Asure Software (NASDAQ: ASUR), a leading provider of workforce
management software, today announced financial results for the 2009
fiscal fourth quarter, ended July 31, 2009.
Q4 Highlights:
-- Q4 '09 Revenue of $2.4M showed positive growth of 1% vs. Q3 '09 in
spite of several onetime negative events. Growth in NetSimplicity's
Meeting Room Manager product of 14% was partially offset by the divestiture
of the Visual Asset Manager product in Q3 '09. iEmployee's Q4 '09 revenue
of $1.2M declined 3% from Q3 '09, driven largely by a strategic deviation
away from customization partially offset by growth in hardware sales.
-- Operating expenses increased $4.0 to $7.3M in Q4 '09 versus Q3 '09 due
to approximately $4.4M in one-time costs, including the Jenkens & Gilchrist
loss reported by the prior Board and CEO, significant proxy contest and
litigation costs spent against the Red Oak group and other shareholders, a
lease impairment charge, and severance.
-- EBITDA loss of $799K; net of one-time costs of $4,355K.
"Asure experienced a tough 2009, highlighted by a large cash
loss in the Jenkens litigation, two difficult proxy contests, and
litigation against some of its shareholders," stated David
Sandberg, Asure's Chairman. "These significant one-time costs were
realized in the fourth quarter and we will see additional related
costs realized in fiscal Q1 2010, but to a lesser extent. Because
of these expenses and Asure's 2009 losses before we were elected to
the Board, we have inherited a balance sheet with approximately
$3.0 million in cash as of October 28, 2009. However, we have also
inherited two businesses with excellent products which have
maintained their revenue levels, we have brought on a highly
capable interim-CEO who is off to a great start, and we have
drastically reduced Asure's cost structure since our new Board was
voted in. We believe the Company is cash-flow breakeven today and
we are excited about what we think our businesses can do in this
coming year."
Mr. Sandberg continued, "We also announced our Annual Meeting
date and wish to note we are adding several important proposals up
for shareholder approval at the coming meeting, including: a)
approval of a 10-for-1 reverse stock split in order to maintain
NASDAQ listing compliance; b) ratification of our recently
announced rights plan designed to protect our tax-loss
carryforwards, which are in excess of $150 million; and c) approval
of Forgent's name change to Asure Software, Inc. Our Board believes
all of these will be beneficial to shareholder value."
Pat Goepel, Asure's Chief Executive Officer, stated, "We have
worked hard to manage costs in a difficult environment while
improving features and functionality to already strong products.
Despite poor current market conditions, we expect revenue to hold
flat due to new business we have won, and we anticipate that EBITDA
in Q1 will be neutral after excluding the aforementioned one-time
charges and despite $375K in quarterly negative cash flows related
to our Austin headquarters lease. We are cautiously optimistic
about both of our businesses in the upcoming fiscal Q1 and beyond."
Mr. Goepel continued, "We are going to put the turbulent 2009
fiscal year behind us and focus on improvements in our core
businesses going forward, and will update our shareholders on
fiscal Q2 '10 progress during our next earnings call."
Conference Call Details
Asure Software has scheduled a conference call for Wednesday,
October 28, 2009 at 4:30 p.m. ET (3:30 p.m. CT) to discuss its most
recent financial results and outlook. Participating in the call
will be Pat Goepel, Chief Executive Officer and David Sandberg,
Chairman of the Board.
To take part, please dial 866-362-4829 ten minutes before the
conference call begins, ask for the Asure Software event and use
passcode 99901801. International callers should dial 617-597-5346
and reference the same passcode, 99901801. Investors, analysts,
media and the general public will also have the opportunity to
listen to the conference call in listen-only mode via the Internet
by visiting the investor relations page of Asure's web site at
www.asuresoftware.com. To monitor the live call, please visit the
web site at least 15 minutes early to register, download and
install any necessary audio software. For those who cannot listen
to the live broadcast, an archived replay will be available shortly
after the call on the investor relations page of the Company's web
site at www.asuresoftware.com.
About Asure Software
Headquartered in Austin, Texas, Asure Software (ASUR), (a d/b/a
of Forgent Networks, Inc.), empowers small to mid-size
organizations and divisions of large enterprises to operate more
efficiently, increase worker productivity and reduce costs through
a comprehensive suite of on-demand workforce management software
and services. Asure's market-leading suite includes products that
optimize workforce time and attendance tracking, benefits
enrollment and tracking, pay stubs and W2 documentation, and
meeting and event management. With additional offices in Warwick,
Rhode Island, Vancouver, British Columbia, and Mumbai, India, Asure
serves 3,500 customers around the world. For more information,
please visit www.asuresoftware.com.
"Safe Harbor" Statement under the Private Securities Litigation
Reform Act of 1995: Statements in this press release regarding
Asure's business which are not historical facts are
"forward-looking statements" that involve risks and uncertainties.
Such risks and uncertainties, which include those associated with
continued listing of the Company's securities on the NASDAQ Capital
Market, could cause actual results to differ from those contained
in the forward-looking statements.
FORGENT NETWORKS, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
JULY 31,
--------------------
2009 2008
--------- ---------
ASSETS
Current assets:
Cash and cash equivalents $ 4,375 $ 12,062
Short-term investments 5,339 2,627
Accounts receivable, net of allowance for
doubtful accounts of $20 and $41 at July
31, 2009 and 2008, respectively 1,207 1,488
Inventory 3 74
Prepaid expenses and other current assets 143 421
--------- ---------
Total current assets 11,067 16,672
Property and equipment, net 672 907
Intangible assets, net 3,949 4,729
--------- ---------
$ 15,688 $ 22,308
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 6,294 $ 3,778
Accrued compensation and benefits 278 203
Lease impairment and advance 899 373
Other accrued liabilities 541 384
Deferred revenue 1,897 1,844
--------- ---------
Total current liabilities 9,909 6,582
Long-term liabilities:
Deferred revenue 119 25
Lease impairment and advance 250 564
Other long-term obligations 206 217
--------- ---------
Total long-term liabilities 575 806
Stockholders' equity:
Preferred stock, $.01 par value; 10,000 shares
authorized; none issued or outstanding -- --
Common stock, $.01 par value; 40,000 shares
authorized; 32,906 and 32,892 shares issued,
31,116 and 31,102 shares outstanding at July 31,
2009 and 2008, respectively 329 329
Treasury stock at cost, 1,790 shares at July 31,
2009 and 2008, respectively (4,815) (4,815)
Additional paid-in capital 270,738 270,657
Accumulated deficit (260,947) (251,214)
Accumulated other comprehensive income (101) (37)
--------- ---------
Total stockholders' equity 5,204 14,920
--------- ---------
$ 15,688 $ 22,308
========= =========
FORGENT NETWORKS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
FOR THE QUARTER ENDED
JULY 31, APRIL 30,
2009 2009
(unaudited)
----------- -----------
Revenues $ 2,429 $ 2,402
Cost of Sales (494) (494)
----------- -----------
Gross Margin 1,935 1,908
OPERATING EXPENSES:
Selling, general and administrative 3,714 2,614
Research & development 640 544
Litigation settlement 2,200
Impairment of assets 630
Amortization of intangible assets 149 149
----------- -----------
Total operating expenses 7,333 3,307
LOSS FROM OPERATIONS (5,398) (1,399)
OTHER INCOME (EXPENSES):
Interest income 15 20
Foreign currency translation (54) (6)
Gain on sale of assets 0 26
Interest expense and other (1) (18)
----------- -----------
Total other income (expense) (40) 22
LOSS FROM OPERATIONS BEFORE INCOME TAXES (5,438) (1,377)
Provision for income taxes 170 (10)
----------- -----------
NET LOSS ($ 5,268) ($ 1,387)
=========== ===========
BASIC AND DILUTED LOSS PER SHARE:
Basic ($ 0.17) ($ 0.04)
Diluted ($ 0.17) ($ 0.04)
WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 31,115 31,113
Diluted 31,115 31,113
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