Non-GAAP financial measures
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.
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 Nine Months Ended ---------------------- ---------------------- December December December December 31, 2012 31, 2011 31, 2012 31, 2011 ---------- ---------- ---------- ----------Revenues: Recurring revenues $ 3,054 $ 2,258 $ 8,650 $ 6,593 Non-recurring revenues 1,442 1,001 4,677 3,952 ---------- ---------- ---------- ---------- Total revenues 4,496 3,259 13,327 10,545 ---------- ---------- ---------- ----------Cost of revenues: Cost of recurring revenues 489 248 1,227 760 Cost of non-recurring revenues 1,485 1,042 4,059 3,358 ---------- ---------- ---------- ---------- Total cost of revenues 1,974 1,290 5,286 4,118 ---------- ---------- ---------- ----------Gross profit: Recurring gross profit 2,565 2,010 7,423 5,833 Non-recurring gross profit (43) (41) 618 594 ---------- ---------- ---------- ---------- Total gross profit 2,522 1,969 8,041 6,427 ---------- ---------- ---------- ----------Operating expenses: Research and development 950 801 2,742 2,507 Sales and marketing 1,642 1,518 4,887 4,112 General and administrative 985 1,065 2,554 2,840 Fees related to comprehensive settlement agreement - - 500 500 ---------- ---------- ---------- ---------- Total operating expenses 3,577 3,384 10,683 9,959 ---------- ---------- ---------- ----------Loss from operations (1,055) (1,415) (2,642) (3,532)Loss on early extinguishment of note payable - - - 470Interest and other income (expense), net (3) (18) (14) (106) ---------- ---------- ---------- ----------Net loss $ (1,058) $ (1,433) $ (2,656) $ (4,108) ========== ========== ========== ==========Basic and diluted net loss per share $ (0.37) $ (0.52) $ (0.94) $ (1.47) ========== ========== ========== ==========Reconciliation to non-GAAP net loss:Net loss $ (1,058) $ (1,433) $ (2,656) $ (4,108)Stock-based compensation expense $ 338 $ 144 $ 699 $ 432Loss on early extinguishment of note payable - - - 470Fees related to comprehensive settlement agreement - - 500 500 ---------- ---------- ---------- ----------Non-GAAP net loss $ (720) $ (1,289) $ (1,457) $ (2,706) ========== ========== ========== ========== ---------- ---------- ---------- ----------Non-GAAP basic and diluted net loss per share $ (0.25) $ (0.47) $ (0.52) $ (0.97) ========== ========== ========== ==========Weighted average shares outstanding for basic and diluted net loss per share 2,830 2,737 2,818 2,796 ========== ========== ========== ========== SELECTICA, INC. Condensed Consolidated Balance Sheets (In thousands) (Unaudited) December 31, March 31, 2012 2012 ------------- -------------ASSETSCurrent assets Cash and cash equivalents $ 9,806 $ 15,877 Short-term investments - 199 Accounts receivable 4,591 2,446 Prepaid expenses and other current assets 622 531 ------------- ------------- Total current assets 15,019 19,053Property and equipment, net 399 362Other assets 39 39 ------------- ------------- Total assets $ 15,457 $ 19,454 ============= =============LIABILITIES AND STOCKHOLDERS' EQUITYCurrent liabilities Credit facility $ 5,894 $ 6,000 Accounts payable 751 395 Accrued payroll and related liabilities 819 1,771 Other accrued liabilities 90 88 Deferred revenue 4,636 5,394 ------------- ------------- Total current liabilities 12,190 13,648 ------------- ------------- Long-term deferred revenue 868 1,327 Other long-term liabilities 27 41 ------------- ------------- Total liabilities 13,085 15,016 ------------- -------------Stockholders' equity 2,372 4,438 ------------- ------------- Total liabilities and stockholders' equity $ 15,457 $ 19,454 ============= ============= SELECTICA, INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) Nine Months Ended -------------------------- December 31, December 31, 2012 2011 ------------ ------------Operating activitiesNet loss $ (2,656) $ (4,108)Adjustments to reconcile net loss to net cash used in operating activities:Depreciation 156 201Loss on disposition of property and equipment - 13Stock-based compensation expense 699 432Changes in assets and liabilities: Accounts receivable (net) (2,145) 51 Prepaid expenses and other current assets (91) 79 Other assets - (39) Accounts payable 356 (262) Accrued payroll and related liabilities (951) 528 Other accrued liabilities and long term liabilities (12) 337 Deferred revenue (1,216) (122) ------------ ------------Net cash used in operating activities $ (5,860) $ (2,890)Investing activities Purchase of capital assets (193) (172) Purchase of short-term investments - (1,398) Proceeds from maturities of short-term investments 199 1,398 ------------ ------------Net cash provided by (used in) investing activities $ 6 $ (172)Financing activities Payments on note payable to Versata - (4,268) Purchase of treasury shares - (472) Borrowings under credit facility (106) 6,000 Repurchases of common stock, net of issuance (111) (7) ------------ ------------Net cash (used in) provided by financing activities $ (217) $ 1,253Net decrease in cash and cash equivalents (6,071) (1,809)Cash and cash equivalents at beginning of the period 15,877 16,822 ------------ ------------Cash and cash equivalents at end of the period $ 9,806 $ 15,013 ============ ============ SELECTICA, INC. Billings Reconciliation (In thousands) (Unaudited) Three Months Ended Nine Months Ended --------------------- --------------------- December December December December 31, 2012 31, 2011 31, 2012 31, 2011 --------- ---------- --------- ----------Total revenues $ 4,496 $ 3,259 $ 13,327 $ 10,545Deferred revenue:End of period 5,504 4,544 5,504 4,544Beginning of period 5,775 3,337 6,721 4,320 --------- ---------- --------- ----------Change in deferred revenue (271) 1,207 (1,217) 224 --------- ---------- --------- ----------Total billings (total revenues plus the change in deferred revenue) $ 4,225 $ 4,466 $ 12,110 $ 10,769 ========= ========== ========= ==========
