Selectica Announces Preliminary Fourth Quarter Results and Share Repurchase Program

Apr 04, 2001, 01:00 ET from Selectica, Inc.

    SAN JOSE, Calif., April 4 /PRNewswire/ --
 Selectica(TM), Inc., (Nasdaq: SLTC), a leading provider of Internet Selling
 Systems (ISS) for e-Business, today announced preliminary results for the
 fourth quarter of fiscal 2001 ended March 31, 2001. Based on preliminary
 information, pro-forma revenues for the quarter will be approximately
 $16 million and the pro-forma net loss for the quarter, excluding non-cash and
 one-time charges, is expected to be in the range of $0.27 to $0.29 per share.
 Deferred revenue is expected to be approximately $20 million. Cash and
 investments at the end of the quarter are expected to be approximately $168
 million. In the year ago quarter ended March 31, 2000, the company reported
 $7.1 million in revenues and a pro-forma net loss of $0.26 per share. These
 preliminary results are based on management's initial analysis of operating
 results. As planned, the Company will announce its final results for the
 quarter and fiscal year 2001 after market close on April 24, 2001.
     "As the quarter drew to a close, we saw customers in several of our key
 vertical markets delay technology purchases due to economic uncertainty,"
 stated Raj Jaswa, Selectica's president and chief executive officer. "As a
 result, both top-line revenues and bottom-line results fell short of
 expectations. We continue to believe that Selectica's Internet selling system
 software is an important element of a strategic IT infrastructure. However,
 the lengthening sales cycle and weak IT spending environment has reduced
 visibility for the first quarter of fiscal 2002 ending June 30, 2001 and for
 the full fiscal year. Accordingly, we are reviewing the Company's cost
 structure and taking the necessary steps to bring our costs more in line with
 anticipated revenue. We plan to reduce our total employee related expense by
 approximately 10% by a variety of programs, including headcount reductions and
 salary freezes. At this time, we expect revenues for the first quarter of
 fiscal 2002 to be approximately flat with the fourth quarter of fiscal 2001
 and we are not providing guidance for the remainder of fiscal 2002 until we
 have better visibility."
     Continued Jaswa, "We are confident that both our technology and our
 ability to deploy projects are needed by Global 2000 companies. During the
 fourth quarter, we continued to add to our roster of Global 2000 customers and
 received significant follow-on orders from a number of existing customers.
 These will be highlighted in our final earnings release and conference call on
 April 24th."
     Selectica is also announcing today that its Board of Directors has
 approved a stock repurchase program in which up to $30 million of the
 Company's common stock may be repurchased. Shares may be purchased from time
 to time in the open market or privately negotiated transactions and will be
 funded from available working capital. The number of shares to be purchased
 and the timing of purchases will be based on the level of Selectica's cash
 balances, general business and market conditions and other factors, including
 alternative investment opportunities.
     Stephen Bennion, CFO of Selectica stated, "the Board of Directors made
 this decision in view of the prices at which the Company's common stock has
 recently traded, which we believe do not reflect the true long-term value of
 the company."
     Selectica will hold a conference call today at 5:00 p.m. ET, 2:00 p.m. PT
 to discuss its preliminary fourth quarter results. Raj Jaswa, president and
 CEO and Stephen Bennion, CFO will host the conference. Interested parties may
 participate by phone or Web cast. The dial-in number is 800-540-0559
 (domestic) and 785-749-9361 (international). Specify verbal pass code:
 Selectica Conference Call. To access the live Web cast, please go to the
 investor relations section of www.selectica.com. A replay will be available
 until April 11th by Web cast at this Web address, or by dialing 888-566-0178
 (domestic) or 402-351-0787 (international).
 
     About Selectica Inc.
     Selectica, Inc. is a leading provider of Internet Selling Systems (ISS)
 that transform the way companies sell, service and compete. Selectica's ISS is
 a comprehensive application suite that accelerates the process of selecting,
 configuring, pricing and purchasing complex products and services with great
 efficiency and accuracy. The Selectica solution 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 located at
 www.selectica.com.
     Statements made in this press release that are not purely historical are
 forward-looking statements made pursuant to the safe harbor provisions of the
 Private Securities Litigation Reform Act of 1995. Words such as "provides,"
 "enables," "can," "will," "empowers" and similar expressions are intended to
 identify such forward-looking statements, including statements regarding the
 Company's or management's intentions, hopes, beliefs, expectations or
 strategies for the future; including, but not limited to statements in this
 release regarding the Company's expectations for financial results in this
 quarter and future periods and customers' opinions of the Company's products
 in the future.  Because such statements deal with future events, they are
 subject to various risks and uncertainties and actual results could differ
 materially from the company's current expectations and we assume no obligation
 to update any such forward-looking statements. These statements are not
 guarantees of future performance and actual results could differ materially
 from our current expectations.  Factors that could cause or contribute to such
 differences include, but are not limited to the factors and risks discussed in
 the company's filings with the SEC.
     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.
 
 

SOURCE Selectica, Inc.
    SAN JOSE, Calif., April 4 /PRNewswire/ --
 Selectica(TM), Inc., (Nasdaq: SLTC), a leading provider of Internet Selling
 Systems (ISS) for e-Business, today announced preliminary results for the
 fourth quarter of fiscal 2001 ended March 31, 2001. Based on preliminary
 information, pro-forma revenues for the quarter will be approximately
 $16 million and the pro-forma net loss for the quarter, excluding non-cash and
 one-time charges, is expected to be in the range of $0.27 to $0.29 per share.
 Deferred revenue is expected to be approximately $20 million. Cash and
 investments at the end of the quarter are expected to be approximately $168
 million. In the year ago quarter ended March 31, 2000, the company reported
 $7.1 million in revenues and a pro-forma net loss of $0.26 per share. These
 preliminary results are based on management's initial analysis of operating
 results. As planned, the Company will announce its final results for the
 quarter and fiscal year 2001 after market close on April 24, 2001.
     "As the quarter drew to a close, we saw customers in several of our key
 vertical markets delay technology purchases due to economic uncertainty,"
 stated Raj Jaswa, Selectica's president and chief executive officer. "As a
 result, both top-line revenues and bottom-line results fell short of
 expectations. We continue to believe that Selectica's Internet selling system
 software is an important element of a strategic IT infrastructure. However,
 the lengthening sales cycle and weak IT spending environment has reduced
 visibility for the first quarter of fiscal 2002 ending June 30, 2001 and for
 the full fiscal year. Accordingly, we are reviewing the Company's cost
 structure and taking the necessary steps to bring our costs more in line with
 anticipated revenue. We plan to reduce our total employee related expense by
 approximately 10% by a variety of programs, including headcount reductions and
 salary freezes. At this time, we expect revenues for the first quarter of
 fiscal 2002 to be approximately flat with the fourth quarter of fiscal 2001
 and we are not providing guidance for the remainder of fiscal 2002 until we
 have better visibility."
     Continued Jaswa, "We are confident that both our technology and our
 ability to deploy projects are needed by Global 2000 companies. During the
 fourth quarter, we continued to add to our roster of Global 2000 customers and
 received significant follow-on orders from a number of existing customers.
 These will be highlighted in our final earnings release and conference call on
 April 24th."
     Selectica is also announcing today that its Board of Directors has
 approved a stock repurchase program in which up to $30 million of the
 Company's common stock may be repurchased. Shares may be purchased from time
 to time in the open market or privately negotiated transactions and will be
 funded from available working capital. The number of shares to be purchased
 and the timing of purchases will be based on the level of Selectica's cash
 balances, general business and market conditions and other factors, including
 alternative investment opportunities.
     Stephen Bennion, CFO of Selectica stated, "the Board of Directors made
 this decision in view of the prices at which the Company's common stock has
 recently traded, which we believe do not reflect the true long-term value of
 the company."
     Selectica will hold a conference call today at 5:00 p.m. ET, 2:00 p.m. PT
 to discuss its preliminary fourth quarter results. Raj Jaswa, president and
 CEO and Stephen Bennion, CFO will host the conference. Interested parties may
 participate by phone or Web cast. The dial-in number is 800-540-0559
 (domestic) and 785-749-9361 (international). Specify verbal pass code:
 Selectica Conference Call. To access the live Web cast, please go to the
 investor relations section of www.selectica.com. A replay will be available
 until April 11th by Web cast at this Web address, or by dialing 888-566-0178
 (domestic) or 402-351-0787 (international).
 
     About Selectica Inc.
     Selectica, Inc. is a leading provider of Internet Selling Systems (ISS)
 that transform the way companies sell, service and compete. Selectica's ISS is
 a comprehensive application suite that accelerates the process of selecting,
 configuring, pricing and purchasing complex products and services with great
 efficiency and accuracy. The Selectica solution 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 located at
 www.selectica.com.
     Statements made in this press release that are not purely historical are
 forward-looking statements made pursuant to the safe harbor provisions of the
 Private Securities Litigation Reform Act of 1995. Words such as "provides,"
 "enables," "can," "will," "empowers" and similar expressions are intended to
 identify such forward-looking statements, including statements regarding the
 Company's or management's intentions, hopes, beliefs, expectations or
 strategies for the future; including, but not limited to statements in this
 release regarding the Company's expectations for financial results in this
 quarter and future periods and customers' opinions of the Company's products
 in the future.  Because such statements deal with future events, they are
 subject to various risks and uncertainties and actual results could differ
 materially from the company's current expectations and we assume no obligation
 to update any such forward-looking statements. These statements are not
 guarantees of future performance and actual results could differ materially
 from our current expectations.  Factors that could cause or contribute to such
 differences include, but are not limited to the factors and risks discussed in
 the company's filings with the SEC.
     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.
 
 SOURCE  Selectica, Inc.