Sonic Foundry Reports Second Consecutive Quarter Of Record Billings And Revenue

Sonic Foundry, Inc. (NASDAQ: SOFO), the trusted leader for video creation and management solutions, today announced financial results for its fiscal 2014 third quarter ended June 30, 2014, including results for the recently completed acquisitions of Mediasite KK and MediaMission BV.

Revenues showed significant improvement over third quarter 2013, increasing 41% or $11.3 million in 2014, up from $8.0 million recorded last year. This reflects the impact of acquisitions and large customer deployments, including University of Leeds in Great Britain. Gross margin rates were similar to last year despite recognition of lower-priced, high-volume transactions. Below are selected GAAP financial highlights:
  Consolidated     Sonic Foundry Only
Quarter Ended June 30,     Quarter Ended June 30,    
    Percent     Percent

2014

2013

Change

2014

2013

Change
Revenue:
Total $11.3M $8.0M 41 % $10.0M $8.0M 25 %
Product and other 6.2M 4.2M 46 5.9M 4.2M 39
Service 5.1M 3.8M 35 4.2M 3.8M 10
Support and maintenance

2.2M

2.0M

10

2.1M

2.0M

5
Event services 2.9M 1.8M 63 2.0M 1.8M 16
Gross margin 7.8M or 69% 5.6M or 70% 6.9M or 69% 5.6M or 70%
Net income 33K 40K 260K 40K
Net income / share .01 .01 .06 .01
Cash 3.9M 458K
Unearned revenue 9.3M 8.8M 8.3M 8.8M
 

Below are selected Non-GAAP highlights:
  Consolidated     Sonic Foundry Only
Quarter Ended June 30,     Quarter Ended June 30,    
    Percent     Percent

2014

2013

Change

2014

2013

Change
Billings:
Total $11.7M $8.5M 38 % $10.1M $8.5M 19 %
Product and other 5.7M 4.4M 30 5.4M 4.4M 23
Service 6.0M 4.1M 46 4.8M 4.1M 15
Support and maintenance

3.0M

2.5M

18

2.6M

2.5M

2
Event services 3.1M 1.6M 91 2.2M 1.6M 36
Non-GAAP

Net income
857K 1.0M 903K 1.0M
Net income / share .20 .26 .21 .26
 

Non-GAAP net income primarily excludes all non-cash related expenses of stock compensation, one –time acquisition costs, one-time patent charges, net step up gain on investment in MSKK, depreciation and amortization, provision for income taxes and includes the cash impact of billings not recognized as revenue. Reconciliation between GAAP and non-GAAP results is provided at the end of this press release.

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