In a release issued under the same headline earlier today by
Determine, Inc., the financial tables were omitted. The complete
and corrected press release follows:
Determine, Inc. (NASDAQ:DTRM), a pioneering leader in global
Source-to-Pay and Enterprise Contract Lifecycle Management (ECLM)
Cloud Platform solutions, announces financial results for its
fourth quarter and fiscal year ended March 31, 2018.
FY2018 GAAP Financial Highlights:
|
|
|
|
|
|
|
|
|
(in thousands,
except per share amounts) |
|
|
|
|
|
|
|
|
GAAP Financial Measures |
Q4 |
Q3 |
Q4 |
Change |
Change |
Twelve Months |
|
|
|
FY 2018 |
FY 2018 |
FY 2017 |
Q/Q |
Y/Y |
FY 2018 |
FY 2017 |
Change Y/Y |
Revenue - total |
$ |
6,776 |
|
$ |
7,467 |
|
$ |
7,535 |
|
|
(9.3 |
%) |
|
(10.1 |
%) |
$ |
28,119 |
|
$ |
27,463 |
|
|
2.4 |
% |
Revenue - recurring |
$ |
5,467 |
|
$ |
5,552 |
|
$ |
5,628 |
|
|
(1.5 |
%) |
|
(2.9 |
%) |
$ |
21,864 |
|
$ |
20,895 |
|
|
4.6 |
% |
Revenue - non-recurring |
$ |
1,309 |
|
$ |
1,915 |
|
$ |
1,907 |
|
|
(31.6 |
%) |
|
(31.4 |
%) |
$ |
6,255 |
|
$ |
6,568 |
|
|
(4.8 |
%) |
Gross profit - total |
$ |
3,344 |
|
$ |
4,160 |
|
$ |
3,973 |
|
|
(19.6 |
%) |
|
(15.8 |
%) |
$ |
14,621 |
|
$ |
13,838 |
|
|
5.7 |
% |
Gross profit - recurring |
$ |
3,378 |
|
$ |
3,649 |
|
$ |
3,696 |
|
|
(7.4 |
%) |
|
(8.6 |
%) |
$ |
13,912 |
|
$ |
13,878 |
|
|
0.2 |
% |
Gross profit (loss) - non-recurring |
$ |
(34 |
) |
$ |
511 |
|
$ |
277 |
|
|
(106.7 |
%) |
|
(112.3 |
%) |
$ |
709 |
|
$ |
(40 |
) |
|
1872.5 |
% |
Gross margin - total |
|
49.4 |
% |
|
55.7 |
% |
|
52.7 |
% |
(6.3 pts |
) |
(3.3 pts |
) |
|
52.0 |
% |
|
50.4 |
% |
1.6 pts |
|
Gross margin - recurring |
|
61.8 |
% |
|
65.7 |
% |
|
65.7 |
% |
(3.9 pts |
) |
(3.9 pts |
) |
|
63.6 |
% |
|
66.4 |
% |
(2.8 pts |
) |
Gross margin - non recurring |
|
(2.6 |
%) |
|
26.7 |
% |
|
14.5 |
% |
(29.3 pts |
) |
(17.1 pts |
) |
|
11.3 |
% |
|
(0.6 |
%) |
11.9 pts |
|
Net loss |
$ |
(2,822 |
) |
$ |
(2,346 |
) |
$ |
(1,708 |
) |
|
20.3 |
% |
|
65.2 |
% |
$ |
(9,948 |
) |
$ |
(9,452 |
) |
|
5.2 |
% |
EPS |
$ |
(0.19 |
) |
$ |
(0.16 |
) |
$ |
(0.14 |
) |
$ |
(0.03 |
) |
$ |
(0.05 |
) |
$ |
(0.69 |
) |
$ |
(0.81 |
) |
$ |
0.12 |
|
|
|
|
|
|
|
|
- GAAP revenue was $28.1 million in FY2018, compared to $27.5
million in FY2017, representing a 2.4% increase
year-over-year.
- GAAP gross profit percentage was 52.0% in FY2018, compared to
50.4% in FY2017, representing a year-over-year increase of 1.6
percentage points.
- Deferred revenues decreased 5.0% to $9.6 million in FY2018 from
$10.1 million in FY2017.
- GAAP net loss was $9.9 million or $0.69 per share in FY2018,
compared to $9.5 million or $0.81 in FY2017, representing a $0.12
improvement year-over-year.
FY2018 Non-GAAP Financial Highlights:
|
|
|
|
|
|
|
|
|
(in thousands,
except per share amounts) |
|
|
|
|
|
|
|
|
Non-GAAP Financial Measures |
Q4 |
Q3 |
Q4 |
Change |
Change |
Twelve Months |
|
|
|
FY 2018 |
FY 2018 |
FY 2017 |
Q/Q |
Y/Y |
FY 2018 |
FY 2017 |
Change Y/Y |
Revenue - total |
$ |
6,776 |
|
$ |
7,467 |
|
$ |
7,535 |
|
|
(9.3 |
%) |
|
(10.1 |
%) |
$ |
28,119 |
|
$ |
27,471 |
|
|
2.4 |
% |
Revenue - recurring |
$ |
5,467 |
|
$ |
5,552 |
|
$ |
5,628 |
|
|
(1.5 |
%) |
|
(2.9 |
%) |
$ |
21,864 |
|
$ |
20,903 |
|
|
4.6 |
% |
Revenue - non-recurring |
$ |
1,309 |
|
$ |
1,915 |
|
$ |
1,907 |
|
|
(31.6 |
%) |
|
(31.4 |
%) |
$ |
6,255 |
|
$ |
6,568 |
|
|
(4.8 |
%) |
Gross profit - total |
$ |
3,626 |
|
$ |
4,484 |
|
$ |
4,297 |
|
|
(19.1 |
%) |
|
(15.6 |
%) |
$ |
15,897 |
|
$ |
15,192 |
|
|
4.6 |
% |
Gross profit - recurring |
$ |
3,646 |
|
$ |
3,916 |
|
$ |
3,967 |
|
|
(6.9 |
%) |
|
(8.1 |
%) |
$ |
15,051 |
|
$ |
15,004 |
|
|
0.3 |
% |
Gross profit ( loss) - non-recurring |
$ |
(21 |
) |
$ |
568 |
|
$ |
330 |
|
|
(103.6 |
%) |
|
(106.2 |
%) |
$ |
846 |
|
$ |
188 |
|
|
350.0 |
% |
Gross margin - total |
|
53.5 |
% |
|
60.1 |
% |
|
57.0 |
% |
(6.6 pts |
) |
(3.5 pts) |
|
|
56.5 |
% |
|
55.3 |
% |
1.2 pts |
|
Gross margin - recurring |
|
66.7 |
% |
|
70.5 |
% |
|
70.5 |
% |
(3.8 pts |
) |
(3.8 pts) |
|
|
68.8 |
% |
|
71.8 |
% |
(3.0 pts |
) |
Gross margin - non recurring |
|
(1.5 |
%) |
|
29.7 |
% |
|
17.3 |
% |
(31.2 pts |
) |
(18.8 pts) |
|
|
13.5 |
% |
|
2.9 |
% |
10.6 pts |
|
Net loss |
$ |
(1,726 |
) |
$ |
(1,303 |
) |
$ |
(428 |
) |
|
32.5 |
% |
|
303.3 |
% |
$ |
(5,487 |
) |
$ |
(4,681 |
) |
|
17.2 |
% |
EPS |
$ |
(0.12 |
) |
$ |
(0.09 |
) |
$ |
(0.04 |
) |
$ |
(0.03 |
) |
$ |
(0.08 |
) |
$ |
(0.38 |
) |
$ |
(0.40 |
) |
$ |
0.02 |
|
Billings |
$ |
5,991 |
|
$ |
8,856 |
|
$ |
7,582 |
|
|
(32.4 |
%) |
|
(21.0 |
%) |
$ |
27,610 |
|
$ |
27,177 |
|
|
1.6 |
% |
|
- Non-GAAP revenue was $28.1 million in FY2018, compared to $27.5
million in FY2017, representing a 2.4% year-over-year
increase.
- Non-GAAP gross profit percentage was 56.5% in FY2018, compared
to 55.3% in FY2017, representing a 1.2 percentage point
year-over-year increase.
- Billings increased 1.6% to $27.6 million in FY2018 from $27.2
million in FY2017. Billings, a non-GAAP measure, are defined as
revenue plus the change in deferred revenues.
- Non-GAAP net loss was $5.5 million or ($0.38) per share in
FY2018, compared to $4.7 million or ($0.40) per share in FY2017,
representing an improvement of $0.02 per share year-over-year.
- Non-GAAP EBITDA was ($2.5) million in FY2018, compared to
($1.8) million in FY2017, representing an additional loss of ($0.7)
million year-over-year.
“I would sum up fiscal 2018 under the theme of ‘Doubling Down.’
We have done this in all areas of the company this past year, from
our continued investment in and expansion of the capabilities on
the Determine Cloud Platform, to key appointments of seasoned,
industry experts on the leadership team and board, and to an even
deeper focus on customer success and advocacy. These efforts are
illustrated by our many advancements including the launch of our
HIPAA compliance program which demonstrates our ongoing commitment
to our valued – and growing - healthcare customers. We
further expanded advanced capabilities across the entire modular
Source-to-Pay and Contract Management continuum, often in
collaboration with customer users. During Fiscal 2018, we seized
the opportunity to bolster key positions within our Sales &
Marketing, Partnership Management and Customer Success groups with
veteran industry-recognized talent. These subject matter experts
are critical to supporting our efforts to achieve our pipeline and
customer success goals. Concurrently, we’ve formalized a
company-wide program with the goal of improving overall
satisfaction and converting customers into advocates. These efforts
are resulting in significant customer-directed product innovation
as well as creating additional sales and upsell opportunities. As I
noted previously, our goal is to exceed expectations at every stage
– especially those of our customers. We are redoubling our efforts
as we move confidently down that path.”— Patrick Stakenas,
President, CEO and Director, Determine, Inc.
FY2018 Determine Business Highlights:
- Q4 Annualized Bookings: In Q4 FY2018,
the revenue team delivered approximately $732,000 in annualized
bookings to the company. Retail, cloud computing, chemical and
technology sectors were particularly strong.
- Q4: Kevin Turner Brought Unparalleled Industry
Experience to Determine, Inc. as Senior Vice President of Customer
Success: The leading practitioner who wrote the book on
customer success left a major competitor to bring more than 20
years of experience as an eBusiness/eCommerce/SaaS professional to
Determine.
- Q4: The Determine Cloud Platform Was Recognized in
Seven Spend Matters 1Q 2018
SolutionMapsSM: Determine modular
solutions swept across these influential vendor comparison
rankings, including all procurement categories, and moved ahead in
its Value Leader ranking in E-Procurement.
- Q4: Determine, Inc. Successfully Met The Requirements
to Comply with the Health Insurance Portability And Accountability
Act (HIPAA) and Health Information Technology For Economic And
Clinical Health (HITECH) Act: The HIPAA Compliance Program
demonstrates Determine’s ongoing commitment to healthcare
organizations and increasing customer confidence as examined by an
independent third party, Schellman & Company.
- Q4: Global Source-to-Pay Leader Determine, Inc. Named
One of the Most Trusted Brands of the Year by Insights Success
Magazine: According to Editor-in-Chief Pooja Bansal, “Upon
review of the 2018 nominees for Most Trusted Brands of the Year,
and going through various factors such as technological
utilization, strategic focus and global footprint, Determine, Inc.,
stood out as a pioneering global leader in providing SaaS
Source-to-Pay and Enterprise Contract Lifecycle Management (ECLM)
solutions.”
- FY2018: New Customer Expansions: In FY2018,
Determine added an expanded roster of customer accounts in the US,
UK, Europe and Nordics to the Determine Cloud Platform across its
suite of Source-to-Pay and Enterprise Contract Lifecycle Management
solutions. Most notable, as announced during Q3, 100% new customer
growth in Q2 FY2018 was on the Determine Cloud Platform - a major
achievement after just one year of going live. Key customer sectors
included: pharmaceutical, retail, financial services,
transportation, airline, agribusiness, consumer goods, scientific
research and manufacturing. Examples of FY2018 Customer Expansions:
- Q1: Orion Corporation, the leading Finnish global
pharmaceutical and diagnostics company, selected Determine to
optimize its source-to-contract effectiveness on the Determine
Cloud Platform.
- Q1: Scania (Great Britain) Limited, a part of the Volkswagen
Group, selected the Determine Cloud Platform Sourcing, Supplier
Management and Contract Lifecycle Management solutions to drive its
efficiency and future growth in Purchasing.
- Q1: c2c, the award-winning U.K.-based train operator and part
of leading European train operator Trenitalia, selected the
Determine Cloud Platform to advance their strategic sourcing
processes and contract management effectiveness.
- Q2: Selecta TMP AG, the leading European vending and coffee
services provider signed a multi-year Determine Sourcing renewal to
assist in its rapid expansion across markets in Europe.
- Q2: Monoprix, leading French retail group, integrated
Procurement Solution on the Determine Cloud Platform to leverage
the agility, ease of use and implementation speed which are
hallmarks of Determine modular solutions.
- Q3: SILVAN, one of the largest DIY consumer retailers in the
Nordic region, decided to build its future on the Determine Cloud
Platform with Sourcing, Contract Management and Supplier
Management.
- Q4: Servier Group, a French pharmaceutical leader broadened a
10-year commitment to Determine, expanding use of the functional
spectrum of the Determine Cloud Platform to full
Procure-to-Pay.
- FY2018: Product Enhancements: During FY2018,
the Determine Cloud Platform further expanded advanced capabilities
available to customers across the entire modular Source-to-Pay and
Contract Management continuum. Highlights include:
- Platform-Wide / Determine Core:
- Advanced UI Grid opened a new chapter for UX development — it
automatically creates a process hierarchy that spans individual
records, departments and company-wide, simplifying and accelerating
workflows.
- A newly introduced ADA-Compliant Graphic Palette color palette
now allows for easy reading for those with low or impaired vision ,
as well as overall enhanced navigation.
- Sourcing:
- By extending sourcing and contract integration, it enables
contract(s) creation requests directly from an awarded sourcing
event, defining contract type, terms, counterparties and other
variables.
- Supplier bid analysis now includes comparison between bids and
a benchmark reference price to identify potential savings.
- Newly integrated eAuction app enables English, Dynamic, Dutch
and Japanese eAuction events.
- Supplier Management:
- Adding the ability to “tag” Suppliers now allows for easy
identification of certification status, reducing the potential for
third-party risk.
- Certification Management now enables a company to implement all
business rules and workflows needed to respect legislation and
compliance requirements.
- Contract Management:
- Enhanced CLM/Procure to Pay (P2P) Contract integration now
provides full lifecycle capability of contract management,
including full P2P purchase contracts and budgets management
capability, all in one combined feature set.
- The addition of Dynamic Contract Creation now reduces the
number of templates admins need for maintenance because one
template can adjust dynamically to cover many use cases.
- Procurement:
- Enhanced eCommerce platform features provided a more
user-friendly and intuitive experience, including catalog item
review and rate, similar item comparison and item sorting by
relevance and price.
- Improved Catalog Management now benefits enterprise
organizations that import numerous catalogs with thousands of items
in each. This improved functionality increases productivity
and ease of use.
- Q3: Determine, Inc. Added Senior Industry Leaders to
Board of Directors As Growth Accelerated: The appointment
of two new members to its Board of Directors, long-time industry
veterans Bill Angeloni and Steve Sovik, brought an exceptional
amount of talent, expertise and energy to work with the Executive
team in advising the company as it continues to grow.
- Q3: Industry-Leading Source-to-Pay Provider Determine
Launched New DetermineAlliance Partner Program: The launch
of the DetermineAlliance Partner Program with an expanded global
footprint established a truly collaborative partner forum to meet
the end-to-end needs of customers now and in the future.
- Q2: Global Marketing Leadership: In September
2017, Determine named Gérard Dahan as Chief Marketing Officer and
SVP of EMEA. He brought 25 years of experience in leadership, sales
management, business development and strategic marketing with
global technology and services companies including Ivalua,
BravoSolution, Ariba, Intel and IBM.
- Q2: Determine, Inc. Promoted Kevin
Grande to General Counsel: As leader of
Determine’s legal operations, he now provides strategic legal
advice to management, sets internal governance policies and manages
the impact of external factors.
- Q2: Determine Recognized in Multiple Categories in the
Gartner Hype Cycle for Procurement and Sourcing Solutions,
2017: The Determine Cloud Platform was cited four times
across categories - a testament to innovation and continuing focus
on customer-centered product development.
- Q1: Determine, Inc. joined Russell Microcap®
Index: Membership in the Russell Microcap® Index was a
recognition of all the value that has been created by the
innovative thinking and hard work of the Determine team.
- Q1: Determine, Inc. Named Industry Veteran Sean Regan
as Vice President of Global Alliances: to spearhead and
manage a dynamic business ecosystem of partnerships with leading
global companies to deliver the best in source-to-pay and contract
management solutions and services.
Conference Call and Webcast Tuesday, June 26, 2018 at
5:00 PM (Eastern Time)
|
Participant Conference Call Numbers: |
Toll-Free: |
1-877-407-0789 |
Toll/International: |
1-201-689-8562 |
Participant
Webcast Link: |
http://public.viavid.com/index.php?id=130010 |
|
|
Replay Dial-in Information: |
Toll-Free: |
1-844-512-2921 |
Toll/International: |
1-412-317-6671 |
From: 06/26/18 at 8:00 pm Eastern
Time |
To: 07/03/18 at 11:59 pm Eastern
Time |
Replay Pin Number: 13680590 |
|
|
Related:
http://investor.determine.com
Non-GAAP Financial Measures
To supplement our financial results presented in accordance with
Generally Accepted Accounting Principles (GAAP), this press release
and the accompanying tables contain certain non-GAAP financial
measures, including non-GAAP revenue, non-GAAP gross profit,
non-GAAP net income and non-GAAP earnings per share, which we
believe are helpful in understanding our past financial performance
and future results. For reconciliations of these non-GAAP financial
measures to the most directly comparable GAAP financial measures,
please see the section of the accompanying tables titled, “GAAP to
Non-GAAP Reconciliations”. Our non-GAAP financial measures are not
meant to be considered in isolation or as a substitute for
comparable GAAP measures and should be read in conjunction with our
consolidated financial statements prepared in accordance with
GAAP.
The difference between GAAP and non-GAAP revenue is due to the
impact of revaluing the deferred revenue balances acquired from
primarily b-pack as required by GAAP purchase accounting.
The difference between GAAP and non-GAAP gross profit is the
difference in GAAP versus non-GAAP revenues as well as the
elimination of the amortization of acquisition related intangibles,
stock based compensation and severance expense from the costs of
revenue. Non-GAAP net loss excludes the non-GAAP gross profit items
as well as acquisition related costs.
Our management regularly uses our supplemental non-GAAP
financial measures internally to understand and manage our business
and forecast future periods; as such, we believe it is useful for
investors to understand the effects of these items on our total
operations. Further, please note that our non-GAAP revenue is
intended to reflect the full amount of revenues that would have
been otherwise recorded by the acquired entities of Iasta and
b-pack, while our non-GAAP gross profit also excludes the
amortization of intangibles that occurred due to the acquisition of
the entities of Iasta and b-pack.
Annualized Bookings are an operating measure not derived from
the company’s revenues or any other amounts presented in accordance
with GAAP in the company’s statement of income, balance sheet or
statement of cash flows or other equivalent statements.
Forward-looking Statements
Certain statements in this release and elsewhere by Determine
are forward-looking statements within the meaning of the federal
securities laws and the Private Securities Litigation Reform Act of
1995. Such statements may include, without limitation, statements
regarding business outlook, assessment of market conditions,
anticipated financial and operating results, strategies, product
and channel development, future plans, contingencies and
contemplated transactions of the company. Such forward-looking
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties and other factors which
may cause or contribute to actual results of company operations, or
the performance or achievements of the company or industry results,
to differ materially from those expressed, or implied by the
forward-looking statements. In addition to any such risks,
uncertainties and other factors discussed elsewhere herein, risks,
uncertainties and other factors that could cause or contribute to
actual results differing materially from those expressed or implied
for the forward-looking statements include, but are not limited to
fluctuations in demand for Determine’s products and services, risks
of losing key personnel or customers, protection of the company’s
intellectual property and government policies and regulations,
including, but not limited to those affecting the company’s
industry. Determine undertakes no obligation to publicly update any
forward-looking statements, whether as a result of new information,
future events or otherwise. Additional risk factors concerning the
company can be found in the company’s most recent Form 10-K as
filed by the company with the Securities and Exchange
Commission.
Supporting Resources
Determine Blog
Determine on LinkedIn
Determine on Twitter
Determine Resources
About Determine, Inc.
Determine, Inc. (NASDAQ:DTRM) is a leading global provider of
SaaS Source-to-Pay and Enterprise Contract Lifecycle Management
(ECLM) solutions. The Determine Cloud Platform provides
procurement, legal and finance professionals analytics of their
supplier, contract and financial performance. Our technologies
empower customers to drive new revenue, identify savings, improve
compliance and mitigate risk.
The Determine Cloud Platform seamlessly integrates with major
ERP or third-party systems such as SAP, Oracle, Sage, QAD and
Microsoft. Modular solutions can be configured to add more as
needed to provide additional value beyond spend management. Our
unified master database and business process approach empower users
at every level to make more informed and smarter decisions.
For more information, please visit: www.determine.com.
Media Relations:
Mike MitchellDetermine Inc.+1.650.532.1590pr@determine.com
|
Determine, Inc. |
Condensed Consolidated Statements of
Operations |
(In thousands, except per share
amounts) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Revenues: |
|
|
|
|
|
|
|
|
|
Recurring revenues |
$ |
5,467 |
|
|
$ |
5,628 |
|
|
$ |
21,864 |
|
|
$ |
20,895 |
|
|
Non-recurring revenues |
|
1,309 |
|
|
|
1,907 |
|
|
|
6,255 |
|
|
|
6,568 |
|
|
Total revenues |
|
6,776 |
|
|
|
7,535 |
|
|
|
28,119 |
|
|
|
27,463 |
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenues: |
|
|
|
|
|
|
|
|
Cost
of recurring revenues |
|
2,089 |
|
|
|
1,932 |
|
|
|
7,952 |
|
|
|
7,017 |
|
|
Cost
of non-recurring revenues |
|
1,343 |
|
|
|
1,630 |
|
|
|
5,546 |
|
|
|
6,608 |
|
|
Total cost of revenues |
|
3,432 |
|
|
|
3,562 |
|
|
|
13,498 |
|
|
|
13,625 |
|
|
|
|
|
|
|
|
|
|
|
Gross
profit: |
|
|
|
|
|
|
|
|
Recurring gross profit |
|
3,378 |
|
|
|
3,696 |
|
|
|
13,912 |
|
|
|
13,878 |
|
|
Non-recurring profit (loss) |
|
(34 |
) |
|
|
277 |
|
|
|
709 |
|
|
|
(40 |
) |
|
Total gross profit |
|
3,344 |
|
|
|
3,973 |
|
|
|
14,621 |
|
|
|
13,838 |
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
1,096 |
|
|
|
720 |
|
|
|
4,459 |
|
|
|
3,771 |
|
|
Sales and marketing |
|
2,954 |
|
|
|
2,508 |
|
|
|
10,877 |
|
|
|
10,352 |
|
|
General and administrative |
|
2,162 |
|
|
|
2,062 |
|
|
|
8,025 |
|
|
|
7,495 |
|
|
|
Total
operating expenses |
|
6,212 |
|
|
|
5,290 |
|
|
|
23,361 |
|
|
|
21,618 |
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(2,868 |
) |
|
|
(1,317 |
) |
|
|
(8,740 |
) |
|
|
(7,780 |
) |
|
|
|
|
|
|
|
|
|
|
Other expense, net |
|
(484 |
) |
|
|
(477 |
) |
|
|
(1,763 |
) |
|
|
(1,865 |
) |
Net loss before income tax |
|
(3,352 |
) |
|
|
(1,794 |
) |
|
|
(10,503 |
) |
|
|
(9,645 |
) |
|
|
|
|
|
|
|
|
|
|
Benefit from income taxes |
|
530 |
|
|
|
86 |
|
|
|
555 |
|
|
|
229 |
|
Consolidated net loss |
|
(2,822 |
) |
|
|
(1,708 |
) |
|
|
(9,948 |
) |
|
|
(9,416 |
) |
|
|
|
|
|
|
|
|
|
|
Net loss attributable to non-conrolling interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(36 |
) |
Net loss attributable to common stockholders |
$ |
(2,822 |
) |
|
$ |
(1,708 |
) |
|
$ |
(9,948 |
) |
|
$ |
(9,452 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted net loss per share |
$ |
(0.19 |
) |
|
$ |
(0.14 |
) |
|
$ |
(0.69 |
) |
|
$ |
(0.81 |
) |
|
|
|
|
|
|
|
|
|
|
|
Determine, Inc. |
GAAP to Non-GAAP Reconciliations |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Reconciliation of total revenue: |
|
|
|
|
|
|
|
|
U.S. GAAP
as reported |
$ |
6,776 |
|
|
$ |
7,535 |
|
|
$ |
28,119 |
|
|
$ |
27,463 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Deferred
revenue adjustment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8 |
|
Non-GAAP
revenue |
$ |
6,776 |
|
|
$ |
7,535 |
|
|
$ |
28,119 |
|
|
$ |
27,471 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of gross profit: |
|
|
|
|
|
|
|
|
U.S. GAAP
as reported |
$ |
3,344 |
|
|
$ |
3,973 |
|
|
$ |
14,621 |
|
|
$ |
13,838 |
|
|
Adjustments: |
|
|
|
|
|
|
|
|
Deferred
revenue adjustment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8 |
|
|
Amortizaton
of acquisition |
|
260 |
|
|
|
249 |
|
|
|
1,028 |
|
|
|
1,007 |
|
|
Stock based compensation |
|
22 |
|
|
|
74 |
|
|
|
166 |
|
|
|
314 |
|
|
Severance |
|
0 |
|
|
|
1 |
|
|
|
82 |
|
|
|
25 |
|
Non-GAAP
gross profit |
$ |
3,626 |
|
|
$ |
4,297 |
|
|
$ |
15,897 |
|
|
$ |
15,192 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation to non-GAAP net loss: |
|
|
|
|
|
|
|
Net loss attributable to Determine, Inc. |
$ |
(2,822 |
) |
|
$ |
(1,708 |
) |
|
$ |
(9,948 |
) |
|
$ |
(9,452 |
) |
Stock-based compensation expense |
|
512 |
|
|
|
741 |
|
|
|
2,161 |
|
|
|
2,609 |
|
Deferred revenue adjustment |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
8 |
|
Amortization on intangibles |
|
548 |
|
|
|
525 |
|
|
|
2,161 |
|
|
|
2,119 |
|
Benefit for income taxes |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(13 |
) |
Severance costs |
|
36 |
|
|
|
14 |
|
|
|
139 |
|
|
|
48 |
|
Non-GAAP
net loss |
$ |
(1,726 |
) |
|
$ |
(428 |
) |
|
$ |
(5,487 |
) |
|
$ |
(4,681 |
) |
|
|
|
|
|
|
|
|
|
|
Non-GAAP
basic and diluted net loss per share |
$ |
(0.12 |
) |
|
$ |
(0.04 |
) |
|
$ |
(0.38 |
) |
|
$ |
(0.40 |
) |
|
|
|
|
|
|
|
|
|
|
Weighted average shares outstanding for basic |
|
|
|
|
|
|
|
|
and diluted net loss per share |
|
14,990 |
|
|
|
11,964 |
|
|
|
14,408 |
|
|
|
11,644 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Determine, Inc. |
Condensed Consolidated Statements of
Comprehensive Loss |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Consolidated net loss |
$ |
(2,822 |
) |
|
$ |
(1,708 |
) |
|
$ |
(9,948 |
) |
|
$ |
(9,416 |
) |
Foreign currency translation adjustments, net |
|
281 |
|
|
|
(17 |
) |
|
|
1,309 |
|
|
|
(64 |
) |
Other comprehensive income |
|
(17 |
) |
|
|
- |
|
|
|
(97 |
) |
|
|
- |
|
Comprehensive loss |
|
(2,558 |
) |
|
|
(1,725 |
) |
|
|
(8,736 |
) |
|
|
(9,480 |
) |
Less: Net
loss attributable to non-controlling interest |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(36 |
) |
Comprehensive loss attributable to Determine, Inc. |
$ |
(2,558 |
) |
|
$ |
(1,725 |
) |
|
$ |
(8,736 |
) |
|
$ |
(9,516 |
) |
|
|
|
|
|
|
|
|
|
|
Determine, Inc. |
Condensed Consolidated
Balance Sheets |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
March 31, |
|
|
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
(Unaudited) |
|
(Audited) |
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents |
$ |
9,928 |
|
|
$ |
9,429 |
|
|
|
|
|
|
|
Accounts
receivable, net |
|
6,605 |
|
|
|
7,042 |
|
|
|
|
|
|
|
Restricted cash |
|
28 |
|
|
|
34 |
|
|
|
|
|
|
|
Prepaid expenses and
other current assets |
|
1,542 |
|
|
|
1,553 |
|
|
|
|
|
|
|
Total current
assets |
|
18,103 |
|
|
|
18,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
90 |
|
|
|
85 |
|
|
|
|
|
|
Capitalized software development costs, net |
|
2,994 |
|
|
|
2,341 |
|
|
|
|
|
|
Goodwill |
|
15,458 |
|
|
|
14,448 |
|
|
|
|
|
|
Other intangibles, net |
|
3,952 |
|
|
|
5,860 |
|
|
|
|
|
|
Other assets |
|
1,467 |
|
|
|
1,599 |
|
|
|
|
|
|
|
Total assets |
$ |
42,064 |
|
|
$ |
42,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
|
|
|
|
Credit
facility |
$ |
12,128 |
|
|
$ |
11,861 |
|
|
|
|
|
|
|
Accounts
payable |
|
2,371 |
|
|
|
2,478 |
|
|
|
|
|
|
|
Accrued
payroll and related liabilities |
|
1,986 |
|
|
|
1,729 |
|
|
|
|
|
|
|
Other
accrued liabilities |
|
2,239 |
|
|
|
2,042 |
|
|
|
|
|
|
|
Deferred
revenue |
|
9,487 |
|
|
|
10,070 |
|
|
|
|
|
|
|
Income
tax payable |
|
48 |
|
|
|
23 |
|
|
|
|
|
|
|
COFACE
loan |
|
- |
|
|
|
174 |
|
|
|
|
|
|
|
Total current liabilities |
|
28,259 |
|
|
|
28,377 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term deferred revenue |
|
84 |
|
|
|
10 |
|
|
|
|
|
|
|
Convertible note, net of debt discount |
|
7,475 |
|
|
|
7,599 |
|
|
|
|
|
|
|
Other
long-term liabilities |
|
1,306 |
|
|
|
1,306 |
|
|
|
|
|
|
|
Total liabilities |
|
37,124 |
|
|
|
37,292 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
stockholders' equity |
|
4,940 |
|
|
|
5,099 |
|
|
|
|
|
|
|
Total liabilities and stockholders' equity |
$ |
42,064 |
|
|
$ |
42,391 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Determine, Inc. |
Condensed Consolidated
Statements of Cash Flows |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months Ended |
|
|
|
|
|
|
|
March 31, |
|
March 31, |
|
|
|
|
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities |
|
|
|
|
|
|
|
Net loss |
|
$ |
(9,948 |
) |
|
$ |
(9,416 |
) |
|
|
|
|
Adjustments to reconcile net loss to net cash used in |
|
|
|
|
|
|
|
operating activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
3,965 |
|
|
|
3,405 |
|
|
|
|
|
|
Loss on fixed asset disposal |
|
2 |
|
|
|
- |
|
|
|
|
|
|
Noncash income tax benefit |
|
(435 |
) |
|
|
(208 |
) |
|
|
|
|
|
Interest expense paid in kind as convertible note debt |
|
784 |
|
|
|
225 |
|
|
|
|
|
|
Stock-based compensation expense |
|
2,161 |
|
|
|
2,609 |
|
|
|
|
|
|
Unrealized currency translation gains |
|
(41 |
) |
|
|
- |
|
|
|
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable, net |
|
437 |
|
|
|
(11 |
) |
|
|
|
|
|
Prepaid expenses and other current assets |
|
(13 |
) |
|
|
3 |
|
|
|
|
|
|
Other assets |
|
725 |
|
|
|
212 |
|
|
|
|
|
|
Accounts payable |
|
(112 |
) |
|
|
505 |
|
|
|
|
|
|
Accrued payroll and related liabilities |
|
257 |
|
|
|
74 |
|
|
|
|
|
|
Accrued restructuring costs |
|
- |
|
|
|
(403 |
) |
|
|
|
|
|
Other accrued liabilities and other long-term liabilities |
|
410 |
|
|
|
(65 |
) |
|
|
|
|
|
Deferred revenue |
|
(509 |
) |
|
|
(286 |
) |
|
|
|
|
Net cash used in operating activities |
|
(2,317 |
) |
|
|
(3,356 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing activities |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
(48 |
) |
|
|
(57 |
) |
|
|
|
|
|
Capitalized software development costs, net |
|
(2,382 |
) |
|
|
(1,829 |
) |
|
|
|
|
Net cash used in investing activities |
|
(2,430 |
) |
|
|
(1,886 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing activities |
|
|
|
|
|
|
|
|
Proceeds from issuance of stock, net of issuance costs |
|
4,909 |
|
|
|
- |
|
|
|
|
|
|
Net employee withholding taxes paid in connection to issuance
of restricted stock |
|
(41 |
) |
|
|
(132 |
) |
|
|
|
|
|
Issuance of stock under employee stock purchase plan |
|
187 |
|
|
|
140 |
|
|
|
|
|
|
Credit facility borrowing |
|
42,489 |
|
|
|
4,000 |
|
|
|
|
|
|
Credit facility payment |
|
(42,223 |
) |
|
|
(1,139 |
) |
|
|
|
|
|
Repayment of loan |
|
(174 |
) |
|
|
(233 |
) |
|
|
|
|
|
Proceeds from exercise of stock options |
|
6 |
|
|
|
- |
|
|
|
|
|
|
Issuance of convertible note, net of debt issuance costs |
|
- |
|
|
|
2,429 |
|
|
|
|
|
Net cash provided by financing activities |
|
5,153 |
|
|
|
5,065 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash |
|
93 |
|
|
|
188 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents |
|
499 |
|
|
|
11 |
|
|
|
|
|
Cash and cash equivalents at beginning of the period |
|
9,429 |
|
|
|
9,418 |
|
|
|
|
|
Cash and cash equivalents at end of the period |
$ |
9,928 |
|
|
$ |
9,429 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Determine, Inc. |
Billings Reconciliation |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
|
|
|
|
|
|
|
|
|
|
Total
revenues |
$ |
6,776 |
|
|
$ |
7,535 |
|
|
$ |
28,119 |
|
|
$ |
27,463 |
|
Deferred
revenue: |
|
|
|
|
|
|
|
End of
period |
|
9,571 |
|
|
|
10,080 |
|
|
|
9,571 |
|
|
|
10,080 |
|
Beginning
of period |
|
10,356 |
|
|
|
10,033 |
|
|
|
10,080 |
|
|
|
10,366 |
|
Change in
deferred revenue |
|
(785 |
) |
|
|
47 |
|
|
|
(509 |
) |
|
|
(286 |
) |
Total
billings (total revenues plus the change in deferred revenue) |
$ |
5,991 |
|
|
$ |
7,582 |
|
|
$ |
27,610 |
|
|
$ |
27,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Determine, Inc. |
Non-GAAP EBITDA Reconciliation |
(In thousands) |
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Twelve Months Ended |
|
|
|
March 31, |
|
March 31, |
|
|
|
|
2018 |
|
|
|
2017 |
|
|
|
2018 |
|
|
|
2017 |
|
Reconciliation to non-GAAP EBITDA net loss: |
|
|
|
|
|
|
|
Non-GAAP
net loss |
$ |
(1,726 |
) |
|
$ |
(428 |
) |
|
$ |
(5,487 |
) |
|
$ |
(4,681 |
) |
Interest |
|
|
473 |
|
|
|
472 |
|
|
|
1,774 |
|
|
|
1,771 |
|
Depreciation |
|
527 |
|
|
|
379 |
|
|
|
1,771 |
|
|
|
1,295 |
|
Income taxes and minority shareholder |
|
(530 |
) |
|
|
(86 |
) |
|
|
(555 |
) |
|
|
(193 |
) |
Non-GAAP EBITDA net loss |
$ |
(1,256 |
) |
|
$ |
337 |
|
|
$ |
(2,497 |
) |
|
$ |
(1,808 |
) |
|
|
|
|
|
|
|
|
|
|