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Rainmaker Systems Inc. (RMKR) filed Quarterly Report for the period ended 2011-09-30.
Rainmaker Systems Inc. has a market cap of $24.9 million; its shares were traded at around $0.93 with and P/S ratio of 0.58.
This is the annual revenues and earnings per share of RMKR over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of RMKR.
Highlight of Business Operations:
Sales and Marketing Expenses. Sales and marketing expenses increased $43,000, or 4%, to $1.0 million in the three months ended September 30, 2011, as compared to the 2010 comparative period. The change is primarily due to increased corporate and product marketing costs of $77,000, offset by a reduction in sales costs of $29,000. We expect sales and marketing expenses to increase for the fourth quarter of 2011 as compared to 2010 due to our 2011 investments in sales and marketing to grow sales.Technology and Development Expenses. Technology and development expenses decreased $237,000, or 11%, to $1.9 million during the three months ended September 30, 2011, as compared to the 2010 comparative period. The decrease is primarily attributable to decreases in personnel costs of approximately $349,000 due to reductions in our workforce, offset by increased outsourced service and maintenance costs of $104,000. We expect technology and development expenses to decrease for the fourth quarter of 2011 as compared to 2010 as we continue to focus on reducing our non-sales costs to offset our investment in sales and marketing.
General and Administrative Expenses. General and administrative expenses decreased $689,000, or 25%, to $2.1 million during the three months ended September 30, 2011, as compared to the 2010 comparative period. The decrease was primarily due to $300,000 of costs in 2010 related to a Texas sales tax audit, a reduction in personnel costs of $271,000 due to reductions in our workforce, and $266,000 related to the exit of our Montreal facility in 2010. We expect general and administrative expenses to decrease for the fourth quarter of 2011 as compared to 2010 as we continue to focus on cost savings initiatives.
Net Revenue. Net revenue decreased $6.1 million, or 18%, to $27.5 million in the nine months ended September 30, 2011, as compared to the nine months ended September 30, 2010, primarily resulting from a one-time settlement payment received during the first quarter of 2010 of approximately $4.6 million for a contract termination/buyout. Excluding the one-time settlement payment received in the quarter, net revenue decreased $1.4 million, or 5%, in the nine months ended September 30, 2011, as compared to the comparative 2010 period. The following table shows the change in revenue by product line between the periods (in thousands):
Our contract sales product line revenue decreased from the prior year primarily resulting from the receipt of a one-time settlement payment of approximately $4.6 million during the first quarter of 2010 for a contract termination/buyout. Excluding this one-time settlement payment, contract sales revenue decreased by $1.7 million, or 13%, over the comparative 2010 period primarily due to the loss of Sun Microsystems as a client in the first quarter of 2010. Revenue from our lead development product line increased predominantly from revenue from several new clients. Revenue from our training sales product line decreased by $239,000, or 8%, compared to the comparative 2010 period due to customer attrition.
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