Welcome!

Government Cloud Authors: Stefan Dietrich, Kevin Jackson, Elizabeth White, Liz McMillan, Pat Romanski

News Feed Item

Selectica Announces Earnings for Third Quarter Fiscal 2013

Achieves 36% Total, 35% Recurring Revenue Growth Year-Over-Year

SAN MATEO, CA -- (Marketwire) -- 01/31/13 -- Selectica, Inc. (NASDAQ: SLTC), provider of software that accelerates sales cycles and streamlines contract processes, today announced financial results for its third quarter of fiscal 2013, ended December 31, 2012.

"We are very pleased with our top line results for the third quarter of fiscal 2013," said Jason Stern, President and CEO of Selectica. "Both total and recurring revenue continued to climb, up 36% and 35% respectively over the third quarter of fiscal 2012. We've also completed more transactions -- and generated nearly as much revenue -- in the first three quarters of this year than we did in all four quarters of last year."

Financial highlights

Selectica delivered the following financial results for the third quarter of fiscal 2013:

  • Recurring revenue: Selectica grew recurring revenue from $2.3 million in Q3 FY 2012 to $3.1 million in Q3 FY2013, a year-over-year increase of 35%. Recurring revenue in Q2 FY2013 was $3.0 million.

  • Billings: Billings for Q3 FY2013 were $4.2 million, compared to $4.5 million in Q3 FY2012, a 7% decrease year-over-year. Billings were $3.8 million in Q2 FY2013. 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 Q3 FY2013, the company had deferred revenue of $5.5 million, a 22% year-over-year increase from Q3 FY2012, when deferred revenue was $4.5 million. In Q2 FY2013, deferred revenue was $5.8 million.

Business highlights

Business highlights from Q3 FY2013 include:

  • New investment in headcount and partnerships: To meet the continued growth in demand for its contract management and guided selling solutions, Selectica further expanded its team in Q3 FY2013. By the end of the quarter, its U.S. workforce had increased by over 20% compared to the previous year, and its overseas team had doubled. In Q3 FY2013, the company also cemented new partnerships with several systems integrators and other solutions providers that further increase its capacity to get customers up and running on Selectica solutions quickly and successfully.
  • Key new executive team hires: In the third quarter of fiscal 2013, Selectica announced the addition of Mike Mothersbaugh as its Executive Vice President of Worldwide Sales and David Humphrey as its Vice President of Professional Services. With their previous experience, Mothersbaugh most recently at salesforce.com and Humphrey at Accruent, these new members of the executive team bring additional expertise in sales, delivery, and customer adoption, which are critical to the company's ongoing success as a software-as-a-service (SaaS) solution provider.
  • Golden Bridge Award honor: Selectica Guided Selling won Silver in the "Best New Product Or Service -- SaaS or Cloud Computing" category at the 4th annual Golden Bridge Awards held in October, reflecting a continuing trend of interest in configure-price-quote (CPQ) solutions in the market. The Golden Bridge Awards are an industry and peer recognition program honoring the best companies worldwide.

Additional results

Total revenues for Q3 FY2013 were $4.5 million, compared to $3.3 million for Q3 FY2012, a year-over-year increase of 36%. Total revenues were $4.7 million in Q2 FY2013.

Net loss for Q3 FY2013 was $1.1 million, or $(0.37) per share, compared to a net loss of $1.4 million, or $(0.52) per share in Q3 FY2012, and a net loss of $0.9 million, or $(0.32) per share, in Q2 FY2013.

The company's cash balance at the end of Q3 FY2013 was $9.8 million, while its accounts receivable balance was $4.6 million. Since the close of the quarter, several large payments totaling approximately $2.3 million have been collected.

Complete financial results for Q3 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:

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.



                              SELECTICA, INC.
              Condensed Consolidated Statements of Operations
                  (In thousands, except per share amounts)
                                (Unaudited)

                               Three Months Ended       Nine Months Ended
                             ----------------------  ----------------------
                              December    December    December    December
                              31, 2012    31, 2011    31, 2012    31, 2011
                             ----------  ----------  ----------  ----------

Revenues:
  Recurring revenues         $    3,054  $    2,258  $    8,650  $    6,593
  Non-recurring revenues          1,442       1,001       4,677       3,952
                             ----------  ----------  ----------  ----------
    Total revenues                4,496       3,259      13,327      10,545
                             ----------  ----------  ----------  ----------

Cost of revenues:
  Cost of recurring revenues        489         248       1,227         760
  Cost of non-recurring
   revenues                       1,485       1,042       4,059       3,358
                             ----------  ----------  ----------  ----------
    Total cost of revenues        1,974       1,290       5,286       4,118
                             ----------  ----------  ----------  ----------

Gross profit:
  Recurring gross profit          2,565       2,010       7,423       5,833
  Non-recurring gross profit        (43)        (41)        618         594
                             ----------  ----------  ----------  ----------
    Total gross profit            2,522       1,969       8,041       6,427
                             ----------  ----------  ----------  ----------

Operating expenses:
  Research and development          950         801       2,742       2,507
  Sales and marketing             1,642       1,518       4,887       4,112
  General and administrative        985       1,065       2,554       2,840
  Fees related to
   comprehensive settlement
   agreement                          -           -         500         500
                             ----------  ----------  ----------  ----------
    Total operating expenses      3,577       3,384      10,683       9,959
                             ----------  ----------  ----------  ----------

Loss from operations             (1,055)     (1,415)     (2,642)     (3,532)

Loss on early extinguishment
 of note payable                      -           -           -         470
Interest and other income
 (expense), net                      (3)        (18)        (14)       (106)
                             ----------  ----------  ----------  ----------

Net loss                     $   (1,058) $   (1,433) $   (2,656) $   (4,108)
                             ==========  ==========  ==========  ==========

Basic and diluted net loss
 per share                   $    (0.37) $    (0.52) $    (0.94) $    (1.47)
                             ==========  ==========  ==========  ==========

Reconciliation to non-GAAP
 net loss:
Net loss                     $   (1,058) $   (1,433) $   (2,656) $   (4,108)
Stock-based compensation
 expense                     $      338  $      144  $      699  $      432
Loss on early extinguishment
 of note payable                      -           -           -         470
Fees related to
 comprehensive settlement
 agreement                            -           -         500         500
                             ----------  ----------  ----------  ----------
Non-GAAP net loss            $     (720) $   (1,289) $   (1,457) $   (2,706)
                             ==========  ==========  ==========  ==========

                             ----------  ----------  ----------  ----------
Non-GAAP basic and diluted
 net loss per share          $    (0.25) $    (0.47) $    (0.52) $    (0.97)
                             ==========  ==========  ==========  ==========


Weighted average shares
 outstanding for basic and
 diluted net loss per share       2,830       2,737       2,818       2,796
                             ==========  ==========  ==========  ==========



                               SELECTICA, INC.
                    Condensed Consolidated Balance Sheets
                               (In thousands)
                                 (Unaudited)

                                                  December 31,   March 31,
                                                      2012          2012
                                                 ------------- -------------

ASSETS
Current assets
  Cash and cash equivalents                      $       9,806 $      15,877
  Short-term investments                                     -           199
  Accounts receivable                                    4,591         2,446
  Prepaid expenses and other current assets                622           531
                                                 ------------- -------------
    Total current assets                                15,019        19,053

Property and equipment, net                                399           362
Other assets                                                39            39
                                                 ------------- -------------
    Total assets                                 $      15,457 $      19,454
                                                 ============= =============


LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
  Credit facility                                $       5,894 $       6,000
  Accounts payable                                         751           395
  Accrued payroll and related liabilities                  819         1,771
  Other accrued liabilities                                 90            88
  Deferred revenue                                       4,636         5,394
                                                 ------------- -------------
    Total current liabilities                           12,190        13,648
                                                 ------------- -------------
  Long-term deferred revenue                               868         1,327
  Other long-term liabilities                               27            41
                                                 ------------- -------------
    Total liabilities                                   13,085        15,016
                                                 ------------- -------------

Stockholders' equity                                     2,372         4,438
                                                 ------------- -------------
    Total liabilities and stockholders' equity   $      15,457 $      19,454
                                                 ============= =============



                              SELECTICA, INC.
              Condensed Consolidated Statements of Cash Flows
                               (In thousands)
                                (Unaudited)

                                                      Nine Months Ended
                                                 --------------------------
                                                 December 31,  December 31,
                                                     2012          2011
                                                 ------------  ------------

Operating activities
Net loss                                         $     (2,656) $     (4,108)
Adjustments to reconcile net loss to net cash
 used in operating activities:
Depreciation                                              156           201
Loss on disposition of property and equipment               -            13
Stock-based compensation expense                          699           432
Changes in assets and liabilities:
  Accounts receivable (net)                            (2,145)           51
  Prepaid expenses and other current assets               (91)           79
  Other assets                                              -           (39)
  Accounts payable                                        356          (262)
  Accrued payroll and related liabilities                (951)          528
  Other accrued liabilities and long term
   liabilities                                            (12)          337
  Deferred revenue                                     (1,216)         (122)
                                                 ------------  ------------
Net cash used in operating activities            $     (5,860) $     (2,890)

Investing activities
  Purchase of capital assets                             (193)         (172)
  Purchase of short-term investments                        -        (1,398)
  Proceeds from maturities of short-term
   investments                                            199         1,398
                                                 ------------  ------------
Net cash provided by (used in) investing
 activities                                      $          6  $       (172)

Financing activities
  Payments on note payable to Versata                       -        (4,268)
  Purchase of treasury shares                               -          (472)
  Borrowings under credit facility                       (106)        6,000
  Repurchases of common stock, net of issuance           (111)           (7)
                                                 ------------  ------------
Net cash (used in) provided by financing
 activities                                      $       (217) $      1,253

Net decrease in cash and cash equivalents              (6,071)       (1,809)
Cash and cash equivalents at beginning of the
 period                                                15,877        16,822
                                                 ------------  ------------
Cash and cash equivalents at end of the period   $      9,806  $     15,013
                                                 ============  ============



                               SELECTICA, INC.
                           Billings Reconciliation
                               (In thousands)
                                 (Unaudited)

                                   Three Months Ended    Nine Months Ended
                                 --------------------- ---------------------
                                  December   December   December   December
                                  31, 2012   31, 2011   31, 2012   31, 2011
                                 ---------  ---------- ---------  ----------

Total revenues                   $   4,496  $    3,259 $  13,327  $   10,545
Deferred revenue:
End of period                        5,504       4,544     5,504       4,544
Beginning of period                  5,775       3,337     6,721       4,320
                                 ---------  ---------- ---------  ----------
Change in deferred revenue            (271)      1,207    (1,217)        224
                                 ---------  ---------- ---------  ----------
Total billings (total revenues
 plus the change in deferred
 revenue)                        $   4,225  $    4,466 $  12,110  $   10,769
                                 =========  ========== =========  ==========

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@ThingsExpo Stories
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
SYS-CON Events announced today that BMC Software has been named "Siver Sponsor" of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. BMC is a global leader in innovative software solutions that help businesses transform into digital enterprises for the ultimate competitive advantage. BMC Digital Enterprise Management is a set of innovative IT solutions designed to make digital business fast, seamless, and optimized from mainframe to mo...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
SYS-CON Events announced today that ContentMX, the marketing technology and services company with a singular mission to increase engagement and drive more conversations for enterprise, channel and SMB technology marketers, has been named “Sponsor & Exhibitor Lounge Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York. “CloudExpo is a great opportunity to start a conversation with new prospects, but what happens after the...
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...