SAN MATEO, CA--(Marketwired - Feb 5, 2014) - Selectica, Inc. (
Selectica Chairman Michael Brodsky said, "Our principal efforts for the quarter were focused on significantly strengthening our service delivery organization and sales teams, which will seed our future achievements." Brodsky added, "Most importantly we added Blaine Mathieu, a seasoned enterprise SaaS executive, to the team in early December as CEO. I have tremendous confidence that his experience and expertise will position Selectica well for success."
President and CEO Blaine Mathieu commented, "While it is still early days, I've quickly come to fully appreciate the tremendous power and capabilities of Selectica's core technologies, the complex and unique needs of our industry-leading customers, and the significant market opportunity for our solutions. I look forward to working with management and the board to put the business on a strong and solid upward trajectory."
Financial Results:
Selectica delivered the following financial results for the third quarter of fiscal 2014:
- Recurring revenue: Recurring revenue was $3.1 million in Q3 FY 2014 compared to $3.0 million in Q2 FY 2014 and $3.1 million in Q3 FY 2013.
- Operating expenses: Operating expenses were $4.0 million in Q3 FY 2014 compared to $3.5 million in Q2 FY 2014 and $3.6 million in Q3 FY 2013. The increase in expenses from Q2 FY 2014 to Q3 FY 2014 was largely driven by increases in executive stock based compensation.
- Billings: Billings were $3.9 million in Q3 FY 2014 compared to $3.3 million in Q2 FY 2014 and $4.2 million in Q3 FY 2013.
- Deferred revenue: Deferred revenue was $6.1 million in Q3 FY 2014 compared to $6.1 million in Q2 FY 2014 and $5.8 million in Q3 FY 2013.
Complete financial results for Q3 FY2014 can be found in the financial tables below.
About Selectica, Inc.
Selectica, Inc. (
For more information:
- Visit the Selectica website to learn more about the company and its products and customers (http://www.selectica.com)
- Follow @Selectica_Inc on Twitter to stay up to date with industry news and updates (http://twitter.com/Selectica_Inc)
- Visit "Done Deal," the Selectica blog, to read articles, advice, and commentary on how to optimize deal processes (http://www.selectica.com/blog)
- Watch Selectica videos on YouTube to see what Selectica and its products can do (http://www.youtube.com/user/SelecticaVideos)
Browse the Selectica resource center to find guides and resources on how to improve sales and contracting processes (http://www.selectica.com/resources)
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, 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 Selectica'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. 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 | Nine Months Ended | |||||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||||
| Revenues: | ||||||||||||||||||
| Recurring revenues | $ | 3,091 | $ | 3,054 | $ | 9,277 | $ | 8,650 | ||||||||||
| Non-recurring revenues | 857 | 1,442 | 2,971 | 4,677 | ||||||||||||||
| Total revenues | 3,948 | 4,496 | 12,248 | 13,327 | ||||||||||||||
| Cost of revenues: | ||||||||||||||||||
| Cost of recurring revenues | 634 | 489 | 2,000 | 1,227 | ||||||||||||||
| Cost of non-recurring revenues | 1,497 | 1,485 | 3,989 | 4,059 | ||||||||||||||
| Total cost of revenues | 2,131 | 1,974 | 5,989 | 5,286 | ||||||||||||||
| Gross profit: | ||||||||||||||||||
| Recurring gross profit | 2,457 | 2,565 | 7,277 | 7,423 | ||||||||||||||
| Non-recurring gross profit | (640 | ) | (43 | ) | (1,018 | ) | 618 | |||||||||||
| Total gross profit | 1,817 | 2,522 | 6,259 | 8,041 | ||||||||||||||
| Operating expenses: | ||||||||||||||||||
| Research and development | 586 | 950 | 2,139 | 2,742 | ||||||||||||||
| Sales and marketing | 2,051 | 1,642 | 6,254 | 4,887 | ||||||||||||||
| General and administrative | 1,349 | 985 | 3,636 | 2,554 | ||||||||||||||
| Restructuring costs | - | - | 227 | - | ||||||||||||||
| Fees related to comprehensive settlement agreement | - | - | - | 500 | ||||||||||||||
| Total operating expenses | 3,986 | 3,577 | 12,256 | 10,683 | ||||||||||||||
| Loss from operations | (2,169 | ) | (1,055 | ) | (5,997 | ) | (2,642 | ) | ||||||||||
| Decrease in fair value of warrant liability | - | - | 982 | - | ||||||||||||||
| Interest and other income (expense), net | 45 | (3 | ) | 4 | (14 | ) | ||||||||||||
| Net loss | (2,124 | ) | (1,058 | ) | (5,011 | ) | (2,656 | ) | ||||||||||
| Series C redeemable preferred stock accretion | - | 1,621 | - | |||||||||||||||
| Net loss applicable to common stockholders | $ | (2,124 | ) | $ | (1,058 | ) | $ | (6,632 | ) | $ | (2,656 | ) | ||||||
| Basic and diluted net loss per common share applicable to common stockholders | $ | (0.55 | ) | $ | (0.37 | ) | $ | (1.88 | ) | $ | (0.94 | ) | ||||||
| Reconciliation to non-GAAP net loss: | ||||||||||||||||||
| Net loss | $ | (2,124 | ) | $ | (1,058 | ) | $ | (5,011 | ) | $ | (2,656 | ) | ||||||
| Decrease in fair value of warrant liability | - | - | (982 | ) | - | |||||||||||||
| Stock-based compensation expense | 466 | 338 | 921 | 699 | ||||||||||||||
| Restructuring costs | - | - | 227 | - | ||||||||||||||
| Fees related to comprehensive settlement agreement | - | - | - | 500 | ||||||||||||||
| Non-GAAP net loss | $ | (1,658 | ) | $ | (720 | ) | $ | (4,845 | ) | $ | (1,457 | ) | ||||||
| Non-GAAP basic and diluted net loss per share | $ | (0.43 | ) | $ | (0.25 | ) | $ | (1.38 | ) | $ | (0.52 | ) | ||||||
| Weighted average shares outstanding for basic and diluted net loss per share applicable to common stockholders | 3,877 | 2,830 | 3,522 | 2,818 | ||||||||||||||
| SELECTICA, INC. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| December 31, | March 31, | |||||||
| 2013 | 2013 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 9,721 | $ | 12,098 | ||||
| Accounts receivable, net | 4,040 | 3,455 | ||||||
| Prepaid expenses and other current assets | 538 | 853 | ||||||
| Total current assets | 14,299 | 16,406 | ||||||
| Property and equipment, net | 317 | 407 | ||||||
| Capitalized software | 661 | - | ||||||
| Other assets | 40 | 39 | ||||||
| Total assets | $ | 15,317 | $ | 16,852 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Credit facility | $ | 6,234 | $ | 6,000 | ||||
| Accounts payable | 1,002 | 1,010 | ||||||
| Accrued payroll and related liabilities | 413 | 982 | ||||||
| Accrued restructuring costs | 49 | 232 | ||||||
| Other accrued liabilities | 291 | 163 | ||||||
| Deferred revenue | 5,275 | 6,153 | ||||||
| Total current liabilities | 13,264 | 14,540 | ||||||
| Long-term deferred revenue | 816 | 1,772 | ||||||
| Other long-term liabilities | - | 20 | ||||||
| Total liabilities | 14,080 | 16,332 | ||||||
| Stockholders' equity | 1,237 | 520 | ||||||
| Total liabilities and stockholders' equity | $ | 15,317 | $ | 16,852 | ||||
| SELECTICA, INC. | |||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||
| (In thousands) | |||||||||
| (Unaudited) | |||||||||
| Nine Months Ended | |||||||||
| December 31, | December 31, | ||||||||
| 2013 | 2012 | ||||||||
| Operating activities | |||||||||
| Net loss | $ | (5,011 | ) | $ | (2,656 | ) | |||
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||||
| Depreciation | 146 | 156 | |||||||
| Loss on disposition of property and equipment | 23 | - | |||||||
| Stock-based compensation expense | 902 | 699 | |||||||
| Decrease in warrant liability | (982 | ) | - | ||||||
| Changes in assets and liabilities: | |||||||||
| Accounts receivable (net) | (585 | ) | (2,145 | ) | |||||
| Prepaid expenses and other current assets | 35 | (91 | ) | ||||||
| Other assets | (1 | ) | - | ||||||
| Accounts payable | (10 | ) | 356 | ||||||
| Restructuring liability | (183 | ) | - | ||||||
| Accrued payroll and related liabilities | (569 | ) | (951 | ) | |||||
| Other accrued liabilities and long term liabilities | 108 | (12 | ) | ||||||
| Deferred revenue | (1,835 | ) | (1,216 | ) | |||||
| Net cash used in operating activities | (7,962 | ) | (5,860 | ) | |||||
| Investing activities | |||||||||
| Purchase of property and equipment | (79 | ) | (193 | ) | |||||
| Capitalized software | (382 | ) | - | ||||||
| Proceeds from maturities of short-term investments | - | 199 | |||||||
| Net cash (used in) provided by investing activities | (461 | ) | 6 | ||||||
| Financing activities | |||||||||
| Credit facility borrowings, net | 234 | (106 | ) | ||||||
| Employee taxes paid in exchange for stock awards forfeited | (232 | ) | - | ||||||
| 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 | - | |||||||
| Repurchase of common stock, net of issuance cost | - | (111 | ) | ||||||
| Net cash provided by (used in) financing activities | 6,046 | (217 | ) | ||||||
| Net decrease in cash and cash equivalents | (2,377 | ) | (6,071 | ) | |||||
| Cash and cash equivalents at beginning of the period | 12,098 | 15,877 | |||||||
| Cash and cash equivalents at end of the period | $ | 9,721 | $ | 9,806 | |||||
| SELECTICA, INC. | ||||||||||||||||
| Billings Reconciliation | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Total revenues | $ | 3,948 | $ | 4,496 | $ | 12,248 | $ | 13,327 | ||||||||
| Deferred revenue: | ||||||||||||||||
| End of period | 6,090 | 5,504 | 6,090 | 5,504 | ||||||||||||
| Beginning of period | 6,133 | 5,775 | 7,925 | 6,721 | ||||||||||||
| Change in deferred revenue | (43 | ) | (271 | ) | (1,835 | ) | (1,217 | ) | ||||||||
| Total billings (total revenues plus the change in deferred revenue) | $ | 3,905 | $ | 4,225 | $ | 10,413 | $ | 12,110 | ||||||||