Welcome!

.NET Authors: Srinivasan Sundara Rajan, Adine Deford, David Fletcher, Pat Romanski, Tad Anderson

News Feed Item

Qumu Software Reports Record Revenue Quarter

Qumu Corporation (NASDAQ:QUMU) today reported software revenue of $8.4 million for the second quarter ended June 30, 2014. The revenue set a quarterly record for the Company’s software product line, was up 74% as compared to the second quarter of 2013, and up 114% over the first quarter of 2014. Software contracted commitments for the quarter were up 117% over the second quarter of last year to $7.4 million and the software contracted commitment backlog ended the quarter at $26.0 million.

“We achieved several milestones during the second quarter,” said Sherman L. Black, president and CEO. “Qumu generated higher software revenues than in any other quarter in our history and contracted software commitment growth was very strong. We also completed the successful sale of our Rimage disc publishing business. This quarter’s strong performance begins to demonstrate the top line potential of our software business. The market for enterprise video continues to grow and we believe the total annual market opportunity can exceed one billion dollars. With our demonstrated success in closing Global 1000 accounts as well as our unique hybrid cloud offering, Qumu continues to be the clear market leader in this emerging segment. Our entire organization is energized and more focused than ever on executing the plan to capitalize on the enterprise video opportunity to generate higher returns to shareholders.”

Qumu Software Second Quarter Highlights

  • Software revenues were $8.4 million, up 74% from $4.8 million in the second quarter of 2013. During the quarter, the Company recognized the first revenue from the $9.5 million Video-as-a-Service contract announced in March 2014. Investments in product localization and global capabilities started to yield results as the first revenue in Japan was recognized during the quarter. In addition Qumu won several new customers in the second quarter, including a major financial services organization. For the first half of 2014, software revenues were $12.3 million.
  • Contracted commitments for the second quarter of 2014 were $7.4 million, an increase of $4.0 million, or 117% from the second quarter of 2013. For the first six months of 2014, contracted commitments were $21.6 million, up 177% from the first half 2013 level of $7.8 million.
  • Backlog at June 30, 2014 was $26.0 million, slightly below the previous record of $27 million set on March 31, 2014. Backlog at June 30, 2013 stood at $11.1 million.
  • Software gross margins were 50% during the second quarter, up from 35% during the first quarter of 2014. The primary driver for the sequential improvement was the higher revenue reported in the quarter and an improved sales mix of higher margin perpetual revenue. Second quarter software gross margins were down from last year’s second quarter gross margin of 70% due to less perpetual revenue in our sales mix and a higher proportion of lower margin hardware revenue as part of our deal mix, as well as, increased service costs to support the Company’s growth.
  • Software operating expenses were $9.8 million in the second quarter, an increase of $2.4 million from the second quarter of 2013. The primary driver of the increase compared to last year was an increase in sales and marketing costs resulting from additional headcount and increased spending on marketing programs.
  • Operating expenses for all comparable periods now include all of the G&A costs for the ongoing software business, costs that were previously partially absorbed by the disc publishing business, which is now reported as a discontinued operation. The additional cost being absorbed by the ongoing software business was approximately $0.6 million in the second quarter of 2014.
  • The second quarter 2014 operating loss for the software business was $5.7 million. For the first half of 2014, the software operating loss was $13.0 million.
  • The cash and marketable securities balance at June 30, 2014 was $40.0 million, down $6.5 million from the end of Q1 2014. The primary drivers of this decline were the second quarter loss reported which included $1.0 million of disc publishing transaction expenses, and an increase in working capital investment due to the rapid growth of the Company’s software business.

Discontinued Operations and Consolidated Second Quarter Financial Results

On July 1, 2014 Qumu closed an all-cash transaction selling the Rimage disc publishing business to Redwood Acquisition, Inc., a wholly-owned subsidiary of Equus Holdings, Inc. As a result of this transaction, the disc publishing results have been classified as discontinued operations for second quarter and full year 2014 in accordance with GAAP. In addition, prior year financial results have been restated to show disc publishing as a discontinued operation. The total revenues and operating income reported reflect the financial results from the Company’s ongoing software business. The disc publishing financial results are reflected in one line item as net income from discontinued operations reported below net loss from continuing operations on the Company’s condensed consolidated statement of operations. For the second quarter, the net income from discontinued operations was $2.2 million. For the first half of 2014, the net income from discontinued operations was $5.6 million. Included in the second quarter and first half discontinued operations results were $1.0 million and $1.2 million of disc publishing sale transaction expenses, respectively. On a consolidated basis, including both continuing and discontinued operations, the second quarter 2014 net loss was $3.4 million or ($0.39) per share. Through June 30, 2014, the net loss, on a consolidated basis, was $7.4 million or ($0.85) per share.

Financial Guidance

For 2014, the Company has raised its guidance for annual software contracted commitments from a range of 40% to 50% growth to greater than 50% growth compared to 2013. Management continues to believe that software revenues will increase over the next few quarters on a year over year basis. However, as previously disclosed, software revenue will vary quarter to quarter based on the type of contract Qumu enters into with each customer. Perpetual contracts generally result in revenue recognized closer to contract commitment date while term–based contracts result in most of the revenue being recognized over the period of the contract. Acknowledging the potential for quarterly variation, the Company continues to anticipate growth in its software revenues of at least 30% over 2013 revenues. The sale of the disc publishing business closed on July 1, 2014 so the financial impact of the sale will be reported in the third quarter results. The Company expects to end the third quarter of 2014 with a cash and marketable securities balance of between $50 million and $53 million.

The Company defines contracted commitments as the dollar value of signed customer purchase commitments.

Conference Call

The Company has scheduled a conference call and webcast to review its second quarter results today, July 30, 2014 at 4:30 p.m. Eastern Time. The dial-in number for the conference call is 888-430-8709 for domestic participants and 719-457-2645 for international participants. Investors can also access a webcast of the live conference call by linking through the investor relations section of the Qumu website, www.qumu.com. Webcasts will be archived on Qumu’s website.

Forward-Looking Statements

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this press release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” or “estimate” or comparable terminology are intended to identify forward-looking statements. Such forward-looking statements include, for example, statements about: the Company’s future revenue and operating performance, future product mix or the timing of recognition of revenue, the demand for the Company’s products or software, the effect of changes in technology, the development and marketing of new products, risks related to Qumu’s ability to operate its retained software business following the sale of the disc publishing business on July 1, 2014; and the challenges associated with transitioning the software business and disc publishing business to separate, stand alone operations following the sale. The statements made by the Company are based upon management’s current expectations and are subject to certain risks and uncertainties that could cause the actual results to differ materially from those described in the forward-looking statements. These risks and uncertainties include the risk factors described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2013 and other factors set forth in the Company’s filings with the Securities and Exchange Commission.

About Qumu

Qumu Corporation (NASDAQ: QUMU) provides the tools businesses need to create, manage, secure, distribute and measure the success of their videos. Qumu's innovative solutions release the power in video to engage and empower employees, partners and clients. Qumu helps thousands of organizations around the world realize the greatest possible value from video and other rich content they create and publish. Whatever the audience size, viewer device or network configuration, Qumu solutions are how business does video. Additional information can be found at www.qumu.com.

     

QUMU CORPORATION

Selected Consolidated Financial Information
(unaudited - in thousands, except per share data)
       
Condensed Consolidated Statements of Operations Information:
 
Three months ended Six months ended
June 30, June 30,
2014 2013 2014 2013
 
Revenues $ 8,404 $ 4,829 $ 12,333 $ 9,178
Cost of revenues   4,242     1,455     6,781     3,222  
Gross profit   4,162     3,374     5,552     5,956  
Operating expenses:
Research and development 2,264 2,241 4,288 4,551
Selling, general and administrative 7,421 5,013 13,938 10,583
Amortization of purchased intangibles   156     156     313     313  
Total operating expenses   9,841     7,410     18,539     15,447  
Operating loss (5,679 ) (4,036 ) (12,987 ) (9,491 )
Other expense, net   4     (8 )   (11 )   11  
Loss before income taxes (5,675 ) (4,044 ) (12,998 ) (9,480 )
Income tax expense   6     17     17     19  
Net loss from continuing operations (5,681 ) (4,061 ) (13,015 ) (9,499 )
Net income from discontinued operations   2,233     2,110     5,638     3,571  
Net loss   (3,448 )   (1,951 )   (7,377 )   (5,928 )
 
Net loss from continuing operations per basic and diluted share $ (0.65 ) $ (0.47 ) $ (1.49 ) $ (1.09 )
Net income from discontinued operations per basic and diluted share $ 0.26   $ 0.24   $ 0.65   $ 0.41  
Net loss per basic and diluted share $ (0.39 ) $ (0.22 ) $ (0.85 ) $ (0.68 )
 
Basic and diluted weighted average shares outstanding   8,748     8,687     8,724     8,685  
 
 
Non-Cash Charges Included in Continuing Operations:
Three months ended Six months ended
June 30, June 30,
2014 2013 2014 2013
 
Depreciation $ 173 $ 153 $ 331 $ 296
Amortization of intangibles
Cost of revenues 140 140 280 280
Amortization of purchased intangibles 156 156 313 313
Equity compensation
Cost of revenues 11 5 18 11
Research and development 59 106 117 239
Selling, general and administrative 365 242 649 550
 
 
Condensed Consolidated Balance Sheet Information:
Balance as of
June 30, December 31,
2014 2013
 
Cash and marketable securities $ 40,022 $ 50,958
Receivables 8,033 3,458
Inventories 159 120
Current assets from discontinued operations 15,082 14,066
Total current assets 67,540 71,774
Property and equipment, net 1,452 1,369
Non-current assets from discontinued operations 4,006 4,430
Total assets 84,007 89,171
Current liabilities from continuing operations 10,902 11,260
Current liabilities from discontinued operations 12,611 11,793
Non-current liabilities from continuing operations 2,221 900
Non-current liabilities from discontinued operations 2,172 2,637
Qumu stockholders’ equity 56,101 62,581
 

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
The BPM world is going through some evolution or changes where traditional business process management solutions really have nowhere to go in terms of development of the road map. In this demo at 15th Cloud Expo, Kyle Hansen, Director of Professional Services at AgilePoint, shows AgilePoint’s unique approach to dealing with this market circumstance by developing a rapid application composition or development framework.

ARMONK, N.Y., Nov. 20, 2014 /PRNewswire/ --  IBM (NYSE: IBM) today announced that it is bringing a greater level of control, security and flexibility to cloud-based application development and delivery with a single-tenant version of Bluemix, IBM's platform-as-a-service. The new platform enables developers to build ap...

"BSQUARE is in the business of selling software solutions for smart connected devices. It's obvious that IoT has moved from being a technology to being a fundamental part of business, and in the last 18 months people have said let's figure out how to do it and let's put some focus on it, " explained Dave Wagstaff, VP & Chief Architect, at BSQUARE Corporation, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4-6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
The major cloud platforms defy a simple, side-by-side analysis. Each of the major IaaS public-cloud platforms offers their own unique strengths and functionality. Options for on-site private cloud are diverse as well, and must be designed and deployed while taking existing legacy architecture and infrastructure into account. Then the reality is that most enterprises are embarking on a hybrid cloud strategy and programs. In this Power Panel at 15th Cloud Expo (http://www.CloudComputingExpo.com), moderated by Ashar Baig, Research Director, Cloud, at Gigaom Research, Nate Gordon, Director of T...
The Internet of Things is not new. Historically, smart businesses have used its basic concept of leveraging data to drive better decision making and have capitalized on those insights to realize additional revenue opportunities. So, what has changed to make the Internet of Things one of the hottest topics in tech? In his session at @ThingsExpo, Chris Gray, Director, Embedded and Internet of Things, discussed the underlying factors that are driving the economics of intelligent systems. Discover how hardware commoditization, the ubiquitous nature of connectivity, and the emergence of Big Data a...
SYS-CON Events announced today that Windstream, a leading provider of advanced network and cloud communications, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Windstream (Nasdaq: WIN), a FORTUNE 500 and S&P 500 company, is a leading provider of advanced network communications, including cloud computing and managed services, to businesses nationwide. The company also offers broadband, phone and digital TV services to consumers primarily in rural areas.
“In the past year we've seen a lot of stabilization of WebRTC. You can now use it in production with a far greater degree of certainty. A lot of the real developments in the past year have been in things like the data channel, which will enable a whole new type of application," explained Peter Dunkley, Technical Director at Acision, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
DevOps Summit 2015 New York, 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 it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Nigeria has the largest economy in Africa, at more than US$500 billion, and ranks 23rd in the world. A recent re-evaluation of Nigeria's true economic size doubled the previous estimate, and brought it well ahead of South Africa, which is a member (unlike Nigeria) of the G20 club for political as well as economic reasons. Nigeria's economy can be said to be quite diverse from one point of view, but heavily dependent on oil and gas at the same time. Oil and natural gas account for about 15% of Nigera's overall economy, but traditionally represent more than 90% of the country's exports and as...
The Internet of Things is a misnomer. That implies that everything is on the Internet, and that simply should not be - especially for things that are blurring the line between medical devices that stimulate like a pacemaker and quantified self-sensors like a pedometer or pulse tracker. The mesh of things that we manage must be segmented into zones of trust for sensing data, transmitting data, receiving command and control administrative changes, and peer-to-peer mesh messaging. In his session at @ThingsExpo, Ryan Bagnulo, Solution Architect / Software Engineer at SOA Software, focused on desi...
"At our booth we are showing how to provide trust in the Internet of Things. Trust is where everything starts to become secure and trustworthy. Now with the scaling of the Internet of Things it becomes an interesting question – I've heard numbers from 200 billion devices next year up to a trillion in the next 10 to 15 years," explained Johannes Lintzen, Vice President of Sales at Utimaco, in this SYS-CON.tv interview at @ThingsExpo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
"For over 25 years we have been working with a lot of enterprise customers and we have seen how companies create applications. And now that we have moved to cloud computing, mobile, social and the Internet of Things, we see that the market needs a new way of creating applications," stated Jesse Shiah, CEO, President and Co-Founder of AgilePoint Inc., in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
Today’s enterprise is being driven by disruptive competitive and human capital requirements to provide enterprise application access through not only desktops, but also mobile devices. To retrofit existing programs across all these devices using traditional programming methods is very costly and time consuming – often prohibitively so. In his session at @ThingsExpo, Jesse Shiah, CEO, President, and Co-Founder of AgilePoint Inc., discussed how you can create applications that run on all mobile devices as well as laptops and desktops using a visual drag-and-drop application – and eForms-buildi...
We certainly live in interesting technological times. And no more interesting than the current competing IoT standards for connectivity. Various standards bodies, approaches, and ecosystems are vying for mindshare and positioning for a competitive edge. It is clear that when the dust settles, we will have new protocols, evolved protocols, that will change the way we interact with devices and infrastructure. We will also have evolved web protocols, like HTTP/2, that will be changing the very core of our infrastructures. At the same time, we have old approaches made new again like micro-services...
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
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.
As the Internet of Things unfolds, mobile and wearable devices are blurring the line between physical and digital, integrating ever more closely with our interests, our routines, our daily lives. Contextual computing and smart, sensor-equipped spaces bring the potential to walk through a world that recognizes us and responds accordingly. We become continuous transmitters and receivers of data. In his session at @ThingsExpo, Andrew Bolwell, Director of Innovation for HP's Printing and Personal Systems Group, discussed how key attributes of mobile technology – touch input, sensors, social, and ...