CIMdata PLM Industry Summary Online Archive
12 April 2005
Financial News
SofTech Announces Third Quarter Results for Fiscal 2005
SofTech, Inc. announced Q3 fiscal 2005 results. Revenue for Q3 FY 2005 was about $3.0 million as compared to $2.8 million for the same period in fiscal 2004, an increase of 8.7%. The net loss for the current quarter was ($394,000) or ($.03) per share as compared to ($745,000) or ($.06) per share for the same period in the prior fiscal year.
Revenue for the nine months ended February 28, 2005 was about $9.0 million, essentially unchanged as compared to the same period in fiscal 2004. The net loss for the nine months ended February 28, 2005 was ($943,000) or ($.08) per share as compared to a net loss of ($1,469,000) or ($.12) 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 $216,000 for the current quarter as compared to a loss of $(135,000) 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 $208,000 for the current quarter as compared to a loss of $(127,000) for the same period in fiscal 2004. Pro forma net income for the nine months ended February 28, 2005 was $889,000 as compared to $366,000 for the same period in fiscal 2004. Free Cash Flow for the nine-month period ended February 28, 2005 was $914,000 as compared to $436,000 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.
"We had a solid quarter with increasing revenue, dramatic improvement in profitability and several new customer wins in very competitive procurements," said Joe Mullaney, SofTech's President. "Positive momentum has been building and our results this quarter as compared to the same period last year are certainly indicative of this trend. Also pleasing, our Q4 has started out very quickly with two new customer wins within the first two weeks including the recently announced Schick-Wilkinson Sword procurement."
"We are well into our fourth fiscal year since the reorganization in June 2001. In that time period we have been cash positive for 12 of the 15 fiscal quarters completed, we have grown revenue and profitability steadily during a period that spanned a recession in the manufacturing sector, and we have emerged as a company that is very well positioned to take advantage of several positive trends in the Product Lifecycle Management ("PLM") market. While there are numerous PLM technologies available in the market place, we continue to confirm our belief that ours provides manufacturers with the highest value when considering affordability, quick implementation, and ease of use for full-function PLM capabilities. It is especially beneficial in a multi-CAD environment that describes the majority of manufacturers today. With these advantages, we expect continued positive results and growing market share," Mullaney added.
Full financials are available at http://www.softech.com/company/news_article.php?id=76 .
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