Click here to close now.




















Welcome!

Microsoft Cloud Authors: Eric Aarrestad, Greg O'Connor, Liz McMillan, Aleksei Gavrilenko, Elizabeth White

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
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.
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...
In his keynote at 16th Cloud Expo, Rodney Rogers, CEO of Virtustream, discussed the evolution of the company from inception to its recent acquisition by EMC – including personal insights, lessons learned (and some WTF moments) along the way. Learn how Virtustream’s unique approach of combining the economics and elasticity of the consumer cloud model with proper performance, application automation and security into a platform became a breakout success with enterprise customers and a natural fit for the EMC Federation.
The Internet of Things is not only adding billions of sensors and billions of terabytes to the Internet. It is also forcing a fundamental change in the way we envision Information Technology. For the first time, more data is being created by devices at the edge of the Internet rather than from centralized systems. What does this mean for today's IT professional? In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists addressed this very serious issue of profound change in the industry.
Discussions about cloud computing are evolving into discussions about enterprise IT in general. As enterprises increasingly migrate toward their own unique clouds, new issues such as the use of containers and microservices emerge to keep things interesting. In this Power Panel at 16th Cloud Expo, moderated by Conference Chair Roger Strukhoff, panelists addressed the state of cloud computing today, and what enterprise IT professionals need to know about how the latest topics and trends affect their organization.
It is one thing to build single industrial IoT applications, but what will it take to build the Smart Cities and truly society-changing applications of the future? The technology won’t be the problem, it will be the number of parties that need to work together and be aligned in their motivation to succeed. In his session at @ThingsExpo, Jason Mondanaro, Director, Product Management at Metanga, discussed how you can plan to cooperate, partner, and form lasting all-star teams to change the world and it starts with business models and monetization strategies.
Converging digital disruptions is creating a major sea change - Cisco calls this the Internet of Everything (IoE). IoE is the network connection of People, Process, Data and Things, fueled by Cloud, Mobile, Social, Analytics and Security, and it represents a $19Trillion value-at-stake over the next 10 years. In her keynote at @ThingsExpo, Manjula Talreja, VP of Cisco Consulting Services, discussed IoE and the enormous opportunities it provides to public and private firms alike. She will share what businesses must do to thrive in the IoE economy, citing examples from several industry sectors.
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Akana has released Envision, an enhanced API analytics platform that helps enterprises mine critical insights across their digital eco-systems, understand their customers and partners and offer value-added personalized services. “In today’s digital economy, data-driven insights are proving to be a key differentiator for businesses. Understanding the data that is being tunneled through their APIs and how it can be used to optimize their business and operations is of paramount importance,” said Alistair Farquharson, CTO of Akana.
Business as usual for IT is evolving into a "Make or Buy" decision on a service-by-service conversation with input from the LOBs. How does your organization move forward with cloud? In his general session at 16th Cloud Expo, Paul Maravei, Regional Sales Manager, Hybrid Cloud and Managed Services at Cisco, discusses how Cisco and its partners offer a market-leading portfolio and ecosystem of cloud infrastructure and application services that allow you to uniquely and securely combine cloud business applications and services across multiple cloud delivery models.
The enterprise market will drive IoT device adoption over the next five years. In his session at @ThingsExpo, John Greenough, an analyst at BI Intelligence, division of Business Insider, analyzed how companies will adopt IoT products and the associated cost of adopting those products. John Greenough is the lead analyst covering the Internet of Things for BI Intelligence- Business Insider’s paid research service. Numerous IoT companies have cited his analysis of the IoT. Prior to joining BI Intelligence, he worked analyzing bank technology for Corporate Insight and The Clearing House Payment...
"Optimal Design is a technology integration and product development firm that specializes in connecting devices to the cloud," stated Joe Wascow, Co-Founder & CMO of Optimal Design, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and simplified management of data on complex storage networks. CommVault's exclusive single-platform architecture gives companies unp...
Electric Cloud and Arynga have announced a product integration partnership that will bring Continuous Delivery solutions to the automotive Internet-of-Things (IoT) market. The joint solution will help automotive manufacturers, OEMs and system integrators adopt DevOps automation and Continuous Delivery practices that reduce software build and release cycle times within the complex and specific parameters of embedded and IoT software systems.
"ciqada is a combined platform of hardware modules and server products that lets people take their existing devices or new devices and lets them be accessible over the Internet for their users," noted Geoff Engelstein of ciqada, a division of Mars International, in this SYS-CON.tv interview at @ThingsExpo, held June 9-11, 2015, at the Javits Center in New York City.
Internet of Things is moving from being a hype to a reality. Experts estimate that internet connected cars will grow to 152 million, while over 100 million internet connected wireless light bulbs and lamps will be operational by 2020. These and many other intriguing statistics highlight the importance of Internet powered devices and how market penetration is going to multiply many times over in the next few years.