Company Sees Year-Over-Year 34% Revenue Growth and 76% Growth in Deferred Revenue
SAN MATEO, CA--(Marketwire - Oct 25, 2012) - Selectica, Inc. (
"I'm pleased with our accelerated revenue growth; we are now outpacing the market," said Jason Stern, President and CEO at Selectica. "And while revenue was up, we were also able to keep expenses flat for the third successive quarter, leading to a non-GAAP net loss of less than $250,000."
The company's net loss on a GAAP basis was $0.9 million in Q2 FY2013, down 57% compared to Q2 FY2012.
Financial highlights
Selectica delivered the following financial results for the second quarter of fiscal 2013:
Business highlights
Business highlights from Q2 FY2013 include:
Additional results
Total revenues for Q2 FY2013 were $4.7 million, compared to $3.5 million for Q2 FY2012, a year-over-year increase of 34%. Total revenues were $4.2 million in Q1 FY2013.
Net loss for Q2 FY2013 was $0.9 million, or $(0.32) per share, compared to a net loss of $2.1 million, or $(0.74) per share in Q2 FY2012, and a net loss of $0.7 million, or $(0.25) per share, in Q1 FY2013.
Complete financial results for Q2 FY2013 can be found in the attached financial tables.
About Selectica, Inc.
Selectica, Inc. (
For more information:
Non-GAAP financial measures
Selectica provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). To help understand the company's past financial performance and future results, the company is providing non-GAAP financial measures to supplement the financial results that it provides in accordance with GAAP. The method the company uses to produce non-GAAP financial results is not computed according to GAAP and may differ from the methods used by other companies.
Forward-looking statements
Certain statements in this release and elsewhere by Selectica are forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to the on-going global recession; fluctuations in demand for Selectica's products and services; government policies and regulations, including, but not limited to those affecting the company's industry; and risks related to the company's past stock granting policies and related restatement of financial statements. Selectica undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional risk factors concerning the company can be found in the company's most recent Form 10-K, filed by the company with the Securities and Exchange Commission.
SELECTICA, INC. | |||||||||||||||||
Condensed Consolidated Statements of Operations | |||||||||||||||||
(In thousands, except per share amounts) | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||||
2012 | 2011 | 2012 | 2011 | ||||||||||||||
Revenues: | |||||||||||||||||
Recurring revenues | $ | 2,960 | $ | 2,162 | $ | 5,596 | $ | 4,335 | |||||||||
Non-recurring revenues | 1,695 | 1,370 | 3,235 | 2,950 | |||||||||||||
Total revenues | 4,655 | 3,532 | 8,831 | 7,285 | |||||||||||||
Cost of revenues: | |||||||||||||||||
Recurring cost of revenues | 407 | 257 | 738 | 512 | |||||||||||||
Non-recurring cost of revenues | 1,347 | 1,278 | 2,574 | 2,316 | |||||||||||||
Total cost of revenues | 1,754 | 1,535 | 3,312 | 2,828 | |||||||||||||
Gross profit: | |||||||||||||||||
Recurring gross profit | 2,553 | 1,905 | 4,858 | 3,823 | |||||||||||||
Non-recurring gross profit | 348 | 92 | 661 | 634 | |||||||||||||
Total gross profit | 2,901 | 1,997 | 5,519 | 4,457 | |||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | 861 | 810 | 1,792 | 1,706 | |||||||||||||
Sales and marketing | 1,726 | 1,415 | 3,245 | 2,594 | |||||||||||||
General and administrative | 698 | 843 | 1,568 | 1,774 | |||||||||||||
Fees related to comprehensive settlement agreement | 500 | 500 | 500 | 500 | |||||||||||||
Total operating expenses | 3,785 | 3,568 | 7,105 | 6,574 | |||||||||||||
Loss from operations | (884 | ) | (1,571 | ) | (1,586 | ) | (2,117 | ) | |||||||||
Loss on early extinguishment of note payable | - | 470 | - | 470 | |||||||||||||
Interest and other income (expense), net | (5 | ) | (38 | ) | (12 | ) | (88 | ) | |||||||||
Net loss | $ | (889 | ) | $ | (2,079 | ) | $ | (1,598 | ) | $ | (2,675 | ) | |||||
Basic and diluted net loss per share | $ | (0.32 | ) | $ | (0.74 | ) | $ | (0.57 | ) | $ | (0.95 | ) | |||||
Reconciliation to non-GAAP net loss: | |||||||||||||||||
Net loss | $ | (889 | ) | $ | (2,079 | ) | $ | (1,598 | ) | $ | (2,675 | ) | |||||
Stock-based compensation expense | $ | 153 | $ | 179 | $ | 361 | $ | 288 | |||||||||
Loss on early extinguishment of note payable | - | 470 | - | 470 | |||||||||||||
Fees related to comprehensive settlement agreement | 500 | 500 | 500 | 500 | |||||||||||||
Non-GAAP net loss |
$ | (236 | ) | $ | (930 | ) | $ | (737 | ) | $ | (1,417 | ) | |||||
Non-GAAP basic and diluted net loss per share | $ | (0.08 | ) | $ | (0.33 | ) | $ | (0.26 | ) | $ | (0.50 | ) | |||||
Weighted average shares outstanding for basic and diluted net loss per share | 2,818 | 2,820 | 2,815 | 2,826 | |||||||||||||
SELECTICA, INC. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(In thousands) | ||||||||
(Unaudited) | ||||||||
September 30, | March 31, | |||||||
2012 | 2012 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 12,052 | $ | 15,877 | ||||
Short-term investments | - | 199 | ||||||
Accounts receivable | 3,682 | 2,446 | ||||||
Prepaid expenses and other current assets | 512 | 531 | ||||||
Total current assets | 16,246 | 19,053 | ||||||
Property and equipment, net | 368 | 362 | ||||||
Other assets | 39 | 39 | ||||||
Total assets | $ | 16,653 | $ | 19,454 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Credit facility | $ | 6,000 | $ | 6,000 | ||||
Accounts payable | 876 | 395 | ||||||
Accrued payroll and related liabilities | 739 | 1,771 | ||||||
Other accrued liabilities | 87 | 88 | ||||||
Deferred revenue | 4,811 | 5,394 | ||||||
Total current liabilities | 12,513 | 13,648 | ||||||
Long-term deferred revenue | 964 | 1,327 | ||||||
Other long-term liabilities | 33 | 41 | ||||||
Total liabilities | 13,510 | 15,016 | ||||||
Stockholders' equity | 3,143 | 4,438 | ||||||
Total liabilities and stockholders' equity | $ | 16,653 | $ | 19,454 | ||||
SELECTICA, INC. | |||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
Six Months Ended | |||||||||
September 30, | September 30, | ||||||||
2012 | 2011 | ||||||||
Operating activities | |||||||||
Net loss | $ | (1,598 | ) | $ | (2,675 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
Depreciation | 101 | 139 | |||||||
Loss on disposition of property and equipment | - | 1 | |||||||
Stock-based compensation expense | 361 | 288 | |||||||
Changes in assets and liabilities: | |||||||||
Accounts receivable (net) | (1,236 | ) | 987 | ||||||
Prepaid expenses and other current assets | 19 | 50 | |||||||
Other assets | - | (39 | ) | ||||||
Accounts payable | 481 | (315 | ) | ||||||
Accrued payroll and related liabilities | (1,031 | ) | 321 | ||||||
Other accrued liabilities and long term liabilities | (9 | ) | (243 | ) | |||||
Deferred revenues | (946 | ) | (793 | ) | |||||
Net cash used in operating activities | $ | (3,858 | ) | $ | (2,279 | ) | |||
Investing activities | |||||||||
Purchase of capital assets | (107 | ) | (98 | ) | |||||
Proceeds from maturities of short-term investments | 199 | (1,398 | ) | ||||||
Net cash provided by (used in) investing activities | $ | 92 | $ | (1,496 | ) | ||||
Financing activities | |||||||||
Payments on note payable to Versata | - | (4,268 | ) | ||||||
Purchase of treasury shares | - | (472 | ) | ||||||
Borrowings under credit facility | - | 4,713 | |||||||
Repurchases of common stock, net of issuance | (59 | ) | (7 | ) | |||||
Net cash used in financing activities | $ | (59 | ) | $ | (34 | ) | |||
Net decrease in cash and cash equivalents | (3,825 | ) | (3,809 | ) | |||||
Cash and cash equivalents at beginning of the period | 15,877 | 16,822 | |||||||
Cash and cash equivalents at end of the period | $ | 12,052 | $ | 13,013 | |||||
SELECTICA, INC. | ||||||||||||||||
Billings Reconciliation | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, | September 30, | September 30, | September 30, | |||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||
Total revenues | $ | 4,655 | $ | 3,532 | $ | 8,831 | $ | 7,285 | ||||||||
Deferred revenue: | ||||||||||||||||
End of period | 5,775 | 3,337 | 5,775 | 3,337 | ||||||||||||
Beginning of period | 6,664 | 3,857 | 6,721 | 4,320 | ||||||||||||
Change in deferred revenue | (889 | ) | (520 | ) | (946 | ) | (983 | ) | ||||||||
Total billings (total revenues plus the change in deferred revenue) | $ | 3,766 | $ | 3,012 | $ | 7,885 | $ | 6,302 |