Selectica Inc. Reports Operating Results (10-K)
Selectica Inc. has a market cap of $15.3 million; its shares were traded at around $5.46 with and P/S ratio of 1. Selectica Inc. had an annual average earning growth of 10.5% over the past 10 years.SLTC is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:As of September 30, 2009, the last business day of the registrant s most recently completed second fiscal quarter, the aggregate market value of the registrant s common stock held by non-affiliates of the registrant, based upon the closing price of $6.60 per share as reported by The NASDAQ Global Market on that date, was $18,368,137.
To date, we have invested substantial resources in research and development. At March 31, 2010, we had 13 full-time engineers and technical writing specialists that primarily work on product development, documentation, quality assurance and testing. For the fiscal years ended March 31, 2010 and 2009, we incurred approximately $3.3 million and $4.2 million, respectively on research and development.
On March 31, 2009 we sold the equity interest of our U.S. parent company in our wholly owned foreign subsidiary in India. The subsidiary had formerly provided development and professional services resources for our Sales Configuration group as well as acted as an interface to an outsourcing partner in India for development services for both of our product lines. As of the date of sale, the subsidiary had ceased to perform those functions and employed three people solely in administrative capacities. The sale was for cash consideration of $4.3 million ($1.0 million of which was held in escrow and released in early June 2009) and $0.4 million of forgiveness of intercompany debt. As of March 31, 2010 and 2009, we did not have any employees or operations outside the United States but we do business with a number of non-US based companies.
We incurred net losses of approximately $4.6 million and $8.4 million for the fiscal years ended March 31, 2010 and 2009, respectively. We had an accumulated deficit of approximately $253.8 million as of March 31, 2010. We may continue to incur significant losses in the future for a number of reasons, including uncertainty as to the level of our future revenues and the timing and impact of our cost reduction efforts. We plan to continue to pursue opportunities to align research and development, sales and marketing, and general and administrative expenses in absolute dollars over the next year in order to better balance expense levels with projected revenues, including potentially voluntarily delisting from The Nasdaq Global Market and deregistering under the Exchange Act. We will need to generate significant increases in our revenues to achieve and maintain profitability, particularly given the current small size of our business relative to the costs associated with being a public reporting company. If our revenue fails to grow or grows more slowly than we currently anticipate or our operating expenses exceed our expectations, our losses will significantly increase which would significantly harm our business and operating results.
Read the The complete Report