Selectica Announces 4th Quarter and Fiscal-Year 2015 Financial Results
Execution of Strategic Plan on Track
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SAN MATEO, CA -- (Marketwired) -- 06/10/15 -- Selectica, Inc. (NASDAQ: SLTC), a leading provider of supply management and enterprise contract lifecycle management applications from source to pay, and configuration solutions today announced financial results for its fourth quarter and fiscal year ended March 31, 2015.
FY2015 Financial Highlights:
- GAAP revenue was $20.9 million in FY 2015, compared to $15.8MM in FY 2014, an increase of 32%. Non-GAAP revenue increased 41% from $15.8 million to $22.3 million. The difference between GAAP and Non-GAAP revenue is due to the Iasta purchase accounting deferred revenue adjustment.
- GAAP gross profit percentage decreased from 46% in FY2014 to 41% in FY2015. Non-GAAP gross profit percentage increased from 46% in FY2014 to 47% in FY2015. The difference between GAAP and Non-GAAP gross profit is due to the Iasta purchase accounting deferred revenue adjustment and the amortization of intangibles.
- Deferred revenues increased 47% from $5.7 million in FY2014 to $8.4 million in FY2015.
- Billings increased 73% from $13.6 million in FY2014 to $23.6 million in FY2015. Billings, a non-GAAP measure, are defined as revenues plus the change in deferred revenues.
Q4 and FY2015 Financial Measures:
----------------------------------------------------------------------------
Q4'15 GAAP Financial
Measures Q4 Q3 Q4 Change
(in thousands, except per
share amounts)
FY 2015 FY 2015 FY 2014 Q/Q
----------------------------------------------------------------------------
Revenue $ 5,929 $ 5,984 $ 3,541 (1%)
----------------------------------------------------------------------------
Gross profit $ 2,234 $ 3,082 $ 969 (28%)
----------------------------------------------------------------------------
Gross profit percentage 38% 52% 27% (14 pts)
----------------------------------------------------------------------------
Net Loss $ (4,253) $ (3,843) $ (3,168) 11%
----------------------------------------------------------------------------
EPS $ (0.53) $ (0.49) $ (1.89) $ (0.04)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Non-GAAP Financial Measures Q4 Q3 Q4 Change
(in thousands, except per
share amounts)
FY 2015 FY 2015 FY 2014 Q/Q
----------------------------------------------------------------------------
Revenue $ 6,085 $ 6,316 $ 3,541 (4%)
----------------------------------------------------------------------------
Gross profit $ 2,392 $ 3,573 $ (969) (33%)
----------------------------------------------------------------------------
Gross profit percentage 39% 57% (27%) (18 pts)
----------------------------------------------------------------------------
Net Loss $ (1,790) $ (2,482) $ (2,940) (28%)
----------------------------------------------------------------------------
EPS $ (0.22) $ (0.32) $ (0.64) $ 0.10
----------------------------------------------------------------------------
Billings $ 6,227 $ 7,209 $ 3,199 (14%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Q4'15 GAAP Financial
Measures Change Change
(in thousands, except per
share amounts)
Y/Y FY 2015 FY 2014 Y/Y
----------------------------------------------------------------------------
Revenue 67% $ 20,877 $ 15,789 32%
----------------------------------------------------------------------------
Gross profit 131% $ 8,574 $ 7,228 19%
----------------------------------------------------------------------------
Gross profit percentage 11 pts 41% 46% (5 pts)
----------------------------------------------------------------------------
Net Loss 34% $ (13,746) $ (8,179) 68%
----------------------------------------------------------------------------
EPS $ 1.36 $ (1.89) $ (2.13) $ 0.24
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Non-GAAP Financial Measures Change Change
(in thousands, except per
share amounts)
Y/Y FY 2015 FY 2014 Y/Y
----------------------------------------------------------------------------
Revenue 72% $ 22,328 $ 15,789 41%
----------------------------------------------------------------------------
Gross profit (347%) $ 10,025 $ 7,228 39%
----------------------------------------------------------------------------
Gross profit percentage 66 pts 45% 46% (1 pts)
----------------------------------------------------------------------------
Net Loss (39%) $ (9,605) $ (7,785) 23%
----------------------------------------------------------------------------
EPS $ 0.42 $ (1.32) $ (2.03) $ 0.71
----------------------------------------------------------------------------
Billings 95% $ 23,560 $ 13,613 73%
----------------------------------------------------------------------------
"Since joining Selectica eighteen months ago, the executive team architected a strategic plan to become a leader in Supply Management and Enterprise Contract Lifecycle Management. In fiscal year 2015, this strategy has come to fruition with the integration of Iasta into Selectica and the pending closure of the b-pack acquisition," said Patrick Stakenas, CEO and President of Selectica. "This is a tremendously exciting time for me to lead Selectica as delivery on our strategic roadmap is on track, the re-launch of our sales organization is complete, and the business is now positioned to deliver results. I'm very optimistic as I look ahead at our pipeline, full suite of products and high performing team."
FY 2015 Business Highlights:
- In Q2 FY 2015 Completed acquisition and Integration of Iasta, an industry leading SaaS-based sourcing and spend management solutions company focused on providing strategic sourcing, business intelligence, spend analysis, supplier management, and contract management technology.
- In Q2 FY 2015, Selectica hosted its first Contract Lifecycle Management and Supply Management Customer User Conference. The successful event spanned over three days and included 60+ attendees across more than 35 companies.
- In Q3 FY 2015, Selectica launched SmartSource Cloud, the Company's latest solution that intelligently blends eSourcing, Supplier Information Management and Spend Analytics. Its powerful analytic information is integrated directly into the sourcing application that ensures maximum user adoption driving better decision-making and impacts to an enterprise's bottom line. SmartSource Cloud was designed and architected from the ground up to be the best strategic sourcing product on the market.
- In Q4 of FY 2015, announced agreement to acquire b-pack, a global leader in purchase-to-pay software and services. The acquisition is expected to close in early Q2 FY 2016, and provides complementary solutions to Selectica's current offerings and go-to-market strategy to provide upstream and downstream supply management solutions.
- In Q4 FY 2015, Selectica was acknowledged as a Visionary in the Magic Quadrant for Strategic Sourcing Application, published by Gartner.
- During the fiscal year added 35+ new corporate brands to the customer portfolio, including major multinational corporate customers across numerous business verticals, including pharmaceuticals, retail, transportation (airlines), packaged foods, soft drinks, consulting, business analytics + consulting, medical devices, networking/telecommunications, regulated utilities and shipping.
June 10, 2015 Conference Call & Webcast: A conference call and webcast will be held today at 5:00 p.m. EDT to review these results. Interested parties may participate via conference call and webcast; more details:
Participant Conference Call Numbers:
- Toll-Free: 1-877-407-0789
- Toll/International: 1-201-689-8562
Participant Webcast Link: http://public.viavid.com/index.php?id=114749
Related: http://www.selectica.com/investors
Supporting Resources
Selectica "Social Contracting" blog Selectica on LinkedIn Selectica on Twitter Selectica on Facebook Selectica on YouTube Selectica guides & misc. resources
About Selectica, Inc.
Selectica, Inc. (NASDAQ: SLTC), is a leading provider of enterprise contract management, supply management, and configuration solutions. Since 1996, Selectica has helped global companies actively manage their contracts throughout the sales, procurement, and legal life cycle. Selectica's contract lifecycle management, strategic sourcing, and purchasing solutions drive business value by assisting organizations in managing contracts profitably, effectively accelerating revenue opportunities, and minimizing risk through compliance. Our patented technology assists customers across a myriad of industries including high-tech, telecommunications, manufacturing, healthcare, and financial services -- to accelerate and streamline contract management, sales processes, spend analysis, procurement intelligence, sourcing, and supplier lifecycle management. Selectica also provides a powerful configuration engine, which Fortune 500 companies use to accelerate revenue by facilitating the right combination of products, services, and price. More information, visit: www.selectica.com and www.iasta.com.
Non-GAAP Financial Measures
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 titled "GAAP to Non-GAAP Reconciliations" of the accompanying "Condensed Consolidated Statements of Operations" table, and, separately, in the accompanying table titled "Billings Reconciliation." 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.
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, 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.
SELECTICA, INC.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
Three Months Ended Twelve Months Ended
---------------------- ----------------------
March 31 March 31
---------------------- ----------------------
2015 2014 2015 2014
---------- ---------- ---------- ----------
Revenues:
Recurring revenues $ 4,812 $ 2,933 $ 16,207 $ 12,210
Non-recurring revenues 1,117 608 4,670 3,579
---------- ---------- ---------- ----------
Total revenues 5,929 3,541 20,877 15,789
---------- ---------- ---------- ----------
Cost of revenues:
Cost of recurring revenues 1,311 823 5,026 2,823
Cost of non-recurring
revenues 2,384 1,749 7,277 5,738
---------- ---------- ---------- ----------
Total cost of revenues 3,695 2,572 12,303 8,561
---------- ---------- ---------- ----------
Gross profit:
Recurring gross profit 3,501 2,110 11,181 9,387
Non-recurring gross profit (1,267) (1,141) (2,607) (2,159)
---------- ---------- ---------- ----------
Total gross profit 2,234 969 8,574 7,228
---------- ---------- ---------- ----------
Operating expenses:
Research and development 804 704 3,373 2,843
Sales and marketing 2,853 2,059 12,697 8,313
General and administrative 1,347 1,348 7,073 4,984
Acquisition related costs 1,033 - 1,715 -
Impairment of software
development costs 340 - 340 -
Restructuring costs - - - 227
---------- ---------- ---------- ----------
Total operating expenses 6,377 4,111 25,198 16,367
---------- ---------- ---------- ----------
Loss from operations (4,143) (3,142) (16,624) (9,139)
Decrease in fair value of
warrant liability - - - 982
Interest and other income
(expense), net (111) (26) (72) (22)
Net loss before Income Tax $ (4,253) $ (3,168) $ (16,696) $ (8,179)
========== ========== ========== ==========
Benefit (provision) for
income taxes $ - $ - $ 2,950 -
Consolidated Net Loss (4,253) (3,168) (13,746) (8,179)
Redeemable preferred stock
accretion 1,046 - 3,691 3,513
---------- ---------- ---------- ----------
Net loss applicable to common
stockholders $ (5,299) $ (3,168) $ (17,437) $ (11,692)
========== ========== ========== ==========
Basic and diluted net loss
per share $ (0.53) $ (0.69) $ (1.89) $ (2.13)
========== ========== ========== ==========
GAAP to Non-GAAP
Reconciliations:
Reconciliation of Total
revenue:
U.S. GAAP as reported $ 5,929 $ 3,541 $ 20,877 $ 15,789
Adjustments:
Deferred revenue adjustment 156 - 1,451 -
---------- ---------- ---------- ----------
As adjusted $ 6,085 $ 3,541 $ 22,328 $ 15,789
========== ========== ========== ==========
Reconciliation to non-GAAP
net loss:
Net loss $ (4,253) $ (3,168) $ (13,746) $ (8,179)
Stock-based compensation
expense 585 228 2,538 1,149
Decrease in fair value of
warrant liability - - - (982)
Preferred stock accretion - - -
Restructuring costs - - - 227
Deferred revenue adjustment 156 - 1,451 -
Acquisition related costs 1,033 - 1,715 -
Amortization on Intangibles 349 - 1,047 -
Impairment of software
development costs 340 - 340 -
Benefit for income taxes - - (2,950) -
---------- ---------- ---------- ----------
Non-GAAP net loss $ (1,790) $ (2,940) $ (9,605) $ (7,785)
========== ========== ========== ==========
---------- ---------- ---------- ----------
Non-GAAP basic and diluted
net loss per share $ (0.22) $ (0.64) $ (1.32) $ (2.03)
========== ========== ========== ==========
Weighted average shares
outstanding for basic and
diluted net loss per share 7,983 4,589 7,277 3,844
========== ========== ========== ==========
SELECTICA, INC.
Condensed Consolidated Balance Sheets
(In thousands)
(Audited)
March 31, March 31,
2015 2014
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 13,178 $ 16,907
Accounts receivable 5,203 3,006
Prepaid expenses and other current assets 1,681 689
----------- -----------
Total current assets 20,062 20,602
Property and equipment, net 290 312
Capitalized software 2,258 856
Goodwill 7,702 -
Intangibles, net 6,453 -
Other assets 521 30
----------- -----------
Total assets $ 37,286 $ 21,800
=========== ===========
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY
Current liabilities
Credit facility $ 7,447 $ 6,949
Accounts payable 1,535 1,371
Accrued payroll and related liabilities 910 648
Other accrued liabilities 1,877 345
Deferred revenue 8,410 5,131
----------- -----------
Total current liabilities 20,179 14,444
----------- -----------
Long-term deferred revenue 22 618
Convertible note, net of debt discount 2,900 -
Other long-term liabilities 167 -
----------- -----------
Total liabilities 23,268 15,062
----------- -----------
Redeemable convertible preferred stock 4,895 3,653
Stockholders' equity 9,123 3,085
----------- -----------
Total liabilities, redeemable convertible preferred
stock and stockholders' equity $ 37,286 $ 21,800
=========== ===========
SELECTICA, INC.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Audited)
Twelve Months Ended
------------------------
March 31, March 31,
2015 2014
----------- -----------
Operating activities
Net loss $ (13,746) $ (8,179)
Adjustments to reconcile net loss to net cash used
in operating activities:
Depreciation and Amortization 1,530 246
Loss on disposition of property and equipment - 23
Impairment of capitalized software 340 -
Stock-based compensation expense 2,538 1,149
Increase in fair value of warrant liability - (982)
Changes in assets and liabilities:
Accounts receivable (net) 421 449
Restricted cash (34) -
Prepaid expenses and other current assets (505) 164
Other assets (2) 9
Accounts payable (195) 359
Accrued restructuring costs - (232)
Accrued payroll and related liabilities (421) (334)
Other accrued liabilities and long term
liabilities 158 162
Deferred Tax Liability (2,989) -
Deferred revenue 1,270 (2,177)
----------- -----------
Net cash used in operating activities (11,635) (9,343)
Investing activities
Purchase of property and equipment (51) (121)
Capitalized Software (1,962) (910)
Purchase of business, net of cash (4,451) -
----------- -----------
Net cash used in investing activities (6,464) (1,031)
Financing activities
Proceeds from sale of common stock, preferred
stock and warrants, net of issuance costs 12,319 14,227
Employee taxes paid in exchange for restricted
stock awards forefeited (578) (232)
Issuance of common stock under employee stock
plan 213 239
Credit facility borrowing, net 498
Credit facility payment (655) 949
Repayment of note Payable (277) -
Issuance of Convertible Note, net 3,000 -
Issuance of cost associated with promissory note (150) -
----------- -----------
Net cash provided by financing activities 14,370 15,183
Net increase/(decrease) in cash and cash
equivalents (3,729) 4,809
Cash and cash equivalents at beginning of the
period 16,907 12,098
----------- -----------
Cash and cash equivalents at end of the period $ 13,178 $ 16,907
=========== ===========
SELECTICA, INC.
Billings Reconciliation
(In thousands)
(Unaudited)
Three Months Ended Twelve Months Ended
------------------------ ------------------------
March 31, March 31, March 31, March 31,
2015 2014 2015 2014
----------- ----------- ----------- -----------
Total revenues $ 5,929 $ 3,541 $ 20,877 $ 15,789
Deferred revenue:
End of period 8,432 5,749 8,432 5,749
Beginning of period 8,134 6,091 5,749 7,925
----------- ----------- ----------- -----------
Change in deferred
revenue 298 (342) 2,683 (2,176)
----------- ----------- ----------- -----------
Total billings (total
revenues plus the change
in deferred revenue) $ 6,227 $ 3,199 $ 23,560 $ 13,613
=========== =========== =========== ===========
Contacts Investor Relations: Budd Zuckerman +1.303.415.0200 [email protected] Media Relations: Rose Lee Selectica +1.650.532.1590 [email protected]
Source: Selectica
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