Rainmaker Systems Inc. (RMKR, Financial) filed Quarterly Report for the period ended 2009-09-30.
Rainmaker Systems is a leading outsource provider of sales and marketing programs. Rainmaker's cost-effective programs generate service revenue and promote customer retention for its clients. Core services include professional telesales, direct marketing, and hosted ecommerce. Additional services include customer database enhancement, CRM technology integration, and order management. These services are available individually or as an integrated solution. Rainmaker Systems Inc. has a market cap of $31.8 million; its shares were traded at around $1.48 with and P/S ratio of 0.5.
Technology and Development Expenses. Technology and development expenses decreased $2.0 million, or 45%, to $2.4 million during the three months ended September 30, 2009, as compared to the 2008 comparative period. The decrease is primarily attributable to an approximate $965,000 reduction in fees paid to outside consultants and service providers as a result of reduced usage of these services, decreases in personnel costs of approximately $845,000, decreased telephone usage of $115,000, and decreased travel & entertainment costs of approximately $61,000 due to the reduction in our workforce. These decreases were partially offset by increased equipment and maintenance expenses of approximately $177,000 during the 2009 quarter. We expect technology and development expenses to decrease for the remainder of the year as compared to 2008 as we have reduced spending due to the challenging macroeconomic environment.
General and Administrative Expenses. General and administrative expenses decreased $1.0 million, or 35%, to $1.9 million during the three months ended September 30, 2009, as compared to the three months ended September 30, 2008. The decrease was primarily due to approximately $742,000 in decreased personnel costs related to the reduction in our workforce during 2008 and the first three quarters of 2009. We also reduced travel & entertainment expenses approximately $84,000. Rent decreased approximately $75,000 during the quarter ended September 30, 2009, due primarily to our reduction in office space in the Philippines. Legal and audit fees decreased approximately $109,000 during the 2009 period as compared to the three months ended September 30, 2008. We expect general and administrative expenses to decrease for the remainder of the year as compared to 2008 as we have reduced spending in the 2009 fiscal year.
Sales and Marketing Expenses. Sales and marketing expenses decreased $2.7 million, or 44%, to $3.4 million in the nine months ended September 30, 2009, as compared to the 2008 comparative period. The decrease is primarily due to approximately $1.8 million in decreased personnel costs due to decreases in sales & marketing staffing, decreased commissions from reductions in sales, and decreases in recruiting & relocation Additionally marketing costs decreased approximately $322,000 and consulting & outsourced services fees decreased approximately $264,000 due to reduced project spending related to corporate website development and travel costs decreased approximately $158,000 due to corporate initiatives put in place to reduce these expenses. We expect sales and marketing expenses to decrease for the remainder of the year as compared to 2008 as the Company has reduced costs due to the challenging macroeconomic environment which has caused a slowdown in marketing spending by our customers.
Technology and Development Expenses. Technology and development expenses decreased $3.4 million, or 30%, to $7.8 million during the nine months ended September 30, 2009, as compared to the 2008 comparative period. The decrease is primarily attributable to an approximately $1.8 million reduction in fees paid to outside consultants and service providers as a result of reduced usage of these services, decreases in personnel costs of approximately $1.5 million, and decreased travel & entertainment costs of approximately $230,000 due to the reduction in our workforce. These decreases were partially offset by increased equipment and maintenance expenses of approximately $602,000 during the 2009 period. We expect technology and development expenses to decrease for the remainder of the year as compared to 2008 as we reduced spending due to the challenging macroeconomic environment.
Depreciation and Amortization Expenses. Depreciation and amortization expenses decreased $1.3 million, or 23%, to $4.4 million for the nine months ended September 30, 2009, as compared to the 2008 period. Amortization of intangible assets decreased by approximately $1.7 million in the 2009 period, primarily as a result of the write-off of approximately $2.2 million of our amortizable intangible assets in the fourth quarter of our 2008 fiscal year. This decrease was partially offset by increases in depreciation expense of approximately $365,000 related to depreciation on assets placed in service during our 2008 and 2009 fiscal years and the reduction of the useful life of leasehold improvements at our former Austin facility prior to our relocation in the third fiscal quarter. Because of the write-off of our amortizable intangible assets during 2008, the retirement and write-off of fixed assets as a result of our facility changes in Montreal, Manila and Austin, and the reduction in our capital expenditures during 2009, we expect depreciation and amortization expense to decrease as compared to the prior year for the remainder of 2009.
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Rainmaker Systems is a leading outsource provider of sales and marketing programs. Rainmaker's cost-effective programs generate service revenue and promote customer retention for its clients. Core services include professional telesales, direct marketing, and hosted ecommerce. Additional services include customer database enhancement, CRM technology integration, and order management. These services are available individually or as an integrated solution. Rainmaker Systems Inc. has a market cap of $31.8 million; its shares were traded at around $1.48 with and P/S ratio of 0.5.
Highlight of Business Operations:
Sales and Marketing Expenses. Sales and marketing expenses decreased $902,000, or 49%, to $930,000 in the three months ended September 30, 2009, as compared to the 2008 comparative period. The decrease is primarily due to approximately $670,000 in decreased personnel costs due to reductions in sales & marketing personnel, decreased commissions from reductions in sales, and decreases in severance and recruiting & relocation. Additionally marketing costs decreased $127,000 and consulting fees and outsourced services decreased approximately $24,000 due to reduced corporate marketing project spending related to corporate website development. Travel and entertainment costs decreased approximately $12,000 due to corporate initiatives put in place to reduce these expenses. We expect sales and marketing expenses to decrease for the remainder of the year as compared to 2008 as the Company has reduced costs due to the challenging macroeconomic environment which has caused a slowdown in marketing spending by our customers.Technology and Development Expenses. Technology and development expenses decreased $2.0 million, or 45%, to $2.4 million during the three months ended September 30, 2009, as compared to the 2008 comparative period. The decrease is primarily attributable to an approximate $965,000 reduction in fees paid to outside consultants and service providers as a result of reduced usage of these services, decreases in personnel costs of approximately $845,000, decreased telephone usage of $115,000, and decreased travel & entertainment costs of approximately $61,000 due to the reduction in our workforce. These decreases were partially offset by increased equipment and maintenance expenses of approximately $177,000 during the 2009 quarter. We expect technology and development expenses to decrease for the remainder of the year as compared to 2008 as we have reduced spending due to the challenging macroeconomic environment.
General and Administrative Expenses. General and administrative expenses decreased $1.0 million, or 35%, to $1.9 million during the three months ended September 30, 2009, as compared to the three months ended September 30, 2008. The decrease was primarily due to approximately $742,000 in decreased personnel costs related to the reduction in our workforce during 2008 and the first three quarters of 2009. We also reduced travel & entertainment expenses approximately $84,000. Rent decreased approximately $75,000 during the quarter ended September 30, 2009, due primarily to our reduction in office space in the Philippines. Legal and audit fees decreased approximately $109,000 during the 2009 period as compared to the three months ended September 30, 2008. We expect general and administrative expenses to decrease for the remainder of the year as compared to 2008 as we have reduced spending in the 2009 fiscal year.
Sales and Marketing Expenses. Sales and marketing expenses decreased $2.7 million, or 44%, to $3.4 million in the nine months ended September 30, 2009, as compared to the 2008 comparative period. The decrease is primarily due to approximately $1.8 million in decreased personnel costs due to decreases in sales & marketing staffing, decreased commissions from reductions in sales, and decreases in recruiting & relocation Additionally marketing costs decreased approximately $322,000 and consulting & outsourced services fees decreased approximately $264,000 due to reduced project spending related to corporate website development and travel costs decreased approximately $158,000 due to corporate initiatives put in place to reduce these expenses. We expect sales and marketing expenses to decrease for the remainder of the year as compared to 2008 as the Company has reduced costs due to the challenging macroeconomic environment which has caused a slowdown in marketing spending by our customers.
Technology and Development Expenses. Technology and development expenses decreased $3.4 million, or 30%, to $7.8 million during the nine months ended September 30, 2009, as compared to the 2008 comparative period. The decrease is primarily attributable to an approximately $1.8 million reduction in fees paid to outside consultants and service providers as a result of reduced usage of these services, decreases in personnel costs of approximately $1.5 million, and decreased travel & entertainment costs of approximately $230,000 due to the reduction in our workforce. These decreases were partially offset by increased equipment and maintenance expenses of approximately $602,000 during the 2009 period. We expect technology and development expenses to decrease for the remainder of the year as compared to 2008 as we reduced spending due to the challenging macroeconomic environment.
Depreciation and Amortization Expenses. Depreciation and amortization expenses decreased $1.3 million, or 23%, to $4.4 million for the nine months ended September 30, 2009, as compared to the 2008 period. Amortization of intangible assets decreased by approximately $1.7 million in the 2009 period, primarily as a result of the write-off of approximately $2.2 million of our amortizable intangible assets in the fourth quarter of our 2008 fiscal year. This decrease was partially offset by increases in depreciation expense of approximately $365,000 related to depreciation on assets placed in service during our 2008 and 2009 fiscal years and the reduction of the useful life of leasehold improvements at our former Austin facility prior to our relocation in the third fiscal quarter. Because of the write-off of our amortizable intangible assets during 2008, the retirement and write-off of fixed assets as a result of our facility changes in Montreal, Manila and Austin, and the reduction in our capital expenditures during 2009, we expect depreciation and amortization expense to decrease as compared to the prior year for the remainder of 2009.
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