Forward-looking statements
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, filed by the company with the Securities and Exchange Commission.
SELECTICA, INC. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) Three Months Ended Six Months Ended ---------------------------- ---------------------------- September 30, September 30, September 30, September 30, 2012 2011 2012 2011 ------------- ------------- ------------- -------------Revenues: Recurring revenues $ 2,960 $ 2,162 $ 5,596 $ 4,335 Non-recurring revenues 1,695 1,370 3,235 2,950 ------------- ------------- ------------- ------------- Total revenues 4,655 3,532 8,831 7,285 ------------- ------------- ------------- -------------Cost of revenues: Recurring cost of revenues 407 257 738 512 Non-recurring cost of revenues 1,347 1,278 2,574 2,316 ------------- ------------- ------------- ------------- Total cost of revenues 1,754 1,535 3,312 2,828 ------------- ------------- ------------- -------------Gross profit: Recurring gross profit 2,553 1,905 4,858 3,823 Non-recurring gross profit 348 92 661 634 ------------- ------------- ------------- ------------- Total gross profit 2,901 1,997 5,519 4,457 ------------- ------------- ------------- -------------Operating expenses: Research and development 861 810 1,792 1,706 Sales and marketing 1,726 1,415 3,245 2,594 General and administrative 698 843 1,568 1,774 Fees related to comprehensive settlement agreement 500 500 500 500 ------------- ------------- ------------- ------------- Total operating expenses 3,785 3,568 7,105 6,574 ------------- ------------- ------------- -------------Loss from operations (884) (1,571) (1,586) (2,117)Loss on early extinguishment of note payable - 470 - 470Interest and other income (expense), net (5) (38) (12) (88) ------------- ------------- ------------- -------------Net loss $ (889) $ (2,079) $ (1,598) $ (2,675) ============= ============= ============= =============Basic and diluted net loss per share $ (0.32) $ (0.74) $ (0.57) $ (0.95) ============= ============= ============= =============Reconciliation to non-GAAP net loss:Net loss $ (889) $ (2,079) $ (1,598) $ (2,675)Stock-based compensation expense $ 153 $ 179 $ 361 $ 288Loss on early extinguishment of note payable - 470 - 470Fees related to comprehensive settlement agreement 500 500 500 500 ------------- ------------- ------------- -------------Non-GAAP netloss $ (236) $ (930) $ (737) $ (1,417) ============= ============= ============= ============= ------------- ------------- ------------- -------------Non-GAAP basic and diluted net loss per share $ (0.08) $ (0.33) $ (0.26) $ (0.50) ============= ============= ============= =============Weighted average shares outstanding for basic and diluted net loss per share 2,818 2,820 2,815 2,826 ============= ============= ============= ============= SELECTICA, INC. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) September 30, March 31, 2012 2012 -------------- --------------ASSETSCurrent assets Cash and cash equivalents $ 12,052 $ 15,877 Short-term investments - 199 Accounts receivable 3,682 2,446 Prepaid expenses and other current assets 512 531 -------------- -------------- Total current assets 16,246 19,053Property and equipment, net 368 362Other assets 39 39 -------------- -------------- Total assets $ 16,653 $ 19,454 ============== ==============LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities Credit facility $ 6,000 $ 6,000 Accounts payable 876 395 Accrued payroll and related liabilities 739 1,771 Other accrued liabilities 87 88 Deferred revenue 4,811 5,394 -------------- -------------- Total current liabilities 12,513 13,648 -------------- -------------- Long-term deferred revenue 964 1,327 Other long-term liabilities 33 41 -------------- -------------- Total liabilities 13,510 15,016 -------------- --------------Stockholders' equity 3,143 4,438 -------------- -------------- Total liabilities and stockholders' equity $ 16,653 $ 19,454 ============== ============== SELECTICA, INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Six Months Ended ------------------------------ September 30, September 30, 2012 2011 -------------- --------------Operating activitiesNet loss $ (1,598) $ (2,675)Adjustments to reconcile net loss to net cash used in operating activities:Depreciation 101 139Loss on disposition of property and equipment - 1Stock-based compensation expense 361 288Changes in assets and liabilities: Accounts receivable (net) (1,236) 987 Prepaid expenses and other current assets 19 50 Other assets - (39) Accounts payable 481 (315) Accrued payroll and related liabilities (1,031) 321 Other accrued liabilities and long term liabilities (9) (243) Deferred revenues (946) (793) -------------- --------------Net cash used in operating activities $ (3,858) $ (2,279)Investing activities Purchase of capital assets (107) (98) Proceeds from maturities of short-term investments 199 (1,398) -------------- --------------Net cash provided by (used in) investing activities $ 92 $ (1,496)Financing activities Payments on note payable to Versata - (4,268) Purchase of treasury shares - (472) Borrowings under credit facility - 4,713 Repurchases of common stock, net of issuance (59) (7) -------------- --------------Net cash used in financing activities $ (59) $ (34)Net decrease in cash and cash equivalents (3,825) (3,809)Cash and cash equivalents at beginning of the period 15,877 16,822 -------------- --------------Cash and cash equivalents at end of the period $ 12,052 $ 13,013 ============== ============== SELECTICA, INC. Billings Reconciliation (In thousands) (Unaudited) Three Months Ended Six Months Ended ---------------------------- ---------------------------- September 30, September 30, September 30, September 30, 2012 2011 2012 2011 ------------- ------------- ------------- -------------Total revenues $ 4,655 $ 3,532 $ 8,831 $ 7,285Deferred revenue:End of period 5,775 3,337 5,775 3,337Beginning of period 6,664 3,857 6,721 4,320 ------------- ------------- ------------- -------------Change in deferred revenue (889) (520) (946) (983) ------------- ------------- ------------- -------------Total billings (total revenues plus the change in deferred revenue) $ 3,766 $ 3,012 $ 7,885 $ 6,302 ============= ============= ============= =============
