SOURCE: Determine, Inc.

Determine, Inc.

June 08, 2017 16:30 ET

Determine Announces 4th Quarter and Fiscal Year 2017 Financial Results

Industry leading Determine Cloud Platform positions Determine for growth and profitability in FY2018

CARMEL, IN--(Marketwired - Jun 8, 2017) - Determine, Inc. (NASDAQ: DTRM), the pioneering leader in global Source-to-Pay and Enterprise Contract Lifecycle Management (ECLM) Cloud Platform solutions, announced financial results for its fourth quarter and fiscal year ended March 31, 2017.

FY2017 GAAP Financial Highlights:

(in thousands, except per share amounts)
GAAP Financial Measures   Q4   Q3   Q4   Change   Change   Twelve Months
    FY 2017   FY 2017   FY 2016   Q/Q   Y/Y   FY 2017   FY 2016   Change Y/Y
Revenue - total   $ 7,535     $ 6,852     $ 6,680       10.0 %     12.8 %   $ 27,463     $ 26,760       2.6 %
Revenue - recurring   $ 5,628     $ 5,054     $ 4,981       11.3 %     13.0 %   $ 20,895     $ 20,843       0.2 %
Revenue - non-recurring   $ 1,907     $ 1,798     $ 1,699       6.0 %     12.2 %   $ 6,568     $ 5,917       11.0 %
Gross profit - total   $ 3,973     $ 3,341     $ 3,296       18.9 %     20.5 %   $ 13,838     $ 13,791       0.3 %
Gross profit - recurring   $ 3,696     $ 3,277     $ 3,137       12.8 %     17.8 %   $ 13,878     $ 13,997       (0.9 %)
Gross profit/(loss) - non-recurring   $ 277     $ 64     $ 159       332.9 %     74.2 %   $ (40 )   $ (206 )     (80.6 %)
Gross margin - total     52.7 %     48.8 %     49.3 %     3.9 pts       3.4 pts       50.4 %     51.5 %     (1.1 pts )
Gross margin - recurring     65.7 %     64.8 %     63.0 %     0.9 pts       2.7 pts       66.4 %     67.2 %     (0.8 pts )
Gross margin - non recurring     14.5 %     3.5 %     9.4 %     11.0 pts       5.1 pts       (0.6 %)     (3.5 %)     2.9 pts  
Net loss   $ (1,708 )   $ (2,193 )   $ (4,808 )     (22.1 %)     (64.5 %)   $ (9,452 )   $ (14,021 )     (32.6 %)
EPS   $ (0.14 )   $ (0.18 )   $ (0.42 )   $ 0.04     $ 0.28     $ (0.81 )   $ (1.34 )   $ 0.53  
  • GAAP revenue was $27.5 million in FY2017, compared to $26.8 million in FY2016, representing a 2.6% increase year-over-year growth.
  • GAAP gross profit percentage was 50.4% FY2017, compared to 51.5% in FY2016, representing year-over-year decrease of 1.1 percentage points.
  • Deferred revenues decreased 2.9% to $10.1 million in FY2017 from $10.4 million in FY2016. 
  • GAAP net loss was $9.5 million or $0.81 per share in FY2017, compared to $14.0 million or $1.34 per share in FY2016, representing a $0.53 improvement per share year-over-year.

FY2017 Non-GAAP Financial Highlights:

(in thousands, except per share amounts)
Non-GAAP Financial Measures   Q4   Q3   Q4   Change   Change   Twelve Months
    FY 2017   FY 2017   FY 2016   Q/Q   Y/Y   FY 2017   FY 2016   Change Y/Y
Revenue - total   $ 7,535     $ 6,852     $ 6,696       10.0 %     12.5 %   $ 27,471     $ 27,005       1.7 %
Revenue - recurring   $ 5,628     $ 5,054     $ 4,997       11.3 %     12.6 %   $ 20,903     $ 21,018       (0.5 %)
Revenue - non-recurring   $ 1,907     $ 1,798     $ 1,699       6.0 %     12.2 %   $ 6,568     $ 5,987       9.7 %
Gross profit - total   $ 4,297     $ 3,726     $ 3,660       15.3 %     17.4 %   $ 15,192     $ 15,337       (0.9 %)
Gross profit - recurring   $ 3,967     $ 3,591     $ 3,419       10.5 %     16.0 %   $ 15,004     $ 15,156       (1.0 %)
Gross profit/(loss) - non-recurring   $ 330     $ 135     $ 241       144.4 %     36.9 %   $ 188     $ 181       3.9 %
Gross margin - total     57.0 %     54.4 %     54.7 %     2.6 pts       2.3 pts       55.3 %     56.8 %     (1.5 pts )
Gross margin - recurring     70.5 %     71.0 %     68.4 %     (0.5 pts )     2.1 pts       71.8 %     72.1 %     (0.3 pts )
Gross margin - non recurring     17.3 %     7.5 %     14.1 %     9.8 pts       3.2 pts       2.9 %     3.0 %     (0.1 pts )
Net loss   $ (428 )   $ (1,010 )   $ (2,245 )     (57.6 %)     (80.9 %)   $ (4,681 )   $ (6,830 )     (31.5 %)
EPS   $ (0.04 )   $ (0.08 )   $ (0.20 )   $ 0.04     $ 0.16     $ (0.40 )   $ (0.65 )   $ 0.25  
Billings   $ 7,582     $ 7,545     $ 8,027       0.5 %     (5.5 %)   $ 27,177     $ 28,694       (5.3 %)
  • Non-GAAP revenue was $27.5 million in FY2017, compared to $27.0 million in FY2016, representing a 1.7% year-over-year increase.
  • Non-GAAP gross profit percentage was 55.3% in FY2017, compared to 56.8% in FY2016, representing a 1.5 percentage point year-over-year decrease.
  • Billings decreased 5.3% to $27.2 million in FY2017 from $28.7 million in FY2016. Billings, a non-GAAP measure, are defined as revenue plus the change in deferred revenues.
  • Non-GAAP net loss was $4.7 million or ($0.40) per share in FY2017, compared to $6.8 million or $0.65 per share in FY2016, representing an improvement of $0.25 per share year-over-year.
  • Non-GAAP EBITDA was ($1.8) million in FY2017, compared to ($5.9) million in FY2016, representing an improvement of $4.1 million year-over-year. 

"Fiscal 2017 was as a pivotal year in the history of our innovative company, in which we achieved on three key business objectives. First, we executed on our strategic plan to assimilate the people, processes and technical elements of the three legacy companies under a single, industry leading Source-to-Pay and Enterprise Contract Lifecycle Management brand. Second during this transition year, we undertook a comprehensive review and restructuring of our entire business, enabling us to significantly cut our Non-GAAP EBITDA loss from $5.9M in Fiscal 2016 to $1.8M in Fiscal 2017, while also modestly growing revenue. Finally, while reducing total expenses, we focused significant investments into our Product and R&D functions to deliver a truly integrated Source-to-Pay and Enterprise Contract Lifecycle Management Platform. Looking ahead, I am very pleased by the team's tremendous achievements last year -- and excited by the opportunity ahead as we position Determine for growth and profitability in fiscal 2018." -- Patrick Stakenas, President and CEO, Determine, Inc.

FY2017 Determine Business Highlights:

  • Q4 Annualized Bookings: The sales team delivered approximately $808K in Annualized Bookings for the quarter, with 100% of our new customers, selecting the new Determine Cloud Platform for their Source-to-Pay or Enterprise Contract Lifecycle Management needs.
  • Q4: Platformance(SM)Sets New Industry Standard for Cloud Platforms in Source-to-Pay and Enterprise Contract Lifecycle Management: In February 2017, Determine launched a new brand strategy, Platformance. Platformance empowers customers to achieve enterprise Source-to-Pay success and efficiencies when people, data and business processes work together in perfect harmony. Platformance from Determine helps customers achieve successes within their companies.
  • Q4: Determine Scores number 1 in Customer Satisfaction and named Visionary in Gartner Magic Quadrant for Strategic Sourcing Application Suites: In February 2017, Determine was named for a third consecutive year as a Visionary in the Gartner Magic Quadrant for Strategic Sourcing Application Suites. We believe our designation, as a Visionary is an acknowledgement of our ability to provide one seamless Source-to-Pay and Enterprise Contract Lifecycle Management Cloud Platform.
  • Q4: Determine Cloud Platform exemplifies "Platformance" with 17.3 Release: In April 2017, Determine deployed its 17.3 Release of the Determine Cloud Platform solution, further redefining the possibilities for true Source-to-Pay platform efficiency and effectiveness. The 17.3 Release introduces significant differentiators, with new reporting automation and improved security features on the core. Automated reporting and alerts within the core platform provide deeper intelligence across the suite, empowering better decisions.
  • FY2017: New Customer Expansions: In FY2017, Determine added an expanded roster of customer accounts in the US, UK, Europe and Scandinavia to the Determine Cloud Platform across its suite of Source-to-Pay and Enterprise Contract Lifecycle Management solutions. Key customer important sectors included: financial services, transportation, airline, agribusiness, consumer goods, pharmaceutical, scientific research, manufacturing and retail. Examples of Key FY2017 Customer Expansions:
    - Q1: Republic Airways selected Determine Contract Lifecycle Management as the solution to manage its partner airline contracting needs.
    - Q2: Alliant Credit Union, one of the largest U.S. credit unions, deployed multiple Determine Cloud Platform applications including Supplier Management, Contract Management and Procure-to-Pay. The self-service capabilities will prove critical for managing compliance in the regulated financial industry.
    - Q3: Herve Thermique, the leading global energy services company, implemented Determine's Procurement solution for its ability to adapt to its unique organizational model to offer visibility, efficiency and flexibility across operations in France, Switzerland, Belgium and Morocco, and some 3,000 employees.
    - Q4: Orion Corporation, the leading Finnish global pharmaceutical and diagnostics company, selected the Determine Cloud Platform to optimize their Source-to-Contract effectiveness. 
  • Q3: Determine Cloud Platform Empowers Companies in Source-to-Pay and Enterprise Contract Lifecycle Management: Introduced a range of additional benefits that empower customers to make more effective business decisions. These include the following improvements to the Determine Cloud Platform: improved supplier certification and compliance through triggered automation based on answers provided during registration and supplier monitoring, side-by-side comparison of contract requests and attachments for enhanced version control and user authorization, time tracking for services procurement that requires calendar management, PO matching, and automatic receipt/invoice generation. In addition, the Determine Cloud Platform mobile application is now available on Google Play and the Apple Store.
  • Q3: New Revenue Generation Leadership: In October 2016, Determine appointed Steve Potts as Chief Revenue Officer. Steve brings over thirty years of sales management, sales performance management, and sales training experience in the enterprise software and SaaS sectors. He most recently served as Chief Sales and Marketing Officer at AXIOM Sales Force Development, a leading cloud-based sales training and productivity improvement supplier
  • Q2: Forrester Research, Inc. Ranked Determine's Enterprise Contract Lifecycle Management as a Strong Performer: The Forrester Wave™: Contract Life-Cycle Management, September 2016, "The 14 CLM Vendors That Matter Most and How They Stack Up," announced that Determine's Enterprise Contract Lifecycle Management solution ranked as a strong performer, especially in contract approval. The latest Determine Cloud Platform contract management solution adds more robust capabilities, including an intuitive UI/UX, unified master data and self-service templates.
  • Q2: Determine Scores Number 1 Out-of-the-Box in Gartner's Procure-to-Pay Suite: Gartner's 2016 Magic Quadrant (MQ) for Procure-to-Pay Suites named Determine as #1 for "out of the box" P2P functionality for projects. Acknowledgement as a MQ participant is noteworthy today given the highly competitive marketplace and that the Gartner P2P MQ has decreased the number of providers reviewed by more than 40% from its 2015 analysis.
  • Q2: Unveiled the "Future of Source-to-Pay and Enterprise Contract Lifecycle Management" with our Determine Cloud Platform: During Q2 FY2017, Determine introduced our new Determine Cloud Platform features including multi-level workflows, improved Apple and Android mobile apps, and self-service contract management. The new features provide an advanced, intuitive workflow and ease of use for our end users to improve collaboration and effective time management across their overall organization.
  • Q1: Top 50 Providers to Know: Determine was recognized as Top Providers to Know for second consecutive year in May 2016 by Spend Matters. Jason Busch, founder and head of strategy at Spend Matters, specifically called out the value of the new integrated cloud platform to customers and prospects. "The Determine Cloud Platform provides their customers a robust suite of integrated applications, which includes spend analytics, supplier management, sourcing, contract management, procure to pay, and financial management," said Mr. Busch. "This list is the product of intense debate, discussion and refinement each year by our analysts. This year saw new coverage areas and increased competition among providers in existing segments. Determine earned a deserved spot as one of the procurement providers worth getting to know in 2016."
  • Q1: Company Headquarters Move to the Silicon Prairie, Carmel, IN: Determine, Inc. officially relocated its headquarters from San Mateo, CA to Carmel, IN. The new Carmel, IN headquarters offers a centralized strategic location for our employees to maintain connectivity with Determine's global offices and customers. Indiana's tech sector is thriving and offers an extremely solid business environment and a rich pool of talented employees.
  • Q1: Executive Focus on Customer Success and Satisfaction: In May 2016, Rose Lee was promoted to the role of Chief Customer Relations. Rose is responsible for Determine's brand, global customer support, lead generation, marketing communications, market research and public relations.

Conference Call and Webcast Thursday, June 8, 2017 at 5:00 PM (Eastern Time)

Participant Conference Call Numbers:
Toll-Free: 1-877-407-0789
Toll/International: 1-201-689-8562
Participant Webcast Link: http://public.viavid.com/index.php?id=124627

Replay Dial-in Information:
Toll-Free: 1-844-512-2921
Toll/International: 1-412-317-6671
From: 06/08/17 at 8:00 pm Eastern Time
To: 06/15/17 at 11:59 pm Eastern Time
Replay Pin Number: 13663128
Related: http://investor.determine.com

Non-GAAP Financial Measures

To supplement our financial results presented in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures, including non-GAAP revenue, non-GAAP gross profit, non-GAAP net income and non-GAAP earnings per share, which we believe are helpful in understanding our past financial performance and future results. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, "GAAP to Non-GAAP Reconciliations". Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP.

The difference between GAAP and non-GAAP revenue is due to the impact of revaluing the deferred revenue balances acquired from primarily b-pack as required by GAAP purchase accounting.

The difference between GAAP and non-GAAP gross profit is the difference in GAAP versus non-GAAP revenues as well as the elimination of the amortization of acquisition related intangibles, stock based compensation and severance expense from the costs of revenue. Non-GAAP net loss excludes the non-GAAP gross profit items as well as acquisition related costs.

Our management regularly uses our supplemental non-GAAP financial measures internally to understand and manage our business and forecast future periods; as such, we believe it is useful for investors to understand the effects of these items on our total operations. Further, please note that our non-GAAP revenue is intended to reflect the full amount of revenues that would have been otherwise recorded by the acquired entities of Iasta and b-pack, while our non-GAAP gross profit also excludes the amortization of intangibles that occurred due to the acquisition of the entities of Iasta and b-pack.

Annualized Bookings are an operating measure not derived from the company's revenues or any other amounts presented in accordance with GAAP in the company's statement of income, balance sheet or statement of cash flows or other equivalent statements.

Forward-looking Statements
Certain statements in this release and elsewhere by Determine 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, product and channel development, 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 fluctuations in demand for Determine's products and services, risks of losing key personnel or customers, protection of the company's intellectual property and government policies and regulations, including, but not limited to those affecting the company's industry. Determine 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 filed by the company with the Securities and Exchange Commission.

Supporting Resources
Determine blog
Determine on LinkedIn
Determine on Twitter
Determine Resources

About Determine, Inc.
Determine, Inc. (NASDAQ: DTRM) is a leading global provider of SaaS Source-to-Pay and Enterprise Contract Lifecycle Management (ECLM) solutions. The Determine Cloud Platform provides procurement, legal and finance professionals analytics of their supplier, contract and financial performance. Our technologies empower customers to drive new revenue, identify savings, improve compliance and mitigate risk.

The Determine Cloud Platform seamlessly integrates with major ERP or third-party systems such as SAP, Oracle, Sage, QAD and Microsoft. Modular solutions can be configured to add more as needed to provide additional value beyond spend management. Our unified master database and business process approach empower users at every level to make more informed and smarter decisions.

For more information, please visit: www.determine.com.

   
Determine, Inc.  
Condensed Consolidated Statements of Operations  
(In thousands, except per share amounts)  
(Unaudited)  
   
  Three Months Ended     Twelve Months Ended  
  March 31,     March 31,  
  2017     2016     2017     2016  
                               
Revenues:                              
  Recurring revenues $ 5,628     $ 4,981     $ 20,895     $ 20,843  
  Non-recurring revenues   1,907       1,699       6,568       5,917  
  Total revenues   7,535       6,680       27,463       26,760  
                               
Cost of revenues:                              
  Cost of recurring revenues   1,932       1,844       7,017       6,846  
  Cost of non-recurring revenues   1,630       1,540       6,608       6,123  
    Total cost of revenues   3,562       3,384       13,625       12,969  
                               
Gross profit:                              
  Recurring gross profit   3,696       3,137       13,878       13,997  
  Non-recurring profit (loss)   277       159       (40 )     (206 )
    Total gross profit   3,973       3,296       13,838       13,791  
                               
Operating expenses:                              
  Research and development   720       2,268       3,771       3,612  
  Sales and marketing   2,508       3,031       10,352       13,222  
  General and administrative   2,062       2,534       7,495       8,099  
  Acquisition related costs   -       -       -       912  
  Impairment of software development costs   -       -       -       1,368  
  Restructuring costs   -       451       -       451  
    Total operating expenses   5,290       8,284       21,618       27,664  
                               
Loss from operations   (1,317 )     (4,988 )     (7,780 )     (13,873 )
                               
Interest and other income (expense), net   (477 )     (155 )     (1,865 )     (700 )
Net loss before income tax   (1,794 )     (5,143 )     (9,645 )     (14,573 )
                               
Benefit from income taxes   86       333       229       545  
Consolidated net loss   (1,708 )     (4,810 )   $ (9,416 )   $ (14,028 )
                               
Net income (loss) attributed to non-controlling interest   -       2       (36 )     7  
Net loss attributable to Determine, Inc   (1,708 )     (4,808 )     (9,452 )     (14,021 )
                               
Redeemable preferred stock accretion   -       -       -       1,120  
Net loss attributable to common stockholders   (1,708 )     (4,808 )   $ (9,452 )   $ (15,141 )
                               
Basic and diluted net loss per share $ (0.14 )   $ (0.42 )   $ (0.81 )   $ (1.34 )
   
   
   
Determine, Inc.  
GAAP to Non-GAAP Reconciliations  
(In thousands)  
(Unaudited)  
   
  Three Months Ended     Twelve Months Ended  
  March 31,     March 31,  
  2017     2016     2017     2016  
Reconciliation of total revenue:                              
  U.S. GAAP as reported $ 7,535     $ 6,680     $ 27,463     $ 26,760  
  Adjustments:                              
  Deferred revenue adjustment   -       16       8       245  
Non-GAAP Revenue $ 7,535     $ 6,696     $ 27,471     $ 27,005  
                               
Reconciliation of gross profit:                              
  U.S. GAAP as reported $ 3,973     $ 3,296     $ 13,838     $ 13,791  
  Adjustments:                              
  Deferred revenue adjustment   -       16       8       244  
  Amortization of acquisition   249       253       1,007       883  
  Stock based compensation   74       78       314       366  
  Severance   1       17       25       53  
Non-GAAP gross profit $ 4,297     $ 3,660     $ 15,192     $ 15,337  
                               
Reconciliation to non-GAAP net loss:                              
Net loss attributable to Determine, Inc $ (1,708 )   $ (4,808 )   $ (9,452 )   $ (14,021 )
Stock-based compensation expense   741       518       2,609       2,389  
Deferred revenue adjustment   -       16       8       245  
Acquisition related costs   -       -       -       912  
Amortization on intangibles   525       561       2,119       1,934  
Benefit from income taxes   -       (424 )     (13 )     (637 )
Restructuring costs   -       468       -       468  
Severance costs   14       56       48       512  
Impairment of software development costs   -       1,368       -       1,368  
Non-GAAP net loss $ (428 )   $ (2,245 )   $ (4,681 )   $ (6,830 )
                               
Non-GAAP basic and diluted net loss per share $ (0.04 )   $ (0.20 )   $ (0.40 )   $ (0.65 )
                               
Weighted average shares outstanding for basicand diluted net loss per share  
11,964
     
11,321
     
11,644
     
10,482
 
                               
                               
                       
Determine, Inc.
Condensed Consolidated Statements of Comprehensive Loss
(In thousands)
(Unaudited)
                       
  Three Months Ended     Twelve Months Ended  
  March 31,     March 31,  
  2017     2016     2017     2016  
                               
Consolidated Net loss $ (1,708 )   $ (4,810 )   $ (9,416 )   $ (14,028 )
Foreign currency translation adjustments, net   (33 )     (105 )     (64 )     (116 )
  Comprehensive loss   (1,741 )     (4,915 )     (9,480 )     (14,144 )
Less: Non controlling interest   -       2       (36 )     7  
Comprehensive loss attributable to Determine, Inc. $ (1,741 )   $ (4,913 )   $ (9,516 )   $ (14,137 )
       
       
       
Determine, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
       
       
  March 31,   March 31,
  2017   2016
  (Unaudited)   (Audited)
ASSETS          
Current assets          
  Cash and cash equivalents $ 9,429   $ 9,418
  Accounts receivable   7,042     7,031
  Restricted cash   34     34
  Prepaid expenses and other current assets   1,553     1,551
    Total current assets   18,058     18,034
           
Property and equipment, net   85     136
Capitalized software   2,341     1,699
Goodwill   14,448     14,490
Other intangibles, net   5,860     8,011
Other assets   1,599     1,843
    Total assets $ 42,391   $ 44,213
           
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND EQUITY
Current liabilities          
  Credit facility $ 11,861   $ 7,100
  Accounts payable   2,478     1,973
  Accrued payroll and related liabilities   1,729     1,655
  Other accrued liabilities   2,042     2,396
  COFACE loan   174     407
  Deferred revenue   10,070     10,299
  Income tax payable   23     14
  Accrued restructuring   -     403
    Total current liabilities   28,377     24,247
  Long-term deferred revenue   10     67
  Convertible note, net of debt discount   7,599     5,420
  Other long-term liabilities   1,306     3,282
  Deferred tax liability non current   -     290
    Total liabilities   37,292     33,306
           
Redeemable convertible preferred stock   -     -
Total Determine, Inc. stockholders' equity   5,099     10,794
Non-controlling interest   -     113
Total equity   5,099     10,907
    Total liabilities, redeemable convertible preferred stock and equity $ 42,391   $ 44,213
             
             
             
Determine, Inc.  
Condensed Consolidated Statements of Cash Flows  
(In thousands)  
(Unudited)  
             
    Twelve Months Ended  
    March 31,     March 31,  
    2017     2016  
                 
Operating activities                
Net loss   $ (9,416 )   $ (14,028 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation and amortization     3,405       2,680  
Gain on disposition of property and equipment     -       (13 )
Deferred tax liability     (290 )     (46 )
Accrued restructuring costs             403  
Impairment of capitalized software     -       1,368  
Stock-based compensation expense     2,609       2,389  
Noncash interest paid inkind as debt/equity     225       -  
Changes in assets and liabilities:                
  Accounts receivable (net)     (11 )     (154 )
  Prepaid expenses and other current assets     1       200  
  Other assets     287       (1,061 )
  Accounts payable     505       199  
  Accrued restructuring     (403 )     -  
  Accrued payroll and related liabilities     74       (202 )
  Other accrued liabilities and long term liabilities     (56 )     1,265  
  Deferred revenue     (286 )     1,066  
Net cash used in operating activities     (3,356 )     (5,934 )
                 
Investing activities                
  Purchase of property and equipment     (57 )     (6 )
  Capitalized software     (1,829 )     (1,383 )
  Minority shareholder payment     -       (133 )
  Purchase of business, net of cash     -       (826 )
Net cash used in investing activities     (1,886 )     (2,348 )
                   
Financing activities                
  Proceeds from sale of preferred stock with warrants, net of issuance costs     -       260  
  Employee taxes paid in exchange for restricted stock awards forefeited     (132 )     (175 )
  Issuance of common stock under employee stock plan     140       171  
  Credit facility borrowing, net     4,000       -  
  Credit facility payment     (1,139 )     (347 )
  Repayment of a loan     (233 )     (47 )
  Fees paid in connection with conversion of preferred stock to common stock     -       (17 )
  Issuance of convertible note, net     2,429       4,786  
Net cash provided by financing activities     5,065       4,631  
                   
  Effect of exchange rate changes on cash     188       (109 )
                 
Net increase (decrease) in cash and cash equivalents     11       (3,760 )
Cash and cash equivalents at beginning of the period     9,418       13,178  
Cash and cash equivalents at end of the period   $ 9,429     $ 9,418  
                 
                 
                         
Determine, Inc.  
Billings Reconciliation  
(In thousands)  
(Unaudited)  
                         
    Three Months Ended     Twelve Months Ended  
    March 31,     March 31,     March 31,     March 31,  
    2017     2016     2017     2016  
                                 
Total revenues   $ 7,535     $ 6,680     $ 27,463     $ 26,760  
Deferred revenue:                                
End of period     10,080       10,366       10,080       10,366  
Beginning of period     10,033       9,019       10,366       8,432  
Change in deferred revenue     47       1,347       (286 )     1,934  
Total billings (total revenues plus the change in deferred revenue)   $ 7,582     $ 8,027     $ 27,177     $ 28,694  
                                 
                                 
                         
Determine, Inc.  
Non-GAAP EBITDA Reconciliation  
(In thousands)  
(unaudited)  
                         
    Three Months Ended     Twelve Months Ended  
    March 31,     March 31,  
    2017     2016     2017     2016  
Reconciliation to non-GAAP EBITDA net income (loss):                                
Non-GAAP net loss   $ (428 )   $ (2,245 )   $ (4,681 )   $ (6,830 )
Interest     472       324       1,771       694  
Depreciation     379       249       1,295       746  
Income Taxes and Minority Shareholder     (86 )     (335 )     (193 )     (552 )
Non-GAAP EBITDA net income (loss)   $ 337     $ (2,007 )   $ (1,808 )   $ (5,942 )
                                 

Contact Information

  • Media Relations Contacts:
    Rose Lee
    Determine Inc.
    +1.650.532.1590
    pr@determine.com