SAN MATEO, CA — (Marketwired) — 11/07/13 — Selectica, Inc. (NASDAQ: SLTC), provider of software that and , today announced financial results for its fiscal second quarter ended September 30, 2013.
Selectica Chairman and CEO Michael Brodsky said, “The weak second quarter results prompted the company to initiate a significant reorganization of the senior management. We recruited a team of highly experienced professionals with a track record of successful collaboration. During the quarter the team initiated a review of many of the company-s key business tactics and processes, with a special focus on an assessing the company-s delivery organization. After careful analysis, we determined that our success in the implementation function of the business required greater focus to maintain the satisfaction of our existing top-tier, multinational customer base. As a result of the special focus on the delivery infrastructure, we proactively decelerated sales activity for a temporary period, which is now complete.”
“I am pleased with the disciplined approach we have taken toward the business, and early indications from key customers is that significant progress in the quality of implementation of our product is being made,” added Brodsky. “The new team is firmly in place and I look forward to positive results as we focus on delivering on our growing pipeline of new prospects for our industry-leading CPQ and contract management solutions and our best-in-class service.”
Selectica delivered the following financial results for the first quarter of fiscal 2014:
Recurring revenue was essentially unchanged from Q2 FY 2013 to Q2 FY 2014 at $3.0 million and declined from $3.2 million in Q1 FY 2014
Operating expenses were $3.5 million in Q2 FY 2014 compared to $3.8 million in Q2 FY 2013 and $4.7 million in Q1 FY 2014. The decrease primarily relates to the capitalization of certain research and development expenses in Q2 FY 2014, and the reversal of certain stock compensation charges related to terminated employees in Q2 FY 2014 and certain bad debt expenses incurred in Q1 FY 2014.
Billings for Q2 FY2014 were $3.3 million, compared to $3.8 million in Q2 FY 2013 and $3.3M in Q1 FY 2014.
As of Q2 FY2014, the company had deferred revenue of $6.1 million, a 5% year-over-year increase from Q2 FY2013, when deferred revenue was $5.8 million. As of Q1 FY2014, deferred revenue was $6.8 million.
: The company entered into an Amendment to the Series A Warrants to Purchase Common Stock issued in connection with the company-s private placement equity financing that closed in May 2013 – the Amendment reduced the exercise price of the Warrants from $8.75 to $7.75 and removed the anti-dilution adjustment and Black Scholes cash settlement provisions to ensure the Warrants are indexed to the Company-s equity and not classified as debt instruments.
Complete financial results for Q2 FY2014 can be found in the attached financial tables.
Business highlights from Q2 FY2014 include:
Customers now have the flexibility to log into a customized Selectica CPQ web application from other systems. This brings Selectica CPQ access to customers regardless of their ERP or CRM system.
: With Selectica CPQ Mobile, sales reps are empowered to create and configure quotes in the field with ease, further shortening sales cycles. Customers can leverage our powerful constraint engine from a user-friendly iPad interface. The Salesforce integrated application also provides convenient access to recent quotes in a customized dashboard home page, as well as ability to view quotes and Opportunities in online or offline mode.
Selectica expanded its Executive Management team in Q2 2014, enabling Selectica to accelerate building our market momentum, while ensuring we are delivering on our customer-first strategy. Members joining the team include Jeffrey Grosman as COO, Eric Faulkner as CIO, Rose Lee as SVP of Customer Experience and Amalia Rosen as VP of Marketing and Business Analytics.
Selectica-s CPQ Mobile has been selected for Salesforce.com-s Mobile App Showcase at Dreamforce -13, November 18th through November 21st, 2013. During Dreamforce, attendees are invited to visit the Selectica booth and demo Selectica-s new mobile application, which empowers users to create and configure quotes in the field, maximizing deal value and increasing sales representative productivity.
Selectica, Inc. (NASDAQ: SLTC) develops innovative software that the world-s most successful companies rely on to improve the effectiveness of their sales and contracting processes. Our guided selling, sales configuration, and contract lifecycle management solutions support the Global 2000 and growing mid-size firms in closing billions of dollars- worth of business each year. Our patented technology, delivered through the cloud, makes it easy for customers in industries like high-tech, telecommunications, manufacturing, healthcare, financial services, and government contracting to overcome product and channel complexity, increase deal value, and accelerate time to revenue.
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Selectica provides quarterly and annual financial statements that are prepared in accordance with generally accepted accounting principles (GAAP). To help understand the company-s past financial performance and future results, the company is providing non-GAAP financial measures to supplement the financial results that it provides in accordance with GAAP. The method the company uses to produce non-GAAP financial results is not computed according to GAAP and may differ from the methods used by other companies.
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, 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 the on-going global recession; fluctuations in demand for Selectica-s products and services; government policies and regulations, including, but not limited to those affecting the company-s industry; and risks related to the company-s past stock granting policies and related restatement of financial statements. 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 supplemented in the company-s most recent Form 10-Q, each as filed by the company with the Securities and Exchange Commission.
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