SAN MATEO, CA — (Marketwired) — 02/09/15 — (NASDAQ: SLTC), a leading provider of contract management, configuration, and strategic sourcing solutions, today announced financial results for its fiscal third quarter ended December 31, 2014.
GAAP revenue for Q3FY2015 was $6.0 million, compared to $5.2 million in Q2FY2015, representing a 15.0% increase.
GAAP gross profit as a percentage of revenue was 51.5% in Q3FY2015, compared to 33.7% in Q2FY2015, an increase of 17.8%.
Finally, GAAP net loss was ($3.8) million or ($0.49) per share in Q3FY2015, compared to ($5.4) million or ($0.71) per share in Q2FY2015, a decrease or improvement of $0.22 per share.
Non-GAAP revenue for Q3FY2015 was $6.3 million, compared to $6.2 million in Q2FY2015, representing a 2.5% increase.
Non-GAAP gross profit as a percentage of revenue was 56.6% in Q3FY2015, compared to 46.6% in Q2FY2015, an increase of 10.0%.
Non-GAAP net loss was ($2.5) million or ($0.32) per share in Q3FY2015, compared to ($3.2) million or ($0.41) per share in Q2FY2015, a decrease or improvement of $0.09 per share.
Finally, billings, a non-GAAP measure defined as revenues plus the change in deferred revenues for Q3FY2015 was $7.2 million, compared to $7.1 million in Q2FY2015, an increase of 1.2%.
“I am pleased with both the financial and business results from the past quarter,” said Blaine Mathieu, CEO and President of Selectica. “In Q3, we had significant improvement in both gross margins and reductions in non-GAAP losses per share as well as solid quarter over quarter recurring non-GAAP revenue growth of 5%. These results demonstrate that, after six quarters of hard work by a very committed team, Selectica is now in process of turning the corner. With momentum on our side, we anticipate these positive results to accelerate in the quarters ahead. These results are a function of significant work in three key business areas: 1) our revamped sales team has hit its stride; 2) our ability to effectively deliver customer value and revenue from the sourcing and contract management client base is increasing; and 3) we have been focused on rightsizing our services and support teams with an eye on efficiency. I believe we have now created a foundation for sustainable growth and are set on a path to profitability.”
In an effort to both support its growing sales channel infrastructure, core technology development and continue to leave open the potential for future strategic acquisitions, Selectica announced today that the company completed a private placement transaction to certain institutional funds and accredited investors for approximately $5.9 million in equity. In addition, the company entered into two separate term sheets with its largest stockholder by which it will be provided with an additional $3.0M in capital through the issuance of a convertible promissory note, as well as a limited guarantee to the company–s existing lender to enable it to access an additional $2.0M through its existing credit facility.
In Q3 FY15, the company closed a significant number of new customer accounts and expanded the value of current customers across a variety of business verticals. In the new account arena, accounts were closed in verticals including pharmaceuticals, retail, medical devices, networking/telecommunications, regulated utilities and shipping to name a few. From an existing customer growth perspective, the team deepened and grew the relationship with companies across the following verticals: food & beverage, business consulting, medical services, hospitality, financial services, energy services, business products, pharmaceuticals, manufacturing and entertainment.
A conference call and webcast will be held today at 5:00 p.m. EST to review these results. Interested parties may participate via conference call and webcast; more details:
Live Participant Conference Call Numbers:
Toll-Free: 1-877-407-0789
Toll/International 1-201-689-8562
Live Webcast Link
Toll-Free: 1-877-870-5176
Toll/International: 1-858-384-5517
From: 02/09/15 @ 8:00 pm Eastern Time
To 02/23/15 @ 11:59 pm Eastern Time
Replay Pin Number: 13600709
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Selectica, Inc. (NASDAQ: SLTC) provides a platform for enterprises worldwide to create, manage, and optimize business relationships with contracts at the core. Selectica helps global companies actively manage their contracts throughout the sales, procurement and legal life cycles. Selectica–s contract management solutions drive business value by assisting organizations in managing contracts profitably, effectively accelerating revenue opportunities, and minimizing risk through compliance. Through Iasta, a Selectica company, we provide leading strategic sourcing and spend management solutions, dedicated to empowering sourcing and purchasing professionals. Our blend of acclaimed software and services focus on improving spend analysis, procurement intelligence, sourcing, and supplier lifecycle management. Our solutions play a critical role in optimizing business relationships by enhancing supply base insights, improving supplier collaboration and reducing the supply chain risks vital to today–s globally-minded enterprise. Selectica also provides a powerful configuration engine, enabling Fortune 500 companies to accelerate revenue by facilitating the optimization of the right combination of products, services, and price. More information: and .
To supplement our financial results presented in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures, including non-GAAP revenue, non-GAAP gross profit, non-GAAP net income, and non-GAAP earnings per share, which we believe are helpful in understanding our past financial performance and future results. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “GAAP to Non-GAAP Reconciliations”. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP. Our management regularly uses our supplemental non-GAAP financial measures internally to understand and manage our business and forecast future periods; as such, we believe it is useful for investors to understand the effects of these items on our total operations. Our non-GAAP revenue is intended to reflect the full amount of revenues that would have been otherwise been recorded by the acquired entity, while our non-GAAP gross profit excludes the amortization of intangibles that occurred due to the acquisition of the entity.
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, product and channel development, 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 fluctuations in demand for Selectica–s products and services, risks of losing key personnel or customers, protection of the company–s intellectual property and government policies and regulations, including, but not limited to those affecting the company–s industry. 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 as filed by the company with the Securities and Exchange Commission.
Budd Zuckerman
+1.303.415.0200
Rose Lee
Selectica
+1.650.532.1590
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