SofTech, Inc. today announced its second quarter operating results for the three months ended November 30, 2015.
For the second quarter of fiscal year 2016, the Company generated revenue of approximately $1.3 million as compared to approximately $1.0 million in the same period in fiscal year 2015, an increase of about 27.0%. The net loss for the second quarter of fiscal year 2016 was approximately $(22,000) or $(0.02) per share as compared to a net loss of approximately $(379,000) or $(.44) per share for the same period in fiscal year 2015. EBITDA for the current quarter was approximately $141,000 as compared to approximately $(159,000) for the same period in fiscal year 2015, an improvement of approximately 188.7%.
Current Quarter Activity:
ProductCenter revenue increased by 16.4% in the current quarter as compared to the same period in the prior fiscal year representing the fifth consecutive quarter in which revenue for this product line experienced double-digit revenue growth as compared to the same period in the prior fiscal year;
Revenue from the Connector product line increased by 78.1% in the current quarter as compared to the same period in the prior fiscal year. While still a small portion of total revenue, the billings for this product line have gained significant traction following its recent launch and continues to attract new customers;
Gross margins improved significantly to 66.0% in the current quarter as compared to 54.3% for the same period in the prior fiscal year;
In the current quarter we took a non-cash charge of $61,000 to write down the fair value of our royalty payments due from Mentor Graphics related to the sale of the CADRA product line in October 2013. This charge was necessitated by the reduced revenue forecast based on CADRA’s revenue for the trailing twelve months. The Company is due a royalty of 10% of CADRA revenue through October 31, 2016; and
In December 2015, the HomeView mobile app was made available on iTunes.
Revenue for the six months ended November 30, 2015 was approximately $2.3 million as compared to approximately $1.9 million for the same period in the prior fiscal year, an increase of 20.8%. The net loss for the first six months of the current fiscal year was approximately ($196,000) or ($.22) per share compared to approximately $(952,000) or $(1.08) per share for the same period in the prior fiscal year. EBITDA for the first six months of the current fiscal year was approximately $19,000 as compared to approximately $(567,000) for the same period in fiscal 2015.
“This was by far our best quarterly performance since the sale of our CADRA product line in October 2013,” said Joe Mullaney, SofTech’s CEO. “Our ProductCenter technology continued its double-digit revenue growth with several existing customers expanding their use of the technology while maintenance renewal rates exceeded 97%. The Connector product line continued its strong revenue growth momentum and we were able to launch our new HomeView product on iTunes. We accomplished all of this while keeping our spending unchanged resulting in solid EBITDA performance,” he added.
The Company will be demonstrating HomeView at Inman Connect, a real estate focused event in New York City at the end of this month. We will be located in Start-Up Alley at Booth # S17.
“Data management has been our core business for more than 20 years and our new HomeView technology brings our expertise to the residential property market. HomeView lets homeowners have their information in one place, keep track of everything and even get automatic notifications about things needing attention,” said Bob Anthonyson, President and CEO of HomeView. “This is also information that every homebuyer should ideally have prior to purchase. No consumer product is allowed on the U.S. market unless every component can be identified, but about 5 million existing homes were sold in the U.S. last year with little to no information about their components. HomeView wants to change that by offering a free, easy-to-use technology that allows for complete transparency of all of the information about the property including architectural drawings, owner’s manuals, warranty periods, make, model and age of the appliances and systems and all the other data that helps a buyer maintain and operate their home. Improved safety, enhanced security and increased market value can be direct results of using HomeView. We can’t wait to show our solution to the Realtor community at Inman Connect,” he added.
