Click here to close now.

Welcome!

GovIT Authors: Liz McMillan, Lori MacVittie, Kevin Jackson, Mark O'Neill, Bob Gourley

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 Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities. In his session at @ThingsExpo, Gary Hall, Chief Technology Officer, Federal Defense at Cisco Systems, will break down the core capabilities of IoT in multiple settings and expand upon IoE for bo...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes for use cases across the industrial, enterprise, and consumer segments.
The Internet of Things (IoT) is causing data centers to become radically decentralized and atomized within a new paradigm known as “fog computing.” To support IoT applications, such as connected cars and smart grids, data centers' core functions will be decentralized out to the network's edges and endpoints (aka “fogs”). As this trend takes hold, Big Data analytics platforms will focus on high-volume log analysis (aka “logs”) and rely heavily on cognitive-computing algorithms (aka “cogs”) to make sense of it all.
SYS-CON Events announced today that GENBAND, a leading developer of real time communications software solutions, has been named “Silver Sponsor” of SYS-CON's WebRTC Summit, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. The GENBAND team will be on hand to demonstrate their newest product, Kandy. Kandy is a communications Platform-as-a-Service (PaaS) that enables companies to seamlessly integrate more human communications into their Web and mobile applications - creating more engaging experiences for their customers and boosting collaboration and productiv...
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @ThingsExpo, Michael Sick, a Senior Manager and Big Data Architect within Ernst and Young's Financial Servi...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - is now accepting submissions to demo smart cars on the Expo Floor. Smart car sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem.
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing and analyzing streaming data is the Lambda Architecture, representing a model of how to analyze rea...
One of the biggest impacts of the Internet of Things is and will continue to be on data; specifically data volume, management and usage. Companies are scrambling to adapt to this new and unpredictable data reality with legacy infrastructure that cannot handle the speed and volume of data. In his session at @ThingsExpo, Don DeLoach, CEO and president of Infobright, will discuss how companies need to rethink their data infrastructure to participate in the IoT, including: Data storage: Understanding the kinds of data: structured, unstructured, big/small? Analytics: What kinds and how responsiv...
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
Sensor-enabled things are becoming more commonplace, precursors to a larger and more complex framework that most consider the ultimate promise of the IoT: things connecting, interacting, sharing, storing, and over time perhaps learning and predicting based on habits, behaviors, location, preferences, purchases and more. In his session at @ThingsExpo, Tom Wesselman, Director of Communications Ecosystem Architecture at Plantronics, will examine the still nascent IoT as it is coalescing, including what it is today, what it might ultimately be, the role of wearable tech, and technology gaps stil...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data they generate about customer usage and product performance to deliver extremely compelling and reliabl...
SYS-CON Events announced today that SoftLayer, an IBM company, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015 at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place November 3–5, 2015 at the Santa Clara Convention Center in Santa Clara, CA. 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 ...
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. Learn about IoT, Big Data and deployments processing massive data volumes from wearables, utilities and other machines.
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
The 16th International Cloud Expo has announced that its Call for Papers is open until February 28, 2015. 16th International Cloud Expo, to be held June 9-11, 2015, at the Javits Center in New York City brings together Cloud Computing, APM, APIs, Security, Big Data, Internet of Things, DevOps and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding business opportunity. Submit your speaking proposal today!