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Park City Group Reports Fourth Quarter And Full Year 2012 Results

Stocks in this article: PCYG

Successfully Completes 3-year Transition From License to Software-as-a-Service Model

Reports Record Annual Subscription Revenue

  • 4Q12 record subscription revenue of $1.9 million, an 11% increase year over year
  • Fiscal 2012 record annual subscription revenue of $7.0 million, a 7% increase year over year
  • 4Q12 free cash flow of $270,000
  • Fiscal 2012 free cash flow of $769,000
  • 4Q12 GAAP EPS ($0.02), versus ($0.00) during 4Q11
  • Fiscal 2012 GAAP loss per share ($0.14), versus ($0.09) during Fiscal 2011
  • 4Q12 non-GAAP EPS of $0.01, versus EPS of $0.03 during 4Q11
  • Fiscal 2012 non-GAAP loss per share of ($0.00), versus EPS of $0.07 during Fiscal 2011
  • First major win in new retail vertical market
  • Food safety partnership begins major implementations with the first retailer and supplier

PARK CITY, Utah, Sept. 25, 2012 (GLOBE NEWSWIRE) -- Park City Group (NYSE Amex:PCYG), a Software-as-a-Service (SaaS) provider of unique supply chain solutions for retailers and their suppliers, today announced results for its fiscal fourth quarter and fiscal year ended June 30, 2012.

"2012 marked the successful completion of our three-year plan to transform the company from a license to a subscription revenue model. During the process we were successful in doubling the size of the business, shifting the mix of subscription revenue from 6% to 70% of total revenue, organically growing subscription revenue by nearly 40%, and at the same time reducing debt by nearly 70%," said Randall K. Fields, Park City Group's Chairman and CEO. "During that same period, we proved our ability to add new retailers "hubs" and suppliers "spokes" to our network, put in place the infrastructure to support rapid growth in connections between suppliers and retailers, and sell additional services to both suppliers and retailers in our network. With that process in our rear view mirror we are well positioned and will now accelerate the pace of growth."

2012 Accomplishments

New Retail Vertical Market – During 2012, the Company made an agreement with one of a leading drug store chains in the U.S., marking its first retail customer outside of the grocery industry. "This, along with several other initiatives, demonstrates the value proposition of our technology in other new markets," said Mr. Fields.

Growth of End-to-end Supply Chain Services – The Company announced that it is implementing additional supply chain management point solutions with a number of existing retail and supplier customers. "This year we have proven our ability to transition from a supplier of a diagnostic tool to a strategic partner offering end-to-end supply chain management solutions that can not only diagnose problems within customer supply chains, but also provide solutions to fix those problems," Mr. Fields said.

Food Safety – The Company announced that its Food & Drug Safety partnership with Leavitt Partners has begun its first two implementations of the ReposiTrak™ track and trace solution. "We believe that there is a very large addressable market for this solution and are excited about our initial engagements and the response we have received. We expect this partnership will also fuel the growth of our supply chain management solutions, as many of our launch customers for ReposiTrak™ have led to follow-on conversations about our other end-to-end solutions," said Mr. Fields.

Revenue

Subscription revenue during the fourth quarter increased 11% to $1.9 million, reflecting growth in sales to new and existing customers. Primarily related to the Company's strategic shift to a subscription revenue model, total revenue and other revenue declined 17%, and 56% respectively. "As anticipated, subscription revenue growth accelerated during the fourth quarter. In addition, we finalized agreements with large retail hubs that should allow for further acceleration in the coming quarters. With our transition to a subscription model complete, we believe license related revenue will stabilize at its current level of approximately 30% of sales," said Mr. Fields.

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