SAN MATEO, CA--(Marketwired - Nov 7, 2013) - Selectica, Inc. (
Selectica Chairman and CEO Michael Brodsky said, "The weak second quarter results prompted the company to initiate a significant reorganization of the senior management. We recruited a team of highly experienced professionals with a track record of successful collaboration. During the quarter the team initiated a review of many of the company's key business tactics and processes, with a special focus on an assessing the company's delivery organization. After careful analysis, we determined that our success in the implementation function of the business required greater focus to maintain the satisfaction of our existing top-tier, multinational customer base. As a result of the special focus on the delivery infrastructure, we proactively decelerated sales activity for a temporary period, which is now complete."
"I am pleased with the disciplined approach we have taken toward the business, and early indications from key customers is that significant progress in the quality of implementation of our product is being made," added Brodsky. "The new team is firmly in place and I look forward to positive results as we focus on delivering on our growing pipeline of new prospects for our industry-leading CPQ and contract management solutions and our best-in-class service."
Financial Results:
Selectica delivered the following financial results for the first quarter of fiscal 2014:
Complete financial results for Q2 FY2014 can be found in the attached financial tables.
Business highlights
Business highlights from Q2 FY2014 include:
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, as supplemented in the company's most recent Form 10-Q, each as 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 | |||||||||||||||||
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September 30, 2013 |
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September 30, 2012 |
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September 30, 2013 |
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September 30, 2012 |
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Revenues: | ||||||||||||||||||
Recurring revenues | $ | 3,020 | $ | 2,960 | $ | 6,186 | $ | 5,596 | ||||||||||
Non-recurring revenues | 908 | 1,695 | 2,114 | 3,235 | ||||||||||||||
Total revenues | 3,928 | 4,655 | 8,300 | 8,831 | ||||||||||||||
Cost of revenues: | ||||||||||||||||||
Cost of recurring revenues | 694 | 407 | 1,366 | 738 | ||||||||||||||
Cost of non-recurring revenues | 1,256 | 1,347 | 2,492 | 2,574 | ||||||||||||||
Total cost of revenues | 1,950 | 1,754 | 3,858 | 3,312 | ||||||||||||||
Gross profit: | ||||||||||||||||||
Recurring gross profit | 2,326 | 2,553 | 4,820 | 4,858 | ||||||||||||||
Non-recurring gross profit | (348 | ) | 348 | (378 | ) | 661 | ||||||||||||
Total gross profit | 1,978 | 2,901 | 4,442 | 5,519 | ||||||||||||||
Operating expenses: | ||||||||||||||||||
Research and development | 450 | 861 | 1,553 | 1,792 | ||||||||||||||
Sales and marketing | 2,129 | 1,726 | 4,202 | 3,245 | ||||||||||||||
General and administrative | 733 | 698 | 2,288 | 1,568 | ||||||||||||||
Restructuring costs | 227 | - | 227 | - | ||||||||||||||
Fees related to comprehensive settlement agreement | - | 500 | - | 500 | ||||||||||||||
Total operating expenses | 3,539 | 3,785 | 8,270 | 7,105 | ||||||||||||||
Loss from operations | (1,561 | ) | (884 | ) | (3,828 | ) | (1,586 | ) | ||||||||||
Decrease in fair value of warrant liability | 1,121 | - | 982 | - | ||||||||||||||
Interest and other income (expense), net | (26 | ) | (5 | ) | (41 | ) | (12 | ) | ||||||||||
Net loss | (466 | ) | (889 | ) | (2,887 | ) | (1,598 | ) | ||||||||||
Series C redeemable preferred stock accretion | 1,144 | - | 1,621 | - | ||||||||||||||
Net loss applicable to common stockholders | $ | (1,610 | ) | $ | (889 | ) | $ | (4,508 | ) | $ | (1,598 | ) | ||||||
Basic and diluted net loss per common share applicable to common stockholders | $ | (0.45 | ) | $ | (0.32 | ) | $ | (1.35 | ) | $ | (0.57 | ) | ||||||
Reconciliation to non-GAAP net loss: | ||||||||||||||||||
Net loss | $ | (466 | ) | $ | (889 | ) | $ | (2,887 | ) | $ | (1,598 | ) | ||||||
Decrease in fair value of warrant liability | (1,121 | ) | - | (982 | ) | - | ||||||||||||
Stock-based compensation expense | (30 | ) | 153 | 455 | 361 | |||||||||||||
Restructuring costs | 227 | - | 227 | - | ||||||||||||||
Fees related to comprehensive settlement agreement | - | 500 | - | 500 | ||||||||||||||
Non-GAAP net loss | $ | (1,390 | ) | $ | (236 | ) | $ | (3,187 | ) | $ | (737 | ) | ||||||
Non-GAAP basic and diluted net loss per share | $ | (0.39 | ) | $ | (0.08 | ) | $ | (0.95 | ) | $ | (0.26 | ) | ||||||
Weighted average shares outstanding for basic and diluted net loss per share applicable to common stockholders | 3,591 | 2,818 | 3,343 | 2,815 | ||||||||||||||
SELECTICA, INC. | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
(In thousands) | ||||||||
September 30, | March 31, | |||||||
2013 | 2013 | |||||||
(unaudited) | ||||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 11,800 | $ | 12,098 | ||||
Accounts receivable, net | 3,447 | 3,455 | ||||||
Prepaid expenses and other current assets | 889 | 853 | ||||||
Total current assets | 16,136 | 16,406 | ||||||
Property and equipment, net | 350 | 407 | ||||||
Capitalized software | 382 | - | ||||||
Other assets | 78 | 39 | ||||||
Total assets | $ | 16,946 | $ | 16,852 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current liabilities | ||||||||
Credit facility | $ | 5,994 | $ | 6,000 | ||||
Accounts payable | 1,058 | 1,010 | ||||||
Accrued payroll and related liabilities | 547 | 982 | ||||||
Accrued restructuring costs | 154 | 232 | ||||||
Other accrued liabilities | 93 | 163 | ||||||
Deferred revenue | 5,114 | 6,153 | ||||||
Total current liabilities | 12,960 | 14,540 | ||||||
Long-term deferred revenue | 1,019 | 1,772 | ||||||
Other long-term liabilities | 20 | 20 | ||||||
Total liabilities | 13,999 | 16,332 | ||||||
Stockholders' equity | 2,947 | 520 | ||||||
Total liabilities and stockholders' equity | $ | 16,946 | $ | 16,852 | ||||
SELECTICA, INC. | |||||||||
Condensed Consolidated Statements of Cash Flows | |||||||||
(In thousands) | |||||||||
(Unaudited) | |||||||||
Six Months Ended | |||||||||
September 30, | September 30, | ||||||||
2013 | 2012 | ||||||||
Operating activities | |||||||||
Net loss | $ | (2,887 | ) | $ | (1,598 | ) | |||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
Depreciation | 99 | 101 | |||||||
Loss on disposition of property and equipment | 23 | - | |||||||
Stock-based compensation expense | 455 | 361 | |||||||
Decrease in warrant liability | (982 | ) | - | ||||||
Changes in assets and liabilities: | |||||||||
Accounts receivable (net) | 8 | (1,236 | ) | ||||||
Prepaid expenses and other current assets | (36 | ) | 19 | ||||||
Other assets | (39 | ) | - | ||||||
Accounts payable | 46 | 481 | |||||||
Restructuring liability | (78 | ) | - | ||||||
Accrued payroll and related liabilities | (435 | ) | (1,031 | ) | |||||
Other accrued liabilities and long term liabilities | (70 | ) | (9 | ) | |||||
Deferred revenue | (1,792 | ) | (946 | ) | |||||
Net cash used in operating activities | (5,688 | ) | (3,858 | ) | |||||
Investing activities | |||||||||
Purchase of property and equipment | (65 | ) | (107 | ) | |||||
Capitalized software | (382 | ) | - | ||||||
Proceeds from maturities of short-term investments | - | 199 | |||||||
Net cash (used in) provided by investing activities | (447 | ) | 92 | ||||||
Financing activities | |||||||||
Credit facility borrowings, net | (6 | ) | - | ||||||
Employee taxes paid in exchange for stock awards forfeited | (201 | ) | (59 | ) | |||||
Issuance of common stock under employee stock plan | 207 | - | |||||||
Proceeds from sale of common stock, preferred stock and warrants, net of issuance costs | 5,837 | - | |||||||
Net cash provided by (used in) financing activities | 5,837 | (59 | ) | ||||||
Net decrease in cash and cash equivalents | (298 | ) | (3,825 | ) | |||||
Cash and cash equivalents at beginning of the period | 12,098 | 15,877 | |||||||
Cash and cash equivalents at end of the period | $ | 11,800 | $ | 12,052 | |||||
SELECTICA, INC. | ||||||||||||||||
Billings Reconciliation | ||||||||||||||||
(In thousands) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
September 30, 2013 | September 30, 2012 | September 30, 2013 | September 30, 2012 | |||||||||||||
Total revenues | $ | 3,928 | $ | 4,655 | $ | 8,300 | $ | 8,831 | ||||||||
Deferred revenue: | ||||||||||||||||
End of period | 6,133 | 5,775 | 6,133 | 5,775 | ||||||||||||
Beginning of period | 6,806 | 6,664 | 7,925 | 6,721 | ||||||||||||
Change in deferred revenue | (673 | ) | (889 | ) | (1,792 | ) | (946 | ) | ||||||||
Total billings (total revenues plus the change in deferred revenue) | $ | 3,255 | $ | 3,766 | $ | 6,508 | $ | 7,885 | ||||||||