|By Marketwired .||
|November 16, 2012 08:00 AM EST||
CHELMSFORD, MA -- (Marketwire) -- 11/16/12 --
- Revenue Increased 4% Sequentially
- Net Income Improved $18.3 Million Sequentially
- Pro Forma EBITDA Increased 35% Sequentially
- Covenant Amendment Provides Greater Flexibility to Execute Strategy
Aspect Software - Aspect Software today announced final results for the third quarter ended September 30, 2012, the closing of its credit facility amendment and the timing of its third quarter earnings call. Aspect's final results for the third quarter of 2012 were consistent with the preliminary results released on October 22, 2012.
Stewart Bloom, CEO of Aspect Software, commented, "Closing our credit facility amendment this week was an enormous step for Aspect as the amended covenants provide the appropriate level of flexibility needed to execute our transformational strategy and absorb the current volatility inherent in our business. Looking at the third quarter key performance measures, we remain encouraged about improvements attained during the quarter. We returned to revenue growth and improved our margins and pro forma EBITDA for the third quarter of 2012 when compared to the prior quarter."
Revenue for the three months ended September 30, 2012 was approximately $111.5 million, compared to $133.2 million in the third quarter of 2011. This is an increase of approximately 4% sequentially from $106.9 million for the three months ended June 30, 2012.
As expected, year over year, Q3 total revenue was down, driven heavily by unfavorable license revenue which was down 42% year over year, substantially due to extraordinarily large one time dialer migration deals in the prior year. Subscription maintenance revenues were down 8% for the third quarter over the prior year.
Net income for the three months ended September 30, 2012 was $7.8 million, compared to net income of $10.3 million in the prior year's third quarter and a net loss of $10.5 million for the three months ended June 30, 2012.
Pro forma EBITDA for the three months ended September 30, 2012 was $33.6 million, compared to $48.3 million in the prior year's third quarter and $24.8 million for the three months ended June 30, 2012.
Robert Krakauer, Executive Vice President and CFO of Aspect Software, said, "We are pleased with how the third quarter developed. We achieved sequential improvements in revenue, gross margin, operating margin and net income. We generated positive cash flow during the quarter, ending with cash of $146.2 million on good progress in working capital management. In addition, we amended our credit facility on Tuesday to provide us the flexibility to expand our investments in new product offerings that meet the evolving needs of our customers."
In exchange for the covenant amendments, Aspect paid consent fees that totaled approximately $2.3 million with an increase in the credit facility interest rate of 75 basis points on a prospective basis. In addition, the Company paid down $50 million of principal as part of this amendment.
Investor Conference Call / Webcast Details
Aspect will host a conference call with lenders and analysts to discuss its third quarter 2012 results and the credit facility amendment today at 11:00 a.m. Eastern standard time. To listen to the conference call via telephone, please call 866-940-5308 (domestic) or 630-343-1248 (international), confirmation code: 5998.
Safe Harbor for Forward-Looking Statements:
This press release includes forward-looking statements within the meaning of U.S. federal securities laws. These forward-looking statements are based on management's current expectations, estimates, forecasts and projections and are subject to risks and uncertainties that could cause actual results and events to differ materially from those stated in the forward-looking statements. Forward-looking statements made in this press release are made only as of the date hereof and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. Risks and uncertainties that could cause actual results to differ from those set forth in any forward-looking statements are discussed in more detail under the caption Risk Factors in Aspect's quarterly report on Form 10-Q for the quarter ended September 30, 2012.
This press release contains references to non-GAAP financial measures, which exclude stock-based compensation expense, acquisition-related costs, depreciation, amortization, restructuring charges, employee separation costs, and certain other items that are allowed under the terms of Aspect's credit agreement. For a reconciliation of non-GAAP to GAAP financial measures, please refer to the supplemental schedules below.
Aspect builds customer-company relationships through a combination of customer contact software and workforce optimization for the enterprise. For more information, visit www.aspect.com.
Aspect Software Group Holdings, Ltd. Condensed Consolidated Statements of Operations (Unaudited) Three Months Ended September 30, (in thousands) 2012 --------------------- Net revenues: Product revenue $ 19,466 Maintenance revenue 69,819 Services revenue 22,197 --------------------- Total net revenues 111,482 Cost of revenues: Cost of product revenue 5,032 Cost of maintenance revenue 18,486 Cost of services revenue 17,529 Amortization expense for acquired intangible assets 1,301 --------------------- Total cost of revenues 42,348 --------------------- Gross profit 69,134 Operating expenses: Research and development 10,416 Selling, general and administrative 32,281 Amortization expense for acquired intangible assets 7,645 Restructuring (credits) (15) --------------------- Total operating expenses 50,327 --------------------- Income from operations 18,807 Interest and other expense, net (16,661) --------------------- Income before income taxes 2,146 (Benefit from) income taxes (5,701) --------------------- Net income $ 7,847 ===================== Reconciliation of Income from Operations to Pro Forma EBITDA (Unaudited) Three Months Ended September 30, 2012 --------------------- Income from operations $ 18.8 Depreciation and amortization 10.4 Stock based compensation (0.2) Sponsor management fees 0.5 Other (1) 4.1 --------------------- Pro Forma EBITDA $ 33.6 ===================== (1) These costs represent amounts that are allowed to be added back for calculation of compliance with our debt agreement covenants including acquisition related adjustments to revenue, strategic investment costs, legal entity rationalization, IRS audit, debt issuance, Sarbanes-Oxley compliance, foreign withholding taxes, and non-recurring charges.
Earnings before interest, depreciation and amortization, as adjusted ("Pro Forma EBITDA") is used in our debt agreements to determine compliance with financial covenants and our ability to engage in certain activities, such as making certain payments. In addition to covenant compliance, our management also uses Pro Forma EBITDA along with certain other pro forma adjustments to assess our operating performance and to calculate performance-based cash bonuses which are tied to Pro Forma EBITDA targets. Pro Forma EBITDA contains other charges and gains, for which we believe adjustment is permitted under our senior secured credit agreement. Pro Forma EBITDA is not a measure of our liquidity or financial performance under GAAP and should not be considered as an alternative to net income, income from operations or any other performance measures derived in accordance with GAAP, or as an alternative to cash flow from operating activities as a measure of our liquidity. The use of Pro Forma EBITDA instead of income from operations has limitations as an analytical tool, including the failure to reflect changes in cash requirements, including cash requirements necessary to service principal or interest payments on our debt, or changes in our working capital needs. Management compensates for these limitations by relying primarily on our GAAP results and by using Pro Forma EBITDA on a supplemental basis. Other companies in our industry may calculate this measure differently than we do, limiting its usefulness as a comparative measure.
The 20th International Cloud Expo has announced that its Call for Papers is open. Cloud Expo, to be held June 6-8, 2017, at the Javits Center in New York City, brings together Cloud Computing, Big Data, Internet of Things, DevOps, Containers, Microservices 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 ...
Dec. 5, 2016 01:15 PM EST Reads: 2,150
DevOps is being widely accepted (if not fully adopted) as essential in enterprise IT. But as Enterprise DevOps gains maturity, expands scope, and increases velocity, the need for data-driven decisions across teams becomes more acute. DevOps teams in any modern business must wrangle the ‘digital exhaust’ from the delivery toolchain, "pervasive" and "cognitive" computing, APIs and services, mobile devices and applications, the Internet of Things, and now even blockchain. In this power panel at @...
Dec. 5, 2016 12:34 PM EST Reads: 124
Major trends and emerging technologies – from virtual reality and IoT, to Big Data and algorithms – are helping organizations innovate in the digital era. However, to create real business value, IT must think beyond the ‘what’ of digital transformation to the ‘how’ to harness emerging trends, innovation and disruption. Architecture is the key that underpins and ties all these efforts together. In the digital age, it’s important to invest in architecture, extend the enterprise footprint to the cl...
Dec. 5, 2016 12:30 PM EST Reads: 2,281
Bert Loomis was a visionary. This general session will highlight how Bert Loomis and people like him inspire us to build great things with small inventions. In their general session at 19th Cloud Expo, Harold Hannon, Architect at IBM Bluemix, and Michael O'Neill, Strategic Business Development at Nvidia, discussed the accelerating pace of AI development and how IBM Cloud and NVIDIA are partnering to bring AI capabilities to "every day," on-demand. They also reviewed two "free infrastructure" pr...
Dec. 5, 2016 12:30 PM EST Reads: 935
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Dec. 5, 2016 11:38 AM EST Reads: 174
Businesses and business units of all sizes can benefit from cloud computing, but many don't want the cost, performance and security concerns of public cloud nor the complexity of building their own private clouds. Today, some cloud vendors are using artificial intelligence (AI) to simplify cloud deployment and management. In his session at 20th Cloud Expo, Ajay Gulati, Co-founder and CEO of ZeroStack, will discuss how AI can simplify cloud operations. He will cover the following topics: why clou...
Dec. 5, 2016 11:30 AM EST Reads: 760
"Dice has been around for the last 20 years. We have been helping tech professionals find new jobs and career opportunities," explained Manish Dixit, VP of Product and Engineering at Dice, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 5, 2016 11:15 AM EST Reads: 936
The Internet of Things will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform and how we integrate our thinking to solve complicated problems. In his session at 19th Cloud Expo, Craig Sproule, CEO of Metavine, demonstrated how to move beyond today's coding paradigm and sh...
Dec. 5, 2016 10:30 AM EST Reads: 278
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Dec. 5, 2016 10:30 AM EST Reads: 642
We are always online. We access our data, our finances, work, and various services on the Internet. But we live in a congested world of information in which the roads were built two decades ago. The quest for better, faster Internet routing has been around for a decade, but nobody solved this problem. We’ve seen band-aid approaches like CDNs that attack a niche's slice of static content part of the Internet, but that’s it. It does not address the dynamic services-based Internet of today. It does...
Dec. 5, 2016 07:30 AM EST Reads: 1,001
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Dec. 5, 2016 07:30 AM EST Reads: 7,059
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web ...
Dec. 5, 2016 07:15 AM EST Reads: 1,298
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
Dec. 5, 2016 06:45 AM EST Reads: 1,797
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Dec. 5, 2016 06:45 AM EST Reads: 1,628
"We're a cybersecurity firm that specializes in engineering security solutions both at the software and hardware level. Security cannot be an after-the-fact afterthought, which is what it's become," stated Richard Blech, Chief Executive Officer at Secure Channels, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Dec. 5, 2016 06:30 AM EST Reads: 758
The Internet of Things (IoT) promises to simplify and streamline our lives by automating routine tasks that distract us from our goals. This promise is based on the ubiquitous deployment of smart, connected devices that link everything from industrial control systems to automobiles to refrigerators. Unfortunately, comparatively few of the devices currently deployed have been developed with an eye toward security, and as the DDoS attacks of late October 2016 have demonstrated, this oversight can ...
Dec. 5, 2016 06:15 AM EST Reads: 968
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
Dec. 5, 2016 06:00 AM EST Reads: 1,692
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
Dec. 5, 2016 04:15 AM EST Reads: 1,621
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
Dec. 5, 2016 04:00 AM EST Reads: 4,713
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
Dec. 5, 2016 04:00 AM EST Reads: 5,138