SoundBite Communications, Inc. (Nasdaq:SDBT) today announced its
financial results for the fourth quarter and full year 2011. Fourth
quarter revenues, computed in accordance with U.S. generally
accepted accounting principles (GAAP), were $12.0 million, an
increase of 18% compared to the same quarter in 2010. On a full
year basis, 2011 revenues were $41.7 million, a 5% increase over
2010. Net income was $391,000 for the fourth quarter of 2011, or
net income per share of $0.02, versus net income of $71,000 in the
fourth quarter of 2010 or net income per share of $0.00.
On a non-GAAP basis, after excluding non-cash stock compensation
expense, amortization of intangibles and present value adjustment
related to the SmartReply contingent consideration, net income was
$1.0 million or $0.06 per share in the fourth quarter compared to a
net income of $420,000 or $0.03 per share in the same quarter in
2010.
"The fourth quarter was a record quarter for SoundBite and,
following a solid third quarter, demonstrated that we have momentum
in the business. It was also a record quarter for our mobile
business, delivering a 66% improvement in revenues over the fourth
quarter of 2010. We are seeing great traction in our Mobile
Marketing and Hosted Contact Center businesses, as well as
continued growth in international and our channel business," stated
Jim Milton, president and CEO of SoundBite Communications.
Milton continued, "2011 was a transformative year for our
Company. We are executing on our plans, delivering improving
financial results and believe we have a solid foundation in place
to attain our goals and grow the business in 2012. I am optimistic
about our future and look forward to the coming year."
Recent Highlights
- Announced the deployment of a new mobile campaign with Westlake
Ace Hardware to deliver innovative, location-based inclement
weather notifications combined with marketing promotions to their
consumers' mobile devices.
- Earned Level 1 PCI re-certification on a global basis thereby
demonstrating SoundBite's commitment to client data and Information
Security.
- Introduced SoundBite Preview+ to provide contact centers with
flexible dialing strategies to address cell phone regulations.
Preview+ enables contact centers to seamlessly transition between
dialing strategies for more effective and compliant customer
outreach.
Quarterly Results
GAAP Results
Gross margin for the fourth quarter of 2011 was 61.2% versus
60.1% in the fourth quarter of 2010. Operating expenses were
$6.9 million in the fourth quarter of 2011 and as a percentage of
revenues were 57.8% versus 59.6% in the year-earlier
period.
Net income was $391,000 for the fourth quarter of 2011 versus
net income of $71,000 in the fourth quarter of 2010. Net
income per share for the fourth quarter of 2011 was $0.02, versus
$0.00 in the same quarter of 2010.
Net income in the fourth quarter of 2011 included stock-based
compensation expense of $292,000, amortization of intangible assets
of $296,000 primarily associated with SmartReply and a present
value adjustment of $51,000 related to SmartReply's contingent
consideration liability. Net income in the fourth quarter of
2010 included stock-based compensation expense of $337,000 and
amortization of intangibles of $12,000 associated with the
Company's acquisition of Mobile Collect (see the attached table for
a breakdown of stock-based compensation expense by operating
statement line item).
Non-GAAP Results
Fourth quarter 2011 non-GAAP net income was $1.0 million or
$0.06 per share, compared to a non-GAAP net income of $420,000 or
$0.03 per share for the same period in 2010. Non-GAAP net
income or loss computations exclude stock compensation expense,
amortization expense and a present value adjustment related to
SmartReply. A reconciliation of the most comparable GAAP
financial measure to the non-GAAP measure used above is included
with the financial tables at the end of this release.
Free cash flow, calculated as cash flow from operating
activities, less payments of contingent purchase price related to
our Mobile Collect acquisition, investments in capitalized software
and purchases of property and equipment, for the fourth quarter
resulted in free cash flow of approximately $1.1 million.
First Quarter Guidance
Based on information available as of February 22, 2012,
SoundBite is issuing guidance for the first quarter 2012 as
follows:
SoundBite currently projects revenues in the range of $10.2
million to $11.0 million and gross margin in the range of 58% to
60% for the first quarter of 2012. Operating expenses are
expected to be approximately $7.5 million. Included in the
operating expense projection for the first quarter are legal costs
of approximately $200,000 associated with the GameStop litigation
regarding confirmatory text opt-outs. The projection for GAAP
operating loss is in the range of $900,000 to $1.6 million, and on
a per share basis is a net loss of $0.05 to $0.09 for the first
quarter of 2012.
The non-GAAP operating projections are for an operating loss of
$200,000 to $900,000, or a non-GAAP net loss per share of $0.01 to
$0.05. Non-GAAP per share estimates exclude the effects of
estimated stock-based compensation expense of approximately
$300,000, amortization of intangibles of approximately $300,000
associated with the Company's acquisition of SmartReply and a
present value adjustment of contingent consideration related to the
SmartReply earn out of $50,000 and assumes a basic weighted share
count of approximately 16.5 million shares for the first quarter of
2012. SoundBite expects capital expenditures to be
approximately $300,000 and depreciation expense to be approximately
$300,000.
Webcast and Teleconference Information
The Company will host a conference call today at 5:00 p.m. ET to
discuss its financial results. A live and archived webcast of
the event will be available at
http://ir.soundbite.com/events.cfm. A live dial-in is
available in the U.S. at +1 888 350 0137 and outside the U.S. at +1
970 315 0478. A replay of the call will be available
approximately two hours after the call and can be accessed by
dialing +1 855 859 2056 in the U.S. and +1 404 537 3406 for callers
outside the U.S. and entering pass code 47993394.
Non-GAAP Measures
To supplement its statements of operations information presented
in accordance with GAAP, SoundBite uses non-GAAP measures for net
income or loss per share and free cash flow. In order for
investors to be better able to compare its current results with
those of previous periods, SoundBite has shown a reconciliation of
GAAP to non-GAAP financial measures. The net income or loss
per share reconciliation adjusts the GAAP net income or loss per
share to exclude stock compensation expense, amortization,
adjustments to contingent consideration,severance expense and tax
benefits from release of valuation allowance for deferred tax
assets. The free cash flow reconciliation adjusts the GAAP
cash flow from operating activities to include proceeds from the
sale of equipment and exclude contingent purchase price related to
our Mobile Collect acquisition, investments in capitalized software
and purchases of property and equipment. SoundBite believes
the presentation of these non-GAAP financial measure enhance
investors' overall understanding of SoundBite's historical
financial performance. The presentation of non-GAAP net income
or loss per share and free cash flow is not meant to be considered
in isolation or as a substitute for SoundBite's financial results
prepared in accordance with GAAP and SoundBite's non-GAAP financial
measures may be different from non-GAAP financial measures used by
other companies.
About SoundBite Communications
SoundBite Communications, a leading cloud communications
provider, enables organizations to build lifelong, profitable
customer relationships via proactive communications across the full
consumer lifecycle. We serve two global markets, the Hosted
Contact Center and Mobile Marketing. Our solutions leverage
the power of two robust platforms: SoundBite Engage, an
interactive multi-channel communications platform providing
integrated SMS, dialer, voice messaging, email and web
communications; and SoundBite Insight, a preference management
platform enabling intelligent, personalized
communications. SoundBite powers nearly 2 billion customer
interactions annually. Visit SoundBite.com for more
information.
The SoundBite Communications, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=4393
Forward-Looking Statement
This is a "safe harbor" statement under the Private Securities
Litigation Reform Act of 1995. Any forward-looking statements
contained in this press release, including statements made under
"First Quarter Guidance," are based upon SoundBite's historical
performance and its current plans, estimates and
expectations. The inclusion of this forward-looking
information should not be regarded as a representation by
SoundBite, its management or any other person that the future
plans, estimates or expectations contemplated by SoundBite will be
achieved. These forward-looking statements represent
SoundBite's expectations as of the date of this press
release. Subsequent events may cause these expectations to
change and SoundBite disclaims any obligation to update the
forward-looking statements in the future. Matters subject to
forward-looking statements involve known and unknown risks and
uncertainties, including: slower than anticipated development
of the market for automated voice messaging services; defects in
SoundBite's platform; disruptions in its service or errors in its
execution; discontinued or decreased use of SoundBite's service by
its clients, which are not subject to minimum purchase requirements
for any reason, including market conditions and regulatory
developments; and the occurrence of events adversely affecting the
collection agencies industry or in-house collection departments,
which account for a significant portion of SoundBite's
revenues. These and other factors, including the factors set
forth under the caption "Item 1A. Risk Factors" of Part II in
SoundBite's most recent quarterly report on Form 10-Q filed with
the Securities and Exchange Commission, could cause SoundBite's
performance or achievements to be materially different from those
expressed or implied by the forward-looking statements.
SoundBite is a registered service mark of SoundBite
Communications, Inc.
(SDBT: F, G)
SOUNDBITE
COMMUNICATIONS, INC. AND SUBSIDIARIES |
Condensed Consolidated
Statements of Operations |
(in thousands, except share and
per share amounts) |
|
|
|
|
|
|
Three Months
Ended December 31 |
Twelve Months
Ended December 31, |
|
2011 |
2010 |
2011 |
2010 |
Revenues |
$ 11,982 |
$ 10,147 |
$ 41,653 |
$ 39,494 |
Cost of revenues (1) |
4,654 |
4,047 |
17,018 |
15,955 |
Gross profit |
7,328 |
6,100 |
24,635 |
23,539 |
Operating expenses: |
|
|
|
|
Research and development (1) |
1,573 |
1,350 |
6,114 |
5,886 |
Sales and marketing (1) |
3,802 |
3,134 |
14,084 |
14,171 |
General and administrative (1) |
1,556 |
1,566 |
6,835 |
6,799 |
Total operating expenses |
6,931 |
6,050 |
27,033 |
26,856 |
Operating income (loss) |
397 |
50 |
(2,398) |
(3,317) |
Interest and other income
(expense) |
8 |
(9) |
0 |
2 |
Income (loss) before income tax
benefit |
405 |
41 |
(2,398) |
(3,315) |
Income tax (provision) benefit |
(14) |
30 |
891 |
30 |
Net income (loss) |
$ 391 |
$ 71 |
$ (1,507) |
$ (3,285) |
|
|
|
|
|
Net income (loss) per common share: |
|
|
|
|
Basic & Diluted |
$ 0.02 |
$ 0.00 |
$ (0.09) |
$ (0.20) |
Weighted average common shares
outstanding: |
|
|
|
|
Basic |
16,466,414 |
16,372,732 |
16,435,737 |
16,344,213 |
Diluted |
16,487,299 |
16,469,625 |
16,435,737 |
16,344,213 |
|
|
|
|
|
(1) Amounts include stock-based
compensation expense, as follows: |
|
|
|
|
|
|
|
|
|
Three Months
Ended December 31 |
Twelve Months
Ended December 31, |
|
|
2011 |
2010 |
2011 |
2010 |
|
|
|
|
|
Cost of revenues |
$ 11 |
$ 10 |
$ 42 |
$ 41 |
Research and development |
60 |
61 |
218 |
241 |
Sales and marketing |
114 |
121 |
459 |
476 |
General and administrative |
107 |
145 |
456 |
595 |
|
$ 292 |
$ 337 |
$ 1,175 |
$ 1,353 |
|
SOUNDBITE
COMMUNICATIONS, INC. AND SUBSIDIARIES |
Condensed Consolidated
Balance Sheets |
(in thousands, except share
amounts) |
|
|
|
December 31, |
December 31, |
|
2011 |
2010 |
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ 17,706 |
$ 34,157 |
Short-term investments |
10,976 |
0 |
Accounts receivable, net of allowance for
doubtful accounts of $166 and $197 at |
|
|
December 31, 2011 and 2010,
respectively |
8,163 |
6,577 |
Prepaid expenses and other current
assets |
1,419 |
1,183 |
Total current assets |
38,264 |
41,917 |
Property and equipment, net |
2,081 |
2,550 |
Intangible assets, net |
2,036 |
517 |
Goodwill |
4,286 |
762 |
Other assets |
118 |
229 |
Total assets |
$ 46,785 |
$ 45,975 |
|
|
|
Liabilities and Stockholders'
Equity |
|
|
Current liabilities: |
|
|
Accounts payable |
$ 767 |
$ 1,067 |
Accrued expenses |
3,445 |
3,297 |
Other current liabilities |
561 |
0 |
Total current liabilities |
4,773 |
4,364 |
Non-current liabilities: |
|
|
Long-term contingent consideration
payable |
966 |
0 |
Other liabilities |
277 |
421 |
Total liabilities |
6,016 |
4,785 |
|
|
|
Stockholders' equity: |
|
|
Common stock, $0.001 par value —
75,000,000 shares authorized; 16,666,206 and 16,576,701 shares
issued at December 31, 2011 and 2010, respectively; 16,410,427 and
16,381,316 shares outstanding at December 31, 2011 and 2010,
respectively |
17 |
17 |
Additional paid-in capital |
70,681 |
69,454 |
Treasury stock, at cost —255,779 and
195,385 shares December 31, 2011 and 2010, respectively |
(273) |
(132) |
Accumulated other comprehensive loss |
(72) |
(72) |
Accumulated deficit |
(29,584) |
(28,077) |
Total stockholders' equity |
40,769 |
41,190 |
Total liabilities and stockholders'
equity |
$ 46,785 |
$ 45,975 |
|
SOUNDBITE
COMMUNICATIONS, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS |
(in thousands) |
|
|
|
|
Twelve Months
Ended |
|
December
31, |
|
2011 |
2010 |
Cash flows from operating activities: |
|
|
Net loss |
$ (1,507) |
$ (3,285) |
Adjustments to reconcile net loss to net cash
provided by operating activities: |
|
|
Depreciation of property and
equipment |
1,338 |
1,836 |
Adjustment to contingent
consideration |
98 |
0 |
Amortization of intangible assets |
839 |
62 |
Amortization of premiums paid on
short-term investments |
5 |
0 |
Stock-based compensation |
1,175 |
1,353 |
Provision for doubtful accounts |
52 |
60 |
Deferred tax asset |
(905) |
0 |
Gain on sale of equipment |
(3) |
(2) |
Change in operating assets and liabilities,
net of effect of acquisition: |
|
|
Accounts receivable |
(957) |
241 |
Prepaid expenses and other current
assets |
(161) |
161 |
Other assets |
111 |
(100) |
Accounts payable |
(586) |
64 |
Accrued expenses and other
liabilities |
(200) |
(77) |
Net cash used in operating
activities |
(701) |
313 |
Cash flows from investing
activities: |
|
|
Cash paid related to acquisition of
Mobile Collect |
(691) |
(503) |
Cash paid related to acquisition of
SmartReply |
(3,150) |
0 |
Investment in capitalized software |
0 |
(500) |
Proceeds from sale of equipment |
3 |
2 |
Purchases of investments |
(10,981) |
0 |
Purchases of property and equipment |
(842) |
(1,567) |
Net cash used in investing
activities |
(15,661) |
(2,568) |
Cash flows from financing activities: |
|
|
Proceeds from issuance of common stock
upon exercise of stock options |
52 |
90 |
Treasury stock purchases |
(141) |
0 |
Net cash provided by financing
activities |
(89) |
90 |
Net decrease in cash and cash
equivalents |
(16,451) |
(2,165) |
Cash and cash equivalents, beginning of
period |
34,157 |
36,322 |
Cash and cash equivalents, end of period |
$ 17,706 |
$ 34,157 |
|
|
|
Supplemental disclosure of cash flow
information: |
|
|
Cash paid during the period for income
taxes |
$ 46 |
$ 7 |
|
|
|
Supplemental disclosures of non-cash
investing activities: |
|
|
Property and equipment, included in
accounts payable |
$ 150 |
$ 173 |
Contingent cash payment to Mobile
Collect, included in accrued expenses |
$ 271 |
$ 163 |
Contingent consideration and
consideration payable, included in accrued expenses and other
liabilities |
$ 1,256 |
$ -- |
|
SOUNDBITE
COMMUNICATIONS, INC. AND SUBSIDIARIES |
Reconciliation of GAAP
Cash Flows from Operating Activities to Non-GAAP Free Cash
Flows |
( in thousands) |
|
|
|
|
|
|
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
|
2011 |
2010 |
2011 |
2010 |
GAAP cash flows generated from (used in)
operating activities |
$ 1,491 |
$ (398) |
$ (701) |
$ 313 |
Proceeds from sale of equipment |
-- |
2 |
3 |
2 |
Contingent purchase price payments to Mobile
Collect |
(215) |
(159) |
(691) |
(503) |
Investments in capitalized software |
-- |
(11) |
-- |
(500) |
Purchases of property and equipment |
(147) |
(457) |
(842) |
(1,567) |
Non-GAAP free cash flows |
$ 1,129 |
$ (1,023) |
$ (2,231) |
$ (2,255) |
|
SOUNDBITE
COMMUNICATIONS, INC. AND SUBSIDIARIES |
Reconciliation of GAAP
Net Income (Loss) to Non-GAAP Net Income (Loss) and
EPS |
( in thousands, except share
and per share amounts) |
|
|
|
|
|
|
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
|
2011 |
2010 |
2011 |
2010 |
GAAP net income (loss) |
$ 391 |
$ 71 |
$ (1,507) |
$ (3,285) |
Stock compensation expense |
292 |
337 |
1,175 |
1,353 |
Amortization expense |
296 |
12 |
700 |
62 |
Adjustment to contingent consideration |
51 |
-- |
98 |
-- |
Severance expense |
-- |
-- |
94 |
-- |
Tax benefit |
-- |
-- |
(905) |
-- |
Non-GAAP net income (loss) |
$ 1,030 |
$ 420 |
$ (345) |
$ (1,870) |
|
|
|
|
|
Non-GAAP net income (loss) per common
share: |
|
|
|
|
Basic & Diluted |
$ 0.06 |
$ 0.03 |
$ (0.02) |
$ (0.11) |
|
|
|
|
|
|
|
|
|
|
Weighted average common shares used in
computing Non-GAAP net income (loss) per common share: |
|
|
|
|
Basic |
16,466,414 |
16,372,732 |
16,435,737 |
16,344,213 |
Diluted |
16,487,299 |
16,469,625 |
16,435,737 |
16,344,213 |
CONTACT: IR & Media Contact:
Lynn Ricci
SoundBite Communications
781-897-2696
lricci@SoundBite.com
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