Rainmaker Systems Inc. (RMKR, Financial) filed Quarterly Report for the period ended 2010-03-31.
Rainmaker Systems Inc. has a market cap of $31.67 million; its shares were traded at around $1.44 with and P/S ratio of 0.66. RMKR is in the portfolios of Jim Simons of Renaissance Technologies LLC, Jim Simons of Renaissance Technologies LLC.
Cash provided by operating activities for the three months ended March 31, 2010 was $2.7 million as compared to cash used in operating activities of $1.3 million in the three months ended March 31, 2009. Cash provided by operating activities in 2010 was primarily the result of net income totaling $395,000, non-cash expenditures of depreciation and amortization of property and intangibles of $1.1 million, stock-based compensation charges of $777,000, the credit for the recovery of allowance for doubtful accounts of $67,000, write-down of investment of $740,000, and changes in operating assets and liabilities that used $245,000 of cash for the year.
Cash used in operating activities in 2009 was primarily the result of a net loss totaling $3.9 million, non-cash expenditures of depreciation and amortization of property and intangibles of $1.7 million, stock-based compensation charges of $622,000, the credit for the recovery of allowance for doubtful accounts of $197,000, loss on disposal of fixed assets of $158,000, and changes in operating assets and liabilities that provided $373,000 of cash for the year.
Cash used in investing activities was $1.1 million in the three months ended March 31, 2010, as compared to cash provided by investing activities of $177,000 in the three months ended March 31, 2009. The change is primarily the result of $492,000 paid in 2010 for the acquisition of Optima Consulting Partners Limited in January 2010, decreases in capital expenditures of approximately $92,000 during the three months ended March 31, 2010 as compared to the three months ended March 31, 2009, and an increase in the restricted cash balance of $54,000 in the three months ended March 31, 2010, as compared to a decrease in the restricted cash balance of approximately $779,000 in the three months ended March 31, 2009. Restricted cash represents the reserve for the refunds due for non-service payments inadvertently paid to the Company by our clients customers instead of paid directly to the Companys clients. At the time of cash receipt, the Company records a current liability for the amount of non-service payments received. The increase in restricted cash represents the addition of the balance of refunds due to customers.
Cash provided by financing activities was approximately $331,000 in the three months ended March 31, 2010, as compared to cash used in financing activities of $1.3 million in the three months ended March 31, 2009. Cash provided by financing activities in 2010 was primarily a result of $1.4 million in net borrowings under our revolving credit facility, principal payments of $676,000 on our CAS notes, payments on our capital lease obligations of $240,000, purchases of treasury stock under company announced share repurchase plans of $39,000, and purchases of $149,000 of treasury stock from employees for shares withheld for income taxes payable on restricted stock awards vested during 2010. Cash used in financing activities in 2009 was primarily a result of principal payments of $923,000 on our revolving credit facility and CAS notes, payments on our capital lease obligations of $226,000, purchases of treasury stock under company announced share repurchase plans of $56,000, and purchases of $45,000 of treasury stock from employees for shares withheld for income taxes payable on restricted stock awards vested during 2009.
In October 2008, we executed further amendments to our secured revolving line of credit (the Revolving Credit Facility) with Bridge Bank. The amendments extended the maturity date of the Revolving Credit Facility from October 10, 2008 to October 10, 2009 and increased the maximum amount of revolving credit available from $4,000,000 to $6,000,000, with a $1,000,000 sub-facility for standby letters of credit and a new $3,000,000 sub-facility for the purpose of purchasing new equipment until December 31, 2008. Advances under the equipment finance sub-facility are being repaid in equal monthly installments that commenced in January 2009 and continue through October 2011. On December 3, 2009, we executed a further amendment to Revolving Credit Facility. The amendment extends the maturity date of the Revolving Credit Facility from October 10, 2009 to October 10, 2010. The maximum amount of revolving credit available to the company remains at $6,000,000, with a $1,000,000 existing sub-facility for standby letters of credit, $1,941,000 outstanding under the equipment finance sub-facility, and a new $1,700,000 term loan line which can be used for any borrowings until March 10, 2010. The interest rate per annum for revolving advances under the Revolving Credit Facility is equal to the greater of (i) 3.5%, or (ii) one quarter of one percent (0.25%) above the prime lending rate, currently at 4.5%. The interest rate per annum for advances under the equipment finance sub-facility and the term loan line is equal to a fixed rate of 6.0%. Advances under the equipment finance sub-facility were being repaid in equal monthly installments of approximately $88,000 through October 2011. On January 29, 2010, we borrowed the $1.7 million available from the term loan line of the Revolving Credit Facility. In accordance with the amended Revolving Credit Facility, any advances made under the term loan line will be combined with the existing equipment sub-facility advances outstanding on March 31, 2010, and will be re-amortized and payable in thirty six (36) equal monthly installments of principal, plus all accrued interest, beginning on April 10, 2010, and continuing on the same day of each month thereafter through March 31, 2013, at which time all amounts owed, if any, shall be immediately due and payable. As of March 31, 2010, the company had $3,377,000 outstanding under the equipment finance sub-facility and term loan line and had one undrawn letter of credit outstanding under the Revolving Credit Facility in the aggregate face amount of $100,000. The $3.4 million in term loans outstanding under the Revolving Credit Facility will be paid in 36 equal monthly installments of approximately $94,000 beginning in April 2010.
Read the The complete Report
Rainmaker Systems Inc. has a market cap of $31.67 million; its shares were traded at around $1.44 with and P/S ratio of 0.66. RMKR is in the portfolios of Jim Simons of Renaissance Technologies LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Technology and Development Expenses. Technology and development expenses decreased $541,000, or 18%, to $2.5 million during the three months ended March 31, 2010, as compared to the 2009 comparative period. The decrease is primarily attributable to decreases in personnel costs of approximately $127,000 due to the reductions in our workforce, decreased equipment and maintenance expenses of approximately $390,000 and decreased telephone usage of approximately $34,000. We expect technology and development expenses to decrease for the remainder of the year as compared to 2009 as we have reduced spending due to the challenging macroeconomic environment.Cash provided by operating activities for the three months ended March 31, 2010 was $2.7 million as compared to cash used in operating activities of $1.3 million in the three months ended March 31, 2009. Cash provided by operating activities in 2010 was primarily the result of net income totaling $395,000, non-cash expenditures of depreciation and amortization of property and intangibles of $1.1 million, stock-based compensation charges of $777,000, the credit for the recovery of allowance for doubtful accounts of $67,000, write-down of investment of $740,000, and changes in operating assets and liabilities that used $245,000 of cash for the year.
Cash used in operating activities in 2009 was primarily the result of a net loss totaling $3.9 million, non-cash expenditures of depreciation and amortization of property and intangibles of $1.7 million, stock-based compensation charges of $622,000, the credit for the recovery of allowance for doubtful accounts of $197,000, loss on disposal of fixed assets of $158,000, and changes in operating assets and liabilities that provided $373,000 of cash for the year.
Cash used in investing activities was $1.1 million in the three months ended March 31, 2010, as compared to cash provided by investing activities of $177,000 in the three months ended March 31, 2009. The change is primarily the result of $492,000 paid in 2010 for the acquisition of Optima Consulting Partners Limited in January 2010, decreases in capital expenditures of approximately $92,000 during the three months ended March 31, 2010 as compared to the three months ended March 31, 2009, and an increase in the restricted cash balance of $54,000 in the three months ended March 31, 2010, as compared to a decrease in the restricted cash balance of approximately $779,000 in the three months ended March 31, 2009. Restricted cash represents the reserve for the refunds due for non-service payments inadvertently paid to the Company by our clients customers instead of paid directly to the Companys clients. At the time of cash receipt, the Company records a current liability for the amount of non-service payments received. The increase in restricted cash represents the addition of the balance of refunds due to customers.
Cash provided by financing activities was approximately $331,000 in the three months ended March 31, 2010, as compared to cash used in financing activities of $1.3 million in the three months ended March 31, 2009. Cash provided by financing activities in 2010 was primarily a result of $1.4 million in net borrowings under our revolving credit facility, principal payments of $676,000 on our CAS notes, payments on our capital lease obligations of $240,000, purchases of treasury stock under company announced share repurchase plans of $39,000, and purchases of $149,000 of treasury stock from employees for shares withheld for income taxes payable on restricted stock awards vested during 2010. Cash used in financing activities in 2009 was primarily a result of principal payments of $923,000 on our revolving credit facility and CAS notes, payments on our capital lease obligations of $226,000, purchases of treasury stock under company announced share repurchase plans of $56,000, and purchases of $45,000 of treasury stock from employees for shares withheld for income taxes payable on restricted stock awards vested during 2009.
In October 2008, we executed further amendments to our secured revolving line of credit (the Revolving Credit Facility) with Bridge Bank. The amendments extended the maturity date of the Revolving Credit Facility from October 10, 2008 to October 10, 2009 and increased the maximum amount of revolving credit available from $4,000,000 to $6,000,000, with a $1,000,000 sub-facility for standby letters of credit and a new $3,000,000 sub-facility for the purpose of purchasing new equipment until December 31, 2008. Advances under the equipment finance sub-facility are being repaid in equal monthly installments that commenced in January 2009 and continue through October 2011. On December 3, 2009, we executed a further amendment to Revolving Credit Facility. The amendment extends the maturity date of the Revolving Credit Facility from October 10, 2009 to October 10, 2010. The maximum amount of revolving credit available to the company remains at $6,000,000, with a $1,000,000 existing sub-facility for standby letters of credit, $1,941,000 outstanding under the equipment finance sub-facility, and a new $1,700,000 term loan line which can be used for any borrowings until March 10, 2010. The interest rate per annum for revolving advances under the Revolving Credit Facility is equal to the greater of (i) 3.5%, or (ii) one quarter of one percent (0.25%) above the prime lending rate, currently at 4.5%. The interest rate per annum for advances under the equipment finance sub-facility and the term loan line is equal to a fixed rate of 6.0%. Advances under the equipment finance sub-facility were being repaid in equal monthly installments of approximately $88,000 through October 2011. On January 29, 2010, we borrowed the $1.7 million available from the term loan line of the Revolving Credit Facility. In accordance with the amended Revolving Credit Facility, any advances made under the term loan line will be combined with the existing equipment sub-facility advances outstanding on March 31, 2010, and will be re-amortized and payable in thirty six (36) equal monthly installments of principal, plus all accrued interest, beginning on April 10, 2010, and continuing on the same day of each month thereafter through March 31, 2013, at which time all amounts owed, if any, shall be immediately due and payable. As of March 31, 2010, the company had $3,377,000 outstanding under the equipment finance sub-facility and term loan line and had one undrawn letter of credit outstanding under the Revolving Credit Facility in the aggregate face amount of $100,000. The $3.4 million in term loans outstanding under the Revolving Credit Facility will be paid in 36 equal monthly installments of approximately $94,000 beginning in April 2010.
Read the The complete Report
