Welcome!

@CloudExpo Authors: Pat Romanski, Elizabeth White, Yeshim Deniz, Liz McMillan, Aruna Ravichandran

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.

@CloudExpo Stories
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
First generation hyperconverged solutions have taken the data center by storm, rapidly proliferating in pockets everywhere to provide further consolidation of floor space and workloads. These first generation solutions are not without challenges, however. In his session at 21st Cloud Expo, Wes Talbert, a Principal Architect and results-driven enterprise sales leader at NetApp, will discuss how the HCI solution of tomorrow will integrate with the public cloud to deliver a quality hybrid cloud e...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...
SYS-CON Events announced today that Taica will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Taica manufacturers Alpha-GEL brand silicone components and materials, which maintain outstanding performance over a wide temperature range -40C to +200C. For more information, visit http://www.taica.co.jp/english/.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
SYS-CON Events announced today that SourceForge has been named “Media Sponsor” of SYS-CON's 21st International Cloud Expo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. SourceForge is the largest, most trusted destination for Open Source Software development, collaboration, discovery and download on the web serving over 32 million viewers, 150 million downloads and over 460,000 active development projects each and every month.
SYS-CON Events announced today that Nihon Micron will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Nihon Micron Co., Ltd. strives for technological innovation to establish high-density, high-precision processing technology for providing printed circuit board and metal mount RFID tags used for communication devices. For more inf...
Enterprises have taken advantage of IoT to achieve important revenue and cost advantages. What is less apparent is how incumbent enterprises operating at scale have, following success with IoT, built analytic, operations management and software development capabilities – ranging from autonomous vehicles to manageable robotics installations. They have embraced these capabilities as if they were Silicon Valley startups. As a result, many firms employ new business models that place enormous impor...