SofTech, Inc. today announced its first quarter operating results for the three months ended August 31, 2015.
For the first quarter of fiscal year 2016, the Company generated revenue of approximately $981,000 as compared to $864,000 in the same period in fiscal year 2015, an increase of about 13.5%. The net loss for the first quarter of fiscal year 2016 was approximately $(174,000) or $(0.19) per share as compared to a net loss of $(572,000) or $(.64) per share for the same period in fiscal year 2015. EBITDA for the first quarter of fiscal year 2016 was $(114,000) as compared to $(368,000) during the same period in fiscal year 2015.
Revenue growth for the Company’s ProductCenter and Connector technologies was consistent with the growth experienced in fiscal year 2015. Revenue from the CADRA technology, a product we market and support in Europe under a Distributorship Agreement with Mentor Graphics Corporation, decreased 26% in the current quarter as compared to the same period in the prior fiscal year. The decline in the Euro relative to the USD was the primary reason for the CADRA revenue decline.
Cash expenses other than purchase of third party products and services were approximately $992,000 for the first quarter of fiscal year 2016 as compared to $1,180,000 in the same period in fiscal year 2015, a decrease of 15.9%. Third party purchases were essentially unchanged.
“We are pleased with the consistent revenue growth of our own technology and service offerings,” said Joe Mullaney, SofTech’s CEO. “In addition, we have controlled our spending and continued to develop the HomeView™ product, an offering we believe has a significant market opportunity. We will be introducing HomeView to the market place in our third fiscal quarter.”
“The pipeline of identified, qualified projects signals continued revenue growth for our ProductCenter and Connector technologies over the coming quarters. In the first quarter our consultants continued to bill at an above average rate as compared to the average quarterly billings for the last two years which we also expect to continue,” he added.
The Company will be demonstrating its HomeView product at Inman Connect, a real estate focused event in New York City in January 2016. The mobile app will be available for download from the Apple iTunes Store well before the Conference.
“We have invested a great deal of time, money and energy into the HomeView technology and we are more enthused and confident of its value than ever,” said Bob Anthonyson, HomeView’s President and CEO. “Current trends support our view that prospective home buyers will welcome, and over time will insist on, the comprehensive information about a home’s details and history that HomeView can capture. Moreover, existing homeowners can use HomeView in the day-to-day running of their homes, a task which is becoming only more complex as themes such as energy efficiency and home automation become more popular,” he added.
