SoftBrands Announces Fourth Quarter and Full Year Fiscal 2008 Results
(NYSE Alternext: SBN), a global supplier of enterprise application software,
today announced its financial results for the fourth quarter and full year
fiscal 2008, ended
Revenues for fourth quarter fiscal 2008 increased 8.9 percent to
License revenue was 16.0% of total revenues in the current quarter, compared
with 19.4% in fourth quarter fiscal 2007. Maintenance revenue was 56.1% of
total revenues in the current quarter, compared with 57.2% of revenues in
fourth quarter fiscal 2007. Professional services revenue was 22.7% of total
revenues in the quarter, compared with 19.8% in the prior year quarter.
SoftBrands reported operating income of
of fiscal 2008, an increase of 3.5 percent compared with operating income of
income available to common shareholders of
share, compared with net income available to common shareholders of
“SoftBrands performed well in the fourth quarter, given current economic
conditions,” said
officer. “We have taken more aggressive steps to manage our cost structure as
a result of the weak economic outlook. Our goal in fiscal 2009 is to improve
our profitability even in the face of a challenging economic environment.”
SoftBrands today announced that
general manager, manufacturing, has resigned his position effective
immediately. The company has appointed
president of SAP Products for SoftBrands, to lead its SAP Business.
Peterson
his current role. Both Palmquist and Peterson will report to
“I want to thank Ralf for all he has done for SoftBrands. I look forward to
working closely with Diane and Terry to ensure we have the right leadership
and strategies in place for this business going forward,” said Tofteland.
Highlights of the fourth quarter and other recent developments include:
— As previously announced, SoftBrands signed an agreement with the U.S.
Air Force Services to provide SoftBrands enterprise solutions for its 95
on-base transient lodging operations located in
foreign countries. The contract, which has a total value over its eight-year
term of more than
system, fully integrated central reservations, business intelligence, various
interfaces, and related services and support. The project will begin
implementation in
— As previously announced, SoftBrands signed an extension of its existing
contract with the U.S. Navy Commander Navy Installations Command to continue
the implementation and support of its integrated enterprise solution at Navy
Gateway Inns & Suites. The value of the extension is approximately
In the company’s manufacturing business, fourth quarter fiscal 2008
revenues were
fiscal 2007. Fourth quarter fiscal 2008 operating income in manufacturing was
“Our manufacturing business more than doubled its operating income year
over year, improved margins in consulting and continued to grow the SAP
business in fiscal 2008,” said Tofteland. “In addition we posted good license
revenue growth in the quarter and delivered maintenance revenues essentially
even with the prior year’s fourth quarter.”
In the company’s hospitality business, fourth quarter fiscal 2008 revenues
were
quarter. In fourth quarter fiscal 2008 SoftBrands’ hospitality business posted
an operating loss of
million
“Our hospitality business delivered double-digit revenue growth in fiscal
2008. Our goal in fiscal 2009 is to continue the pace of revenue growth but
dramatically improve profitability,” said Tofteland. “We are very pleased to
be partnering with the Air Force to meet their lodging needs and to continue
to serve the needs of the military and government markets, which are a key
market segment for SoftBrands.”
From a geographic perspective, 63% of revenues were generated in the
Americas in the quarter; 21% in the EMEA region; and 16% in the
region. This compares to a respective mix of 62%, 24% and 14% in the prior
year’s quarter.
Full Year Results
SoftBrands revenues for fiscal 2008 were
5.7 percent compared with
operating income of
income of
available to common shareholders in fiscal 2008 of
per diluted share, compared with a loss of
diluted share in fiscal 2007.
Cash and Liquidity
As of
equivalents, essentially even with
quarter. SoftBrands’ total current assets, which include accounts receivable,
decreased to
quarter. Deferred revenue was
a decrease from
Conference Call
SoftBrands will hold its fourth quarter earnings conference call at
call by dialing 800-329-9097 or international 617-614-4929 (passcode:
78004714) A live webcast will also be available at SoftBrands’ website at
http://www.softbrands.com. A replay will be available approximately one hour
after the conference call concludes and will remain available through
2008
(passcode: 32733010). The webcast will be archived on SoftBrands’ website for
approximately one year.
Forward-Looking Statements
All statements other than historical facts included in this release
regarding future operations are subject to the risks inherent in predictions
and “forward-looking statements.” These statements are based on the beliefs
and assumptions of management of SoftBrands and on information currently
available to us. Nevertheless, these forward-looking statements should not be
construed as guarantees of future performance. They involve risks,
uncertainties, and assumptions identified in filings by SoftBrands with the
SEC, including, but not limited to, the following:
-- Changes in the economy, natural disasters, disease or other events that
affect the manufacturing and hospitality segments or the geographies we
serve;
-- Our increasing dependence upon our relationship with SAP;
-- Our ability to continue to satisfy covenants with our lender;
-- Our ability to timely complete and introduce, and the market acceptance
of our new products;
-- Our ability to properly document our sales consistent with the manner
in which we recognize revenue;
-- Our ability to manage international operations;
-- Our ability to maintain and expand our base of clients on software
maintenance programs; and
-- The effects of and our ability to rapidly adapt to changes in standards
for operating systems, databases and other technologies.
About SoftBrands
SoftBrands, Inc. is a leader in providing software solutions for
businesses in the manufacturing and hospitality industries worldwide. The
company has established a global infrastructure for distribution, development
and support of enterprise software, and has approximately 5,000 customers in
more than 100 countries actively using its manufacturing and hospitality
products. SoftBrands, which has approximately 775 employees, is headquartered
in
and
Contact:
Gregg Waldon
Chief Financial Officer
gregg.waldon@softbrands.com
612-851-1805
Susan Eich
Vice President, Corporate Communications
susan.eich@softbrands.com
612-851-6205
Tables Follow
SoftBrands, Inc.
Consolidated Balance Sheets
(In thousands, except share and per September 30, September 30,
share data) 2008 2007
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $11,948 $8,682
Accounts receivable, net 21,665 15,683
Prepaid expenses and other current assets 4,791 4,474
Total current assets 38,404 28,839
Furniture, fixtures and equipment, net 2,095 2,602
Goodwill 35,591 37,271
Intangible assets, net 4,346 7,433
Other long-term assets 425 439
Total assets $80,861 $76,584
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of long-term obligations $3,407 $3,510
Revolving loan 7,782 1,585
Accounts payable 5,194 4,554
Accrued expenses 7,474 8,329
Accrued restructuring costs 178 423
Deferred revenue 21,500 21,015
Other current liabilities 2,642 2,354
Total current liabilities 48,177 41,770
Long-term obligations 12,667 16,082
Other long-term liabilities 487 832
Total liabilities 61,331 58,684
Commitments and contingencies
Stockholders' equity:
Series A and undesignated preferred stock,
$.01 par value; 10,647,973 shares
authorized; no shares issued or
outstanding - -
Series B convertible preferred stock,
$.01 par value; 4,331,540 shares
authorized, issued and outstanding;
liquidation value of $4,591 5,068 5,068
Series C-1 convertible preferred stock,
$.01 par value; 18,000 shares authorized,
issued and outstanding; liquidation value
of $18,000 plus unpaid dividends of $368 18,000 18,000
Series D convertible preferred stock,
$.01 par value; 6,673 shares authorized,
6,000 shares issued and outstanding;
liquidation value of $6,000 plus unpaid
dividends of $123 5,051 5,051
Common stock, $.01 par value; 110,000,000
shares authorized; 41,931,386 and
41,391,043 shares issued and outstanding,
respectively 419 414
Additional paid-in capital 174,348 174,009
Accumulated other comprehensive loss (939) (811)
Accumulated deficit (182,417) (183,831)
Total stockholders' equity 19,530 17,900
Total liabilities and stockholders'
equity $80,861 $76,584
SoftBrands, Inc.
Consolidated Statements of Operations
Three Months Ended Fiscal Year Ended
(In thousands, except per September 30, September 30,
share data) 2008 2007 2008 2007
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues:
Software licenses $4,074 $4,526 $15,361 $17,133
Maintenance and support 14,253 13,347 55,690 55,017
Professional services 5,770 4,614 22,564 18,030
Third-party software and
hardware 1,328 852 5,077 3,200
Total revenues 25,425 23,339 98,692 93,380
Cost of revenues:
Software licenses 801 (21) 2,478 2,112
Maintenance and support 3,781 3,377 15,844 15,534
Professional services 4,446 3,733 16,660 16,318
Third-party software and
hardware 1,268 807 4,720 2,720
Total cost of revenues 10,296 7,896 39,702 36,684
Gross profit 15,129 15,443 58,990 56,696
Operating expenses:
Selling and marketing 4,227 4,859 18,725 20,175
Research and product
development 4,511 3,160 16,661 13,734
General and administrative 3,857 4,835 19,294 20,343
Restructuring related charges (68) 75 (43) 1,705
Total operating expenses 12,527 12,929 54,637 55,957
Operating income 2,602 2,514 4,353 739
Interest expense (385) (535) (1,676) (1,971)
Other income (expense), net 86 69 779 (89)
Income (loss) before
provision for (benefit
from) income taxes 2,303 2,048 3,456 (1,321)
Provision for (benefit from)
income taxes 1,029 (198) 2,042 388
Net income (loss) 1,274 2,246 1,414 (1,709)
Preferred stock dividends (491) (482) (1,952) (1,949)
Net income (loss) available
to common shareholders $783 $1,764 $(538) $(3,658)
Weighted-average common
shares outstanding:
Basic 46,240 45,688 41,758 41,221
Diluted 46,369 52,786 41,758 41,221
Earnings (loss) per common
share:
Basic and diluted $0.02 $0.04 $(0.01) $(0.09)
SoftBrands, Inc.
Supplemental Financial Information
(Unaudited, in thousands)
Revenues and Operating Income (Loss)
Three Months Ended September 30,
2008 2007 % Change
Operating Operating Operating
Income Income Income
Revenues (Loss) Revenues (Loss) Revenues (Loss)
Manufacturing $12,552 $3,612 $12,533 $2,702 0.2% 33.7%
Hospitality 12,873 (1,010) 10,806 (188) 19.1% -437.2%
Total $25,425 $2,602 $23,339 $2,514 8.9% 3.5%
Fiscal Year Ended September 30,
2008 2007 % Change
Operating Operating Operating
Income Income Income
Revenues (Loss) Revenues (Loss) Revenues (Loss)
Manufacturing $49,491 $10,318 $50,346 $5,155 -1.7% 100.2%
Hospitality 49,201 (5,965) 43,034 (4,416) 14.3% -35.1%
Total $98,692 $4,353 $93,380 $739 5.7% 489.0%
Revenues by Segment and Type
Three Months Ended September 30,
2008 2007
Manufacturing Hospitality Total Manufacturing Hospitality Total
Software
licenses $1,701 $2,373 $4,074 $1,496 $3,030 $4,526
Maintenance
and support 8,037 6,216 14,253 8,105 5,242 13,347
Professional
services 2,611 3,159 5,770 2,666 1,948 4,614
Third-party
software and
hardware 203 1,125 1,328 266 586 852
Total $12,552 $12,873 $25,425 $12,533 $10,806 $23,339
Fiscal Year Ended September 30,
2008 2007
Manufacturing Hospitality Total Manufacturing Hospitality Total
Software
licenses $5,778 $9,583 $15,361 $5,964 $11,169 $17,133
Maintenance
and support 31,823 23,867 55,690 32,584 22,433 55,017
Professional
services 11,199 11,365 22,564 10,942 7,088 18,030
Third-party
software and
hardware 691 4,386 5,077 856 2,344 3,200
Total $49,491 $49,201 $98,692 $50,346 $43,034 $93,380
SoftBrands, Inc.
Supplemental Financial Information
(Unaudited, in thousands)
Revenues by Segment and Geography
Three Months Ended September 30,
2008 2007
Manufacturing Hospitality Total Manufacturing Hospitality Total
Americas $7,440 $8,537 $15,977 $7,309 $7,281 $14,590
Europe,
Middle East
and Africa 3,574 1,718 5,292 3,583 1,951 5,534
Asia Pacific 1,538 2,618 4,156 1,641 1,574 3,215
Total $12,552 $12,873 $25,425 $12,533 $10,806 $23,339
Fiscal Year Ended September 30,
2008 2007
Manufacturing Hospitality Total Manufacturing Hospitality Total
Americas $29,770 $32,043 $61,813 $29,285 $26,291 $55,576
Europe,
Middle East
and Africa 13,478 8,155 21,633 14,243 9,051 23,294
Asia Pacific 6,243 9,003 15,246 6,818 7,692 14,510
Total $49,491 $49,201 $98,692 $50,346 $43,034 $93,380
SOURCE SoftBrands, Inc.