ProductCenter Double-Digit Revenue Increase;
Continued Debt Repayment and Balance Sheet Improvement
LOWELL, Mass. — (BUSINESS WIRE) — January 15, 2015 — SofTech, Inc. (OTCQB: SOFT), a proven provider of Product Lifecycle Management (PLM) solutions today announced its second quarter fiscal year 2015 operating results. Revenue for the three months ended November 30, 2014 was approximately $1.03 million as compared to approximately $1.41 million for the same period in the prior fiscal year. The net loss for the current quarter was approximately ($379,000) or ($.44) per share compared to net income of approximately $514,000 or $.59 per share for the same period in the prior fiscal year. The prior year included a one-time gain from the sale of the CADRA product line of $649,000.
EBITDA for current quarter was approximately $(139,000) as compared to approximately $3,920,000 for the same period in fiscal year 2014. Nearly all of the EBITDA in the prior fiscal year was generated from the sale of the CADRA product line.
Revenue for the six months ended November 30, 2014 was approximately $1.89 million as compared to approximately $2.79 million for the same period in the prior fiscal year. The net loss for the first six months of the current fiscal year was approximately ($952,000) or ($1.08) per share compared to net income of approximately $248,000 or $.28 per share for the same period in the prior fiscal year. The prior year operating results included a one-time gain from the sale of the CADRA product line of approximately $649,000.
EBITDA for the first six months of the current fiscal year was $(507,000) as compared to approximately $3,786,000 for the same period in fiscal 2014. The EBITDA generated by the sale of the CADRA product line totaled approximately $3,910,000 (gain of $649,000 which included non-cash expenses of $3,261,000) in the six months ended November 30, 2013.
The sale of the CADRA product line was completed on October 18, 2013. Because the Company continued to market and support the technology as a reseller in Europe, the sale did not qualify for presentation as discontinued operations. The decline in revenue and profitability for the three and six month periods ended November 30, 2014 compared to the same periods in the prior fiscal year is directly attributable to the sale of the CADRA product line. The following summarizes total revenue by product line for each of the periods (in thousands, except %):
| For three months ended | |||||||||||||
|
11/30/2014 |
11/30/2013 |
$ | Change | % Change | |||||||||
| ProductCenter | $ | 862 | $ | 731 | $ | 131 | 17.9 | % | |||||
| CADRA | 130 | 637 | (507 | ) | -79.6 | % | |||||||
| Other | 35 | 46 | (11 | ) | -23.9 | % | |||||||
| Total revenue | $ | 1,027 | $ | 1,414 | $ | (387 | ) | -27.4 | % | ||||
| For six months ended | |||||||||||||
|
11/30/2014 |
11/30/2013 |
$ | Change | % Change | |||||||||
| ProductCenter | $ | 1,518 | $ | 1,469 | $ | 49 | 3.3 | % | |||||
| CADRA | 286 | 1,265 | (979 | ) | -77.4 | % | |||||||
| Other | 87 | 56 | 31 | 55.4 | % | ||||||||
| Total revenue | $ | 1,891 | $ | 2,790 | $ | (899 | ) | -32.2 | % | ||||
