SoundBite Communications Inc. (SDBT) filed Quarterly Report for the period ended 2009-09-30.
SoundBite Communications is a leading provider of automated voice messaging solutions that are delivered through a Software as a Service model. Organizations rely on SoundBite's on-demand solution to initiate and manage customer contact campaigns across a variety of collections customer care and marketing processes. SoundBite helps organizations increase revenue enhance customer service and retention secure payments and can also improve contact center efficiency by increasing agent productivity and enabling agentless interactions. The company's multi-tenant customer communications platform is used by organizations across a number of industries including collection agencies financial service providers retailers telecommunications providers and utilities. Soundbite Communications Inc. has a market cap of $48.8 million; its shares were traded at around $3 with and P/S ratio of 1.2.
Highlight of Business Operations:
Our operating activities provided net cash in the amount of $392,000 for the nine months ended September 30, 2009 reflecting a net loss of $3.3 million, which was offset by non-cash charges and changes in working capital of $2.9 million consisting primarily of (a) depreciation expense of $1.9 million, (b) a decrease in accounts receivable, prepaid expenses and other assets of $587,000, primarily from the timing of receipts from our clients, and (c) an increase in accrued expenses and accounts payable of $249,000 due to the timing of the payments.
The $47,000 increase in cost of revenues for the three months ended September 30, 2009 as compared to the same period in 2008 reflected a $518,000 increase in telephony expense, as well as increased personnel and other administrative related costs of $79,000 and support and maintenance fees of $39,000. These increases were partially offset by a $426,000 decrease in telephony expense related to lower delivery and circuit costs and a $214,000 decrease in depreciation expense due to a lower depreciable base of our property and equipment infrastructure. The decrease in gross margin for the three months ended September 30, 2009 as compared to the same period in 2008 reflected lower price structure agreements entered into with some of our clients.
Research and Development. The $137,000 increase in research and development expenses for the three months ended September 30, 2009 as compared to the same period in 2008 was primarily attributable to a $68,000 increase in personnel related costs, as well as a $67,000 increase in outside consulting service fees and temporary help.
Sales and Marketing. The $955,000 decrease in sales and marketing expenses for the three months ended September 30, 2009 as compared to the same period in 2008 resulted primarily from a $567,000 decrease in employee compensation costs, a $226,000 decrease in travel and entertainment costs, and a $104,000 decrease in recruiting fees primarily as a result of fewer sales and marketing personnel.
General and Administrative. The $219,000 decrease in general and administrative expenses for the three months ended September 30, 2009 as compared to the same period in 2008 consisted principally of a $108,000 decrease in recruiting costs, a $54,000 decrease in outside consulting fees, as well as a $37,000 decrease in personnel related costs.
The $815,000 decrease in cost of revenues for the nine months ended September 30, 2009 as compared to the same period in 2008 consisted primarily of a $759,000 decrease in telephony expense related to lower client usage, a $615,000 decrease in depreciation expense due to a lower depreciable base of our property and equipment infrastructure, and a $949,000 decrease in delivery and circuit costs. These decreases were partially offset by an increase in text messaging and other channel delivery costs of $1.1 million, an increase in payroll expense of $208,000 due to a larger number of billable client management projects worked on during the current quarter, and a $125,000 increase in support and maintenance fees. The decrease in gross margin for the nine months ended September 30, 2009 as compared to the same period in 2008 reflected lower price structure agreements entered into with some of our clients.
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