Exhibit 99.1
Determine Announces 3rd Quarter Fiscal 2016 Financial Results
Company delivers strong bookings growth and profitable professional services.
SAN MATEO, CA – February 10, 2016 –Determine, Inc. – (NASDAQ: DTRM), a leading global provider of SaaS enterprise contract lifecycle management, strategic sourcing, supplier management, and procure-to-pay solutions, announced its Q3 FY2016 financial results.
Q3 FY2016 GAAP Financial Highlights:
| | ● | GAAP revenue for Q3 FY2016 was $7.1 million, compared to $6.0 million in Q3 FY2015, representing 19% year-over-year growth, and compared to $6.8 million in Q2 FY2016 GAAP revenue, representing a 5% quarter-over-quarter increase. |
| | ● | GAAP gross profit percentage was 52% in Q3 FY2016, compared to 48% in Q3 FY2015, and compared to 52% in Q2 FY2016. |
| | ● | GAAP net loss was ($3.1) million or ($0.28) per share in Q3 FY2016, compared to ($3.8) million or ($0.49) per share in Q3 FY2015, representing a $0.21 year-over-year improvement per share; in Q2 FY2016 the GAAP net loss was ($3.4) million or ($0.32) a $0.04 quarter-over-quarter improvement per share. |
| | (in thousands, except per share amounts) |
GAAP Financial Measures | | Q3 | | | Q2 | | | Q3 | | | Change | | | Change | | | Nine Months | |
| | | FY 2016 | | | FY 2016 | | | FY 2015 | | | Q/Q | | | Y/Y | | | FY 2016 | | | FY 2015 | | | Change Y/Y | |
Revenue - total | | $ | 7,100 | | | $ | 6,765 | | | $ | 5,984 | | | | 4.9 | % | | | 18.7 | % | | $ | 20,080 | | | $ | 14,949 | | | | 34.3 | % |
Revenue - recurring | | $ | 5,354 | | | $ | 5,413 | | | $ | 4,664 | | | | (1.1 | %) | | | 14.8 | % | | $ | 15,862 | | | $ | 11,396 | | | | 39.2 | % |
Revenue - non-recurring | | $ | 1,746 | | | $ | 1,352 | | | $ | 1,320 | | | | 29.1 | % | | | 32.3 | % | | $ | 4,218 | | | $ | 3,553 | | | | 18.7 | % |
Gross profit - total | | $ | 3,682 | | | $ | 3,505 | | | $ | 2,901 | | | | 5.0 | % | | | 26.9 | % | | $ | 10,494 | | | $ | 5,615 | | | | 86.9 | % |
Gross profit - recurring | | $ | 3,538 | | | $ | 3,656 | | | $ | 3,372 | | | | (3.2 | %) | | | 4.9 | % | | $ | 10,859 | | | $ | 7,660 | | | | 41.8 | % |
Gross profit/ (loss) - non-recurring | | $ | 144 | | | $ | (151 | ) | | $ | (471 | ) | | nm | | | nm | | | $ | (365 | ) | | $ | (2,045 | ) | | | (82.1 | %) |
Gross margin - total | | | 51.9 | % | | | 51.8 | % | | | 48.5 | % | | 0.1 pts | | | 3.4 pts | | | | 52.3 | % | | | 37.6 | % | | 14.7 pts | |
Gross margin - recurring | | | 66.1 | % | | | 67.5 | % | | | 72.3 | % | | (1.4 pts) | | | (6.2 pts) | | | | 68.5 | % | | | 67.2 | % | | 1.3 pts | |
Gross margin - non recurring | | | 8.2 | % | | | (11.2 | %) | | | (35.7 | %) | | 19.4 pts | | | 43.9 pts | | | | (8.7 | %) | | | (57.6 | %) | | 48.9 pts | |
Net loss | | $ | (3,115 | ) | | $ | (3,425 | ) | | $ | (3,842 | ) | | | (9.1 | %) | | | (18.9 | %) | | $ | (9,483 | ) | | $ | (9,478 | ) | | | 0.0 | % |
EPS | | $ | (0.28 | ) | | $ | (0.32 | ) | | $ | (0.49 | ) | | $ | 0.04 | | | $ | 0.21 | | | $ | (0.93 | ) | | $ | (1.35 | ) | | $ | 0.42 | |
Q3 FY2016 Non-GAAP Financial Highlights:
| | ● | New ARR bookings were $1.44 million in Q3 FY2016, compared to $0.88 million in Q3 FY 2015, representing a 64% year-over-year increase, and compared to $1.04M in Q2 FY 2016, representing a 39% quarter-over-quarter increase. |
| | ● | Non-GAAP revenue was $7.2 million in Q3 FY2016, compared to $6.3 million in Q3 FY2015, representing a 14% year-over-year increase, and compared to $6.8 million in Q2 FY2016, representing a 5% quarter-over-quarter increase. |
| | ● | Non-GAAP gross profit percentage was 58% in Q3 FY2016, compared to 56% in Q3 FY2015, and compared to 58% in Q2 FY2016. |
| | ● | Non-GAAP net loss was ($1.56) million or ($0.14) per share in Q3 FY2016, compared to ($2.13) million or ($0.27) per share in Q3 FY2015, a $0.13 year-over year improvement per share, compared to ($1.56) million or ($0.15) per share in Q2 FY2016, representing a $0.01 quarter-over-quarter improvement per share. |
| | (in thousands, except per share amounts) |
Non-GAAP Financial Measures | | Q3 | | | Q2 | | | Q3 | | | Change | | | Change | | | Nine Months | |
| | | FY 2016 | | | FY 2016 | | | FY 2015 | | | Q/Q | | | Y/Y | | | FY 2016 | | | FY 2015 | | | Change Y/Y | |
Revenue - total | | $ | 7,187 | | | $ | 6,843 | | | $ | 6,316 | | | | 5.0 | % | | | 13.8 | % | | $ | 20,309 | | | $ | 16,244 | | | | 25.0 | % |
Revenue - recurring | | $ | 5,400 | | | $ | 5,463 | | | $ | 4,988 | | | | (1.1% | ) | | | 8.3 | % | | $ | 16,022 | | | $ | 12,437 | | | | 28.8 | % |
Revenue - non-recurring | | $ | 1,787 | | | $ | 1,380 | | | $ | 1,328 | | | | 29.5 | % | | | 34.6 | % | | $ | 4,287 | | | $ | 3,807 | | | | 12.6 | % |
Gross profit - total | | $ | 4,135 | | | $ | 3,934 | | | $ | 3,514 | | | | 5.1 | % | | | 17.7 | % | | $ | 8,069 | | | $ | 7,630 | | | | 5.7 | % |
Gross profit - recurring | | $ | 3,859 | | | $ | 3,963 | | | $ | 3,877 | | | | (2.6% | ) | | | (0.5% | ) | | $ | 7,822 | | | $ | 9,084 | | | | (13.9% | ) |
Gross profit/( loss) - non-recurring | | $ | 276 | | | $ | (29 | ) | | $ | (363 | ) | | nm | | | nm | | | $ | 247 | | | $ | (1,454 | ) | | nm | |
Gross margin - total | | | 57.5 | % | | | 57.5 | % | | | 55.6 | % | | 0.0 pts | | | 1.9 pts | | | | 39.7 | % | | | 47.0 | % | | (7.3 pts) | |
Gross margin - recurring | | | 71.5 | % | | | 72.5 | % | | | 77.7 | % | | (1.0 pts) | | | (6.2 pts) | | | | 48.8 | % | | | 73.0 | % | | (24.2 pts) | |
Gross margin - non recurring | | | 15.5 | % | | | (2.1% | ) | | | (27.4% | ) | | 17.6 pts | | | 42.9 pts | | | | 5.8 | % | | | (38.2% | ) | | 44.0 pts | |
Net loss | | $ | (1,559 | ) | | $ | (1,563 | ) | | $ | (2,130 | ) | | | (0.3% | ) | | | (26.8% | ) | | $ | (4,641 | ) | | $ | (7,736 | ) | | | (40.0% | ) |
EPS | | $ | (0.14 | ) | | $ | (0.15 | ) | | $ | (0.27 | ) | | $ | 0.01 | | | $ | 0.13 | | | $ | (0.45 | ) | | $ | (1.10 | ) | | $ | 0.65 | |
Billings | | $ | 7,800 | | | $ | 6,836 | | | $ | 7,209 | | | | 14.1 | % | | | 8.2 | % | | $ | 20,667 | | | $ | 17,335 | | | | 19.2 | % |
“I’m pleased to report this quarter that our fully integrated sales force, working across our key geographies, US and Europe, have delivered $1.44 million in new ARR, our highest new ARR bookings quarter of the last two years. These results represent not only meaningful year-over-year ARR growth of more than 60%, but are also composed of a well balanced mix of Contract Management, Procure-to-Pay and Sourcing as well as ‘suite’ solutions.” saidPatrick Stakenas, President and CEO of Determine. “In addition to our strong new sales results, we hit another important business objective, delivering profitable results in our professional services business. Our forth coming new platform launch of the Determine Platform will serve us well to continue this trend - as we align our all of our new service efforts under our one platform strategy.”
Q3 FY2016 Business Highlights:
| | ● | Non-Recurring Revenue Profitability:Through the continued significant efforts by the global Determine professional services delivery teams, this quarter, Non-Recurring Revenue was profitable for the first time in recent history. In the current quarter, the company reported a Non-GAAP gross profit on non-recurring revenue of a positive $276,000 and a 15.5% margin, as compared to a $363,000 gross loss and a (27.4%) margin on non-recurring revenue in Q3 FY2015. This compares to a $29,000 gross loss and a (2.1%) margin on non-recurring revenue in the prior quarter.The teams will continue to be vigilant and focused on constantly improving the quality and profitability of the company’s service delivery sector. |
| | ● | New Brand – “Determine”: On October 19, 2015, the company launched a global rebrand effort online as well as on the floor at NASDAQ to formally combine the three legacy industry leaders and brands; Selectica, Iasta and b-pack under one new brand. Over the last three years, as the company has delivered on it’s strategic plan, it has evolved significantly from a predominantly contract lifecycle management (CLM) solutions provider, to a leading ‘source-to-pay’ with enterprise contract lifecycle management suite – a new brand was essential to encapsulate the new business vision. Determine integrated it’s acclaimed “visionary’ Gartner Magic Quadrant contract management, procurement and Procure-to-Pay solutions and four collective decades of business acumen onto one platform, one brand and one customer promise: Vision. Insight. Control. |
| | ● | New Customers Expansions: In Q3 FY2016, the company closed numerous new customer accounts in the US and Europe across its suite of ‘source-to-pay’ and enterprise contract lifecycle management solutions. New accounts included sales in key verticals including: financial services, consumer packaged goods, pharmaceutical, energy, real estate, medical imaging systems, and manufacturing. |
| | ● | 20 Most Promising Enterprise Contract Management Solution Provider:In Q3 FY2016, Determine was selected byCIOReview 20 Most Promising Enterprise Contract Management Solutions Provider in their latest rankings. The CIOReview selection process looked at a vendor’s ability to provide cost-effective and flexible solutions that add value to the contract management services landscape. |
| | ● | Thought Leadership: During Q3 FY2016, the company continued to support its customers and prospects by providing meaningful educational resources designed to help decision-makers make more money, save more money or reduce risk by leveraging source-to-pay with Enterprise Lifecycle Contract Management suite solutions. The company held a highly effectivewebinar addressing How General Counsel & Procurement Are Leading the Adoption of Contract Lifecycle Management with our customer, Dan O’Connor, Corporate Counsel at Kellogg Company, and Prashant Dubey of The Sumati Group. In addition, the company published a sponsored whitepaper with Spend Matter Research on Exploring ‘Total Cost’ as a Productivity KPI for the P2P Process. |
February 10, 2016 Conference Call & Webcast
A conference call and webcast will be held today at 5:00 p.m. EST to review these results. Interested parties may participate via conference call and webcast:
Participant Conference Call Numbers:
Toll-Free: 1-877-407-0789
Toll/International: 1-201-689-8562
Participant Webcast Link:http://public.viavid.com/index.php?id=118163
Replay Dial-in Info:
Toll-Free:1-877-870-5176
Toll/International: 1-858-384-5517
From: 02/10/16 @ 8:00 pm Eastern Time
To: 02/24/16 @ 11:59 pm Eastern Time
Replay Pin Number: 13629734
Related: http://www.determine.com/investors
Supporting Resources
Determineblog
Determine onLinkedIn
Determine onTwitter
Determineguides & misc. resources
About Determine, Inc.
Determine (NASDAQ: DTRM) is a provider of leading enterprise cloud software solutions with over four decades of collective technical and process knowledge in the areas of strategic sourcing, enterprise contract lifecycle management, and procure-to-pay solutions. We provide the next generation of agile, enterprise cloud solutions for managing the needs of modern business. Using our intuitive applications, organizations can effectively manage the full scope of source-to-pay and enterprise contract lifecycle management requirements using the Determine platform.
The Determine platform is an open technology infrastructure based on smart process application models. The goal of our platform is to establish awareness of relevant data, manage business documents, embed analytical tools, create a means for collaboration, and provide advanced process management tools for fully integrating business processes through an open API infrastructure. Built on a unified and highly scalable platform, we deliver deep and innovative capabilities in strategic sourcing, supplier management, enterprise contract lifecycle management, e-procurement, invoicing, and other business operation areas.
In addition to our source-to-pay and enterprise contract lifecycle management solutions suite, we also provide a powerful, patented configuration engine solution, which Global 1000 companies use to increase revenue by facilitating the right combination of products, services, and price. For more information, please visit:www.determine.com.
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures, including non-GAAP revenue, non-GAAP gross profit, non-GAAP net income, and non-GAAP earnings per share, which we believe are helpful in understanding our past financial performance and future results. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, “GAAP to Non-GAAP Reconciliations”. Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP.
The difference between GAAP and non-GAAP revenue is due to the impact of revaluing the deferred revenue balances acquired from primarily b-pack as required by GAAP purchase accounting.
The difference between GAAP and non-GAAP gross profit is the difference in GAAP versus non-GAAP revenues as well as the elimination of the amortization of acquisition related intangibles, stock based compensation and severance expense from the costs of revenue. Non-GAAP net loss excludes the non-GAAP gross profit items as well as acquisition related costs.
Our management regularly uses our supplemental non-GAAP financial measures internally to understand and manage our business and forecast future periods; as such, we believe it is useful for investors to understand the effects of these items on our total operations. Further, please note that our non-GAAP revenue is intended to reflect the full amount of revenues that would have been otherwise recorded by the acquired entities of Iasta and b-pack, while our non-GAAP gross profit also excludes the amortization of intangibles that occurred due to the acquisition of the entities of Iasta and b-pack.
Bookings are an operating measure not derived from the Company's revenues or any other amounts presented in accordance with GAAP in the Company's statement of income, balance sheet or statement of cash flows or other equivalent statements.
Forward-looking Statements
Certain statements in this release and elsewhere by Determine are forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding business outlook, assessment of market conditions, anticipated financial and operating results, strategies, product and channel development, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to fluctuations in demand for Determine's products and services, risks of losing key personnel or customers, protection of the company's intellectual property and government policies and regulations, including, but not limited to those affecting the company's industry. Determine undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional risk factors concerning the company can be found in the company's most recent Form 10-K as filed by the company with the Securities and Exchange Commission.
Contacts:
Media Relations:
Rose Lee
Determine
+1.650.532.1590
pr@determine.com
Determine, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
| | | Three Months Ended | | | Nine Months Ended | |
| | | December 31, | | | December 31, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | | | | | | | | | | | | | | |
Revenues: | | | | | | | | | | | | | | | | |
Recurring revenues | | $ | 5,354 | | | $ | 4,664 | | | $ | 15,862 | | | $ | 11,396 | |
Non-recurring revenues | | | 1,746 | | | | 1,320 | | | | 4,218 | | | | 3,553 | |
Total revenues | | | 7,100 | | | | 5,984 | | | | 20,080 | | | | 14,949 | |
| | | | | | | | | | | | | | | | | |
Cost of revenues: | | | | | | | | | | | | | | | | |
Cost of recurring revenues | | | 1,816 | | | | 1,292 | | | | 5,003 | | | | 3,736 | |
Cost of non-recurring revenues | | | 1,602 | | | | 1,791 | | | | 4,583 | | | | 5,598 | |
Total cost of revenues | | | 3,418 | | | | 3,083 | | | | 9,586 | | | | 9,334 | |
| | | | | | | | | | | | | | | | | |
Gross profit: | | | | | | | | | | | | | | | | |
Recurring gross profit | | | 3,538 | | | | 3,372 | | | | 10,859 | | | | 7,660 | |
Non-recurring profit/(loss) | | | 144 | | | | (471 | ) | | | (365 | ) | | | (2,045 | ) |
Total gross profit | | | 3,682 | | | | 2,901 | | | | 10,494 | | | | 5,615 | |
| | | | | | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | | | | | |
Research and development | | | 1,232 | | | | 1,131 | | | | 2,854 | | | | 2,570 | |
Sales and marketing | | | 3,310 | | | | 3,354 | | | | 10,313 | | | | 9,191 | |
General and administrative | | | 1,933 | | | | 2,006 | | | | 5,298 | | | | 5,642 | |
Acquisition related costs | | | 138 | | | | 320 | | | | 912 | | | | 682 | |
Total operating expenses | | | 6,613 | | | | 6,811 | | | | 19,377 | | | | 18,084 | |
| | | | | | | | | | | | | | | | | |
Loss from operations | | | (2,931 | ) | | | (3,910 | ) | | | (8,883 | ) | | | (12,469 | ) |
| | | | | | | | | | | | | | | | | |
Interest and other income (expense), net | | | (149 | ) | | | 68 | | | | (548 | ) | | | 41 | |
Net loss before Income Tax | | | (3,080 | ) | | | (3,842 | ) | | | (9,431 | ) | | | (12,428 | ) |
| | | | | | | | | | | | | | | | | |
Benefit (provision) for income taxes | | | (36 | ) | | | - | | | | (56 | ) | | | 2,950 | |
Net loss | | $ | (3,116 | ) | | $ | (3,842 | ) | | $ | (9,487 | ) | | $ | (9,478 | ) |
| | �� | | | | | | | | | | | | | | | |
Net income attributed to non-controlling interest | | | 1 | | | | - | | | | 4 | | | | - | |
Net loss attributed to Determine, Inc | | | (3,115 | ) | | | (3,842 | ) | | | (9,483 | ) | | | (9,478 | ) |
| | | | | | | | | | | | | | | | | |
Redeemable preferred stock accretion | | | - | | | | - | | | | 1,000 | | | | 2,645 | |
Net loss applicable to common stockholders | | $ | (3,115 | ) | | $ | (3,842 | ) | | $ | (10,483 | ) | | $ | (12,123 | ) |
| | | | | | | | | | | | | | | | | |
Basic and diluted net loss per share | | $ | (0.28 | ) | | $ | (0.49 | ) | | $ | (0.93 | ) | | $ | (1.35 | ) |
GAAP to Non-GAAP Reconciliations: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Reconciliation of Total revenue: | | | | | | | | | | | | | | | | |
U.S. GAAP as reported | | $ | 7,100 | | | $ | 5,984 | | | $ | 20,080 | | | $ | 14,949 | |
Adjustments: | | | | | | | | | | | | | | | | |
Deferred revenue adjustment | | | 88 | | | | 332 | | | | 229 | | | | 1,295 | |
Non-GAAP Revenue | | $ | 7,188 | | | $ | 6,316 | | | $ | 20,309 | | | $ | 16,244 | |
| | | | | | | | | | | | | | | | | |
Reconciliation to non-GAAP net loss: | | | | | | | | | | | | | | | | |
Net loss | | $ | (3,115 | ) | | $ | (3,842 | ) | | $ | (9,483 | ) | | $ | (9,478 | ) |
Stock-based compensation expense | | | 658 | | | | 665 | | | | 1,872 | | | | 1,953 | |
Deferred revenue adjustment | | | 88 | | | | 332 | | | | 229 | | | | 1,295 | |
Acquisition related costs | | | 138 | | | | 320 | | | | 912 | | | | 682 | |
Amortization on Intangibles | | | 543 | | | | 349 | | | | 1,374 | | | | 698 | |
Benefit for income taxes | | | - | | | | - | | | | - | | | | (2,950 | ) |
Severance costs | | | 129 | | | | 46 | | | | 455 | | | | 64 | |
Non-GAAP net loss | | $ | (1,559 | ) | | $ | (2,130 | ) | | $ | (4,641 | ) | | $ | (7,736 | ) |
| | | | | | | | | | | | | | | | | |
Non-GAAP basic and diluted net loss per share | | $ | (0.14 | ) | | $ | (0.27 | ) | | $ | (0.45 | ) | | $ | (1.10 | ) |
| | | | | | | | | | | | | | | | | |
Weighted average shares outstanding for basic and diluted net loss per share | | | 11,241 | | | | 7,896 | | | | 10,211 | | | | 7,045 | |
Determine, Inc.
Condensed Consolidated Statements of Comprehensive Loss
(In thousands)
(Unaudited)
| | | Three Months Ended | | | Nine Months Ended | |
| | | December 31, | | | December 31, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | | | | | | | | | | | | | | |
Net loss | | $ | (3,115 | ) | | $ | (3,842 | ) | | $ | (9,483 | ) | | $ | (9,478 | ) |
Other comprehensive income (loss): | | | | | | | | | | | | | | | | |
Foreign currency translation adjustments | | | (11 | ) | | | - | | | | (68 | ) | | | - | |
Other comprehensive income (loss) | | | (11 | ) | | | - | | | | (68 | ) | | | 0 | |
Comprehensive income (loss) | | $ | (3,126 | ) | | $ | (3,842 | ) | | $ | (9,551 | ) | | $ | (9,478 | ) |
Determine, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
| | | December 31, | | | March 31, | |
| | | 2015 | | | 2015 | |
| | | (Unaudited) | | | (Audited) | |
ASSETS | | | | | | | | |
Current assets | | | | | | | | |
Cash and cash equivalents | | $ | 9,840 | | | $ | 13,178 | |
Accounts receivable | | | 6,728 | | | | 5,203 | |
Restricted cash | | | 34 | | | | 34 | |
Prepaid expenses and other current assets | | | 1,452 | | | | 1,647 | |
Total current assets | | | 18,054 | | | | 20,062 | |
| | | | | | | | | |
Property and equipment, net | | | 146 | | | | 290 | |
Capitalized software | | | 2,974 | | | | 2,258 | |
Goodwill | | | 14,628 | | | | 7,702 | |
Other intangibles, net | | | 8,589 | | | | 6,453 | |
Other assets | | | 965 | | | | 521 | |
Total assets | | $ | 45,356 | | | $ | 37,286 | |
| | | | | | | | | |
| | | | | | | | | |
LIABILITIES, REDEEMABLE CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY | | | | | | | | |
Current liabilities | | | | | | | | |
Credit facility | | $ | 7,996 | | | $ | 7,447 | |
Accounts payable | | | 1,938 | | | | 1,535 | |
Accrued payroll and related liabilities | | | 2,219 | | | | 910 | |
Other accrued liabilities | | | 2,052 | | | | 1,877 | |
Deferred revenue | | | 8,870 | | | | 8,410 | |
COFACE loan | | | 426 | | | | - | |
Deferred tax liability | | | 1,186 | | | | - | |
Total current liabilities | | | 24,687 | | | | 20,179 | |
Long-term deferred revenue | | | 149 | | | | 22 | |
Convertible note, net of debt discount | | | 5,415 | | | | 2,900 | |
Other long-term liabilities | | | 153 | | | | 167 | |
Total liabilities | | | 30,404 | | | | 23,268 | |
| | | | | | | | | |
Redeemable convertible preferred stock | | | - | | | | 4,895 | |
Total Determine, Inc. stockholders’ equity controlling interest | | | 14,838 | | | | 9,123 | |
Non-controlling interest | | | 114 | | | | - | |
Total stockholders’ equity | | | 14,952 | | | | 14,018 | |
Total liabilities, redeemable convertible preferred stock and stockholders' equity | | $ | 45,356 | | | $ | 37,286 | |
Determine, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unudited)
| | | Nine Months Ended | |
| | | December 31, | | | December 31, | |
| | | 2015 | | | 2014 | |
| | | | | | | | | |
Operating activities | | | | | | | | |
Net loss | | $ | (9,487 | ) | | $ | (9,478 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: | | | | | | | | |
Depreciation and Amortization | | | 1,868 | | | | 1,039 | |
Loss on disposition of property and equipment | | | 14 | | | | - | |
Stock-based compensation expense | | | 1,870 | | | | 1,953 | |
Non-controlling interest | | | 4 | | | | - | |
Changes in assets and liabilities: | | | | | | | | |
Accounts receivable (net) | | | 149 | | | | 919 | |
Prepaid expenses and other current assets | | | 300 | | | | (205 | ) |
Other assets | | | 12 | | | | 81 | |
Accounts payable | | | 113 | | | | 152 | |
Accrued payroll and related liabilities | | | 278 | | | | (512 | ) |
Other accrued liabilities and long term liabilities | | | (543 | ) | | | 604 | |
Deferred tax liability | | | 70 | | | | (2,989 | ) |
Deferred revenue | | | (281 | ) | | | 353 | |
Net cash used in operating activities | | | (5,633 | ) | | | (8,083 | ) |
| | | | | | | | | |
Investing activities | | | | | | | | |
Purchase of property and equipment | | | (6 | ) | | | (52 | ) |
Capitalized Software | | | (1,077 | ) | | | (1,589 | ) |
Purchase of business, net of cash | | | (402 | ) | | | (5,103 | ) |
Net cash used in investing activities | | | (1,485 | ) | | | (6,744 | ) |
| | | | | | | | | |
Financing activities | | | | | | | | |
Proceeds from sale of common stock, preferred stock and warrants, net of issuance costs | | | 310 | | | | 7,194 | |
Employee taxes paid in exchange for restricted stock awards forefeited | | | 263 | | | | - | |
Issuance of common stock under employee stock plan | | | 87 | | | | 93 | |
Credit facility borrowing, net | | | 538 | | | | 40 | |
Credit facility payment | | | - | | | | (655 | ) |
Repayment of a loan | | | (25 | ) | | | (277 | ) |
Conversion of Preferred Stock to Common Stock | | | (17 | ) | | | - | |
Repayment of minority shareholder | | | (133 | ) | | | - | |
Issuance of debt, net of costs | | | 2,743 | | | | - | |
Net cash provided by financing activities | | | 3,766 | | | | 6,395 | |
| | | | | | | | | |
Effect of exchange rate changes on cash | | | 14 | | | | - | |
| | | | | | | | | |
Net decrease in cash and cash equivalents | | | (3,338 | ) | | | (8,432 | ) |
Cash and cash equivalents at beginning of the period | | | 13,178 | | | | 16,907 | |
Cash and cash equivalents at end of the period | | $ | 9,840 | | | $ | 8,475 | |
Determine, Inc.
Billings Reconciliation
(In thousands)
(Unaudited)
| | | Three Months Ended | | | Nine Months Ended | |
| | | December 31, | | | December 31, | | | December 31, | | | December 31, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
| | | | | | | | | | | | | | | | | |
Total revenues | | $ | 7,100 | | | $ | 5,984 | | | $ | 20,080 | | | $ | 14,949 | |
Deferred revenue: | | | | | | | | | | | | | | | | |
End of period | | | 9,019 | | | | 8,134 | | | | 9,019 | | | | 8,134 | |
Beginning of period | | | 8,319 | | | | 6,909 | | | | 8,432 | | | | 5,748 | |
Change in deferred revenue | | | 700 | | | | 1,225 | | | | 587 | | | | 2,386 | |
Total billings (total revenues plus the change in deferred revenue) | | $ | 7,800 | | | $ | 7,209 | | | $ | 20,667 | | | $ | 17,335 | |
