2009 Fiscal Year
-- Revenue totaled $18.6 million compared to $15.6 million in 2008
-- Billings totaled $19.2 million compared to $16.9 million in 2008
-- Gross margin was 77 percent, up from 73 percent in fiscal year 2008
-- Operating expenses were reduced 13 percent from $19.3 million to $16.7
million
-- Services revenue increased 25 percent
-- Cash used in operating activities decreased 62 percent from $3.9 million
in fiscal year 2008 to $1.5 million in fiscal year 2009
-- GAAP net loss was $(2.6) million or $(0.74) per diluted share compared
to a revised loss of $(8.1) million or $(2.28) per diluted share in 2008
-- Non-GAAP net loss was $(693) thousand or $(0.19) per diluted share
compared to non-GAAP net loss of $(4.6) million or $(1.29) per diluted
share in fiscal year 2008
Fourth Quarter
-- Revenue was $4.1 million, up two percent from 2008 fiscal fourth quarter
-- Billings totaled $4.7 million compared to $5.3 million in the fourth
quarter of 2008
-- GAAP net loss was $(1.1) million or $(0.30) per diluted share compared
to a revised loss of $(1.5) million or $(0.42) per diluted share in the
fourth quarter of 2008
-- Non-GAAP net loss was ($0.1) million or $(0.04) per diluted share
compared to non-GAAP net income of $0.3 million or $0.08 per diluted
share
-- Deferred revenue balance was $5.3 million compared to $4.7 million at
June 30, 2009, and $4.7 million at September 30, 2008, partly due to
increase in webcasting events and other services
-- Services revenue was $2.1 million, up 20 percent from fiscal fourth
quarter of 2008
Non-GAAP net income primarily excludes all non-cash related expenses of stock compensation, depreciation, amortization, provision for income taxes and the cash impact of personnel and program reductions and billings not recognized as revenue. Reconciliation between GAAP and non-GAAP results is provided at the end of this press release.
In fiscal 2009, the company recorded a non-cash deferred tax liability related to goodwill acquired in 2001 and made corresponding revisions to 2008 results. The net impact was to record a $142 thousand non-cash provision for taxes and an increase to a long-term deferred tax liability of $142 thousand in fiscal 2009 and to record a $256 thousand non-cash provision for taxes in fiscal 2008 as well as the accumulated impact of prior period amortization of goodwill. This liability had historically been presented net of deferred tax assets and associated valuation allowances. Management determined that due to the nature of the deferred tax liability and future growth of such non-cash liability it was more prudent to present separately. Fiscal 2008 numbers have been revised to match this presentation.
On November 16, 2009, the company completed a one-for-ten reverse stock split of its common stock. The net effect was to reduce the number of common shares outstanding from approximately 36,069,000 to 3,606,900. Fiscal 2009 and prior period share and per share amounts have been adjusted to reflect the split for comparative purposes.
The company increased the balance of unearned revenue by $611 thousand or 13 percent year over year to its current end of year level of $5.3 million. Of the unearned revenue balance, the company expects to realize $2.2 million in the quarter ending December 31, 2009.
Total services revenue was $8.8 million for fiscal 2009, an increase of 25 percent from fiscal 2008. Services revenue includes Mediasite customer support contracts, as well as training, installation, rental, event and content hosting services. The increase was primarily due to event and content hosting services plus support contracts on new Mediasite Recorders and recurring renewals of support contracts entered into previous years.
The expense reductions and cost control initiated in January 2008 and continued throughout fiscal 2009 resulted in quarter over quarter EPS improvement for the seventh consecutive reporting period.
U.S. higher education purchasing decreased year over year as both public and private institutions struggled with state budget deficits and mandates. Billings to higher education customers totaled 61 percent of total billings for fiscal 2009.
Corporate sector sales appear to be recovering from the recession with sales roughly flat compared to fiscal 2008. However, international sales remained strong with approximately 27 percent of the year's billings, compared to 14 percent in fiscal 2008.
"While the last year or two have been quite challenging, due primarily to extraordinary economic conditions, we managed to grow our business during a period when overall IT spending decreased," said Rimas Buinevicius, chairman and CEO of Sonic Foundry. "Furthermore, we are beginning to see signs of economic recovery, and specifically, certain signals for expanded growth in mid-2010 as they relate to the Mediasite product and service offering. Correspondingly, our recent prospecting has resulted in additions to our sales pipeline that, if consummated, would dwarf most of the previous sales made by the company to date. These opportunities have been harvested both domestically and internationally and in different vertical segments of our customer base, most of it occurring in the last few months. Based on the expected timing of these new opportunities, mid-2010 may mark a significant turning point for the company, which could substantially expand operating performance, especially given the cost reductions and operating leverage now in place."
Highlights of fiscal year 2009 include:
-- Further product development and enhancements including integration with
Moodle and the introduction of Mediasite 5.1 and 5.2, which introduced
new Mediasite Players, embeddable Mediasite content and the Mediasite
Recorder Control Center
-- Webcasting high-profile conferences, events and product launches for
Fortune 1000 companies and major brands including Autodesk, Fiserv,
OfficeMax, Research In Motion (RIM) and T-Mobile.
-- New higher education customer acquisitions including Duke University
Pratt School of Engineering, Johns Hopkins University Schools of Nursing
and Biotechnology, King Abdullah University of Science and Technology,
Tecnologico de Monterrey - School of Medicine, Temple University Fox
School of Business, University of Denver - Sturm College of Law,
University of Florida Radiology, University of Iowa College of Business
Administration, University of Michigan School of Social Work, University
of New Mexico Health Science Center and Center for Long Term Ecological
Research, University of Washington School of Medicine, UCLA School of
Public Health, Vanderbilt University, Villanova University School of
Business and Virtual University of Tunis
-- Numerous awards and analyst recognition including Frost & Sullivan's
World Market Leadership Award, positioned as Market Leader for Distance
Education and e-Learning by Wainhouse Research, plus Best Presentation
Tool by Best of Elearning!, Best Webcasting Platform in the Streaming
Media Magazine Readers' Choice for the third consecutive year as well as
in the inaugural Streaming Media European Readers' Choice, the only
United States based company to receive an award
