CIMdata PLM Industry Summary Online Archive
14 October 2004
Financial News
SofTech Announces First Quarter FY 2005 Results; Reports Solid First Quarter Performance; Outlook Positive
SofTech, Inc. announced Q1 fiscal 2005 results. Revenue for Q1 FY 2005 was about $2.8 million, a decrease of about 6% as compared to the same period last year. The net loss for the current quarter was ($459,000) or ($.04) per share as compared to a net loss of ($478,000) or ($.04) per share for the same period in the prior fiscal year.
Pro forma net income, which excludes non-cash expenses related to amortization of intangible assets, was $152,000 for the current quarter as compared to $137,000 for the same period in the prior fiscal year. Free Cash Flow, defined as net loss adjusted for non-cash expenses less capital expenditures, totaled $166,000 for the current quarter as compared to $173,000 for the same period in the prior fiscal year. It is management's view that these non-GAAP financial measures of cash flow provide important information in understanding the Company's performance. A reconciliation is provided on the attached Financial Summary.
"Our first quarter is traditionally our slowest quarter and this year was no different," said Joe Mullaney, President and COO. "Our Q1 performance was on budget and I was very pleased that we were able to generate positive cash flow comparable to last year's performance. We have a greater volume of outstanding proposals than we have had for a long time and I am looking for us to deliver on some exceptional quarters going forward, well above prior year cash flow performance, as these customers make their buying decisions."
"It is critical for design and manufacturing companies to improve operating efficiencies and reduce cost and time to market. To accomplish these goals while improving quality is a difficult goal but one that is attainable through the use of our technology. Our PLM technology offering is the lowest price, full-featured product on the market. It can be implemented in a month and pay for itself in a year or less. As the economy continues to improve, I expect companies will begin to ramp up their capital expenditures on technologies like ours that improve their operations," Mullaney added.
The statements made above with respect to SofTech's outlook for fiscal 2005 and beyond represent "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 and are subject to a number of risks and uncertainties.
Become a member of the CIMdata PLM Community to receive your daily PLM news and much more.
Tell us what you think of the CIMdata Newsletter. Send your feedback.
CIMdata is committed to your privacy. Your personal information will never be sold or shared outside of CIMdata without your express permission.