Selectica Inc. has a market cap of $14.33 million; its shares were traded at around $5.1 with and P/S ratio of 0.95. Selectica Inc. had an annual average earning growth of 9.9% over the past 10 years.SLTC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
This is the annual revenues and earnings per share of SLTC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SLTC.
Highlight of Business Operations:For the three months ended June 30, 2010, our revenues were approximately $3.7 million with license revenues representing 22% and services revenues representing 78% of total revenues. In addition, approximately 33% of our quarterly revenues came from three customers. License margins for the quarter were 82% and services margins were 59%. Net loss for the quarter was approximately $0.4 million or $(0.16) per share. For the three months ended June 30, 2009, our revenues were approximately $3.2 million with license revenues representing 13% and service revenues representing 87% of total revenues. In addition, approximately 36% of our quarterly revenues came from three customers. License margins for the quarter were 88% and service margins were 50%. Net loss for the quarter was approximately $3.0 million or $(1.09) per share, which included charges of approximately $0.8 million related primarily to severance arrangements and to the write-off of leasehold improvements at our corporate headquarters.
Services. Services revenues are comprised of fees from consulting, maintenance, hosting, training, subscription revenues and out-of-pocket reimbursements. During the three months ended June 30, 2010, services revenues increased $0.1 million compared to the three months ended June 30, 2009 primarily due to higher maintenance revenues from a larger number of CM customers. Maintenance revenues represented 54% and 52% of total services revenues for the three months ended June 30, 2010 and 2009, respectively.
Gross Margin — Licenses. Because we have certain license costs that are fixed, margins will vary based on gross license revenue, the nature of the license agreements and product mix. Gross margin decreased to 82% for the three months ended June 30, 2010 compared to 88% for the three months ended June 30, 2009. This was primarily due to an increase in cost of license revenues year over year resulting from the sale of third party licenses to a customer.
Gross Margin — Services. During the three months ended June 30, 2010, gross margin from services increased to 59% compared to 50% for the three months ended June 30, 2009. This increase was largely due to a combination of higher services revenues year over year, and a decrease in cost of services revenues year over year primarily due to reductions in the use of outside contractors.
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