Welcome!

Web 2.0 Authors: Carmen Gonzalez, Roger Strukhoff, Paul Speciale, Liz McMillan, Elizabeth White

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 3rd International Internet of @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 - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
Noted IoT expert and researcher Joseph di Paolantonio (pictured below) has joined the @ThingsExpo faculty. Joseph, who describes himself as an “Independent Thinker” from DataArchon, will speak on the topic of “Smart Grids & Managing Big Utilities.” Over his career, Joseph di Paolantonio has worked in the energy, renewables, aerospace, telecommunications, and information technology industries. His expertise is in data analysis, system engineering, Bayesian statistics, data warehouses, business intelligence, data mining, predictive methods, and very large databases (VLDB). Prior to DataArcho...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...
The Internet of Things (IoT) is going to require a new way of thinking and of developing software for speed, security and innovation. This requires IT leaders to balance business as usual while anticipating for the next market and technology trends. Cloud provides the right IT asset portfolio to help today’s IT leaders manage the old and prepare for the new. Today the cloud conversation is evolving from private and public to hybrid. This session will provide use cases and insights to reinforce the value of the network in helping organizations to maximize their company’s cloud experience.
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize supplier management. Learn about enterprise architecture strategies for designing connected systems tha...
IoT is still a vague buzzword for many people. In his session at Internet of @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, will discuss the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. The presentation will also discuss how IoT is perceived by investors and how venture capitalist access this space. Other topics to discuss are barriers to success, what is new, what is old, and what the future may hold.
Whether you're a startup or a 100 year old enterprise, the Internet of Things offers a variety of new capabilities for your business. IoT style solutions can help you get closer your customers, launch new product lines and take over an industry. Some companies are dipping their toes in, but many have already taken the plunge, all while dramatic new capabilities continue to emerge. In his session at Internet of @ThingsExpo, Reid Carlberg, Senior Director, Developer Evangelism at salesforce.com, to discuss real-world use cases, patterns and opportunities you can harness today.
All major researchers estimate there will be tens of billions devices – computers, smartphones, tablets, and sensors – connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be!
Software AG helps organizations transform into Digital Enterprises, so they can differentiate from competitors and better engage customers, partners and employees. Using the Software AG Suite, companies can close the gap between business and IT to create digital systems of differentiation that drive front-line agility. We offer four on-ramps to the Digital Enterprise: alignment through collaborative process analysis; transformation through portfolio management; agility through process automation and integration; and visibility through intelligent business operations and big data.
There will be 50 billion Internet connected devices by 2020. Today, every manufacturer has a propriety protocol and an app. How do we securely integrate these "things" into our lives and businesses in a way that we can easily control and manage? Even better, how do we integrate these "things" so that they control and manage each other so our lives become more convenient or our businesses become more profitable and/or safe? We have heard that the best interface is no interface. In his session at Internet of @ThingsExpo, Chris Matthieu, Co-Founder & CTO at Octoblu, Inc., will discuss how thes...
Last week, while in San Francisco, I used the Uber app and service four times. All four experiences were great, although one of the drivers stopped for 30 seconds and then left as I was walking up to the car. He must have realized I was a blogger. None the less, the next car was just a minute away and I suffered no pain. In this article, my colleague, Ved Sen, Global Head, Advisory Services Social, Mobile and Sensors at Cognizant shares his experiences and insights.
We are reaching the end of the beginning with WebRTC and real systems using this technology have begun to appear. One challenge that faces every WebRTC deployment (in some form or another) is identity management. For example, if you have an existing service – possibly built on a variety of different PaaS/SaaS offerings – and you want to add real-time communications you are faced with a challenge relating to user management, authentication, authorization, and validation. Service providers will want to use their existing identities, but these will have credentials already that are (hopefully) ir...
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of WebRTC adoption today, but the potential is limitless when powered by IoT. Attendees will learn rea...
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 Internet of @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, will share 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 ...
The Internet of Things (IoT) promises to create new business models as significant as those that were inspired by the Internet and the smartphone 20 and 10 years ago. What business, social and practical implications will this phenomenon bring? That's the subject of "Monetizing the Internet of Things: Perspectives from the Front Lines," an e-book released today and available free of charge from Aria Systems, the leading innovator in recurring revenue management.
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges.
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. In her session at 6th Big Data Expo®, Hannah Smalltree, Director at Treasure Data, to discuss how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other mach...
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at Internet of @ThingsExpo, Erik Lagerway, Co-founder of Hookflash, will walk through the shifting landscape of traditional telephone and voice s...
While great strides have been made relative to the video aspects of remote collaboration, audio technology has basically stagnated. Typically all audio is mixed to a single monaural stream and emanates from a single point, such as a speakerphone or a speaker associated with a video monitor. This leads to confusion and lack of understanding among participants especially regarding who is actually speaking. Spatial teleconferencing introduces the concept of acoustic spatial separation between conference participants in three dimensional space. This has been shown to significantly improve comprehe...
The Internet of Things is tied together with a thin strand that is known as time. Coincidentally, at the core of nearly all data analytics is a timestamp. When working with time series data there are a few core principles that everyone should consider, especially across datasets where time is the common boundary. In his session at Internet of @ThingsExpo, Jim Scott, Director of Enterprise Strategy & Architecture at MapR Technologies, will discuss single-value, geo-spatial, and log time series data. By focusing on enterprise applications and the data center, he will use OpenTSDB as an example...