SoundBite Communications Reports First Quarter 2013 Financial Results

SoundBite Communications Reports First Quarter 2013 Financial Results

Revenues of $11.3 Million; Mobile Revenues Up 30% Over Prior Year

BEDFORD, Mass., May 9, 2013 (GLOBE NEWSWIRE) -- SoundBite Communications, Inc.
(Nasdaq:SDBT), a provider of customer experience management solutions, today
announced its financial results for the first quarter 2013. First quarter
revenues, computed in accordance with U.S. generally accepted accounting
principles (GAAP), were $11.3 million, an increase of 2% compared to the same
quarter in 2012. GAAP net loss for the first quarter of 2013 was $1.4 million,
or $0.08 per share, versus net loss of $247,000 or $0.02 per share in the
first quarter of 2012.

On a non-GAAP basis, after excluding the effects of amortization of intangible
assets, non-cash stock-based compensation expense, severance expense, a
present value adjustment related to the SmartReply contingent consideration,
and a tax provision, net loss was $417,000 or $0.03 per share in the first
quarter of 2013 compared to a net loss of $431,000 or $0.03 per share in the
same quarter in 2012.

"This was a solid quarter for us on an operational basis. SoundBite executed
well, despite the first quarter being a traditionally seasonally weaker
quarter; with revenue near the mid-point of our guidance range, mobile growing
30% over last year, a dozen new clients and partners starting pilots and
running campaigns on our platforms, and gaining traction in our key
initiatives such as the hosted dialer," stated Jim Milton, president and CEO
of SoundBite Communications.

Milton continued, "By continuing our transformation into Customer Experience
Management and expanding our offerings during 2012 we set a strong foundation
for growth for SoundBite. As we increase our channel partnerships, convert new
client activity into revenue streams, and drive intelligent, value-added
mobile and cross-channel campaigns deeper into our client base during the
first half we believe we will be set to deliver sustainable profitability to
our shareholders in the second half of 2013."

Recent Highlights

  *Announced DecisionPoint, a campaign analytics solution providing
    real-time, actionable business intelligence to improve response rates,
    reduce communications costs, and increase ROI in order to optimize
    customer experience.
  *Announced relationship with Partnership for a Healthier America and Share
    Our Strength for their recent kick off of "Dinner Made Easy", a pilot
    program using SoundBite's mobile offerings to reach families in need to
    deliver educational tips, coupons, surveys and recipes.
  *Expanded its compliance suite with new Contact Controls.This enhancement
    lowers contact center risk, increases ROI, and improves customer
    experience.
  *Signed a new reseller in Spain, Grupo Astel, a contact center network
    specializing in customer relationship management, to resell SoundBite's
    cloud-based offerings.

Quarterly Results

GAAP Results

Gross margin for the first quarter of 2013 was 59.9% versus 60.4% in the first
quarter of 2012. Operating expenses were $8.1 million in the first quarter of
2013 and as a percentage of revenues were 71.7% versus 71.0% in the
year-earlier period.

Operating loss for the first quarter was $1.3 million, compared to a loss of
$1.2 million in the same quarter last year.

Net loss was $1.4 million for the first quarter of 2013 versus a net loss of
$247,000 in the first quarter of 2012.Net loss per share for the first
quarter of 2013 was $0.08, versus $0.02 in the same quarter of 2012.

Non-GAAP Results

First quarter 2013 non-GAAP net loss was $417,000 or $0.03 per share, compared
to a non-GAAP net loss of $431,000 or $0.03 per share for the same period in
2012.Non-GAAP net loss computations exclude amortization expense, stock-based
compensation expense, severance expense, a present value adjustment of the
contingent consideration related to the SmartReply earn-out, a tax provision
and a tax benefit.A reconciliation of GAAP net loss to non-GAAP net loss is
included with the financial tables at the end of this release.

Adjusted EBITDA

Adjusted EBITDA (earnings before interest, taxes, depreciation and
amortization) for the first quarter of 2013 was a loss of $50,000 versus a
loss of $133,000 in the first quarter of 2012.Adjusted EBITDA reflects EBITDA
excluding the effects of stock-based compensation expense, present value
adjustments of the contingent consideration related to the SmartReply earn-out
and severance expense in the first quarter 2013 and 2012.A reconciliation of
net loss to Adjusted EBITDA is included with the financial tables at the end
of this release.

Cash flow from operating activities was $1.6 million.

Second Quarter Guidance

Based on information available as of May 9, 2013, SoundBite is issuing
guidance for the second quarter 2013 as follows:

SoundBite currently projects revenues in the range of $11.1 million to $11.8
million and gross margin in the range of 61% to 62% for the second quarter of
2013.Operating expenses are expected to be approximately $8.2 million.The
projection for GAAP net loss is in the range of $900,000 to $1.4 million and
on a per share basis is a net loss of $0.05 to $0.08 for the second quarter of
2013.

The non-GAAP projections are for a non-GAAP net loss of $200,000 to $700,000,
or $0.01 to $0.04 per share.Non-GAAP estimates exclude the effects of the
amortization of intangible assets of approximately $350,000 associated with
the Company's acquisitions of SmartReply and 2ergo Americas, estimated
stock-based compensation expense of approximately $300,000, and a present
value adjustment of the contingent consideration related to the SmartReply
earn-out of approximately $40,000.On an adjusted basis, SoundBite is
projecting earnings before interest, taxes, depreciation and amortization to
be a loss of $300,000 to income of $200,000.These projections assume a basic
weighted share count of approximately 16.5 million shares for the second
quarter of 2013.SoundBite expects capital expenditures to be approximately
$350,000 and depreciation expense to be approximately $350,000.

Webcast and Teleconference Information

The Company will host a conference call today at 5:00 p.m. ET to discuss its
financial results. A live and archived webcast of the event will be available
at http://ir.soundbite.com/. A live dial-in is available in the U.S. at + 1
866 318 8613 and outside the U.S. at +1 617 399 5132, and using the passcode:
70160445.A replay of the call will be available approximately two hours after
the callcompletes and can be accessed by dialing +1 888 286 8010 in the U.S.
and outside the U.S. at +1 617 801 6888 and entering the passcode: 72127112.

Non-GAAP and Adjusted Measures

To supplement its statements of operations information presented in accordance
with GAAP, SoundBite presents information with respect to non-GAAP net loss,
non-GAAP free cash flow and Adjusted EBITDA.SoundBite has included in this
release reconciliations of GAAP net loss to non-GAAP net loss, and GAAP net
loss to Adjusted EBITDA.SoundBite believes these supplemental measures are
often used by investors as measures of financial performance in evaluating
technology companies such as SoundBite and also believes these financial
measures can enhance investors' overall understanding of SoundBite's
historical financial performance.The presentation of these supplemental
financial measures should not be considered in isolation from, or as a
substitute for, SoundBite's financial results reported in accordance with
GAAP.SoundBite may compute these supplemental financial measures differently
from other companies, which would reduce their usefulness as comparative
measures.

About SoundBite Communications

SoundBite Communications is a customer experience management company with deep
expertise in delivering cloud-based mobile marketing, proactive customer care,
and collections/payments solutions.More than 450 global end-clients,
including nearly 50 Fortune 500 companies, leverage SoundBite's proactive
multi-channel communications and preference management platforms to power 2.5
billion personalized and compliant customer interactions annually across the
full consumer lifecycle.Visit SoundBite.com and follow SoundBite on Twitter
@SoundBiteComm for more information.

Forward-Looking Statement

This is a "safe harbor" statement under the Private Securities Litigation
Reform Act of 1995.The statements made in the third and fourth paragraph
ofthis press release and the statements made under "Second Quarter Guidance"
are forward-looking statements based upon SoundBite's historical performance
and its current plans, estimates and expectations.The inclusion of this
forward-looking information should not be regarded as a representation by
SoundBite, its management or any other person that the future plans, estimates
or expectations contemplated by SoundBite will be achieved.These
forward-looking statements represent SoundBite's expectations as of the date
of this press release.Subsequent events may cause these expectations to
change and SoundBite disclaims any obligation to update the forward-looking
statements in the future.Matters subject to forward-looking statements
involve known and unknown risks and uncertainties, including:slower than
anticipated development of the market for automated voice messaging services;
defects in SoundBite's platform; disruptions in its service or errors in its
execution; discontinued or decreased use of SoundBite's service by its
clients, which are not subject to minimum purchase requirements for any
reason, including market conditions and regulatory developments; and the
occurrence of events adversely affecting the collection agencies industry or
in-house collection departments, which account for a significant portion of
SoundBite's revenues.These and other factors, including the factors set forth
under the caption "Item 1A. Risk Factors" of Part I in SoundBite's most recent
annual report on Form 10-Kfiled with the Securities and Exchange Commission,
could cause SoundBite's performance or achievements to be materially different
from those expressed or implied by the forward-looking statements.

SoundBite is a registered service mark of SoundBite Communications, Inc.

(SDBT: F, G)


SOUNDBITE COMMUNICATIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(in thousands, except share and per share amounts)
                                                     
                                           Three Months Ended
                                           March 31
                                           2013       2012
Revenues                                   $11,254  $11,081
Cost of revenues (1)                        4,515      4,387
Gross profit                               6,739      6,694
Operating expenses:                                   
Research and development (1)                1,888      1,694
Sales and marketing (1)                     4,160      3,869
General and administrative (1)              2,021      2,304
Total operating expenses                   8,069      7,867
Operating loss                              (1,330)    (1,173)
Interest and other (loss) income           (25)       39
Loss before income tax (provision) benefit  (1,355)    (1,134)
Income tax (provision) benefit             (41)       887
Net loss                                    $(1,396) $(247)
                                                     
Net loss per common share:                            
Basic and diluted                          $(0.08)  $(0.02)
Weighted average common shares outstanding:           
Basic and diluted                          16,501,478 16,436,046
                                                     
(1) Amounts include stock-based compensation expense, as follows:
                                                     
                                           Three Months Ended
                                           March 31
                                           2013       2012
                                                     
Cost of revenues                            $10      $11
Research and development                    58         54
Sales and marketing                        76         72
General and administrative                  148        105
                                           $292     $242


SOUNDBITE COMMUNICATIONS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
                                                           
                                             March 31, 2013 December 31, 2012
Assets                                                      
Current assets:                                             
Cash and cash equivalents                     $14,768      $10,119
Short-term investments                        1,398          4,896
Accounts receivable, net of allowance for
doubtful accounts of $89 and $91 atMarch 31, 8,216          10,223
2013 and December 31, 2012, respectively
Prepaid expenses and other current assets     1,138          1,621
Total current assets                          25,520         26,859
Property and equipment, net                   1,944          2,026
Intangible assets, net                        2,335          2,764
Goodwill                                      6,594          6,594
Other assets                                  78             89
Total assets                                  $36,471      $38,332
                                                           
                                                           
Liabilities and Stockholders' Equity                        
Current liabilities:                                        
Accounts payable                              $923         $1,448
Accrued expenses                              4,116          4,464
Other current liabilities                     435            417
Total current liabilities                     5,474          6,329
Non-current liabilities:                                    
Long-term contingent consideration payable    558            535
Other liabilities                             165            97
Total liabilities                             6,197          6,961
                                                           
Stockholders' equity:                                       
Common stock, $0.001 par value—
75,000,000shares authorized; 16,980,707 and
16,972,025 shares issued at March 31, 2013
and December 31, 2012, respectively;          18             17
16,507,039 and 16,498,357 shares outstanding
at March 31, 2013 and December 31, 2012,
respectively
Additional paid-in capital                    72,221         71,923
Treasury stock, at cost—473,668 shares at    (833)          (833)
March 31, 2013 and December 31, 2012
Accumulated other comprehensive loss          (72)           (72)
Accumulated deficit                           (41,060)      (39,664)
Total stockholders' equity                   30,274         31,371
Total liabilities and stockholders' equity   $36,471      $38,332


SOUNDBITE COMMUNICATIONS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
                                                                   
                                                          Three Months Ended
                                                           March 31,
                                                          2013      2012
Cash flows from operating activities:                               
Net loss                                                   $(1,396) $(247)
Adjustments to reconcile net loss to net cash provided by           
operating activities:
Depreciation of property and equipment                     342      337
Amortization of intangible assets                          429      407
Amortization of (discounts) premiums paid on short-term    (2)      5
investments
Adjustment to contingent consideration                    41       54
Stock-based compensation expense                           292      242
Deferred taxes                                             41       (887)
Change in operating assets and liabilities, net of effect           
of acquisition:
Accounts receivable                                        2,007    586
Prepaid expenses and other current assets                  483      56
Other assets                                               11       (15)
Accounts payable                                           (321)    166
Accrued expenses and other liabilities                     (321)    (172)
Net cash provided by operating activities                1,606    532
Cash flows from investing activities:                               
Cash paid related to Mobile Collect acquisition           --      (271)
Cash paid related to 2ergo Americas acquisition, net of    --      (3,773)
cash acquired
Purchases of short-term investments                        --      (2,934)
Sales and maturities of short-term investments             3,500     5,151
Purchases of property and equipment                        (464)     (381)
Net cash provided by (used in) investing activities       3,036     (2,208)
Cash flows from financing activities:                               
Proceeds from exercise of stock options                    7         68
Treasury stock purchases                                   --      (249)
Net cash provided by (used in) financing activities       7         (181)
Net increase (decrease) in cash and cash equivalents      4,649     (1,857)
Cash and cash equivalents, beginning of year               10,119    17,706
Cash and cash equivalents, end of year                     $14,768 $15,849
                                                                   
Supplemental disclosure of cash flow information:                   
Cash paid during the period for income taxes               $5      $6
                                                                   
Supplemental disclosures of non-cash investing activities:          
Property and equipment, included in accounts payable      $115    $--
Contingent cash payment to Mobile Collect, included in     $--    $227
other current liabilities


SOUNDBITE COMMUNICATIONS, INC. AND SUBSIDIARIES
Reconciliation of Net Loss to Adjusted EBITDA
(in thousands)
                                                 
                                       Three Months Ended
                                        March 31,
                                       2013       2012
Net loss                                $(1,396) $(247)
Interest income                         (5)       (17)
Foreign currency exchange loss (gain)   30        (22)
Tax provision (benefit)                41        (887)
Depreciation of property and equipment  342       337
Amortization of intangible assets       429       407
EBITDA                                  $(559)   $(429)
Stock-based compensation expense        292       242
Adjustment to contingent consideration 41        54
Severance expense                       176       --
Adjusted EBITDA                         $(50)    $(133)


SOUNDBITE COMMUNICATIONS, INC. AND SUBSIDIARIES
Reconciliation of GAAP Net Loss to Non-GAAP Net Loss and EPS
(in thousands, except share and per share amounts)
                                                                  
                                                        Three Months Ended
                                                         March 31,
                                                        2013       2012
GAAP net loss                                            $(1,396) $(247)
Stock-based compensation expense                         292       242
Amortization of intangible assets                        429       407
Adjustment to contingent consideration                   41        54
Severance expense                                        176       --
Tax provision (benefit)                                  41        (887)
Non-GAAP net loss                                        $(417)   $(431)
                                                                  
Non-GAAP net loss per common share:                                
Basic and diluted                                       $(0.03)  $(0.03)
                                                                  
Weighted average common shares used in computing                   
Non-GAAP net loss per common share:
Basic and diluted                                       16,501,478 16,436,046

CONTACT: IR & Media Contact:
         Lynn Ricci
         SoundBite Communications
         781-897-2696
         lricci@SoundBite.com

SoundBite Communications
 
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