Selectica Fourth Quarter and Year-End Financial Results for Fiscal 2013 Show 27% Year-Over-Year Revenue Growth

Selectica Fourth Quarter and Year-End Financial Results for Fiscal 2013 Show 
27% Year-Over-Year Revenue Growth 
$2.3 Million Cash Flow Positive in the 4th Quarter 
SAN MATEO, CA -- (Marketwired) -- 05/02/13 --  Selectica, Inc.
(NASDAQ: SLTC), provider of software that accelerates sales cycles
and streamlines contract processes, today announced financial results
for its fiscal fourth quarter and year ended March 31, 2013.  
"The Selectica story has shifted from one of a turnaround to one of
growth," said Jason Stern, Selectica President and CEO. "All of our
customers over the past two years have opted for our SaaS offering,
which further motivates us to invest in our current vision, already
resonating with our customers and the market as a whole: combining
our industry-leading CPQ and CLM solutions into a single, integrated
CPQC offering." 
"Our strong year-over-year revenue growth is a result of significant
new customer acquisitions combined with high renewal rates from
existing customers," said Todd Spartz, Chief Financial Officer. "As
far as our move to SaaS, the numbers tell the story: this quarter
100% of our liscense transactions were subscription, and we've seen
60-70% growth in our SaaS product offerings overall."  
Financial highlights 
Selectica delivered the following financial results for the fourth
quarter of fiscal 2013: 


 
--  Recurring revenue: Selectica grew recurring revenue from $2.3 million
    in Q4 FY 2012 to $3.1 million in Q4 FY2013, a year-over-year increase
    of 35%.
    
    
--  Billings: Billings for Q4 FY2013 were $6.7 million, compared to $5.4
    million in Q4 FY2012, a 24% increase year-over-year. Billings were
    $4.2 million in Q3 FY2013. The company defines billings, a non-GAAP
    financial measure, as revenue recognized during the period plus the
    change in deferred revenue from the beginning to the end of the
    period. Please refer to the financial tables below for a
    reconciliation of this non-GAAP measure to GAAP.
    
    
--  Deferred revenue: In Q4 FY2013, the company had deferred revenue of
    $7.9 million, an 18% year-over-year increase from Q4 FY2012, when
    deferred revenue was $6.7 million. In Q3 FY2013, deferred revenue was
    $5.5 million.

  
Business highlights 
Business highlights from FY2013 include:  


 
--  Selectica CPQ application on the Salesforce AppExchange: In July 2012,
    Selectica announced the availability of its CPQ offering on the
    salesforce.com AppExchange. The application brings patented Selectica
    configuration technology to the Salesforce interface so that sales
    reps and channel partners can assemble and price deals faster and more
    efficiently.
--  Introduction of Contract Blueprints in Selectica CLM: Also in July,
    Selectica announced the inclusion of Contract Blueprints in its
    flagship contract management solution. Contract Blueprints is
    comprised of a set of pre-configured, best-practice contract types
    that enable users to get started with contract management quickly.
--  Seventh patent for configuration technology: In September, Selectica
    received a seventh patent for its sales configuration technology that
    powers its CPQ solution. This declarative constraint engine enables
    customers to use dynamic components to configure product and service
    offerings from a large number of options.
--  Gold sponsorship at Dreamforce: Selectica attended salesforce.com's
    Dreamforce '12 event held in September 2012 as a gold sponsor.
    Participation in the event resulted in increased interest in Selectica
    CPQ for Salesforce, including new customers using the integrated
    product.
--  Growth in customer base: Selectica ended the year with 130 customers
    in industries such as healthcare, government contracting, financial
    services, high tech, and media and entertainment. New customers
    included global businesses headquartered in APAC and Europe.
--  Executive team additions:Among several key executive team hires,
    Selectica appointed Michael Mothersbaugh as Executive Vice President,
    Worldwide Sales, and David Humphrey as Vice President of Professional
    Services. In their respective roles, Mothersbaugh and Humphrey are
    critical to growing and maintaining the Selectica customer base.

  
Additional results 
Total revenues for Q4 FY2013 were $4.2 million, compared to $3.2
million for Q4 FY2012, a year-over-year increase of 31%. Total
revenues were $4.5 million in Q3 FY2013. 
Net loss for Q4 FY2013 was $2.1 million, or $(0.73) per share,
compared to a net loss of $2.2 million, or $(0.78) per share in Q4
FY2012, and a net loss of $1.1 million, or $(0.37) per share, in Q3
FY2013. 
Complete financial results for Q4 FY2013 can be found in the attached
financial tables. 
About Selectica, Inc.
 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.  
For more information: 


 
--  Visit the Selectica website to learn more about the company and its
    products and customers (http://www.selectica.com)
--  Follow @Selectica_Inc on Twitter to stay up to date with industry news
    and updates (http://twitter.com/Selectica_Inc)
--  Visit "Done Deal," the Selectica blog, to read articles, advice, and
    commentary on how to optimize deal processes
    (http://www.selectica.com/blog)
--  Watch Selectica videos on YouTube to see what Selectica and its
    products can do (http://www.youtube.com/user/SelecticaVideos)
--  Browse the Selectica resource center to find guides and resources on
    how to improve sales and contracting processes
    (http://www.selectica.com/resources)

  
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
achievemen
ts 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   Fiscal Year Ended 
                                     ------------------  ------------------ 
                                       March     March     March     March  
                                        31,       31,       31,       31,   
                                       2013      2012      2013      2012   
                                     --------  --------  --------  -------- 
                                                                            
Revenues:                                                                   
  Recurring revenues                 $  3,123  $  2,337  $ 11,773  $  8,930 
  Non-recurring revenues                1,109       905     5,786     4,857 
                                     --------  --------  --------  -------- 
    Total revenues                      4,232     3,242    17,559    13,787 
                                     --------  --------  --------  -------- 
                                                                            
Cost of revenues:                                                           
  Cost of recurring revenues              779       227     2,006       986 
  Cost of non-recurring revenues        1,360     1,208     5,419     4,567 
                                     --------  --------  --------  -------- 
    Total cost of revenues              2,139     1,435     7,425     5,553 
                                     --------  --------  --------  -------- 
                                                                            
Gross profit:                                                               
  Recurring gross profit                2,344     2,110     9,767     7,944 
  Non-recurring gross profit             (251)     (303)      367       290 
                                     --------  --------  --------  -------- 
    Total gross profit                  2,093     1,807    10,134     8,234 
                                     --------  --------  --------  -------- 
                                                                            
Operating expenses:                                                         
  Research and development                964       886     3,706     3,394 
  Sales and marketing                   1,821     2,135     6,708     6,247 
  General and administrative            1,064       928     3,618     3,767 
  Restructuring costs                     331         -       331         - 
  Fees related to comprehensive                                             
   settlement agreement                     -         -       500       500 
                                     --------  --------  --------  -------- 
    Total operating expenses            4,180     3,949    14,863    13,908 
                                     --------  --------  --------  -------- 
                                                                            
Loss from operations                   (2,087)   (2,142)   (4,729)   (5,674)
                                                                            
Loss on early extinguishment of note                                        
 payable                                    -         -         -      (470)
Interest and other income (expense),                                        
 net                                       (6)      (17)      (20)     (123)
                                     --------  --------  --------  -------- 
                                                                            
Net loss                             $ (2,093) $ (2,159) $ (4,749) $ (6,267)
                                     ========  ========  ========  ======== 
                                                                            
Basic and diluted net loss per share $  (0.73) $  (0.78) $  (1.68) $  (2.25)
                                     ========  ========  ========  ======== 
                                                                            
Reconciliation to non-GAAP net loss:                                        
Net loss                             $ (2,093) $ (2,159) $ (4,749) $ (6,267)
Stock-based compensation expense          429       167     1,128       599 
Restructuring costs                       331         -       331         - 
Loss on early extinguishment of note                                        
 payable                                    -         -         -      (470)
Fees related to comprehensive                                               
 settlement agreement                       -         -       500       500 
                                     --------  --------  --------  -------- 
Non-GAAP net loss                    $ (1,333) $ (1,992) $ (2,790) $ (5,638)
                                     ========  ========  ========  ======== 
                                                                            
                                     --------  --------  --------  -------- 
Non-GAAP basic and diluted net loss                                         
 per share                           $  (0.47) $  (0.72) $  (0.99) $  (2.02)
                                     ========  ========  ========  ======== 
                                                                            
Weighted average shares outstanding                                         
 for basic and diluted net loss per                                         
 share                                  2,852     2,759     2,827     2,787 
                                     ========  ========  ========  ======== 
                                       
                                     
                                                                            
                                                                            
                                                                            
                              SELECTICA, INC.                               
                   Condensed Consolidated Balance Sheets                    
                               (In thousands)                               
                                (Unaudited)                                 
                                                                            
                                                                            
                                                       March 31,  March 31, 
                                                         2013       2012    
                                                      ---------- ---------- 
                                                 
                           
ASSETS                                                                      
Current assets                                                              
  Cash and cash equivalents                           $   12,098 $   15,877 
  Short-term investments                                       -        199 
  Accounts receivable                                      3,455      2,446 
  Prepaid expenses and other current assets                  853        531 
                                                      ---------- ---------- 
    Total current assets                                  16,406     19,053 
                                                                            
Property and equipment, net                                  407        362 
Other assets                                                  39         39 
                                                      ---------- ---------- 
    Total assets                                      $   16,852 $   19,454 
                                                      ========== ========== 
                                                                            
                                                                            
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
Current liabilities                                                         
  Credit facili
ty                                     $    6,000 $    6,000 
  Accounts payable                                         1,010        395 
  Accrued payroll and related liabilities                    982      1,771 
  Accrued restructuring costs                                232          - 
  Other accrued liabilities                                  163         88 
  Deferred revenue                                         6,153      5,394 
                                                      ---------- ---------- 
    Total current liabilities                             14,540     13,648 
                                                      ---------- ---------- 
  Long-term deferred revenue                               1,772      1,327 
  Other long-term liabilities                                 20         41%
                                                      ---------- ---------- 
    Total liabilities                                     16,332     15,016 
                                                      ---------- ---------- 
                                                                            
Stockholders' equity                                         520      4,438 
                                                      ---------- ---------- 
    Total liabilities and stockholders' equity        $   16,852 $   19,454 
                                                      =====
===== ========== 
                                                                            
                                                                            
                                                                            
                                                                            
                              SELECTICA, INC.                               
              Condensed Consolidated Statements of Cash Flows               
                               (In thousands)                               
                                (Unaudited)                                 
                                                                            
                                                                            
                                                         Fiscal Year Ended  
                                                       -------------------- 
                                                       March 31,  March 31, 
                                                          2013       2012   
                                                       ---------  --------- 
                                                                            
Operating activities                                                        
Net loss                                               $  (4,749) $  (6,267)
Adjustments to reconcile net loss to net cash used in                       
 operating activities:                                                      
Depreciation                                                 214        261 
Loss on disposition of property and equipment                  -         13 
Stock-based compensation expense                           1,128        599 
Changes in assets and liabilities:                                          
  Accounts receivable (net)                               (1,009)       249 
  Prepaid expenses and other current assets                 (322)       (81)
  Other assets                                                 -        (39)
  Accounts payable                                           615       (418)
  Restructuring liability                                    232          - 
  Accrued payroll and related liabilities                   (788)     1,322 
  Other accrued liabilities and long term liabilities         54         31 
  Deferred revenue                                         1,204      2,401 
                                                       ---------  --------- 
Net cash used in operating activities                  $  (3,421) $  (1,929)
                                                                            
Investing activities                                                        
  Purchase of capital assets                                (259)      (215)
  Proceeds from disposition of property and equipment          -          2 
  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    $     (60) $    (213)
                                                                            
Financing activities                                                        
  Payments on note payable to Versata                          -     (4,268)
  Purchase of treasury shares                                  -       (472)
  Borrowings under credit facility, net                        -      6,000 
  Repurchases of common stock, net of issuance              (298)       (63)
                                                       ---------  --------- 
Net cash (used in) provided by financing activities    $    (298) $   1,197 
                                                                            
Net decrease in cash and cash equivalents                 (3,779)      (945)
Cash and cash equivalents at beginning of the period      15,877     16,822 
                                                       ---------  --------- 
Cash and cash equivalents at end of the period         $  12,098  $  15,877 
                                                       =========  ========= 
                                                                            
                                                                            
                                                                            
                                                                            
                               SELECTICA, INC.                              
                           Billings Reconciliation                          
                               (In thousands)                               
                                 (Unaudited)                                
                                                                            
                                                                            
                                      Three Months Ended  Fiscal Year Ended 
                                     ------------------- -------------------
                                     March 31, March 31, March 31, March 31,
                                        2013      2012      2013      2012  
                                     --------- --------- --------- ---------
                                                                            
Total revenues                       $   4,232 $   3,242 $  17,559 $  13,787
Deferred revenue:                                                           
End of period                            7,925     6,721     7,925     6,721
Beginning of period                      5,504     4,544     6,721     4,320
                                     --------- --------- --------- ---------
Change in deferred revenue               2,421     2,177     1,204     2,401
                                     --------- --------- --------- ---------
Total billings (total revenues plus                                         
 the change in deferred revenue)     $   6,653 $   5,419 $  18,763 $  16,188
                                     ========= ========= ========= =========

  
Media contacts
Kimberly Canedo
Tanis Communications
(408) 295-4309 x104
kimberly.canedo@taniscomm.com 
Jordan McMahon
Selectica
(650) 532-1520
pr@selectica.com 
Investor contact 
Todd Spartz
Selectica
(650) 532-1540
ir@selectica.com 
 
 
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