SOURCE: Selectica


July 26, 2012 16:00 ET

Selectica Announces Earnings for First Quarter Fiscal 2013

Company Sees Year-Over-Year Growth in Billings and Deferred and Recurring Revenue

SAN MATEO, CA--(Marketwire - Jul 26, 2012) - Selectica, Inc. (NASDAQ: SLTC), provider of software that accelerates sales cycles and streamlines contract processes, today announced financial results for its first quarter of fiscal 2013, ended June 30, 2012.

"Our ongoing transition to a software-as-a-service (SaaS) business model continues to progress as planned," said Selectica President and CEO Jason Stern. "The first quarter of fiscal 2013 marked the start of year two of our three-year plan, and we closed it out with year-over-year growth in all of our key financial metrics: recurring revenue, billings, and deferred revenue."

Financial highlights
Selectica delivered the following financial results for the first quarter of fiscal 2013:

  • Recurring revenue: Selectica grew recurring revenue from $2.2 million in Q1 FY 2012 to $2.6 million in Q1 FY2013, a year-over-year increase of 18%. Recurring revenue in Q4 FY2012 was $2.3 million.

  • Billings: Billings for Q1 FY2013 were $4.1 million, compared to $3.3 million in Q1 FY2012, a 24% increase year-over-year. Billings were $5.4 million in Q4 FY2012. The company defines billings, a non-GAAP financial measure, as revenue recognized during the period plus the change in deferred revenue from the beginning to the end of the period. Please refer to the financial tables below for a reconciliation of this non-GAAP measure to GAAP.

  • Deferred revenue: In Q1 FY2013, the company had deferred revenue of $6.7 million, a 72% year-over-year increase over Q1 FY2012, when deferred revenue was $3.9 million. In Q4 FY2012, deferred revenue was $6.7 million.

Business highlights
Business highlights from Q1 FY2013 include:

  • Fusion '12 user conference: Selectica held its annual user conference May 15-17 in Napa, California, with customers from a vast array of industries gathered for customer showcases, industry-specific roundtables, open labs, and panel discussions featuring fellow users and the Selectica team. The event was the largest and best attended since the conference began in 2007.

  • Selectica named an American Business Awards Finalist: Selectica Guided Selling was chosen as a Finalist by the American Business Awards in the "Best New Software Product or Service of the Year, Cloud Application or Service" category. Selectica will ultimately be named a Gold, Silver, or Bronze Stevie® Award winner when results are announced at the 10th Annual Stevie Awards ceremony in San Francisco, California on September 17, 2012.

  • Investment in growth: Selectica made additional investments in its sales and services teams, further positioning itself to support the needs of its expanding customer base and to meet growing market demand for configure-price-quote (CPQ) and contract lifecycle management (CLM) solutions.

Additional results
Total revenues for Q1 FY2013 were $4.2 million, compared to $3.8 million for Q1 FY2012, a year-over-year increase of 11%. Total revenues were $3.2 million in Q4 FY2012.

Net loss for Q1 FY2013 was $709,000, or $(0.25) per share, compared to a net loss of $596,000, or $(0.21) per share in Q1 FY2012, and a net loss of $2.2 million, or $(0.78) per share, in Q4 FY2012.

Complete financial results for Q1 FY2013 can be found in the attached financial tables.

About Selectica, Inc.
Selectica, Inc. (NASDAQ: SLTC) develops innovative software that the world's most successful companies rely on to improve the effectiveness of their sales and contracting processes. Our guided selling, sales configuration, and contract lifecycle management solutions support the Global 2000 and growing mid-size firms in closing billions of dollars' worth of business each year. Our patented technology, delivered through the cloud, makes it easy for customers in industries like high-tech, telecommunications, manufacturing, healthcare, financial services, and government contracting to overcome product and channel complexity, increase deal value, and accelerate time to revenue. For more information, visit

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.

Condensed Consolidated Statements of Operations  
(In thousands, except per share amounts)  
    Three Months Ended  
    June 30,     June 30,  
    2012     2011  
    Recurring revenues   $ 2,636     $ 2,173  
    Non-recurring revenues     1,540       1,581  
      Total revenues     4,176       3,754  
Cost of revenues:                
    Recurring cost of revenues     331       254  
    Non-recurring cost of revenues     1,228       1,039  
      Total cost of revenues     1,559       1,293  
Gross profit:                
    Recurring gross profit     2,305       1,919  
    Non-recurring gross profit     312       542  
      Total gross profit     2,617       2,461  
Operating expenses:                
  Research and development     931       896  
  Sales and marketing     1,520       1,180  
  General and administrative     870       929  
      Total operating expenses     3,321       3,005  
Loss from operations     (704 )     (544 )
Interest and other income (expense), net     (5 )     (52 )
Net loss   $ (709 )   $ (596 )
Basic and diluted net loss per share   $ (0.25 )   $ (0.21 )
Weighted average shares outstanding for basic and diluted net loss per share     2,807       2,831  
Condensed Consolidated Balance Sheets
(In thousands)
    June 30,   March 31,
    2012   2012
Current assets            
  Cash and cash equivalents   $ 13,583   $ 15,877
  Short-term investments     0     199
  Accounts receivable     3,581     2,446
  Prepaid expenses and other current assets     655     531
    Total current assets     17,819     19,053
Property and equipment, net     372     362
Other assets     39     39
    Total assets   $ 18,230   $ 19,454
Current liabilities            
  Credit facility   $ 6,000   $ 6,000
  Accounts payable     930     395
  Accrued payroll and related liabilities     613     1,771
  Other accrued liabilities     84     88
  Deferred revenue     5,538     5,394
    Total current liabilities     13,165     13,648
  Long-term deferred revenue     1,126     1,327
  Other long-term liabilities     37     41
    Total liabilities     14,328     15,016
Stockholders' equity     3,902     4,438
    Total liabilities and stockholders' equity   $ 18,230   $ 19,454
Condensed Consolidated Statements of Cash Flows  
(In thousands)  
    Three Months Ended  
    June 30,     June 30,  
    2012     2011  
Operating activities                
Net loss   $ (709 )   $ (596 )
Adjustments to reconcile net loss to net cash (used in) provided by operating activities:                
Depreciation     48       72  
Loss on disposition of property and equipment     0       1  
Stock-based compensation expense     208       109  
Changes in assets and liabilities:                
  Accounts receivable (net)     (1,135 )     649  
  Prepaid expenses and other current assets     (124 )     (7 )
  Accounts payable     535       (69 )
  Accrued payroll and related liabilities     (1,157 )     237  
  Other accrued liabilities and long term liabilities     (8 )     (18 )
  Deferred revenues     (57 )     (357 )
Net cash (used in) provided by operating activities   $ (2,399 )   $ 21  
Investing activities                
  Purchase of capital assets     (58 )     (7 )
  Proceeds from maturities of short-term investments     199       0  
Net cash provided by (used in) investing activities   $ 141     $ (7 )
Financing activities                
  Payments on note payable to Versata     0       (200 )
  Repurchases of common stock, net     (36 )     0  
Net cash used in financing activities   $ (36 )   $ (200 )
Net decrease in cash and cash equivalents     (2,294 )     (186 )
Cash and cash equivalents at beginning of the period     15,877       16,822  
Cash and cash equivalents at end of the period   $ 13,583     $ 16,636  
Billings Reconciliation  
(In thousands)  
    Three Months Ended  
    June 30,     June 30,  
    2012     2011  
Total revenues   $ 4,176     $ 3,754  
Deferred revenue:                
End of period     6,664       3,857  
Beginning of period     6,721       4,320  
Change in deferred revenue     (57 )     (463 )
Total billings (total revenues plus the change in deferred revenue)   $ 4,119     $ 3,291