Click here to close now.




















Welcome!

Microsoft Cloud Authors: Adine Deford, Elizabeth White, the Editor, Michael Krems, Xenia von Wedel

News Feed Item

Sonic Foundry Reports First Quarter Fiscal 2013 Results

Sonic Foundry, Inc. (NASDAQ: SOFO), the trusted market leader for video management and academic, enterprise and event webcasting, today announced financial results for its fiscal 2013 first quarter ended December 31, 2012.

GAAP results include:

  • Revenues of $6.6 million, up 6 percent from the fiscal first quarter of 2012
  • Product and other revenue of $2.9 million, up 8 percent from the fiscal first quarter of 2012
  • Services revenue of $3.6 million, up 4 percent from $3.5 million in the first quarter of fiscal 2012
    • Support and maintenance revenue of $1.9 million, an increase of 8 percent over the first quarter of fiscal 2012
    • Event services and hosting revenue of $1.7 million, same as the first quarter of fiscal 2012
  • Unearned revenue balance of $6.0 million, up from $5.6 million at September 30, 2012
  • GAAP net loss of $(139) thousand or $(0.04) per basic share, compared to net loss of $(184) thousand or $(0.05) per basic share in the fiscal first quarter of 2012
  • Gross margin of $4.9 million or 74 percent compared to $4.5 million or 73 percent for the fiscal first quarter of 2012
  • Cash balance of $4.3 million at December 31, 2012
  • Equity investment in earnings from Mediasite KK of $78 thousand related to our current 29% ownership interest in our Japanese partner

Non-GAAP results include:

  • Billings of $6.9 million, an increase of 20 percent over the first quarter of fiscal 2012
  • Product and other billings of $2.9 million, up 8 percent from the first quarter of fiscal 2012
  • Services billings of $4.0 million, an increase of 31 percent over the first quarter of fiscal 2012
    • Support and maintenance billings of $2.2 million, an increase of 48 percent over the first quarter of fiscal 2012
    • Event services and hosting billings of $1.8 million, an increase of 15 percent over the first quarter of fiscal 2012
  • Non-GAAP net income of $685 thousand or $0.18 per basic share compared to non-GAAP net loss of $(164) thousand or $(0.04) per basic share in the first quarter of fiscal 2012

Non-GAAP net income primarily excludes all non-cash related expenses of stock compensation, depreciation, amortization, provision for income taxes and includes the cash impact of billings not recognized as revenue. Reconciliation between GAAP and non-GAAP results is provided at the end of this press release.

At December 31, 2012, $6.0 million of revenue was deferred, of which the company expects to realize approximately $2.3 million in the quarter ending March 31, 2013. Revenue from service contracts is recognized over the life of the contract. Services revenue includes Mediasite customer support contracts as well as training, installation, rental, event and content hosting services.

Gross margin improved from 73 percent in the first quarter of fiscal 2012 to 74 percent in the first quarter of fiscal 2013 due to operational efficiencies in recorder and services costs and a decrease in direct and outsourced event labor costs with lower markups for services which the Company does not provide. These improvements were partially offset by an increase in high definition material cost.

International product and service billings accounted for 30 percent of overall billings, compared to 29 percent in the first quarter of fiscal 2012. During the first quarter of this fiscal year, 82 percent of billings were to preexisting customers, compared to 73 percent in first quarter fiscal 2012, with 56 percent to education customers and 36 percent to corporate.

“We delivered strong financial results in the historically slower first quarter, achieving greater results than Q4 for the first time in our company’s history. This was driven both by the strategic growth initiatives we put in place in 2012 beginning to come to fruition, as well as the completion of several deals that we have been tracking for several quarters. We also saw significant growth in renewals of support contracts as customers committed to the migration to the latest versions of Mediasite. As a result of these efforts, favorable product mix and expense reductions, our gross margins have improved, we have sequential growth in billings and have seen improvement year-over-year in cash from operations,” said Gary Weis, CEO of Sonic Foundry. “This year we will continue to innovate, rolling out the new features and services our customers value highly, while continuing to expand growth opportunities in new market segments.”

Sonic Foundry will host a corporate webcast today for analysts and investors to discuss its fiscal 2013 first quarter results at 3:30 p.m. CT / 4:30 p.m. ET. It will use its patented rich media communications system, Mediasite, to webcast the presentation for both live and on-demand viewing. To access the presentation, register at www.sonicfoundry.com/earnings. An archive of the webcast will be available for 30 days.

EXPLANATION OF NON-GAAP MEASURES

To supplement our financial results presented on a GAAP basis, we use a measure of non-GAAP net income or loss in our financial presentation, which excludes certain non-cash costs and includes certain cash billings not recognized as revenue for GAAP purposes. Our non-GAAP financial measure is not meant to be considered in isolation or as a substitute for comparable GAAP measures, and should be read only 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, manage and evaluate our business and make operating decisions. These non-GAAP measures are among the factors management uses in planning for and forecasting future periods. Management also believes that these non-GAAP financial measures provide useful information to investors and others in understanding and evaluating our operating results and future prospects in the same manner as management and in comparing financial results across accounting periods and to those of peer companies. Our non-GAAP financial measures reflect adjustments based on the following items:

  • Billings not recorded as revenue: We have included the cash effect of billings not recorded as revenue, which are deferred for GAAP purposes, in arriving at non-GAAP net income or loss. Our services are typically billed and collected in advance of providing the service which requires minimal cost to perform in the future. Billings are a better indicator of customer activity and cash flow than revenue is, in management’s opinion, and is therefore used by management as a key operational indicator.
  • Depreciation and amortization of intangible and other assets expenses: We have excluded the effect of depreciation and amortization of assets from our non-GAAP net income or loss. Amortization of intangible assets expense varies in amount and frequency and it is significantly affected by the timing and size of our acquisitions. Depreciation and amortization of asset costs is a non-cash expense that includes the periodic write-off of tooling, product design and other assets that contributed to revenues earned during the periods presented and will contribute to future period revenues as well.
  • Non-cash provision for income taxes: We have excluded the impact of the provision for income taxes from our non-GAAP net income or loss. The provision for income taxes is associated with the difference in treatment of goodwill which is not expensed for GAAP purposes but is amortized over a fifteen year life for Federal income tax purposes. The result is a non-cash expense and liability that will never be paid.
  • Stock-based compensation expenses: We maintain an employee qualified stock option plan under which we grant options to acquire common stock to eligible employees. We also maintain an employee stock purchase plan under which common stock may be issued to eligible employees at a reduced price. Stock-based compensation expenses are recorded for these plans in accordance with FASB Accounting Standards Codification subtopic 718, Compensation-Stock Compensation. Stock-based compensation expense is a non-cash expense. As a result, we have excluded the effect of stock-based compensation expenses from our non-GAAP net income or loss.

About Sonic Foundry®, Inc.

Sonic Foundry (NASDAQ: SOFO) is the trusted market leader for enterprise webcasting solutions, providing video content management and distribution for education, business and government. Powered by the patented Mediasite webcasting platform and webcast services of Mediasite Events, the company empowers people to advance how they share knowledge online, using video webcasts to bridge time and distance, enhance learning outcomes and improve performance.

Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to continued market acceptance for Sonic Foundry's products, its ability to succeed in capturing significant revenues from media services and/or systems, the effect of new competitors in its market, integration of acquired business and other risk factors identified from time to time in its filings with the Securities and Exchange Commission.

Sonic Foundry, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except for share data)

(Unaudited)

December 31,

2012

 

September 30,
2012

Assets
Current assets:
Cash and cash equivalents $ 4,286 $ 4,478
Accounts receivable, net of allowances of $85 5,316 5,578
Inventories 1,243 1,053
Prepaid expenses and other current assets   937     757  
Total current assets 11,782 11,866
Property and equipment:
Leasehold improvements 852 852
Computer equipment 4,082 3,851
Furniture and fixtures   865     865  
Total property and equipment 5,799 5,568
Less accumulated depreciation and amortization   2,876     2,624  
Net property and equipment 2,923 2,944
Other assets:
Goodwill 7,576 7,576
Investment in Mediasite KK 498 420
Other intangibles, net of amortization of $185 and $180   10     15  
Total assets $ 22,789   $ 22,821  
 
Liabilities and stockholders' equity
Current liabilities:
Revolving line of credit $ - $ -
Accounts payable 1,162 1,604
Accrued liabilities 941 850
Unearned revenue 5,521 5,284
Current portion of capital lease obligation 156 129
Current portion of notes payable   667     667  
Total current liabilities 8,447 8,534
 

Long-term portion of unearned revenue

435

349

Long-term portion of capital lease obligation

157

131

Long-term portion of notes payable 600 766
Leasehold improvement liability 510 532
Deferred tax liability   2,030     1,970  
Total liabilities 12,179 12,282
 
Stockholders' equity:

Preferred stock, $.01 par value, authorized 500,000 shares; none issued
and outstanding

5% preferred stock, Series B, voting, cumulative, convertible, $.01 par
value (liquidation preference at par), authorized 1,000,000 shares,
none issued

 

 

Common stock, $.01 par value, authorized 10,000,000 shares; 3,913,640
and 3,909,040 shares issued and 3,900,924 and 3,896,324 shares
outstanding

 

39

 

39

Additional paid-in capital 189,669 189,459
Accumulated deficit (178,903 ) (178,764 )
Receivable for common stock issued (26 ) (26 )
Treasury stock, at cost, 12,716 shares   (169 )   (169 )
Total stockholders' equity   10,610     10,539  
Total liabilities and stockholders' equity $ 22,789   $ 22,821  
 

Sonic Foundry, Inc.

Condensed Consolidated Statements of Operations

(in thousands, except for share and per share data)

(Unaudited)

    Three Months Ended December 31,

2012

 

2011

 
Revenue:
Product $ 2,841 $ 2,599
Services 3,640 3,500
Other   71     86  
Total revenue 6,552 6,185

Cost of revenue:

Product 1,314 1,261
Services   371     417  
Total cost of revenue   1,685     1,678  
Gross margin 4,867 4,507
 
Operating expenses:
Selling and marketing 3,007 2,772
General and administrative 815 825
Product development   1,176     982  
Total operating expenses   4,998     4,579  
Loss from operations (131 ) (72 )
 
Equity investment in earnings from Mediasite KK

78

-

Other expense, net   (26 )   (52 )
Loss before income taxes (79 ) (124 )
Provision for income taxes   (60 )   (60 )
Net loss $ (139 ) $ (184 )
 
Net loss per common share:
– basic $ (0.04 ) $ (0.05 )
– diluted $ (0.04 ) $ (0.05 )
 

Weighted average common shares

– basic

 

3,897,880

   

3,839,907

 

– diluted

  3,897,880     3,839,907  

Non-GAAP Consolidated Statements of Operations

(in thousands, except for per share data)

   
Fiscal Quarter Ended

December 31, 2012

Fiscal Quarter Ended

December 31, 2011

GAAP

 

Adj(1)

  Non-GAAP

GAAP

 

Adj(1)

 

Non-GAAP

 
Revenues $ 6,552 $ 323 $ 6,875 $ 6,185 $ (473 ) $ 5,712

Cost of revenue

1,685

1,685

1,678

1,678

Total operating expenses

 

4,998

   

(441

)

4,557

   

4,579

   

(433

)

 

4,146

 

Income (loss) from operations

(131

)

764

633

(72

)

(40

)

(112

)

Equity investment in earnings from Mediasite KK

78

78

Other expense, net (26 ) (26 ) (52 ) (52 )
Provision for income taxes   (60 )   60       (60 )   60      

Net income (loss)

$

(139

)

$

824

 

$ 685

 

$

(184

)

$

20

 

$

(164

)

Basic net income (loss) per common share

 

$

 

(0.04

 

)

 

$

 

0.21

 

 

$ 0.18

 

 

$

 

(0.05

 

)

 

$

 

0.01

 

 

$

 

(0.04

 

)

 

(1)Adjustments consist of the following:

 
Billings $ 323 $ (473 )
Depreciation and amortization 258 201
Non-cash tax provision 60 60
Stock-based compensation(2)  

183

   

232

 
 
Total non-GAAP adjustments

$

824

$

20

 

(2) Stock-based compensation is included in the following GAAP operating expenses:
 
Selling and marketing $ 118 $ 157
General and administrative 10 14
Product development   55     61  
 
Total stock-based compensation

$

183

$

232

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
WebRTC has had a real tough three or four years, and so have those working with it. Only a few short years ago, the development world were excited about WebRTC and proclaiming how awesome it was. You might have played with the technology a couple of years ago, only to find the extra infrastructure requirements were painful to implement and poorly documented. This probably left a bitter taste in your mouth, especially when things went wrong.
SYS-CON Events announced today that IceWarp will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. IceWarp, the leader of cloud and on-premise messaging, delivers secured email, chat, documents, conferencing and collaboration to today's mobile workforce, all in one unified interface
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and analyzed? As an area of investment, how might a retail company move towards an innovation methodolo...
The Internet of Things (IoT) is about the digitization of physical assets including sensors, devices, machines, gateways, and the network. It creates possibilities for significant value creation and new revenue generating business models via data democratization and ubiquitous analytics across IoT networks. The explosion of data in all forms in IoT requires a more robust and broader lens in order to enable smarter timely actions and better outcomes. Business operations become the key driver of IoT applications and projects. Business operations, IT, and data scientists need advanced analytics t...
A producer of the first smartphones and tablets, presenter Lee M. Williams will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater. In his session at @ThingsExpo, Lee Williams, COO of ETwater, will talk about how he is now applying his experience in mobile technology to the design and development of the next generation of Environmental and Sustainability Services at ETwater.
Consumer IoT applications provide data about the user that just doesn’t exist in traditional PC or mobile web applications. This rich data, or “context,” enables the highly personalized consumer experiences that characterize many consumer IoT apps. This same data is also providing brands with unprecedented insight into how their connected products are being used, while, at the same time, powering highly targeted engagement and marketing opportunities. In his session at @ThingsExpo, Nathan Treloar, President and COO of Bebaio, will explore examples of brands transforming their businesses by t...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies leverage disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 17th Cloud Expo, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevOps to advance innovation and increase agility. Specializing in designing, imple...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Through WebRTC, audio and video communications are being embedded more easily than ever into applications, helping carriers, enterprises and independent software vendors deliver greater functionality to their end users. With today’s business world increasingly focused on outcomes, users’ growing calls for ease of use, and businesses craving smarter, tighter integration, what’s the next step in delivering a richer, more immersive experience? That richer, more fully integrated experience comes about through a Communications Platform as a Service which allows for messaging, screen sharing, video...
SYS-CON Events announced today that Micron Technology, Inc., a global leader in advanced semiconductor systems, will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Micron’s broad portfolio of high-performance memory technologies – including DRAM, NAND and NOR Flash – is the basis for solid state drives, modules, multichip packages and other system solutions. Backed by more than 35 years of technology leadership, Micron's memory solutions enable the world's most innovative computing, consumer,...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
As more and more data is generated from a variety of connected devices, the need to get insights from this data and predict future behavior and trends is increasingly essential for businesses. Real-time stream processing is needed in a variety of different industries such as Manufacturing, Oil and Gas, Automobile, Finance, Online Retail, Smart Grids, and Healthcare. Azure Stream Analytics is a fully managed distributed stream computation service that provides low latency, scalable processing of streaming data in the cloud with an enterprise grade SLA. It features built-in integration with Azur...
Too often with compelling new technologies market participants become overly enamored with that attractiveness of the technology and neglect underlying business drivers. This tendency, what some call the “newest shiny object syndrome,” is understandable given that virtually all of us are heavily engaged in technology. But it is also mistaken. Without concrete business cases driving its deployment, IoT, like many other technologies before it, will fade into obscurity.
Akana has announced the availability of the new Akana Healthcare Solution. The API-driven solution helps healthcare organizations accelerate their transition to being secure, digitally interoperable businesses. It leverages the Health Level Seven International Fast Healthcare Interoperability Resources (HL7 FHIR) standard to enable broader business use of medical data. Akana developed the Healthcare Solution in response to healthcare businesses that want to increase electronic, multi-device access to health records while reducing operating costs and complying with government regulations.
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducted a live demonstration of how quickly application development can happen when the need to comply wit...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Architect for the Internet of Things and Intelligent Systems, described how to revolutionize your archit...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with APIs within the next year.
Growth hacking is common for startups to make unheard-of progress in building their business. Career Hacks can help Geek Girls and those who support them (yes, that's you too, Dad!) to excel in this typically male-dominated world. Get ready to learn the facts: Is there a bias against women in the tech / developer communities? Why are women 50% of the workforce, but hold only 24% of the STEM or IT positions? Some beginnings of what to do about it! In her Opening Keynote at 16th Cloud Expo, Sandy Carter, IBM General Manager Cloud Ecosystem and Developers, and a Social Business Evangelist, d...