Software and services revenue increase 46 percent
AUSTIN, Texas, Dec. 17 /PRNewswire-FirstCall/ -- Asure Software
(Nasdaq: ASUR) today announced results for the 2008 fiscal first quarter ended
October 31, 2007. Highlights for the quarter include:
* Software and service revenues increased by $0.6 million, or 46
percent, to $1.9 million.
* Completed iEmployee workforce management software acquisition.
* iEmployee added $0.3 million to the increase in revenues.
* Gross margin as a percent of revenues increased to 82 percent.
"We are progressing with the integration of iEmployee, which has
strategically positioned the Company within the rapidly growing workforce
management industry. The combination of iEmployee and NetSimplicity provides
a broad range of tools enabling a business to optimize their workforce which
is so important in a competitive environment. Our offerings target the small,
medium business utilizing an attractive software as a service delivery model,"
said Richard N. Snyder, Chairman and Chief Executive Officer of Asure
Software.
Software and Services Business
Software and services revenue for the three months ended October 31, 2007
were $1.9 million, an increase of $0.6 million, or 46 percent, from the $1.3
million reported for the three months ended July 31, 2007. Revenues include
sales of the NetSimplicity scheduling and asset management software, including
Meeting Room Manager ("MRM"), Visual Asset Manager ("VAM"), and sales of the
Company's iEmployee workforce management software. Also included in these
revenues are software maintenance and support services and professional
services. Software and services revenue increased $0.9 million or 95% from
the three months ended October 31, 2006 to the three months ended October 31,
2007.
Gross Margin
Software and services gross margin for the 2008 fiscal first quarter was
$1.5 million, an increase of $0.5 million or 51 percent, versus $1.0 million
achieved for the 2007 fiscal fourth quarter. Software and services gross
margins increased $0.9 million or 137% from the three months ended October 31,
2006 to the three months ended October 31, 2007.
Selling, General and Administrative
Total selling, general and administrative expenses for the three months
ended October 31, 2007, were $2.8 million, a decrease of $0.4 million, or 13
percent, from the 2007 fiscal fourth quarter. This is primarily due to a
reduction in Intellectual Property segment related operating expenses.
Net (Loss) Income
The Company reported a net loss of ($0.9 million), or ($0.03) per share,
during the three months ended October 31, 2007.
Outlook
The Company continues to fully integrate the iEmployee operations, develop
its sales force to increase sales performance, and release new software
updates. Management believes its software and services revenues will continue
to increase. Gross margins from the segment are expected to improve during the
next fiscal quarter. Management will continue to evaluate additional
operational synergies from the iEmployee acquisition and further extend its
market reach both domestically and in the international markets.
The Company did not have any intellectual property licensing revenues for
the three months ended October 31, 2007. Management does not anticipate any
additional licensing revenues from the patents which have generated such
revenues in prior fiscal years. Although the Company continues to explore its
patent portfolio for additional opportunities, management can give no
assurance of future licensing revenues and believes any revenues to be
generated from the Company's remaining patent portfolio may be less than those
generated historically.
Conference Call and Webcast
Asure Software has scheduled a conference call with the investment
community for Tuesday December 18, 2007, at 10:00 a.m. CT (11:00 a.m. ET) to
discuss the quarter and outlook. To take part in the call, please dial
800-593-9038 ten minutes before the conference call begins, ask for the Asure
Software event, and use pass code 324972. International callers should dial
334-323-7224 and reference the same pass code. Investors, analysts, media and
the general public will also have the opportunity to listen to the conference
call over the Internet by visiting the investor relations page of Asure's web
site at http://www.asuresoftware.com. To listen to the live call, please visit
the web site at least 15 minutes early to register, download and install any
necessary audio software. For those who cannot listen to the live broadcast,
a replay will be available shortly after the call on the investor relation's
page of our web site at http://www.asuresoftware.com.
About Asure Software
Headquartered in Austin, Texas, Asure Software (ASUR), (a d/b/a of Forgent
Networks, Inc.), empowers small to mid-size organizations and divisions of
large enterprises to operate more efficiently, increase worker productivity
and reduce costs through a suite of on-demand workforce management software
and services. Asure's market-leading products include workforce time and
attendance tracking, benefits enrollment and tracking, pay stubs and W2
documentation, expense management, meeting room management, and asset
tracking. With additional offices in Seekonk, Mass., Vancouver, British
Columbia, and Mumbai, India, Asure serves 3,500 customers around the world.
For more information, please visit http://www.asuresoftware.com.
Safe Harbor
"Safe Harbor" Statement under the Private Securities Litigation Reform Act
of 1995:
Statements in this press release regarding Forgent's business which are
not historical facts are "forward-looking statements" that involve risks and
uncertainties. For a discussion of such risks and uncertainties, which could
cause actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for
the most recently ended fiscal year.
Please see the attached for complete financial information.
FORGENT NETWORKS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
OCTOBER 31, JULY 31,
2007 2007
(UNAUDITED)
ASSETS
Current Assets:
Cash and equivalents $15,925 $33,524
Short-term investments 3,551 1,538
Accounts receivable, net of allowance for
doubtful accounts of $56 and $21 at
October 31, 2007 and July 31, 2007,
respectively 1,476 1,040
Prepaid expenses and other current assets 285 211
Total Current Assets 21,237 36,313
Property and equipment, net 1,108 767
Goodwill 6,993 --
Intangible assets, net 5,161 --
Other assets 129 212
$34,628 $37,292
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $4,058 $10,970
Accrued compensation and benefits 586 557
Other accrued liabilities 778 855
Deferred revenue 1,392 1,076
Total Current Liabilities 6,814 13,458
Long-Term Liabilities:
Deferred revenue 33 28
Other long-term obligations 1,060 1,186
Total Long-Term Liabilities 1,093 1,214
Stockholders' Equity:
Preferred stock, $.01 par value; 10,000 shares
authorized; none issued or outstanding -- --
Common stock, $.01 par value; 40,000 shares
authorized; 32,487 and 27,388 shares issued;
30,697 and 25,598 shares outstanding at
October 31, 2007 and July 31, 2007, respectively 325 274
Treasury stock at cost, 1,790 shares at
October 31, 2007 and July 31, 2007 (4,815) (4,815)
Additional paid-in capital 270,590 265,647
Accumulated deficit (239,424) (238,506)
Accumulated other comprehensive income 45 20
Total Stockholders' Equity 26,721 22,620
$34,628 $37,292
FORGENT NETWORKS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except per share data)
FOR THE THREE MONTHS ENDED
OCTOBER 31,
2007 2006
(UNAUDITED)
REVENUES:
Software & service $1,875 $962
Intellectual property licensing -- 8,134
Total Revenues 1,875 9,096
COST OF SALES:
Software & service 330 310
Intellectual property licensing -- 3,540
Total Cost of Sales 330 3,850
GROSS MARGIN 1,545 5,246
OPERATING EXPENSES:
Selling, general and administrative 2,440 2,500
Research and development 291 116
Amortization of intangible assets 36 4
Total Operating Expenses 2,767 2,620
(LOSS) INCOME FROM OPERATIONS (1,222) 2,626
OTHER INCOME AND (EXPENSES):
Interest income 338 155
Interest expense and other (20) (32)
Total Other Income and (Expenses) 318 123
(LOSS) INCOME FROM OPERATIONS, BEFORE INCOME TAXES (904) 2,749
Provision for income taxes (14) --
NET (LOSS) INCOME $(918) $2,749
BASIC AND DILUTED (LOSS) INCOME PER SHARE:
Net (loss) income per share
- basic and diluted $(0.03) $0.11
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 27,094 25,381
Diluted 27,094 25,522
SOURCE Asure Software
Media, Susan Tull of Asure Software, +1-512-577-2956,
susan_tull@asuresoftware.com; or Investor, Hala Elsherbini, +1-972-458-8000,
hala@halliburtonir.com, for Asure Software
