Asure Software, Inc. (NASDAQ: ASUR), a leading provider of
workforce management software, today announced financial results
for the fiscal second quarter 2010, ended December 31, 2009. The
Fiscal second quarter is a short period consisting of the two
months of November and December, 2009. As of January 1, 2010, Asure
switched to calendar year reporting and its next fiscal quarter
will close on March 31, 2010.
Q2 Highlights:
-- Revenue growth of $0.2M, 14%, over November/December 2008; or $0.3M,
20%, excluding the divested Visual Asset Manager (VAM) product revenue
in November/December 2008. Revenue Growth was driven by hardware sales
in both product lines, $0.2M, as well as growth in NetSimplicity's SaaS
offering.
-- EBITDA of $0.3M
-- EBITDA is defined as operating income (earnings) before interest
expense, income taxes, depreciation & amortization
-- Operating Income of $49K; or $0.02 per share, compared to a loss of
($0.9M) ($0.29) per share (split-adjusted), in November & December
2008; and previously published quarterly losses of ($1.5M)
($0.48)/share (split-adjusted), and ($5.3M) ($1.69)/share
(split-adjusted), in fiscal Q1'10 and fiscal Q4'09 respectively.
Operating income is comprised of the following components:
-- Austin HQ excess lease impact, ($105K)
-- Net onetime items, $264K
-- Core business lines margin, ($110K)
-- Operating Expenses were reduced by 49%, or ($1.1M) compared to
November/December 2008 largely due to both headcount & rate per head
efficiencies ($0.3M), the net effect of one-time items, (0.3M), as well
as other cost reductions. One-time items were driven by the
renegotiation of certain outstanding payables deemed excessive by
current management.
Pat Goepel, Asure's Chief Executive Officer, remarked: "After
two recent difficult quarters, and almost 2 and a half years of
unprofitable results, we are beginning to make progress on turning
this business around. I am pleased with the results of the short
period of fiscal Q2'10 and confirm that our upcoming calendar Q1,
2010 outlook is expected to be on target with our previous
estimates. We are targeting positive EBITDA and potentially
breakeven operating income, excluding the negative impact of the
Austin headquarters lease arrangement."
Asure's newly appointed Chief Financial Officer, David Scoglio,
added: "We have substantially reduced overhead and are carefully
investing in areas that will support our revenue plan in the coming
first quarter of the calendar year 2010. These investments will
include strategic augmentation of our sales force and enhancements
to our products' features and functionality. This strategy, a keen
focus on maintaining current levels of fixed expenses and our
momentum of 72% repetitive revenue from the current period should
propel us forward to achieving our profitability goals of this
calendar year 2010, in spite of a projected $1M in full year excess
lease expense ($1.5M cash). Also notable, as we attain
profitability, we have significant Net Operating Losses carry
forwards at our disposal for up to 20 years, which we hope to
utilize to create shareholder value."
Pat Goepel continued, "In the short period of November &
December 2009, Asure incurred $0.1M of expenses associated with its
Austin lease. As discussed previously, Asure is actively pursuing
options to improve this arrangement, which would only help provide
transparency into the increasingly successful core businesses of
Asure Software, Inc. Asure's Board of Directors and management team
are committed to growing this business by 20% year over year and
achieving levels of 20% EBITDA by calendar year end 2010."
Conference Call Details
Asure Software, Inc. has scheduled a conference call for
Wednesday, February 10, 2010 at 11:00 a.m. ET (10:00 a.m. CT) to
discuss its most recent financial results and outlook.
Participating in the call will be Pat Goepel, Chief Executive
Officer. To take part, please dial 800-299-7089 ten minutes before
the conference call begins, ask for the Asure Software event and
use passcode 16877542. International callers should dial
617-801-9714 and reference the same passcode, 16877542.
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, Inc.
Headquartered in Austin, Texas, Asure Software 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 room scheduling and resource 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.
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
December 31, JULY 31,
2009 2009
(UNAUDITED)
ASSETS
Current Assets:
Cash and equivalents $ 2,263 $ 4,375
Short-term investments 0 5,339
Accounts receivable, net of allowance for
doubtful accounts of $34 and $20 at December 31,
2009 and July 31, 2009, respectively 1,526 1,207
Inventory 49 3
Prepaid expenses and other current assets 213 143
---------- ----------
Total Current Assets 4,051 11,067
Property and equipment, net 581 672
Intangible assets, net 3,623 3,949
---------- ----------
Total Assets $ 8,255 $ 15,688
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,039 $ 6,294
Accrued compensation and benefits 79 278
Lease impairment and advance 562 899
Other accrued liabilities 411 541
Deferred revenue 1,744 1,897
---------- ----------
Total Current Liabilities 3,835 9,909
Long-Term Liabilities:
Deferred revenue 134 119
Lease impairment and advance 196 250
Other long-term obligations 212 206
---------- ----------
Total Long-Term Liabilities 542 575
Stockholders' Equity:
Preferred stock, $.01 par value; 1,500 shares
authorized; none issued or outstanding -- --
Common stock, $.01 par value; 6,500 shares
authorized; 3,375 and 3,290 shares issued;
3,162 and 3,112 shares outstanding at
December 31, 2009 and July 31, 2009,
respectively 334 329
Treasury stock at cost, 213 and 179 shares at
December 31, 2009 and July 31, 2009,
respectively (4,907) (4,815)
Additional paid-in capital 270,925 270,738
Accumulated deficit (262,404) (260,947)
Accumulated other comprehensive income (70) (101)
---------- ----------
Total Stockholders' Equity 3,878 5,204
---------- ----------
Total Liabilities and Stockholders'
Equity $ 8,255 $ 15,688
========== ==========
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
FOR THE FOR THE
TWO MONTHS ENDED FIVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2009 2008 2009 2008
---------- ---------- ---------- ----------
(UNAUDITED) (UNAUDITED)
Revenues $ 1,679 $ 1,467 $ 4,000 $ 4,259
Cost of Sales (435) (294) (914) (858)
---------- ---------- ---------- ----------
Gross Margin 1,244 1,173 3,086 3,401
OPERATING EXPENSES:
Selling, general and
administrative 797 1,857 3,537 5,036
Research and development 264 343 676 904
Amortization of
intangible assets 100 99 249 248
---------- ---------- ---------- ----------
Total Operating
Expenses 1,161 2,299 4,462 6,188
INCOME (LOSS) FROM
OPERATIONS 83 (1,126) (1,376) (2,787)
OTHER INCOME AND (EXPENSES):
Interest income 2 25 9 80
Foreign currency
translation (15) (19) (46) 102
Gain on sale of assets 0 250 0 250
Interest expense and
other (8) (17) (20) (27)
---------- ---------- ---------- ----------
Total Other Income (21) (239) (57) 405
INCOME (LOSS) FROM
OPERATIONS, BEFORE INCOME
TAXES 62 (887) (1,433) (2,382)
Provision for income taxes (13) 0 (25) (25)
---------- ---------- ---------- ----------
NET INCOME (LOSS) $ 49 $ (887) $ (1,458) $ (2,407)
========== ========== ========== ==========
BASIC AND DILUTED LOSS
PER SHARE:
Net income (loss) per
share - basic $ 0.02 $ (0.29) $ (0.46) $ (0.77)
Net income (loss) per
share - diluted $ 0.02 $ (0.29) $ (0.46) $ (0.77)
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 3,156 3,111 3,141 3,111
Diluted 3,162 3,111 3,141 3,111
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