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Sonic Foundry Inc. (SOFO) filed Quarterly Report for the period ended 2011-12-31.
Sonic Foundry Inc. has a market cap of $27.6 million; its shares were traded at around $7.2 with and P/S ratio of 1.1.
This is the annual revenues and earnings per share of SOFO over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of SOFO.
Highlight of Business Operations:
Management has established VSOE for hosting services. Billings for hosting are spread ratably over the term of the hosting agreement, with the typical hosting agreement having a term of 12 months, with renewal on an annual basis. The Company sells most hosting contracts without the inclusion of products, and occasionally some hosting contracts in conjunction with the sale of product. When the hosting arrangement is sold in conjunction with product, the product revenue is recognized immediately while the remaining hosting revenue is spread ratably over the term of the hosting agreement. The selling price is allocated between these elements using the relative selling price method. The Company uses the estimated selling price method for development of the selling price for hardware products with embedded software.Services revenue represents the portion of fees charged for Mediasite customer support contracts amortized over the length of the contract, typically 12 months, as well as training, installation, event and content hosting services. Services revenue increased from $3.0 million in Q1-2011 to $3.5 million in Q1-2012 primarily due to an increase in event services as well as an increase in customer support contracts on Mediasite recorder units. At December 31, 2011 $5.5 million of revenue was deferred, of which we expect to recognize approximately $2.2 million in the quarter ending March 31, 2012.
Cash used by operating activities was $(908) thousand in Q1-2012 compared to cash provided by operating activities in Q1-2011 of $497 thousand, a decrease of $1.4 million. Cash used in Q1-2012 decreased partly due to a $(407) thousand change in net income, from a net income of $223 thousand in Q1-2011 to a net loss of $(184) thousand in Q1-2012. Working capital and other changes included the positive effects of a $366 thousand decrease in accounts receivable, $232 thousand of share based compensation, and $184 thousand of depreciation expense. These were more than offset by the negative effects of decreases in accounts payable and accrued liabilities of $699 thousand, a decrease in unearned revenue of $473 thousand and an increase in inventory of $512 thousand. In Q1-2011, working capital and other changes included the negative effects of a $353 thousand increase in inventories and a $347 thousand decrease in unearned revenue. These were more than offset by the positive effects of a decrease in accounts receivable of $681 thousand, $159 thousand of depreciation expense and $179 thousand of share based compensation.
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