CIMdata PLM Industry Summary Online Archive
11 January 2012
Financial News
SofTech Announces Q2 Fiscal Year 2012 Operating Results
SofTech, Inc. announced its second quarter fiscal 2012 operating results. Revenue for the three months ended November 30, 2011 was $1.7 million, down 6% from the same period in the prior fiscal year but an increase of 9% from the two immediately preceding quarters. Net income from continuing operations was $187,000 or $.19 per share for the three months ended November 30, 2011, a substantial increase from the net income from continuing operations of $58,000 or $.09 for the same period in the prior fiscal year.
Revenue for the six months ended November 30, 2011 was $3.3 million as compared to $3.6 million for the same period in the prior fiscal year, a decrease of 9%. Net income from continuing operations for the six months ended November 30, 2011 was $240,000 or $.24 per share as compared to $146,000 or $.24 per share for the same period in the prior fiscal year. The decline in year over year revenue for both the three and six month periods was due almost exclusively to one customer that migrated to a competitor’s solution in February 2011. Despite the 64% increase in net income from continuing operations, the corresponding earnings per share was unchanged as the weighted average shares outstanding for the six month period ended November 30, 2011 increased from 611,000 to 995,000 as a result of the March 2011 recapitalization.
Since the recapitalization transaction was completed on March 11, 2011 and the new management team assumed control, the following significant achievements have been attained:
Completed the audits for fiscal 2010 and 2011 as well as all quarterly reviews. Released financial results as each was completed and included in the Company's Registration Statement (No. 333-174818) declared effective by the Securities and Exchange Commission on December 28, 2011;
Held our Annual Meeting for fiscal year 2010, obtained approval for 1-for-20 reverse stock split that was subsequently implemented in June 2011;
Regained status as a fully reporting public company;
Upgraded our listing tier on the OTC Market from OTCPink, a listing for speculative companies, to OTCQB, a listing for companies that are reporting in a timely manner;
Grew the revenue sequentially and improved profitability;
Reduced our long term debt by more than 17%; and
Initiated a business development program to identify potential business partners to leverage our technology, industry knowledge and customer relationships.
“While I am pleased with the progress made to date with the above accomplishments, the sequential revenue growth and improved profitability, I believe there are significant new opportunities for us to grow profitably,” said Joe Mullaney, President and CEO. “We have great technology, a fantastic customer base and a deeply experienced and long tenured employee group that form a rock-solid foundation from which to build shareholder value,” he added.
Click HERE for the unabridged press release with financial tables.
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.