Ditech Networks, Inc. (NASDAQ: DITC), a leader in voice processing solutions for voice quality enhancement and audio transcription, reported financial results for the three month period ended July 31, 2012.
The financial results for the quarter were as follows:
- Revenues were $3.5 million, down from $5.6 million last quarter and $3.7 million in the corresponding period last year.
- GAAP operating expenses for the quarter were $4.7 million, up from $4.3 million in both the previous quarter and in the corresponding quarter last year.
- Non-GAAP (1) operating expenses were $4.6 million.
- GAAP net loss for the quarter was $3.2 million or $0.12 per share.
- Non-GAAP (1) net loss for the quarter was $3.1 million or $0.12 per share.
A reconciliation of the non-GAAP to GAAP financial measures for the three month periods ended July 31, 2012 and 2011, is included at the end of this press release. These non-GAAP financial measures exclude stock-based compensation expense, expense related to amortization of purchased intangible assets, severance and restructuring costs, and adjustment to tax provision.
Since April 30, 2012, Ditech Networks:
- Increased PhoneTag revenue by approximately $0.1 million, or 5%, over the quarter ended April 30, 2012, and $0.5 million, or 51%, over the first quarter of the prior fiscal year.
- Began migrating PhoneTag voice-to-text processing from an outside service provider to its own server farm, diverting approximately 25% of processing activity to it by the end of the first quarter.
- Implemented an extensive increase in customer trials, primarily with an existing tier 1 customer, expected to result in a significant increase in new subscriber revenue.
- Launched its first carrier in Latin America.
- Realized improvements from development efforts that improved its PhoneTag processing capabilities, including much greater processing capacity while decreasing message turn around time, both of which are expected to contribute towards reduced costs per message.
“I am pleased to announce that our PhoneTag revenue for the first quarter of fiscal 2013 has increased approximately 51% over the first quarter of fiscal 2012,” said Ken Naumann, President and CEO.