SofTech, Inc. today filed its Form 10-K with the Securities and Exchange Commission and announced its fourth quarter and full year operating results. In addition, the Company announced that since the end of the fiscal year it had completed an $800,000 private placement and a $750,000 long term debt agreement. Lastly, the Company provided estimated guidance for fiscal 2015 operating results.
Fiscal Year 2014 Results. For fiscal year 2014, the Company generated revenue of approximately $5 million, incurred a net loss of approximately $(748,000) or $(0.85) per share and generated EBITDA of approximately $3.1 million. In the prior fiscal year, the Company generated revenue of approximately $6.4 million, net income of approximately $360,000 or $0.35 per share and generated EBITDA of approximately $1.1 million. The financial results of prior fiscal periods are less meaningful for comparison purposes due to the Company’s sale of its CADRA product line during fiscal year 2014.
Fourth Quarter Results. For the fourth quarter of fiscal year 2014 the Company generated revenue of approximately $878,000, incurred a net loss of approximately $(163,000) or $(0.19) per share and generated EBITDA of approximately $59,000. For the fourth quarter of the prior fiscal year, the Company generated revenue of approximately $1.6 million, incurred a net loss of approximately $(51,000) or $(0.05) per share and generated EBITDA of approximately $284,000. Again, the comparisons between quarters are complicated by the fact that the Company sold its CADRA product line half way through fiscal year 2014.
In the fourth quarter, the Company changed its accounting policy with regard to the deferred payments of up to about $1 million due to the Company from the sale of the CADRA product line in October 2013. For the first two quarters after the sale of the CADRA product line, the Company recorded these deferred payments under gain contingency accounting. During the fourth quarter the Company changed to fair value accounting as detailed in the financial statements because management believed fair value accounting more accurately reflected the true economic value that resulted from the sale of that product line. Fair value accounting increased the gain on the sale of the CADRA product line by $452,000 as compared to gain contingency accounting thereby reducing the loss per share by $0.52.
To view an unabridged version of this press release, visit: http://www.softech.com/news/press-releases
