Sonic Foundry Inc. (SOFO, Financial) filed Quarterly Report for the period ended 2008-12-31.
Sonic Foundry Inc. is a leading provider of personal computer (``PC``)-based software products that enable users to easily work with and edit digital media. The Company's products are designed to run under both the Windows and Windows NT operating systems. The company's products include Sound Forge 4.0 and Sound Forge XP both of which allow users to create record edit and design digital audio files CD Architect which gives musicians audio engineers and home users the ability to record and master their own audio CD's and Soft Encode. Sonic Foundry Inc. has a market cap of $26.35 million; its shares were traded at around $0.6599 with and P/S ratio of 1.69.
Selling and marketing expenses decreased $883 thousand or 25% from $3.5 million in Q1-2008 to $2.7 million in Q1-2009 resulting from:
G&A expenses decreased $195 thousand or 20% over the prior period from $978 thousand in Q1-2008 to $783 thousand in Q1-2009. Significant variances between the periods include:
R&D expenses decreased $43 thousand, or 5% from $946 thousand in Q1-2008 to $903 thousand in Q1-2009. Some significant differences between the periods include:
Cash provided by operating activities was $9 thousand in Q1-2009 compared to cash used in operating activities in Q1-2008 of $1.7 million. Cash provided in 2009 was impacted by a decrease in the net loss of $2.3 million from $3.5 million to $1.2 million and partially offset by changes in working capital. Working capital changes included the positive effects of reductions in accounts receivable of $1.3 million and the negative effects of a $304 thousand decrease in accounts payable and accrued liabilities and a $55 thousand decrease in unearned revenue. Q2-2008 had more significant changes in working capital components with a $2.7 million decrease in accounts receivable and an increase of $460 thousand in inventory and a $985 thousand decrease in accounts payable and accrued liabilities.
The Company enters into unconditional purchase commitments on a regular basis for the supply of Mediasite product. Obligations of approximately $1.8 million, of which we expect to purchase approximately $700 thousand over the next fiscal quarter, remain. This commitment is not recorded on the Companys Balance Sheet. The Company had approximately $459 thousand of purchase commitments as of December 31, 2007.
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Sonic Foundry Inc. is a leading provider of personal computer (``PC``)-based software products that enable users to easily work with and edit digital media. The Company's products are designed to run under both the Windows and Windows NT operating systems. The company's products include Sound Forge 4.0 and Sound Forge XP both of which allow users to create record edit and design digital audio files CD Architect which gives musicians audio engineers and home users the ability to record and master their own audio CD's and Soft Encode. Sonic Foundry Inc. has a market cap of $26.35 million; its shares were traded at around $0.6599 with and P/S ratio of 1.69.
Highlight of Business Operations:
Revenue in Q1-2009 increased $1.5 million, or 59% from Q1-2008 revenue of $2.5 million to $4.0 million. Q1-2008 results reflected lagging sales to corporate customers as a result of slowing economic conditions. In response, the Company concentrated its product sales efforts on its core higher education market and focused its service solutions on addressing corporate markets. The 2009 results reflect increased billings and an increase in higher education as a percentage of total billings from 31% in Q1-2008 to 61% in Q1-2009. Sales consisted of the following:Selling and marketing expenses decreased $883 thousand or 25% from $3.5 million in Q1-2008 to $2.7 million in Q1-2009 resulting from:
G&A expenses decreased $195 thousand or 20% over the prior period from $978 thousand in Q1-2008 to $783 thousand in Q1-2009. Significant variances between the periods include:
R&D expenses decreased $43 thousand, or 5% from $946 thousand in Q1-2008 to $903 thousand in Q1-2009. Some significant differences between the periods include:
Cash provided by operating activities was $9 thousand in Q1-2009 compared to cash used in operating activities in Q1-2008 of $1.7 million. Cash provided in 2009 was impacted by a decrease in the net loss of $2.3 million from $3.5 million to $1.2 million and partially offset by changes in working capital. Working capital changes included the positive effects of reductions in accounts receivable of $1.3 million and the negative effects of a $304 thousand decrease in accounts payable and accrued liabilities and a $55 thousand decrease in unearned revenue. Q2-2008 had more significant changes in working capital components with a $2.7 million decrease in accounts receivable and an increase of $460 thousand in inventory and a $985 thousand decrease in accounts payable and accrued liabilities.
The Company enters into unconditional purchase commitments on a regular basis for the supply of Mediasite product. Obligations of approximately $1.8 million, of which we expect to purchase approximately $700 thousand over the next fiscal quarter, remain. This commitment is not recorded on the Companys Balance Sheet. The Company had approximately $459 thousand of purchase commitments as of December 31, 2007.
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