NewswireToday - /newswire/ -
Mountain View, CA, United States, 2006/05/02 - SumTotal™ Systems, Inc., the largest provider of talent, learning and business performance technologies and services, announced its financial results for the first quarter ended March 31, 2006. NASDAQ: SUMT
On a Generally Accepted Accounting Principles (“GAAP”) basis, total revenue for the first quarter of 2006 was $24.3 million, an increase of 45% from the $16.7 million reported in the first quarter of 2005. License revenue was $7.3 million in the first quarter of 2006, an increase of 31% from $5.5 million in the same quarter one year ago. Net loss, on a GAAP basis, for the first quarter of 2006 was $4.4 million, or $0.18 per share on both a basic and diluted basis, compared to a net loss of $2.6 million, or $0.13 per share in the same quarter one year ago.
On a non-GAAP basis, in the first quarter of 2006, revenue increased by 55% to $26.3 million from non-GAAP revenue of $17.0 million as reported for the first quarter of 2005. License revenue was $8.3 million on a non-GAAP basis, an increase of 47% from $5.6 million in the same quarter one year ago. Non-GAAP net income for the first quarter was $0.9 million, or $0.04 per share on both a basic and diluted basis, compared to a net loss of $0.7 million, or $0.04 per share on both a basic and diluted basis for the first quarter a year ago.
Deferred revenue on a GAAP basis at the end of the first quarter increased 40% year over year to end the quarter at $26.4 million, compared to $18.8 million for the same quarter of the previous year.
Non-GAAP results exclude the impact of certain non-cash accounting adjustments and one-time charges primarily related to acquisition accounting. These are described in more detail in the attached exhibits.
“The first quarter of 2006 was a solid start to what we believe will be an exciting year for SumTotal,” said Donald Fowler, SumTotal’s chief executive officer. “During the quarter, we continued to execute on our plan, focusing on growing license and service revenue with new marquee customers and channels, while leveraging our installed base. Our focus on growing our recurring revenue base is also paying dividends with over 45% of our revenue in the first quarter coming from this stream. This improves the predictability of our business and provides a strong foundation for solid growth. With our current level of momentum and footprint in the learning management market, we are well positioned to expand our talent management offering and capture additional market opportunities.”
• Released the newest version of its award-winning enterprise software suite, SumTotal 7.2. The new platform will enable employers to manage talent, learning and performance across their workforces.
• Signed a $13 million contract, the largest in SumTotal's history, to deliver learning and performance management software and services over eight years to the first customer under SumTotal's partnership with ExcellerateHRO, the jointly owned human resources outsourcing business of EDS and Towers Perrin.
• Named the top provider of training and development outsourcing by HRO Today Magazine.
• Promoted David Crussell to chief operating officer to drive the next level of growth and customer success in the company’s core learning market.
• Resolved patent dispute with IpLearn, LLC, releasing SumTotal from all claims related to the pending litigation.
• Added new customer wins in North America including Charles Schwab, Wegmans Food Markets, Petco, Quicken Loans and MultiCare Health Systems.
• Expanded its international presence with new marquee customers, including DHL Mexico, Kuwait News Agency, ICICI Bank Limited and Tarsus Representaciones.
For the second quarter of 2006, SumTotal Systems estimates its GAAP revenue will be between $23.6 million and $25.6 million. On a non-GAAP basis, revenue is estimated to be between $25 million and $27 million. GAAP net loss is estimated between $3.1 million, or $0.12 per share, and $2.1 million, or $0.08 per share. On a non-GAAP basis, net income is estimated to be between $1.5 million, or $0.06 per share, and $2.5 million, or $0.10 per share. The reconciling items between GAAP and non-GAAP income (loss) are estimated to be a $1.4 million adjustment to revenue, $2.2 million amortization of intangibles and $1.0 million for stock-based compensation.
SumTotal will host an investor conference call and webcast on Tuesday, May 2, 2006, at 2:00 pm. (Pacific Time) / 5:00 pm. (Eastern Time) to discuss the financial results for the first quarter ended March 31, 2006. Details can be had from SumTotal Systems website.
In addition to the webcast, a telephone replay will be available on Tuesday, May 2, 2006, beginning at approximately 5:00 pm. (Pacific Time) through the close of business (Pacific Time) on Tuesday, May 9, 2006. Investors and other interested parties can access the replay by dialing the U.S. toll-free number: 800-405-2236, access code: 11058409. The international dial-in number is +1 303-590-3000, access code: 11058409.