SofTech, Inc. announced its second quarter fiscal year 2014 operating results. Revenue for the three months ended November 30, 2013 was approximately $1.41 million as compared to approximately $1.77 million for the same period in the prior fiscal year. Net income (loss) for the current quarter was about ($44,000) or ($.05) per share compared to net income of $252,000 or $.25 per share for the same period in the prior fiscal year. The sale of the Company’s CADRA product line was completed on October 18, 2013, which accounted for most of the revenue decline.
EBITDA for current quarter was about $3.37 million as compared to about $369,000 for the same period in fiscal year 2013. The EBITDA in the current quarter was generated from the sale of the aforementioned CADRA product line.
As disclosed in the Form 10-Q filed with the Securities and Exchange Commission and in our Form 8-K filed on December 11, 2013, subsequent to the end of the fiscal quarter, the Company entered into an agreement with its lender to amend its loan agreement pursuant to which a portion of the cash generated from the CADRA product line sale was used to reduce the principal of the loan by $1.7 million.
“The current management team purchased a controlling equity interest in the business in March 2011 when the Company was facing what appeared to be insurmountable issues on multiple fronts,” said Joe Mullaney, SofTech’s CEO. “The sale of the CADRA product line during the current quarter and the resulting improved liquidity represents a transformative event for the shareholders. The management team is committed to continuing its efforts to carefully and systematically explore alternatives for maximizing shareholder value,” he added.
To view an unabridged version of this press release, visit: http://www.softech.com/news/press-releases/softech-announces-q2fy-2014-operating-results
