Selectica Announces Fourth Quarter and Fiscal 2001 Results

Annual Revenue Grew Over 290% Over Prior Year



Apr 24, 2001, 01:00 ET from Selectica, Inc.

    SAN JOSE, Calif., April 24 /PRNewswire Interactive News Release/ --
 Selectica(TM), Inc. (Nasdaq: SLTC), a leading provider of Internet Selling
 Systems (ISS) for e-Business, today announced results for the fourth quarter
 and full fiscal year ending March 31, 2001.
     For the quarter ended March 31, 2001, the company reported revenues of
 $14.4 million, representing an increase of 103% over revenue of $7.1 million
 in the same quarter last year.  Excluding the amortization of goodwill,
 non-cash and one-time charges and stock-based compensation, net loss for the
 quarter was $11.2 million, or $(0.32) per share compared to a net loss of
 $7.2 million, or $(0.26) per share during the fourth quarter of fiscal 2000.
 For the fiscal year ending March 31, 2001, revenues increased over 290% to
 $63.5 million compared to revenues of $16.3 million for the prior fiscal year.
 The net loss for fiscal 2001 was $28.1 million or $(0.81) per share compared
 to a net loss of $18.6 million or $(0.78) per share for the prior fiscal year.
 Deferred revenue at the end of the fourth fiscal quarter ending March 31, 2001
 was up from the previous quarter at $22.4 million and cash and investments
 totaled approximately $170 million.
     "As we indicated earlier this month, as the quarter drew to a close, we
 saw customers in several of our key vertical markets delay technology
 purchases and push out projects already under way due to economic
 uncertainty," said Raj Jaswa, Selectica president and chief executive officer.
 As a result, both top line revenues and bottom line results for our fourth
 quarter fell short of expectations.  Revenue was also below levels indicated
 earlier this month as revenue on several projects was pushed into subsequent
 quarters due to implementation delays."
     Jaswa continued, "Obviously, we are all aware of the weak economic
 environment and IT spending constraints that have severely impacted our
 industry.  We have worked aggressively during the past two months to bring our
 cost structure in line with reduced revenue expectations and have reduced our
 expense run rate by approximately $5 million per quarter without affecting our
 ability to serve our customers.  Additionally, even in this very difficult
 environment, we added 10 many new customers and completed a number of
 implementations during the quarter.  We have the best technology in the
 industry and a strong balance sheet with $170 million in cash and investments.
 We plan to weather this economic downturn by taking care of our customers,
 deploying superb applications, watching our expenses and beating the
 competition."
 
     About Selectica, Inc.
     Selectica, Inc. is the leading provider of knowledge-based e-Business
 solutions that transform the way companies sell, service and compete.
 Selectica's solution is a comprehensive application suite that accelerates the
 process of selecting, configuring, pricing, and purchasing complex products
 and services with great efficiency and accuracy.  Selectica's technology has
 the ability to positively impact productivity across all sales channels by
 improving every step of the sales process -- from needs analysis and product
 configuration to order capture and renewals. Selectica's customers include
 industry leaders such as BMW, Cisco Systems, Dell Computer,
 Hewlett-Packard, Highmark Blue Cross Blue Shield, Juniper Networks, and
 Rockwell Automation. Selectica is headquartered in San Jose, California. The
 company's Web site is at www.selectica.com.
 
                                SELECTICA, INC.
               CONSOLIDATED STATEMENTS OF OPERATIONS (Pro-Forma)
                    (In thousands, except per share amounts)
 
 
                                Quarter Ended                Year Ended
                             3/31/01       3/31/00     3/31/01       3/31/00
                                 (Unaudited)                (Unaudited)
     Revenues:
      License                 $6,133        $4,170      $29,668        $9,351
      Services                 8,315         2,948       33,874         6,907
       Total revenues         14,448         7,118       63,542        16,258
     Cost of revenues:
      License                    535           198        1,448           457
      Services                 7,784         3,561       25,603         8,599
      Services -
       related party              --            --           --           135
       Total cost of revenues  8,319         3,759       27,051         9,191
     Gross profit              6,129         3,359       36,491         7,067
      Research and
       development             4,490         2,617       17,144         6,221
      Sales and marketing     11,377         7,342       47,751        16,288
      General and
       administrative          3,933         1,526       12,094         4,307
     Total operating expenses 19,800        11,485       76,989        26,816
     Loss from operations    (13,671)       (8,126)     (40,498)      (19,749)
     Interest income
      (expense)                2,595           922       12,654         1,242
     Loss before
      provision for income
       Taxes                 (11,076)       (7,204)     (27,844)      (18,507)
     Provision for
      income taxes                75            --          275            50
     Net loss               $(11,151)      $(7,204)    $(28,119)     $(18,557)
 
     Basic and diluted,
      net loss per share      $(0.32)       $(0.26)      $(0.81)       $(0.78)
 
     Weighted-average
      shares used in
      computing basic
      and diluted, net
      loss per share          35,232        27,436       34,580        23,683
 
                                SELECTICA, INC.
                          CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                                   03/31/2001*    03/31/2000*
 
      Assets
      Cash, cash equivalents, and investments       $ 170,377       $215,818
      Accounts receivable                              18,966          5,749
      Prepaid expenses and other current assets         4,009          9,418
      Property and equipment, net                      11,469          6,127
      Intangibles                                      12,637          3,156
      Other assets                                      2,361          2,183
       Total assets                                 $ 219,819       $242,451
 
      Liabilities and stockholders' equity
      Accounts payable                                  3,210          4,258
      Accrued payroll and related liabilities           5,004          1,879
      Other accrued liabilities                         6,685          3,755
      Deferred revenues                                22,382         18,481
       Total liabilities                               37,281         28,373
       Total stockholders' equity                     182,538        214,078
        Total liabilities and
          stockholders' equity                      $ 219,819       $242,451
 
     * Amounts derived from audited financial statements at the date indicated
 
                                SELECTICA, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share amounts)
 
                                Quarter Ended               Year Ended
                             3/31/01      3/31/00      3/31/01       3/31/00
                                  (Unaudited)
     Revenues:
      License                $5,319        $4,000      $23,933        $9,180
      Services                8,189         2,948       30,012         6,907
       Total revenues        13,508         6,948       53,945        16,087
     Cost of revenues:
      License                   535         4,261        1,457         4,520
      Services                8,468         9,446       27,323        14,551
       Services -
        related party            --            --           --           135
       Total cost of
        revenues              9,003        13,707       28,780        19,206
     Gross profit (loss)      4,505        (6,759)      25,165        (3,119)
      Research and
       development            5,382         3,215       21,849         7,347
      Sales and marketing    12,115         7,755       50,686        17,026
      General and
       administrative         4,937         1,630       14,876         4,553
     Total operating
      expenses
               22,434        12,600       87,411        28,926
     Loss from operations   (17,929)      (19,359)     (62,246)      (32,045)
      Interest income
       (expense)              2,595           922       12,654         1,241
     Loss before provision
      for income
      Taxes                 (15,334)      (18,437)     (49,592)      (30,804)
     Provision for
      income taxes               75            --          275            50
     Net loss               (15,409)      (18,437)     (49,867)      (30,854)
 
      Deemed dividend on
       Series E convertible
       preferred stock           --            --           --           925
 
 
     Net loss to common
      shareholders         $(15,409)     $(18,437)    $(49,867)     $(31,779)
 
     Basic and diluted,
      net loss per share     $(0.44)       $(1.50)      $(1.44)       $(4.54)
 
     Weighted-average
      shares used in
      computing basic
      and diluted, net
      loss per share         35,232        12,252       34,580         6,999
 
 
     * Amounts derived from audited financial statements at the date indicated
 
     The statements contained in this release that are not purely historical
 are forward-looking statements within the meaning of Section 21E of the
 Securities and Exchange Act of 1934, including statements regarding
 Selectica's expectations, beliefs, hopes, intentions, or strategies regarding
 the future. All forward-looking statements included in this document are based
 upon information available to Selectica as of the date hereof, and Selectica
 assumes no obligation to update any such forward-looking statement.  Actual
 results could differ materially from current expectations. Factors that could
 cause or contribute to such differences include, but are not limited to, the
 factors and risks discussed in Selectica's Registration Statement on Form S-1,
 as amended, and filed with the Securities and Exchange Commission.
     NOTE:  Selectica is a trademark of Selectica, Inc.  All other product and
 company names may be trademarks of the companies with which they are
 associated.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X87521631
 
 

SOURCE Selectica, Inc.
    SAN JOSE, Calif., April 24 /PRNewswire Interactive News Release/ --
 Selectica(TM), Inc. (Nasdaq: SLTC), a leading provider of Internet Selling
 Systems (ISS) for e-Business, today announced results for the fourth quarter
 and full fiscal year ending March 31, 2001.
     For the quarter ended March 31, 2001, the company reported revenues of
 $14.4 million, representing an increase of 103% over revenue of $7.1 million
 in the same quarter last year.  Excluding the amortization of goodwill,
 non-cash and one-time charges and stock-based compensation, net loss for the
 quarter was $11.2 million, or $(0.32) per share compared to a net loss of
 $7.2 million, or $(0.26) per share during the fourth quarter of fiscal 2000.
 For the fiscal year ending March 31, 2001, revenues increased over 290% to
 $63.5 million compared to revenues of $16.3 million for the prior fiscal year.
 The net loss for fiscal 2001 was $28.1 million or $(0.81) per share compared
 to a net loss of $18.6 million or $(0.78) per share for the prior fiscal year.
 Deferred revenue at the end of the fourth fiscal quarter ending March 31, 2001
 was up from the previous quarter at $22.4 million and cash and investments
 totaled approximately $170 million.
     "As we indicated earlier this month, as the quarter drew to a close, we
 saw customers in several of our key vertical markets delay technology
 purchases and push out projects already under way due to economic
 uncertainty," said Raj Jaswa, Selectica president and chief executive officer.
 As a result, both top line revenues and bottom line results for our fourth
 quarter fell short of expectations.  Revenue was also below levels indicated
 earlier this month as revenue on several projects was pushed into subsequent
 quarters due to implementation delays."
     Jaswa continued, "Obviously, we are all aware of the weak economic
 environment and IT spending constraints that have severely impacted our
 industry.  We have worked aggressively during the past two months to bring our
 cost structure in line with reduced revenue expectations and have reduced our
 expense run rate by approximately $5 million per quarter without affecting our
 ability to serve our customers.  Additionally, even in this very difficult
 environment, we added 10 many new customers and completed a number of
 implementations during the quarter.  We have the best technology in the
 industry and a strong balance sheet with $170 million in cash and investments.
 We plan to weather this economic downturn by taking care of our customers,
 deploying superb applications, watching our expenses and beating the
 competition."
 
     About Selectica, Inc.
     Selectica, Inc. is the leading provider of knowledge-based e-Business
 solutions that transform the way companies sell, service and compete.
 Selectica's solution is a comprehensive application suite that accelerates the
 process of selecting, configuring, pricing, and purchasing complex products
 and services with great efficiency and accuracy.  Selectica's technology has
 the ability to positively impact productivity across all sales channels by
 improving every step of the sales process -- from needs analysis and product
 configuration to order capture and renewals. Selectica's customers include
 industry leaders such as BMW, Cisco Systems, Dell Computer,
 Hewlett-Packard, Highmark Blue Cross Blue Shield, Juniper Networks, and
 Rockwell Automation. Selectica is headquartered in San Jose, California. The
 company's Web site is at www.selectica.com.
 
                                SELECTICA, INC.
               CONSOLIDATED STATEMENTS OF OPERATIONS (Pro-Forma)
                    (In thousands, except per share amounts)
 
 
                                Quarter Ended                Year Ended
                             3/31/01       3/31/00     3/31/01       3/31/00
                                 (Unaudited)                (Unaudited)
     Revenues:
      License                 $6,133        $4,170      $29,668        $9,351
      Services                 8,315         2,948       33,874         6,907
       Total revenues         14,448         7,118       63,542        16,258
     Cost of revenues:
      License                    535           198        1,448           457
      Services                 7,784         3,561       25,603         8,599
      Services -
       related party              --            --           --           135
       Total cost of revenues  8,319         3,759       27,051         9,191
     Gross profit              6,129         3,359       36,491         7,067
      Research and
       development             4,490         2,617       17,144         6,221
      Sales and marketing     11,377         7,342       47,751        16,288
      General and
       administrative          3,933         1,526       12,094         4,307
     Total operating expenses 19,800        11,485       76,989        26,816
     Loss from operations    (13,671)       (8,126)     (40,498)      (19,749)
     Interest income
      (expense)                2,595           922       12,654         1,242
     Loss before
      provision for income
       Taxes                 (11,076)       (7,204)     (27,844)      (18,507)
     Provision for
      income taxes                75            --          275            50
     Net loss               $(11,151)      $(7,204)    $(28,119)     $(18,557)
 
     Basic and diluted,
      net loss per share      $(0.32)       $(0.26)      $(0.81)       $(0.78)
 
     Weighted-average
      shares used in
      computing basic
      and diluted, net
      loss per share          35,232        27,436       34,580        23,683
 
                                SELECTICA, INC.
                          CONSOLIDATED BALANCE SHEETS
                                 (In thousands)
 
                                                   03/31/2001*    03/31/2000*
 
      Assets
      Cash, cash equivalents, and investments       $ 170,377       $215,818
      Accounts receivable                              18,966          5,749
      Prepaid expenses and other current assets         4,009          9,418
      Property and equipment, net                      11,469          6,127
      Intangibles                                      12,637          3,156
      Other assets                                      2,361          2,183
       Total assets                                 $ 219,819       $242,451
 
      Liabilities and stockholders' equity
      Accounts payable                                  3,210          4,258
      Accrued payroll and related liabilities           5,004          1,879
      Other accrued liabilities                         6,685          3,755
      Deferred revenues                                22,382         18,481
       Total liabilities                               37,281         28,373
       Total stockholders' equity                     182,538        214,078
        Total liabilities and
          stockholders' equity                      $ 219,819       $242,451
 
     * Amounts derived from audited financial statements at the date indicated
 
                                SELECTICA, INC.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
                    (In thousands, except per share amounts)
 
                                Quarter Ended               Year Ended
                             3/31/01      3/31/00      3/31/01       3/31/00
                                  (Unaudited)
     Revenues:
      License                $5,319        $4,000      $23,933        $9,180
      Services                8,189         2,948       30,012         6,907
       Total revenues        13,508         6,948       53,945        16,087
     Cost of revenues:
      License                   535         4,261        1,457         4,520
      Services                8,468         9,446       27,323        14,551
       Services -
        related party            --            --           --           135
       Total cost of
        revenues              9,003        13,707       28,780        19,206
     Gross profit (loss)      4,505        (6,759)      25,165        (3,119)
      Research and
       development            5,382         3,215       21,849         7,347
      Sales and marketing    12,115         7,755       50,686        17,026
      General and
       administrative         4,937         1,630       14,876         4,553
     Total operating
      expenses
               22,434        12,600       87,411        28,926
     Loss from operations   (17,929)      (19,359)     (62,246)      (32,045)
      Interest income
       (expense)              2,595           922       12,654         1,241
     Loss before provision
      for income
      Taxes                 (15,334)      (18,437)     (49,592)      (30,804)
     Provision for
      income taxes               75            --          275            50
     Net loss               (15,409)      (18,437)     (49,867)      (30,854)
 
      Deemed dividend on
       Series E convertible
       preferred stock           --            --           --           925
 
 
     Net loss to common
      shareholders         $(15,409)     $(18,437)    $(49,867)     $(31,779)
 
     Basic and diluted,
      net loss per share     $(0.44)       $(1.50)      $(1.44)       $(4.54)
 
     Weighted-average
      shares used in
      computing basic
      and diluted, net
      loss per share         35,232        12,252       34,580         6,999
 
 
     * Amounts derived from audited financial statements at the date indicated
 
     The statements contained in this release that are not purely historical
 are forward-looking statements within the meaning of Section 21E of the
 Securities and Exchange Act of 1934, including statements regarding
 Selectica's expectations, beliefs, hopes, intentions, or strategies regarding
 the future. All forward-looking statements included in this document are based
 upon information available to Selectica as of the date hereof, and Selectica
 assumes no obligation to update any such forward-looking statement.  Actual
 results could differ materially from current expectations. Factors that could
 cause or contribute to such differences include, but are not limited to, the
 factors and risks discussed in Selectica's Registration Statement on Form S-1,
 as amended, and filed with the Securities and Exchange Commission.
     NOTE:  Selectica is a trademark of Selectica, Inc.  All other product and
 company names may be trademarks of the companies with which they are
 associated.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X87521631
 
 SOURCE  Selectica, Inc.