-- Selectica entered into a global alliance agreement with a leading
global management consulting, technology services and outsourcing company
to offer a joint, comprehensive contract lifecycle management (CLM)
solution targeted for life science companies wanting to streamline the
management of revenue cycle contracts.
-- In the fourth quarter, Selectica signed a contract with one of the
world's largest pharmaceutical companies to provide its Contract
Performance Management solution to address the company's needs related to
its Managed Market Offers and Contract agreements. Selectica also signed
its first contract with a retail banking institution.
-- Sales configuration license and services revenues represented 62% and
contract management solutions represented 38% of total revenues in the
fourth quarter of fiscal 2008.
-- Consolidated gross margins were 62% in the quarter compared with 44%
in the fourth quarter of fiscal 2007.
-- Operating expenses declined 6% for the fourth quarter of fiscal 2008
compared with the same period in the previous year. For the fiscal year
2008, operating expenses were 22% lower compared with the fiscal year 2007.
-- At March 31, 2008, Selectica had $35.2 million in cash, cash
equivalents and investments.
Business Outlook
Selectica's fiscal 2009 guidance for the 12 month period ending March 31,
2009 is for revenue of approximately $25 million and net income of 8% to
10% of revenue. The company expects to become profitable on a quarterly
basis during the second half of fiscal 2009.
Selectica will host a conference call to discuss its financial results and
operational highlights today at 5:00 p.m. EDT (2:00 p.m. PDT). To access
the conference call by phone, dial (800) 218-0204. The conference call will
also be webcast live via the Internet, and can be accessed on the investor
relations section of the Company's website (http://www.selectica.com). An
archive of the webcast will be available in the same location shortly after
the completion of the call.
About Selectica, Inc.
Selectica, Inc. (
SELECTICA, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
-------------------- --------------------
March 31, March 31, March 31, March 31,
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues:
License $ 106 $ 169 $ 4,588 $ 1,369
Services 2,880 2,680 11,415 13,352
--------- --------- --------- ---------
Total revenues 2,986 2,849 16,003 14,721
--------- --------- --------- ---------
Cost of revenues:
License 73 50 255 1,112
Services 1,076 1,544 3,946 7,558
--------- --------- --------- ---------
Total cost of revenues 1,149 1,594 4,201 8,670
--------- --------- --------- ---------
Gross profit 1,837 1,255 11,802 6,051
--------- --------- --------- ---------
Operating expenses:
Research and development 1,303 1,426 5,041 7,358
Sales and marketing 1,797 1,811 6,655 6,868
General and administrative 1,440 1,590 5,426 7,761
Litigation settlement 72 - 16,274 -
Restructuring 28 221 1,193 6,005
Professional fees related
to stock option
investigation 68 2,157 3,613 2,639
--------- --------- --------- ---------
Total operating
expenses 4,708 7,205 38,201 30,631
--------- --------- --------- ---------
Operating loss (2,871) (5,950) (26,399) (24,580)
Interest and other income, net 372 1,109 2,859 3,742
--------- --------- --------- ---------
Loss before provision for
income taxes (2,499) (4,841) (23,540) (20,838)
Provision for income taxes 49 20 361 106
--------- --------- --------- ---------
Net loss $ (2,548) $ (4,861) $ (23,901) $ (20,944)
========= ========= ========= =========
Basic and diluted net loss per
share $ (0.09) $ (0.16) $ (0.84) $ (0.70)
========= ========= ========= =========
Weighted average shares
outstanding for basic
and diluted net loss per
share 28,585 29,995 28,457 29,995
========= ========= ========= =========
SELECTICA, INC.
Non-GAAP Condensed Consolidated Statements of Operations
Excluding restructuring costs, option investigation fees and litigation
reserves and payments
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
-------------------- --------------------
March 31, March 31, March 31, March 31,
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues:
License $ 106 $ 169 $ 4,588 $ 1,369
Services 2,880 2,680 11,415 13,352
--------- --------- --------- ---------
Total revenues 2,986 2,849 16,003 14,721
--------- --------- --------- ---------
Cost of revenues:
License 73 50 255 1,112
Services 1,076 1,544 3,946 7,558
--------- --------- --------- ---------
Total cost of revenues 1,149 1,594 4,201 8,670
--------- --------- --------- ---------
Gross profit 1,837 1,255 11,802 6,051
--------- --------- --------- ---------
Operating expenses:
Research and development 1,303 1,426 5,041 7,358
Sales and marketing 1,797 1,811 6,655 6,868
General and administrative 1,440 1,590 5,426 7,761
--------- --------- --------- ---------
Total operating
expenses 4,540 4,827 17,122 21,987
--------- --------- --------- ---------
Operating loss (2,703) (3,572) (5,320) (15,936)
Interest and other income, net 372 1,109 2,859 3,742
--------- --------- --------- ---------
Loss before provision for
income taxes (2,330) (2,463) (2,461) (12,194)
Provision for income taxes 49 20 361 106
--------- --------- --------- ---------
Non-GAAP net loss $ (2,380) $ (2,483) $ (2,821) $ (12,300)
========= ========= ========= =========
Basic and diluted non-GAAP net
loss per share $ (0.08) $ (0.08) $ (0.10) $ (0.41)
========= ========= ========= =========
Weighted average shares
outstanding for basic
and diluted non-GAAP net
loss per share 28,585 29,995 28,457 29,995
========= ========= ========= =========
Use of Non-GAAP Financial Information
To supplement our consolidated financial statements presented on a GAAP
basis, Selectica uses non-GAAP measures of operating results, net loss and
loss per share, which are adjusted to exclude certain costs, expenses, and
losses we believe appropriate to enhance an overall understanding of our
past financial performance and also our prospects for the future. The
presentation of this additional information is not meant to be considered
in isolation or as a substitute for net loss or net loss per share prepared
in accordance with generally accepted accounting principles in the United
States.
SELECTICA, INC.
Reconciliation of GAAP to Non-GAAP Net Loss
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
-------------------- --------------------
March 31, March 31, March 31, March 31,
2008 2007 2008 2007
--------- --------- --------- ---------
GAAP net loss $ (2,548) $ (4,861) $ (23,901) $ (20,944)
Non-GAAP adjustments:
Litigation settlement 72 - 16,274 -
Restructuring 28 221 1,193 6,005
Professional fees related
to stock option
investigation 68 2,157 3,613 2,639
--------- --------- --------- ---------
Non-GAAP net loss $ (2,380) $ (2,483) $ (2,821) $ (12,300)
========= ========= ========= =========
Basic and diluted non-GAAP net
loss per share $ (0.08) $ (0.08) $ (0.10) $ (0.41)
========= ========= ========= =========
Weighted average shares
outstanding for basic
and diluted non-GAAP net
loss per share 28,585 29,995 28,457 29,995
========= ========= ========= =========
SELECTICA, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Unaudited)
March 31, March 31,
2008 2007
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 22,137 $ 30,165
Short-term investments 13,076 27,285
Accounts receivable 1,330 1,778
Prepaid expenses and other current assets 919 567
----------- -----------
Total current assets 37,462 59,795
Property and equipment, net 2,185 1,992
Intangible assets 102 309
Other assets 491 531
Long-term investments - 1,009
----------- -----------
Total assets $ 40,240 $ 63,636
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Current portion of note payable to Versata $ 786 $ -
Accounts payable 518 3,014
Current portion of accrual for restructuring
liability 1,937 3,043
Accrued payroll and related liabilities 740 920
Other accrued liabilities 735 1,324
Deferred revenue 1,984 2,251
----------- -----------
Total current liabilities 6,700 10,552
----------- -----------
Accrual for restructuring liability, net of
current portion 924 2,653
Note payable to Versata 5,113 -
Other long-term liabilities 245 518
----------- -----------
Total liabilities 12,982 13,723
----------- -----------
Stockholders' equity 27,258 49,913
----------- -----------
Total liabilities and stockholders' equity $ 40,240 $ 63,636
=========== ===========
SELECTICA, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unaudited)
Twelve Months Ended
----------------------
March 31, March 31,
2008 2007
---------- ----------
Cash flows from operating activities:
Net loss $ (23,901) $ (20,944)
Adjustments:
Depreciation 449 654
Amortization 207 207
Noncash charge for litigation settlement 6,118 -
Loss on disposal of property and equipment (20) 1,091
Stock based compensation 1,470 1,265
Changes in assets and liabilities:
Accounts receivables 448 1,465
Prepaid expenses and other current assets (352) 1,692
Other assets 40 (20)
Accounts payable (2,496) 1,363
Accrual for restructuring liability (2,835) 5,843
Accrued payroll and related liabilities (180) (511)
Other accrued liabilities and long-term
liabilities (842) (1,862)
Deferred revenue (267) 199
---------- ----------
Net cash used in operating activities (22,161) (9,558)
---------- ----------
Cash flows from investing activities:
Purchase of capital assets (558) (1,371)
Proceeds from sale of fixed assets 22 40
Proceeds and investment in restricted
investments 150 -
Purchase of short-term investments (55,272) (42,674)
Proceeds from maturities of short-term
investments 69,663 76,854
Proceeds from maturities of long-term
investments 1,009 1,921
---------- ----------
Net cash provided by investing activities 15,014 34,770
---------- ----------
Cash flows from financing activities:
Principal payments on note payable to Versata (239) -
Purchase of treasury stock (246) (7,851)
Proceeds from issuance of common stock - 176
---------- ----------
Net cash used in financing activities (485) (7,675)
---------- ----------
Effect of exchange rate changes on cash (396) -
Net increase (decrease) in cash and cash
equivalents (8,028) 17,537
Cash and cash equivalents, beginning of period 30,165 12,628
---------- ----------
Cash and cash equivalents, end of period $ 22,137 $ 30,165
========== ==========
Contact Information: Contact: Investor Contact: Scott Wilson 415-785-7945 IR@selectica.com Media Contact: Tom Woolf 415-259-5638 PR@selectica.com