CIMdata PLM Industry Summary Online Archive
6 January 2005
Financial News
SofTech Announces Second Quarter Financial Results For FY 2005; Reports Highest Quarterly Free Cash Flow in Five Years; New Customer Wins for All Three Product Lines
SofTech, Inc . announced Q2 fiscal 2005 results. Revenue for Q2 FY 2005 was about $3.2 million as compared to $3.3 million for the same period in fiscal 2004. The net loss for the current quarter was ($90,000) or ($.01) per share as compared to ($246,000) or ($.02) per share for the same period in the prior fiscal year. The current quarter revenue represented a 16% increase from the immediately preceding quarter and the net loss was reduced by about 80%.
Revenue for the six months ended November 30, 2004 was about $6.0 million as compared to about $6.3 million for the same period in fiscal 2004. The net loss for the six months ended November 30, 2004 was ($549,000) or ($.04) per share as compared to a net loss of ($724,000) or ($.06) 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 $520,000 for the current quarter as compared to $364,000 for the same period in the prior fiscal year and $152,000 for the immediately preceding quarter. Free Cash Flow, defined as net loss adjusted for non-cash expenses less capital expenditures, totaled $536,000 for the current quarter as compared to $390,000 for the same period in fiscal 2004 and $166,000 for the immediately preceding quarter. Pro forma net income for the six months ended November 30, 2004 was $672,000 as compared to $501,000 for the same period in fiscal 2004. Free Cash Flow for the six-month period ended November 30, 2004 was $702,000 as compared to $563,000 for the same period in fiscal 2004. 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.
"We had a great second quarter," said Joe Mullaney, SofTech's President since June 2001. "Our cash flow this quarter was 37% higher than our best quarterly performance over the previous five years. In addition, we received multiple orders from new customers for all three of our product lines during the quarter, a first since the June 2001 reorganization. We are ahead of plan at the half way point for fiscal 2005 and we are optimistic that we can maintain our momentum over the second half of the fiscal year."
"The capital spending restraints of design and manufacturing companies of the last three years are loosening, slowly but surely. I believe we are well positioned in the marketplace with our technology offerings to win our fair share of these new opportunities," Mullaney added.
Full financials are available at http://www.softech.com/company/news_article.php?id=70
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