assets   1,591   2,485
Total current assets 25,379 31,535
 
Property and equipment, net 639 1,060
Other assets   665   672
Total assets $ 26,683 $ 33,267
 
 
LIABILITIES AND STOCKHOLDERS\' EQUITY
Current liabilities
Current portion of note payable to Versata $ 786 $ 786
Accounts payable 2,221 3,133
Current portion of accrual for restructuring liability

989

1,265

Accrued payroll and related liabilities 544 720
Other accrued liabilities

937

1,520

Deferred revenue   3,393   3,931
Total current liabilities   8,870   11,355
Note payable to Versata 4,452 4,588
Other long-term liabilities   200   48
Total liabilities   13,522   15,991
 
Stockholders\' equity   13,161   17,276
Total liabilities and stockholders\' equity $ 26,683 $ 33,267

Source: BusinessWire


Stocks Discussed: SLTC,
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