Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - DETERMINE, INC. | dtrm20161110_8k.htm |
Exhibit 99.1
Determine Announces 2nd Quarter Fiscal Year 2017 Financial Results
CARMEL, IN November 10, 2016 – Determine, Inc. (NASDAQ: DTRM), a leading global provider of SaaS enterprise Source to Pay and Enterprise Contract Lifecycle Management, including cloud-based strategic sourcing, supplier management, contract management and procure-to-pay solutions, announced financial results for its second fiscal quarter ended September 30, 2016.
Q2 FY2017 GAAP Financial Highlights:
|
● |
GAAP revenue was $6.6 million in Q2 FY2017, compared to $6.8 million in Q2 FY2016, representing a 2.7% decrease year-over-year, and compared to $6.5 million in Q1 FY2017 GAAP revenue, representing a 1.4% quarter-over-quarter increase. |
|
● |
GAAP gross profit percentage decreased to 47.7% in Q2 FY2017, compared to 51.8% in Q2 FY2016, representing a year-over-year decrease of 4.1 percentage points, and compared to 52.1% in Q1 FY2017. |
|
● |
Deferred revenues increased 12.3% to $9.3 million in Q2 FY2017 from $8.3 million in Q2 FY2016. |
|
● |
GAAP net loss was $3.2 million or ($0.28) per share in Q2 FY2017, compared to $3.4 million or ($0.32) per share in Q2 FY2016, representing a $0.04 improvement per share year-over-year; in Q1 FY2017 the GAAP net loss was $2.3 million or ($0.21) per share. |
(in thousands, except per share amounts)
|
GAAP Financial Measures |
Q2 |
Q1 |
Q2 |
Change |
Change |
Six Months |
|||||||||||||||||||||||||||
|
FY 2017 |
FY 2017 |
FY 2016 |
Q/Q |
Y/Y |
FY 2017' |
FY 2016' |
Change Y/Y |
||||||||||||||||||||||||||
|
Revenue - total |
$ | 6,584 | $ | 6,492 | $ | 6,765 | 1.4% | -2.7% | 13,076 | 12,980 | 0.7% | ||||||||||||||||||||||
|
Revenue - recurring |
$ | 5,145 | $ | 5,068 | $ | 5,413 | 1.5% | -4.9% | 10,213 | 10,508 | (2.8%) | ||||||||||||||||||||||
|
Revenue - non-recurring |
$ | 1,439 | $ | 1,424 | $ | 1,352 | 1.1% | 6.5% | 2,863 | 2,472 | 15.8% | ||||||||||||||||||||||
|
Gross profit - total |
$ | 3,138 | $ | 3,385 | $ | 3,505 | -7.3% | -10.5% | 6,523 | 6,811 | (4.2%) | ||||||||||||||||||||||
|
Gross profit - recurring |
$ | 3,442 | $ | 3,462 | $ | 3,656 | -0.6% | -5.9% | 6,903 | 7,321 | (5.7%) | ||||||||||||||||||||||
|
Gross profit/ (loss) - non-recurring |
$ | (304) | $ | (77) | $ | (151) | -295.7% | -101.2% | (381) | (510) | 25.4% | ||||||||||||||||||||||
|
Gross margin - total |
47.7% | 52.1% | 51.8% |
(4.6 pts) |
(4.1 pts) |
49.9% | 52.5% |
(2.6 pts) |
|||||||||||||||||||||||||
|
Gross margin - recurring |
66.9% | 68.3% | 67.5% |
(1.6 pts) |
(0.7 pts) |
67.6% | 69.7% |
(2.1 pts) |
|||||||||||||||||||||||||
|
Gross margin - non recurring |
(21.1%) | (5.4%) | (11.2%) |
(15.7 pts) |
(9.9 pts) |
-13.3% | -20.6% |
7.3 pts |
|||||||||||||||||||||||||
|
Net loss |
$ | (3,207) | $ | (2,342) | $ | (3,425) | (36.9%) | 6.4% | $ | (5,550) | $ | (6,368) | 12.9% | ||||||||||||||||||||
|
EPS |
$ | (0.28) | $ | (0.21) | $ | (0.32) | $ | (0.07) | $ | 0.04 | $ | (0.48) | $ | (0.66) | $ | 0.17 | |||||||||||||||||
Q2 FY2017 Non-GAAP Financial Highlights:
|
● |
Non-GAAP revenue was $6.6 million in Q2 FY2017, compared to $6.8 million in Q2 FY2016, representing a 3.8% decrease year-over-year, and compared to $6.5 million in Q1 FY2017, representing a 1.3% quarter-over-quarter increase. |
|
● |
Non-GAAP gross profit percentage was 52.5% in Q2 FY2017, compared to 57.5% in Q2 FY2016, representing a 5.0 percentage point decrease, and compared to 57.1% in Q1 FY2017. |
|
● |
Non-GAAP net loss was $2.0 million or ($0.17) per share in Q2 FY2017, compared to $1.6 million or ($0.15) per share in Q2 FY2016, representing an additional ($0.02) loss per share year-over-year, compared to $1.3 million or ($0.11) per share in Q1 FY2017, representing an additional loss of ($0.06) per share quarter-over-quarter. |
|
● |
Billings decreased 15.6% to $5.8 million in Q2 FY2017 from $6.8 million in Q2 FY2016. Billings, a non-GAAP measure, are defined as revenues plus the change in deferred revenues. |
(in thousands, except per share amounts)
|
Non-GAAP Financial Measures |
Q2 |
Q1 |
Q2 |
Change |
Change |
Six Months |
|||||||||||||||||||||||||||
|
FY 2017 |
FY 2017 |
FY 2016 |
Q/Q |
Y/Y |
FY 2017' |
FY 2016' |
Change Y/Y |
||||||||||||||||||||||||||
|
Revenue - total |
$ | 6,584 | $ | 6,500 | $ | 6,843 | 1.3% | (3.8%) | 13,084 | 13,121 | (0.3%) | ||||||||||||||||||||||
|
Revenue - recurring |
$ | 5,145 | $ | 5,076 | $ | 5,463 | 1.4% | (5.8%) | 10,221 | 10,621 | (3.8%) | ||||||||||||||||||||||
|
Revenue - non-recurring |
$ | 1,439 | $ | 1,424 | $ | 1,380 | 1.1% | 4.3% | 2,863 | 2,500 | 14.6% | ||||||||||||||||||||||
|
Gross profit - total |
$ | 3,460 | $ | 3,710 | $ | 3,934 | (6.7%) | (12.0%) | 7,170 | 7,542 | (4.9%) | ||||||||||||||||||||||
|
Gross profit - recurring |
$ | 3,710 | $ | 3,737 | $ | 3,962 | (0.7%) | (6.4%) | 7,447 | 7,877 | (5.5%) | ||||||||||||||||||||||
|
Gross profit/( loss) - non-recurring |
$ | (250) | $ | (27) | $ |
(28) |
(837.9%) | (780.3%) | (277) | (335) | 17.5% | ||||||||||||||||||||||
|
Gross margin - total |
52.5% | 57.1% | 57.5% |
(4.6 pts) |
(5.0 pts) |
54.8% | 57.5% |
(2.7 pts) |
|||||||||||||||||||||||||
|
Gross margin - recurring |
72.1% | 73.6% | 72.5% |
(1.5 pts) |
(0.4 pts) |
72.9% | 74.2% |
(1.3 pts) |
|||||||||||||||||||||||||
|
Gross margin - non recurring |
(17.4%) | (1.9%) | (2.1%) |
(15.5 pts) |
(15.3 pts) |
-9.7% | -13.4% |
3.7 pts |
|||||||||||||||||||||||||
|
Net loss |
$ | (1,959) | $ | (1,284) | $ | (1,563) | (52.6%) | (25.3%) | $ | (3,243) | $ | (3,082) | (5.2%) | ||||||||||||||||||||
|
EPS |
$ | (0.17) | $ | (0.11) | $ | (0.15) | $ | (0.06) | $ | (0.02) | $ | (0.28) | $ | (0.32) | $ | 0.04 | |||||||||||||||||
|
Billings |
$ | 5,770 | $ | 6,280 | $ | 6,836 | (8.1%) | (15.6%) | $ | 12,050 | $ | 12,867 | (6.4%) | ||||||||||||||||||||
“This quarter we are pleased by both our quarter-over-quarter revenue growth as well as the market's building excitement for our new, disruptive Determine Cloud Platform offering,” said Patrick Stakenas, President and CEO of Determine. “We have redeployed assets internally to fund accelerated platform development, while continuing to drive business efficiencies by aggressively managing expenses. We exited this transition quarter with annualized bookings results in line with expectations and are optimistically looking ahead. The sales pipeline strength, as well as customer and market analyst enthusiasm for the Determine Cloud Platform, puts us in a strong position to accelerate sales in the coming quarters.”
Q2 FY2017 Business Highlights:
|
● |
Determine Unveils the “Future of Source to Pay and Enterprise Contract Lifecycle Management” with our Determine Cloud Platform: During Q2 FY2017, Determine introduced our new Determine Cloud Platform features including a modernized Google-like User Interface (UI) and User Experience (UX), multi-level workflows, improved Apple and Android mobile apps, and self-service contract management. The new features provide an advanced, intuitive workflow and ease of use for our end users to improve collaboration and effective time management across their overall organization. |
|
● |
Determine’s Contract Lifecycle Management Ranked as a Strong Performer by Forrester Research, Inc.: In Q2 FY2017, The Forrester Wave™: Contract Life-Cycle Management, Q3 2016, “The 14 CLM Vendors That Matter Most and How They Stack Up,” announced that Determine’s Contract Management solution ranked as a strong performer, especially in contract approval. The latest Determine Cloud Platform contract management solution adds more robust capabilities, including an intuitive UI/UX, unified master data and self-service templates. |
|
● |
New Customer and Customer Expansions: During Q2 FY2017, the company engaged numerous new customer accounts in the US and Europe across its Determine SaaS suite of Source to Pay and Enterprise Contract Lifecycle Management solutions. The company added and expanded customers in key verticals including: car rental, financial, healthcare, hospitality, medical equipment, industrial services, industrial machinery and equipment, manufacturing and retail. |
|
● |
Annualized Bookings: Consistent with expectations during the transition period, in Q2 FY2017, the sales team delivered approximately $750,000 in annualized bookings. |
|
● |
Thought Leadership: In Q2 FY2017, Determine continued to provide meaningful educational resources to inform our customers and prospects on the ever-changing Source to Pay and Enterprise Contract Lifecycle Management landscape. The company held a well-attended webinar addressing “What Procurement Organizations Need Most - Flexibility and Agility” presented by Joanna Martinez, former CPO, Cushman & Wakefield, Vishal Patel, Director, Solutions Marketing, Tradeshift and Constantine LImberakis, VP Product Marketing, Determine. The company discussed the procurement organization's role in enabling enterprises to be more responsive, adaptable and agile in today’s uncertain and competitive environment. In addition to the webinar, the company published a sponsored white paper with Ardent Partners on The Rise of Analytics for Procurement and many blogs topics from third party risk management to legal’s view on EU-US data protection. |
Conference Call and Webcast: Thursday, November 10, 2016 at 5:00 PM Eastern Time
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=121489
Replay Dial-in Information:
Toll-Free: 1-844-512-2921
Toll/International: 1-412-317-6671
From: 11/10/16 @ 8:00 pm Eastern Time
To: 11/17/16 @ 11:59 pm Eastern Time
Replay Pin Number: 13647597
Related: http://investor.determine.com
Supporting Resources
Determine blog
Determine on LinkedIn
Determine on Twitter
Determine guides & misc. resources
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.
Annualized 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.
“Annualized bookings” means the annualized recurring contracted revenue from a new customer or a cross-sell or upsell to an existing customer.
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.
About Determine, Inc.
Determine, Inc. (NASDAQ: DTRM) is a leading global provider of SaaS Source to Pay and Enterprise Contract Lifecycle Management (ECLM) solutions. Our visionary technologies allow our customers to effectively manage the full scope of Source to Pay and ECLM using our Determine Cloud Platform. Our Source to Pay software suite includes strategic sourcing, supplier management, contract management and procure-to-pay applications.
The Determine Cloud Platform gives procurement, finance and legal professionals the ability to deliver profound insights through analysis of their supplier relationships and contractual requirements. Our customers leverage the Determine Cloud Platform to discover previously unseen supplier and spend data; make more informed and smarter business decisions; drive new revenue; control costs; improve workflow efficiencies; and mitigate risk.
Our customers benefit from the Determine Cloud Platform’s robust suite of integrated applications. Whether they start with a full-suite implementation or choose to implement just one application and build over time, each additional application allows for the automatic sharing of data already in place on the Determine Cloud Platform.
For more information, please visit: www.determine.com.
Contact
Media Relations
Rose Lee
Determine, Inc.
+1.877.806.1932
+1.650.532.1590
pr@determine.com
Determine, Inc.
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
|
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
September 30 |
September 30 |
|||||||||||||||
|
2016 |
2015 |
2016 |
2015 |
|||||||||||||
|
Revenues: |
||||||||||||||||
|
Recurring revenues |
$ | 5,145 | 5,413 | $ | 10,213 | $ | 10,508 | |||||||||
|
Non-recurring revenues |
1,439 | 1,352 | 2,863 | 2,472 | ||||||||||||
|
Total revenues |
6,584 | 6,765 | 13,076 | 12,980 | ||||||||||||
|
Cost of revenues: |
||||||||||||||||
|
Cost of recurring revenues |
1,703 | 1,757 | 3,308 | 3,187 | ||||||||||||
|
Cost of non-recurring revenues |
1,743 | 1,503 | 3,244 | 2,982 | ||||||||||||
|
Total cost of revenues |
3,446 | 3,260 | 6,552 | 6,169 | ||||||||||||
|
Gross profit: |
||||||||||||||||
|
Recurring gross profit |
3,442 | 3,656 | 6,905 | 7,321 | ||||||||||||
|
Non-recurring profit loss |
(304 | ) | (151 | ) | (381 | ) | (510 | ) | ||||||||
|
Total gross profit |
3,138 | 3,505 | 6,524 | 6,811 | ||||||||||||
|
Operating expenses: |
||||||||||||||||
|
Research and development |
1,056 | 894 | 2,002 | 1,481 | ||||||||||||
|
Sales and marketing |
2,767 | 3,439 | 5,570 | 6,881 | ||||||||||||
|
General and administrative |
1,912 | 1,793 | 3,671 | 3,628 | ||||||||||||
|
Acquisition related costs |
- | 537 | - | 774 | ||||||||||||
|
Total operating expenses |
5,735 | 6,663 | 11,243 | 12,764 | ||||||||||||
|
Loss from operations |
(2,597 | ) | (3,158 | ) | (4,719 | ) | (5,953 | ) | ||||||||
|
Interest and other (expense), net |
(637 | ) | (251 | ) | (927 | ) | (399 | ) | ||||||||
|
Net loss before income tax |
(3,234 | ) | (3,409 | ) | (5,646 | ) | (6,352 | ) | ||||||||
|
Benefit (Provision) from income taxes |
39 | (20 | ) | 108 | (20 | ) | ||||||||||
|
Net loss |
(3,195 | ) | (3,429 | ) | (5,538 | ) | (6,372 | ) | ||||||||
|
Net income (loss) attributed to non-controlling interest |
(12 | ) | 4 | (12 | ) | 4 | ||||||||||
|
Net loss attributable to Determine, Inc. |
(3,207 | ) | (3,425 | ) | (5,550 | ) | (6,368 | ) | ||||||||
|
Redeemable preferred stock accretion |
- | - | - | 1,000 | ||||||||||||
|
Net loss attributable to common stockholders |
$ | (3,207 | ) | $ | (3,425 | ) | $ | (5,550 | ) | $ | (7,368 | ) | ||||
|
Basic and diluted net loss per share |
$ | (0.28 | ) | $ | (0.32 | ) | $ | (0.48 | ) | $ | (0.66 | ) | ||||
Determine, Inc.
GAAP to Non-GAAP Reconciliations
(In thousands)
(Unaudited)
|
Reconciliation of total revenue: |
||||||||||||||||
|
U.S. GAAP as reported |
$ | 6,584 | $ | 6,765 | $ | 13,076 | $ | 12,980 | ||||||||
|
Adjustments: |
||||||||||||||||
|
Deferred revenue adjustment |
- | 78 | 8 | 141 | ||||||||||||
|
Non-GAAP Revenue |
$ | 6,584 | $ | 6,843 | $ | 13,084 | $ | 13,121 | ||||||||
|
Reconciliation to non-GAAP net loss: |
||||||||||||||||
|
Net loss |
$ | (3,207 | ) | $ | (3,425 | ) | $ | (5,550 | ) | $ | (6,368 | ) | ||||
|
Stock-based compensation expense |
707 | 636 | 1,236 | 1,214 | ||||||||||||
|
Deferred revenue adjustment |
- | 78 | 8 | 141 | ||||||||||||
|
Acquisition related costs |
- | 537 | - | 774 | ||||||||||||
|
Amortization on intangibles |
533 | 482 | 1,068 | 831 | ||||||||||||
|
Benefit from income taxes |
- | - | (13 | ) | - | |||||||||||
|
Severance costs |
7 | 129 | 7 | 326 | ||||||||||||
|
Non-GAAP net loss |
$ | (1,959 | ) | $ | (1,563 | ) | $ | (3,243 | ) | $ | (3,082 | ) | ||||
|
Non-GAAP basic and diluted net loss per share |
$ | (0.17 | ) | $ | (0.15 | ) | $ | (0.28 | ) | $ | (0.32 | ) | ||||
|
Weighted average shares outstanding for basic and diluted net loss per share |
11,508 | 10,594 | 11,466 | 9,694 |
Determine, Inc.
Condensed Consolidated Statements of Comprehensive Loss
(In thousands)
(Unaudited)
|
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
September 30 |
September 30 |
|||||||||||||||
|
2016 |
2015 |
2016 |
2015 |
|||||||||||||
|
Net loss |
$ | (3,195 | ) | $ | (3,429 | ) | $ | (5,538 | ) | $ | (6,372 | ) | ||||
|
Other comprehensive income (loss) net: |
||||||||||||||||
|
Foreign currency translation adjustments |
13 | (57 | ) | (13 | ) | (57 | ) | |||||||||
|
Non-controlling interest |
(12 | ) | 4 | (12 | ) | 4 | ||||||||||
|
Other comprehensive income (loss) |
1 | (53 | ) | (25 | ) | (53 | ) | |||||||||
|
Comprehensive (loss) |
$ | (3,194 | ) | $ | (3,482 | ) | $ | (5,563 | ) | $ | (6,425 | ) | ||||
Determine, Inc.
Condensed Consolidated Balance Sheets
(In thousands)
|
September 30, |
March 31, |
|||||||
|
2016 |
2016 |
|||||||
|
(Unaudited) |
(Audited) |
|||||||
|
ASSETS |
||||||||
|
Current assets |
||||||||
|
Cash and cash equivalents |
$ | 8,026 | $ | 9,418 | ||||
|
Accounts receivable, net |
5,970 | 7,031 | ||||||
|
Restricted cash |
34 | 34 | ||||||
|
Prepaid expenses and other current assets |
1,340 | 1,551 | ||||||
|
Total current assets |
15,370 | 18,034 | ||||||
|
Property and equipment, net |
111 | 136 | ||||||
|
Capitalized software, net |
1,946 | 1,699 | ||||||
|
Goodwill |
14,490 | 14,490 | ||||||
|
Other intangibles, net |
6,944 | 8,011 | ||||||
|
Other assets |
1,797 | 1,843 | ||||||
|
Total assets |
$ | 40,658 | $ | 44,213 | ||||
|
LIABILITIES AND EQUITY |
||||||||
|
Current liabilities |
||||||||
|
Credit facility |
$ | 10,861 | $ | 9,000 | ||||
|
Accounts payable |
1,799 | 1,973 | ||||||
|
Accrued payroll and related liabilities |
1,677 | 1,655 | ||||||
|
Other accrued liabilities |
2,377 | 2,396 | ||||||
|
Deferred revenue |
9,300 | 10,299 | ||||||
|
Income tax payable |
43 | 14 | ||||||
|
COFACE loan |
294 | 407 | ||||||
|
Accrued restructuring |
- | 403 | ||||||
|
Total current liabilities |
26,351 | 26,147 | ||||||
|
Long-term deferred revenue |
40 | 67 | ||||||
|
Convertible note, net of debt discount |
5,432 | 5,420 | ||||||
|
Other long-term liabilities |
1,579 | 1,382 | ||||||
|
Deferred tax liability non current |
154 | 290 | ||||||
|
Total liabilities |
33,556 | 33,306 | ||||||
|
Total Determine, Inc. stockholders’ equity controlling interest |
6,977 | 10,794 | ||||||
|
Non-controlling interest |
125 | 113 | ||||||
|
Total equity |
7,102 | 10,907 | ||||||
|
Total liabilities and equity |
$ | 40,658 | $ | 44,213 | ||||
Determine, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands)
(Unudited)
|
Six Months Ended |
||||||||
|
September 30, |
September 30, |
|||||||
|
2016 |
2015 |
|||||||
|
Operating activities |
||||||||
|
Net loss |
$ | (5,550 | ) | $ | (6,372 | ) | ||
|
Adjustments to reconcile net loss to net cash used in operating activities: |
||||||||
|
Depreciation and amortization |
1,656 | 1,168 | ||||||
|
Loss on disposition of property and equipment |
- | 14 | ||||||
|
Stock-based compensation expense |
1,237 | 1,213 | ||||||
|
Deferred tax liability |
(136 | ) | 431 | |||||
|
Non-controlling interest |
12 | 4 | ||||||
|
Changes in assets and liabilities: |
||||||||
|
Accounts receivable, net |
1,051 | 440 | ||||||
|
Prepaid expenses and other current assets |
211 | 273 | ||||||
|
Other assets |
122 | 54 | ||||||
|
Accounts payable |
(174 | ) | (55 | ) | ||||
|
Accrued restructuring costs |
(403 | ) | - | |||||
|
Accrued payroll and related liabilities |
22 | 548 | ||||||
|
Other accrued liabilities and other long-term liabilities |
- | (505 | ) | |||||
|
Deferred revenue |
(1,026 | ) | (981 | ) | ||||
|
Net cash used in operating activities |
(2,978 | ) | (3,768 | ) | ||||
|
Investing activities |
||||||||
|
Purchase of property and equipment |
(28 | ) | (7 | ) | ||||
|
Capitalized software |
(762 | ) | (809 | ) | ||||
|
Purchase of business, net of cash |
- | (826 | ) | |||||
|
Minority shareholder payment |
- | (133 | ) | |||||
|
Net cash used in investing activities |
(790 | ) | (1,775 | ) | ||||
|
Financing activities |
||||||||
|
Proceeds from sale of common stock, preferred stock and warrants, net of issuance costs |
- | 310 | ||||||
|
Employee taxes paid in exchange for restricted stock awards forefeited |
86 | 227 | ||||||
|
Issuance of common stock under employee stock plan |
80 | 87 | ||||||
|
Issuance of common stock for legal settlement |
35 | - | ||||||
|
Credit facility borrowing |
3,000 | - | ||||||
|
Credit facility payment |
(1,139 | ) | (347 | ) | ||||
|
Repayment of loan |
(113 | ) | (25 | ) | ||||
|
Conversion of preferred stock to common stock |
- | (17 | ) | |||||
|
Issuance of debt, net of costs |
287 | 162 | ||||||
|
Net cash provided by financing activities |
2,236 | 397 | ||||||
|
Effect of exchange rate changes on cash |
140 | (54 | ) | |||||
|
Net increase (decrease) in cash and cash equivalents |
(1,392 | ) | (5,200 | ) | ||||
|
Cash and cash equivalents at beginning of the period |
9,418 | 13,178 | ||||||
|
Cash and cash equivalents at end of the period |
$ | 8,026 | $ | 7,978 | ||||
Determine, Inc.
Billings Reconciliation
(In thousands)
(Unaudited)
|
Three Months Ended |
Six Months Ended |
|||||||||||||||
|
September 30, |
September 30, |
September 30, |
September 30, |
|||||||||||||
|
2016 |
2015 |
2016 |
2015 |
|||||||||||||
|
Total revenues |
$ | 6,584 | $ | 6,765 | $ | 13,076 | $ | 12,980 | ||||||||
|
Deferred revenue: |
||||||||||||||||
|
End of period |
9,340 | 8,319 | 9,340 | 8,319 | ||||||||||||
|
Beginning of period |
10,154 | 8,248 | 10,366 | 8,432 | ||||||||||||
|
Change in deferred revenue |
(814 | ) | 71 | (1,026 | ) | (113 | ) | |||||||||
|
Total billings (total revenues plus the change in deferred revenue) |
$ | 5,770 | $ | 6,836 | $ | 12,050 | $ | 12,867 | ||||||||