Selectica Inc. (SLTC, Financial) filed Quarterly Report for the period ended 2009-12-31.
Selectica Inc. has a market cap of $12.3 million; its shares were traded at around $0.22 with and P/S ratio of 0.8.
Services. Services revenues are comprised of fees from consulting, maintenance, hosting, training, subscription revenues and out-of-pocket reimbursements. During the three months ended December 31, 2009, services revenues increased $0.3 million compared to the three months ended December 31, 2008 primarily due to the achievement of certain customer milestones that triggered revenue recognition on previously recorded deferred revenue. During the nine months ended December 31, 2009, services revenues decreased $0.1 million compared to the nine months ended December 31, 2008 primarily due to the lower level of consulting services delivered by our SCS segment. Maintenance revenues represented 45% and 43% of total services revenues for the three months ended December 31, 2009 and December 31, 2008, respectively, and 50% and 45% of total services revenues for the nine months ended December 31, 2009 and December 31, 2008, respectively.
Cost of Services Revenues. Cost of services revenues is comprised mainly of salaries and related expenses of our services organization, our data center costs, plus certain allocated expenses. During the three months ended December 31, 2009, these costs decreased $0.1 million or 10% compared to the same period in 2008 primarily due to reductions in the use of outside contractors in both our CM and SCS segments. During the nine months ended December 31, 2009, these costs increased $0.2 million or 4% compared to the same period in 2008 primarily due to increased compensation costs in the CM business unit.
Gross Margin Services. During the three months ending December 31, 2009, gross margin from services increased to 60% compared to 51% for the three months ending December 31, 2008. This increase was largely due to a combination of higher services revenues year over year, and a decrease in cost of services revenues year over year primarily due to reductions in the use of outside contractors in both our CM and SCS segments. During the nine months ending December 31, 2009, gross margin from services decreased to 55% compared to 58% for the nine months ending December 31, 2008. This decline was largely due to the ongoing shift made to our CM business, which typically has lower gross margins than our SCS business.
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Selectica Inc. has a market cap of $12.3 million; its shares were traded at around $0.22 with and P/S ratio of 0.8.
Highlight of Business Operations:
For the three months ended December 31, 2009, our revenues were approximately $4.4 million with license revenues representing 22% and services revenues representing 78% of total revenues. In addition, approximately 34% of our quarterly revenues came from three customers. License margins for the quarter were 96% and services margins were 60%. Net loss for the quarter was approximately $0.7 million or $(0.01) per share. For the three months ended December 31, 2008, our revenues were approximately $4.2 million with license revenues representing 25% and service revenues representing 75% of total revenues. In addition, approximately 41% of our quarterly revenues came from three customers. License margins for the quarter were 96% and service margins were 51%. Net loss for the quarter was approximately $1.8 million or $(0.06) per share.Services. Services revenues are comprised of fees from consulting, maintenance, hosting, training, subscription revenues and out-of-pocket reimbursements. During the three months ended December 31, 2009, services revenues increased $0.3 million compared to the three months ended December 31, 2008 primarily due to the achievement of certain customer milestones that triggered revenue recognition on previously recorded deferred revenue. During the nine months ended December 31, 2009, services revenues decreased $0.1 million compared to the nine months ended December 31, 2008 primarily due to the lower level of consulting services delivered by our SCS segment. Maintenance revenues represented 45% and 43% of total services revenues for the three months ended December 31, 2009 and December 31, 2008, respectively, and 50% and 45% of total services revenues for the nine months ended December 31, 2009 and December 31, 2008, respectively.
Cost of Services Revenues. Cost of services revenues is comprised mainly of salaries and related expenses of our services organization, our data center costs, plus certain allocated expenses. During the three months ended December 31, 2009, these costs decreased $0.1 million or 10% compared to the same period in 2008 primarily due to reductions in the use of outside contractors in both our CM and SCS segments. During the nine months ended December 31, 2009, these costs increased $0.2 million or 4% compared to the same period in 2008 primarily due to increased compensation costs in the CM business unit.
Gross Margin Services. During the three months ending December 31, 2009, gross margin from services increased to 60% compared to 51% for the three months ending December 31, 2008. This increase was largely due to a combination of higher services revenues year over year, and a decrease in cost of services revenues year over year primarily due to reductions in the use of outside contractors in both our CM and SCS segments. During the nine months ending December 31, 2009, gross margin from services decreased to 55% compared to 58% for the nine months ending December 31, 2008. This decline was largely due to the ongoing shift made to our CM business, which typically has lower gross margins than our SCS business.
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