MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)-- SumTotal® Systems (Nasdaq:SUMT), the market leader and a global provider of talent development solutions, today announced its financial results for the fourth quarter and year ended December 31, 2008.
Fiscal Year 2008 Results
On an unaudited Generally Accepted Accounting Principles (GAAP) basis, total revenue for the fiscal year 2008 was $126.6 million compared to $121.9 million for the fiscal year 2007. Unaudited GAAP net loss, before any potential charge for goodwill impairment, was $1.6 million, or $0.05 per share on a basic and diluted basis, compared to a net loss of $7.7 million, or $0.25 per share on a basic and diluted basis, for the fiscal year 2007.
Given the economy and a sustained decline in its market capitalization, the Company anticipates recording a non-cash goodwill impairment charge in the fourth quarter. The potential size of the charge is being calculated.
Non-GAAP revenue for the year was $126.9 million compared to $123.1 million for the fiscal year 2007. Non-GAAP net income for the year was $9.7 million, or $0.30 per share on a diluted basis, compared to non-GAAP net income of $7.1 million, or $0.23 per share on a diluted basis, for the prior year.
Non-GAAP results exclude the impact of certain charges primarily related to restructuring activities and non-cash charges related to acquisition accounting and stock-based compensation and any related income tax effects. Any goodwill impairment charge would be excluded from the non-GAAP results. A reconciliation to the GAAP results is provided in the attached statements.
For the fiscal year 2008, cash flows from operating activities were $12.2 million.
“2008 was a good year for SumTotal Systems especially in light of a tough economy. We improved non-GAAP profitability and generated over $12 million in cash from operating activities. We had significant growth in parts of the company including 50% growth in our SaaS business,” said Arun Chandra, chief executive officer of SumTotal Systems. “In 2009, we will continue to accelerate our SaaS business and win in the learning, performance, and talent development markets by offering best-of-breed solutions.”
2008 Business Highlights
Fourth Quarter 2008 Results
On an unaudited GAAP basis, total revenue for the fourth quarter 2008 was $29.6 million compared to $33.3 million in the fourth quarter 2007. Unaudited GAAP net loss, before any potential charge for goodwill impairment, was $1.2 million, or $0.04 per share on a basic and diluted basis, compared to a net loss of $2.4 million, or $0.07 per share in the fourth quarter 2007.
Non-GAAP revenue for the fourth quarter 2008 was $29.6 million compared to $33.5 million in the fourth quarter 2007. Non-GAAP net income was $1.8 million, or $0.06 per share on a diluted basis, compared to non-GAAP net income of $1.7 million, or $0.05 per share on a diluted basis, a year ago.
Cash flows from operating activities were $3.7 million for the quarter.
Guidance
Due to economic uncertainties, the company is unable to provide guidance for the full year 2009. For the first quarter 2009, SumTotal estimates its revenue on both a GAAP and non-GAAP basis will be between $24.0 million and $26.0 million. GAAP net loss is estimated to be between $6.8 million and $5.8 million.
On a non-GAAP basis, net loss is estimated to be between $2.5 million and $1.5 million. The principal reconciling items between GAAP loss and non-GAAP income are estimated to be $1.1 million for amortization of intangibles, $1.7 million for stock-based compensation, and $1.5 million for restructuring charges.
Conference Call
SumTotal will host an investor conference call and webcast on February 3, 2009, at 5:00 p.m. ET/ 2:00 p.m. PT. SumTotal plans to make a live audio webcast available to investors and the public at http://investor.sumtotalsystems.com.
In addition to the webcast, SumTotal plans to make available a telephone replay of the call on February 3, 2008, beginning at approximately 7:00 p.m. PT through the close of business on February 10, 2008. Interested parties can access the replay by dialing 800-642-1687 within the US or 706-645-9291 outside the US and entering the access code 80859700.
About SumTotal Systems, Inc.
SumTotal Systems, Inc. (NASDAQ:SUMT) is the market leader and a global provider of talent development solutions. SumTotal deploys mission-critical solutions designed to align goals, develop skills, assess performance, plan for succession and set compensation. SumTotal's solutions aim to accelerate performance and profits for more than 1,500 companies and governments of all sizes, including six of the world's 10 biggest pharmaceutical makers, six of the 10 largest automotive companies in the world, four of the five branches of the U.S. Armed Forces, three of the world's top five airlines, five of the six largest U.S. commercial banks and two of the world's top five specialty retailers. Mountain View, Calif.-based SumTotal has offices across Asia, Australia, Europe and North America. For more information about SumTotal's products and services, visit www.sumtotalsystems.com.
SumTotal and the SumTotal logo are registered trademarks or trademarks of SumTotal Systems, Inc. and/or its affiliates in the United States and/or other countries. Other names may be trademarks of their respective owners.