CARMEL, IN--(Marketwired - Feb 9, 2017) - Determine , Inc. (
Q3 FY2017 GAAP Financial Highlights:
- GAAP revenue was $6.9 million in Q3 FY2017, compared to $6.6 million in Q2 FY2017, representing a 4.1% increase quarter-over-quarter, and compared to $7.1 million in Q3 FY2016 GAAP revenue, representing a 3.5% decrease year-over-year.
- GAAP gross profit percentage increased to 48.8% in Q3 FY2017, compared to 47.7% in Q2 FY2017, representing a quarter-over-quarter increase of 1.1 percentage points, and compared to 51.9% in Q3 FY2016, representing a 3.1 percentage points decrease year-over-year.
- Deferred revenues increased 11.1% to $10.0 million in Q3 FY2017 from $9.0 million in Q3 FY2016.
- GAAP net loss was $2.2 million or ($0.18) per share in Q3 FY2017, compared to $3.2 million or ($0.28) per share in Q2 FY2017, representing a $0.10 improvement per share quarter-over-quarter; in Q3 FY2016 the GAAP net loss was $2.8 million or ($0.25) per share.
(in thousands, except per share amounts)
| GAAP Financial Measures | Q3 | Q2 | Q3 | Change | Change | Nine Months | ||||||||||||||||||||||||||
| FY 2017 | FY 2017 | FY 2016 | Q/Q | Y/Y | FY 2017' | FY 2016' | Change Y/Y | |||||||||||||||||||||||||
| Revenue - total | $ | 6,852 | $ | 6,584 | $ | 7,100 | 4.1 | % | (3.5 | %) | $ | 19,928 | $ | 20,080 | (0.8 | %) | ||||||||||||||||
| Revenue - recurring | $ | 5,054 | $ | 5,145 | $ | 5,354 | (1.8 | %) | (5.6 | %) | $ | 15,267 | $ | 15,862 | (3.8 | %) | ||||||||||||||||
| Revenue - non-recurring | $ | 1,798 | $ | 1,439 | $ | 1,746 | 24.9 | % | 3.0 | % | $ | 4,661 | $ | 4,218 | 10.5 | % | ||||||||||||||||
| Gross profit - total | $ | 3,341 | $ | 3,138 | $ | 3,682 | 6.5 | % | (9.3 | %) | $ | 9,865 | $ | 10,494 | (6.0 | %) | ||||||||||||||||
| Gross profit - recurring | $ | 3,277 | $ | 3,442 | $ | 3,538 | (4.8 | %) | (7.4 | %) | $ | 10,182 | $ | 10,859 | (6.2 | %) | ||||||||||||||||
| Gross profit/ (loss) - non-recurring | $ | 64 | $ | (304 | ) | $ | 144 | 121.0 | % | (55.6 | %) | $ | (317 | ) | $ | (365 | ) | 13.2 | % | |||||||||||||
| Gross margin - total | 48.8 | % | 47.7 | % | 51.9 | % | 1.1 pts | (3.1 pts | ) | 49.5 | % | 52.3 | % | (2.8 pts | ) | |||||||||||||||||
| Gross margin - recurring | 64.8 | % | 66.9 | % | 66.1 | % | (2.1 pts | ) | (1.3 pts | ) | 66.7 | % | 68.5 | % | (1.8 pts | ) | ||||||||||||||||
| Gross margin - non recurring | 3.5 | % | (21.1 | %) | 8.2 | % | 24.6 pts | (4.7 pts | ) | (6.8 | %) | (8.7 | %) | 1.9 pts | ||||||||||||||||||
| Net loss | $ | (2,193 | ) | $ | (3,207 | ) | $ | (2,845 | ) | 31.6 | % | 22.9 | % | $ | (7,743 | ) | $ | (10,212 | ) | 24.2 | % | |||||||||||
| EPS | $ | (0.18 | ) | $ | (0.28 | ) | $ | (0.25 | ) | $ | 0.10 | $ | 0.07 | $ | (0.67 | ) | $ | (0.90 | ) | $ | 0.23 | |||||||||||
Q3 FY2017 Non-GAAP Financial Highlights:
- Non-GAAP revenue was $6.9 million in Q3 FY2017, compared to $6.6 million in Q2 FY2017, representing a 4.1% quarter-over-quarter increase, and compared to $7.2 million in Q3 FY2016, representing a 4.7% decrease year-over-year.
- Non-GAAP gross profit percentage was 54.4% in Q3 FY2017, compared to 52.5% in Q2 FY2017, representing a 1.9 percentage point increase, and compared to 57.5% in Q3 FY2016, representing a 3.1 percentage point decrease.
- Non-GAAP net loss was $1.0 million or ($0.08) per share in Q3 FY2017, compared to $2.0 million or ($0.17) per share in Q2 FY2017, representing an improvement of $0.09 per share quarter-over-quarter, compared to $1.5 million or ($0.13) per share in Q3 FY2016, representing a $0.05 improvement per share year-over-year.
- Billings decreased 3.3% to $7.5 million in Q3 FY2017 from $7.8 million in Q3 FY2016. Billings, a non-GAAP measure, are defined as revenue plus the change in deferred revenues.
- Non-GAAP EBITDA was ($0.2) million in Q3 FY2017, and compared to ($1.4) million in Q3 FY2016, representing an improvement of $1.2 million year-over-year.
(in thousands, except per share amounts)
| Non-GAAP Financial Measures | Q3 | Q2 | Q3 | Change | Change | Nine Months | ||||||||||||||||||||||||||
| FY 2017 | FY 2017 | FY 2016 | Q/Q | Y/Y | FY 2017' | FY 2016' | Change Y/Y | |||||||||||||||||||||||||
| Revenue - total | $ | 6,852 | $ | 6,584 | $ | 7,187 | 4.1 | % | (4.7 | %) | $ | 19,936 | $ | 20,308 | (1.8 | %) | ||||||||||||||||
| Revenue - recurring | $ | 5,054 | $ | 5,145 | $ | 5,400 | (1.8 | %) | (6.4 | %) | $ | 15,275 | $ | 16,021 | (4.7 | %) | ||||||||||||||||
| Revenue - non-recurring | $ | 1,798 | $ | 1,439 | $ | 1,787 | 24.9 | % | 0.6 | % | $ | 4,661 | $ | 4,287 | 8.7 | % | ||||||||||||||||
| Gross profit - total | $ | 3,726 | $ | 3,460 | $ | 4,135 | 7.7 | % | (9.9 | %) | $ | 10,896 | $ | 11,677 | (6.7 | %) | ||||||||||||||||
| Gross profit - recurring | $ | 3,591 | $ | 3,710 | $ | 3,859 | (3.2 | %) | (7.0 | %) | $ | 11,037 | $ | 11,736 | (6.0 | %) | ||||||||||||||||
| Gross profit/( loss) - non-recurring | $ | 135 | $ | (250 | ) | $ | 276 | 154.0 | % | (51.1 | %) | $ | (141 | ) | $ | (59 | ) | (139.0 | %) | |||||||||||||
| Gross margin - total | 54.4 | % | 52.5 | % | 57.5 | % | 1.9 pts | (3.1 pts | ) | 54.7 | % | 57.5 | % | (2.8 pts | ) | |||||||||||||||||
| Gross margin - recurring | 71.0 | % | 72.1 | % | 71.5 | % | (1.1 pts | ) | (0.5 pts | ) | 72.3 | % | 73.3 | % | (1.0 pts | ) | ||||||||||||||||
| Gross margin - non recurring | 7.5 | % | (17.4 | %) | 15.5 | % | 24.9 pts | (8.0 pts | ) | (3.0 | %) | (1.4 | %) | (1.6 pts | ) | |||||||||||||||||
| Net loss | $ | (1,010 | ) | $ | (1,959 | ) | $ | (1,503 | ) | 48.4 | % | 32.8 | % | $ | (4,253 | ) | $ | (4,585 | ) | 7.2 | % | |||||||||||
| EPS | $ | (0.08 | ) | $ | (0.17 | ) | $ | (0.13 | ) | $ | 0.09 | $ | 0.05 | $ | (0.37 | ) | $ | (0.45 | ) | $ | 0.08 | |||||||||||
| Billings | $ | 7,545 | $ | 5,770 | $ | 7,800 | 30.8 | % | (3.3 | %) | $ | 19,595 | $ | 20,667 | (5.2 | %) | ||||||||||||||||
"This quarter we are very pleased by our return to the million dollar range for new Annualized Bookings, with quarter-over-quarter new sales growing at a rate in excess of 30%. Driving the sales performance was our disruptive, new Determine Cloud Platform offering, with over 90% of our new customers opting for the platform for their Source-to-Pay or Enterprise Contract Lifecycle Management needs," said Patrick Stakenas, President and CEO of Determine. "Over the coming months, we look forward to continuing to focus on several key executional tasks including advancing the Determine Cloud Platform's capabilities -- to provide our customers with 'Platformance', continuing to optimize organizational efficiencies, and building upon our robust lead pipeline to deliver incremental and accelerated sales in the coming quarters."
Q3 FY2017 Business Highlights:
- Annualized Bookings: The sales team delivered approximately $983,000 in Annualized Bookings for the quarter, with more than 90% of new customers selecting the new Determine Cloud Platform for their Source-to-Pay or Contract Lifecycle Management needs.
- Determine Cloud Platform Empowers Companies in Source-to-Pay and Enterprise Contract Lifecycle Management: During Q3 FY2017, Determine introduced a range of additional benefits that empower customers to deliver results now, and as they grow. These include the following improvements to the Determine Cloud Platform : improved supplier certification and compliance through triggered automation based on answers provided during registration and supplier monitoring, side-by-side comparison of contract requests and attachments for enhanced version control and user authorization, time tracking for services procurement that requires calendar management, PO matching, and automatic receipt/invoice generation. In addition, the Determine Cloud Platform mobile application is now available on Google Play and the Apple Store.
- Business Analyst Recognition across the Determine Cloud Platform: In Q3 FY2017, Determine achieved a number of important recognitions from leading industry analyst organizations:
- Forrester 2016 Vendor Landscape: Supplier Risk and Performance Management highlighted Determine's ePurchasing suite's capability to integrate SRPM with other sourcing processes.
- Gartner 2016 Magic Quadrant for Procure-to-Pay Suites ranked Determine #1 for our "out of the box" Procure-to-Pay feature/functionality for projects.
- PayStream 2016 Procure-to-Pay Navigator Report gave Determine Procure-to-Pay a perfect 10 out of 10 for Purchase Order Management and Goods Receipt & Reconciliation, 9.9 out of 10 for Supplier Information Management/Supplier Performance Management and 9.2 out of 10 for Invoice Management and Workflow.
- New Leadership: In October 2016, Determine appointed Steve Potts as Chief Revenue Officer. Steve brings over thirty years of sales management, sales performance management, and sales training experience in the enterprise software and SaaS sectors. He most recently served as Chief Sales and Marketing Officer at AXIOM Sales Force Development, a leading cloud-based sales training and productivity improvement supplier.
- New Customer Expansions: During Q3 FY2017, Determine engaged numerous new customer accounts in the US and Europe across its Determine Cloud Platform Source-to-Pay and Enterprise Contract Lifecycle Management solutions. Determine added new customers to its portfolio including companies in key verticals such as energy, financial, healthcare products, consumer goods, manufacturing, and retail.
- Thought Leadership: In Q3 FY2017, Determine continued to provide meaningful educational resources to inform our customers and prospects on the ever-changing Source-to-Pay and Enterprise Contract Lifecycle Management landscape:
- Improving Business Outcomes by Managing the Link Between Suppliers and Contract Management : IACCM, Determine and Protiviti presented how organizations are achieving better results for customers and suppliers by improving the integration of their supplier management and contracting processes.
- 5 Core Processes that will Reinvent P2P's View of Supplier Management : Paystream Advisors and Determine covered five everyday yet core processes and how real-world organizations have transformed them through better supplier management.
- The Procurement Revolution held its first annual procurement virtual summit featuring the leading professionals in the industry. Constantine Limberakis was featured with a presentation called Six Disruptive Forces & their Impact on Procurement , examining some of the many trends impacting procurement now and on the horizon.
- Décision-Achats (a French procurement magazine) featured an interview with Patrick Chabannes, Determine's Senior Solution Strategist, about recent and forthcoming developments of Determine's Cloud Platform Source-to-Pay and Contract Management solutions as well as his thoughts on trends in procurement.
Conference Call and Webcast: Thursday, February 9, 2017 at 5:00 PM (Eastern Time) Participant Conference Call Numbers: Toll-Free: 1-877- 407-0789 Toll/International: 1-201- 689-8562 Participant Webcast Link: http://public.viavid.com/index.php?id=122692 Replay Dial-in Information: Toll-Free: 1-844- 512-2921 Toll/International: 1-412- 317-6671 From: 02/09/17 @ 8:00 pm Eastern Time To: 02/16/17 @ 11:59 pm Eastern Time Replay Pin Number: 13653707 Related: http://investor.determine.com
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Non-GAAP Financial Measures
To supplement our financial results presented in accordance with Generally Accepted Accounting Principles (GAAP), this press release and the accompanying tables contain certain non-GAAP financial measures, including non-GAAP revenue, non-GAAP gross profit, non-GAAP net income and non-GAAP earnings per share, which we believe are helpful in understanding our past financial performance and future results. For reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measures, please see the section of the accompanying tables titled, "GAAP to Non-GAAP Reconciliations". Our non-GAAP financial measures are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read in conjunction with our consolidated financial statements prepared in accordance with GAAP.
The difference between GAAP and non-GAAP revenue is due to the impact of revaluing the deferred revenue balances acquired from primarily b-pack, Inc. as required by GAAP purchase accounting.
The difference between GAAP and non-GAAP gross profit is the difference in GAAP versus non-GAAP revenues as well as the elimination of the amortization of acquisition related intangibles, stock based compensation and severance expense from the costs of revenue. Non-GAAP net loss excludes the non-GAAP gross profit items as well as acquisition related costs.
Our management regularly uses our supplemental non-GAAP financial measures internally to understand and manage our business and forecast future periods; as such, we believe it is useful for investors to understand the effects of these items on our total operations. Further, please note that our non-GAAP revenue is intended to reflect the full amount of revenues that would have been otherwise recorded by the acquired entities of Iasta.com, Inc. and b-pack, Inc. while our non-GAAP gross profit also excludes the amortization of intangibles that occurred due to the acquisition of the entities of Iasta.com, Inc. and b-pack, Inc.
Annualized Bookings are an operating measure not derived from the company's revenues or any other amounts presented in accordance with GAAP in the company's statement of income, balance sheet, statement of cash flows or other equivalent statements.
"Annualized Bookings" means the annualized recurring contracted revenue from a new customer or a cross-sell or upsell to an existing customer.
Forward-looking Statements
Certain statements in this release and elsewhere by Determine are forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Such statements may include, without limitation, statements regarding business outlook, assessment of market conditions, anticipated financial and operating results, strategies, product and channel development, future plans, contingencies and contemplated transactions of the company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of company operations, or the performance or achievements of the company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to fluctuations in demand for Determine's products and services, risks of losing key personnel or customers, protection of the company's intellectual property and government policies and regulations, including, but not limited to those affecting the company's industry. Determine undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional risk factors concerning the company can be found in the company's most recent Form 10-K as filed by the company with the Securities and Exchange Commission.
About Determine, Inc.
Determine, Inc. (
The Determine Cloud Platform gives procurement, finance and legal professionals the ability to deliver profound insights through analysis of their supplier relationships and contractual requirements. Our customers leverage the Determine Cloud Platform to discover previously unseen supplier and spend data; make more informed and smarter business decisions; drive new revenue; control costs; improve workflow efficiencies; and mitigate risk.
Our customers benefit from the Determine Cloud Platform's robust suite of integrated applications. Whether they start with a full-suite implementation or choose to implement just one application and build over time, each application allows for the automatic sharing of data in place on the Determine Cloud Platform.
For more information, please visit: www.determine.com .
| Determine, Inc. | |||||||||||||||||
| Condensed Consolidated Statements of Operations | |||||||||||||||||
| (In thousands, except per share amounts) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| December 31 | December 31 | ||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Revenues: | |||||||||||||||||
| Recurring revenues | $ | 5,054 | 5,354 | $ | 15,267 | $ | 15,862 | ||||||||||
| Non-recurring revenues | 1,798 | 1,746 | 4,661 | 4,218 | |||||||||||||
| Total revenues | 6,852 | 7,100 | 19,928 | 20,080 | |||||||||||||
| Cost of revenues: | |||||||||||||||||
| Cost of recurring revenues | 1,777 | 1,816 | 5,085 | 5,003 | |||||||||||||
| Cost of non-recurring revenues | 1,734 | 1,602 | 4,978 | 4,583 | |||||||||||||
| Total cost of revenues | 3,511 | 3,418 | 10,063 | 9,586 | |||||||||||||
| Gross profit: | |||||||||||||||||
| Recurring gross profit | 3,277 | 3,538 | 10,182 | 10,859 | |||||||||||||
| Non-recurring profit (loss) | 64 | 144 | (317 | ) | (365 | ) | |||||||||||
| Total gross profit | 3,341 | 3,682 | 9,865 | 10,494 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Research and development | 1,049 | 1,230 | 3,052 | 2,851 | |||||||||||||
| Sales and marketing | 2,273 | 3,310 | 7,843 | 10,313 | |||||||||||||
| General and administrative | 1,761 | 2,072 | 5,432 | 6,211 | |||||||||||||
| Impairment of software devlopment costs | - | - | 947 | ||||||||||||||
| Total operating expenses | 5,083 | 6,612 | 16,327 | 19,375 | |||||||||||||
| Loss from operations | (1,742 | ) | (2,930 | ) | (6,462 | ) | (8,881 | ) | |||||||||
| Interest and other (expense), net | (462 | ) | (149 | ) | (1,388 | ) | (549 | ) | |||||||||
| Net loss before income tax | (2,204 | ) | (3,079 | ) | (7,850 | ) | (9,430 | ) | |||||||||
| Benefit from income taxes | 35 | 233 | 143 | 213 | |||||||||||||
| Net loss | (2,169 | ) | (2,846 | ) | (7,707 | ) | (9,217 | ) | |||||||||
| Net income (loss) attributed to non-controlling interest | (24 | ) | 1 | (36 | ) | 5 | |||||||||||
| Net loss attributable to Determine, Inc. | (2,193 | ) | (2,845 | ) | (7,743 | ) | (9,212 | ) | |||||||||
| Redeemable preferred stock accretion | - | - | - | 1,000 | |||||||||||||
| Net loss attributable to common stockholders | $ | (2,193 | ) | $ | (2,845 | ) | $ | (7,743 | ) | $ | (10,212 | ) | |||||
| Basic and diluted net loss per share | $ | (0.18 | ) | $ | (0.25 | ) | $ | (0.67 | ) | $ | (0.90 | ) | |||||
| Determine, Inc. | |||||||||||||||||
| GAAP to Non-GAAP Reconciliations | |||||||||||||||||
| (In thousands) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Reconciliation of total revenue: | |||||||||||||||||
| U.S. GAAP as reported | $ | 6,852 | $ | 7,100 | $ | 19,928 | $ | 20,080 | |||||||||
| Adjustments: | |||||||||||||||||
| Deferred revenue adjustment | - | 87 | 8 | 228 | |||||||||||||
| Non-GAAP revenue | $ | 6,852 | $ | 7,187 | $ | 19,936 | $ | 20,308 | |||||||||
| Reconciliation of gross profit: | |||||||||||||||||
| U.S. GAAP as reported | $ | 3,341 | $ | 3,682 | $ | 9,865 | $ | 10,494 | |||||||||
| Adjustments: | |||||||||||||||||
| Deferred revenue adjustment | - | 87 | 8 | 228 | |||||||||||||
| Amortizaton of acquision | 250 | 250 | 758 | 630 | |||||||||||||
| Stock based compensation | 111 | 92 | 240 | 218 | |||||||||||||
| Severance | 24 | 24 | 25 | 107 | |||||||||||||
| Non-GAAP gross profit | $ | 3,726 | $ | 4,135 | $ | 10,896 | $ | 11,677 | |||||||||
| Reconciliation to non-GAAP net loss: | |||||||||||||||||
| Net loss | $ | (2,193 | ) | $ | (2,845 | ) | $ | (7,743 | ) | $ | (9,212 | ) | |||||
| Stock-based compensation expense | 630 | 658 | 1,867 | 1,871 | |||||||||||||
| Deferred revenue adjustment | - | 87 | 8 | 228 | |||||||||||||
| Acquisition related costs | - | 138 | - | 912 | |||||||||||||
| Amortization on intangibles | 526 | 542 | 1,594 | 1,373 | |||||||||||||
| Benefit for income taxes | - | (213 | ) | (13 | ) | (213 | ) | ||||||||||
| Severance costs | 27 | 130 | 34 | 456 | |||||||||||||
| Non-GAAP net loss | $ | (1,010 | ) | $ | (1,503 | ) | $ | (4,253 | ) | $ | (4,585 | ) | |||||
| Non-GAAP basic and diluted net loss per share | $ | (0.08 | ) | $ | (0.13 | ) | $ | (0.37 | ) | $ | (0.45 | ) | |||||
| Weighted average shares outstanding for basic | |||||||||||||||||
| and diluted net loss per share | 11,944 | 11,244 | 11,466 | 10,212 | |||||||||||||
| Determine, Inc. | |||||||||||||||||
| Condensed Consolidated Statements of Comprehensive Loss | |||||||||||||||||
| (In thousands) | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| December 31 | December 31 | ||||||||||||||||
| 2016 | 2015 | 2016 | 2015 | ||||||||||||||
| Net loss | $ | (2,169 | ) | $ | (2,846 | ) | $ | (7,707 | ) | $ | (9,217 | ) | |||||
| Other comprehensive income (loss) net: | |||||||||||||||||
| Foreign currency translation adjustments | 44 | (11 | ) | 31 | (68 | ) | |||||||||||
| Non-controlling interest | (24 | ) | 1 | (36 | ) | 5 | |||||||||||
| Other comprehensive income (loss) | 20 | (10 | ) | (5 | ) | (63 | ) | ||||||||||
| Comprehensive loss | $ | (2,149 | ) | $ | (2,856 | ) | $ | (7,712 | ) | $ | (9,280 | ) | |||||
| Determine, Inc. | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (In thousands) | ||||||||
| December 31, | March 31, | |||||||
| 2016 | 2016 | |||||||
| (Unaudited) | (Audited) | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 9,387 | $ | 9,418 | ||||
| Accounts receivable, net | 6,759 | 7,031 | ||||||
| Restricted cash | 34 | 34 | ||||||
| Prepaid expenses and other current assets | 1,408 | 1,551 | ||||||
| Total current assets | 17,588 | 18,034 | ||||||
| Property and equipment, net | 94 | 136 | ||||||
| Capitalized software, net | 2,131 | 1,699 | ||||||
| Goodwill | 14,346 | 14,490 | ||||||
| Other intangibles, net | 6,346 | 8,011 | ||||||
| Other assets | 1,492 | 1,843 | ||||||
| Total assets | $ | 41,997 | $ | 44,213 | ||||
| LIABILITIES AND EQUITY | ||||||||
| Current liabilities | ||||||||
| Credit facility | $ | 10,861 | $ | 9,000 | ||||
| Accounts payable | 2,435 | 1,973 | ||||||
| Accrued payroll and related liabilities | 1,802 | 1,655 | ||||||
| Other accrued liabilities | 2,020 | 2,396 | ||||||
| Deferred revenue | 10,028 | 10,299 | ||||||
| Income tax payable | 78 | 14 | ||||||
| COFACE loan | 222 | 407 | ||||||
| Accrued restructuring | - | 403 | ||||||
| Total current liabilities | 27,446 | 26,147 | ||||||
| Long-term deferred revenue | 5 | 67 | ||||||
| Convertible note, net of debt discount | 7,374 | 5,420 | ||||||
| Other long-term liabilities | 1,055 | 1,382 | ||||||
| Deferred tax liability non current | 81 | 290 | ||||||
| Total liabilities | 35,961 | 33,306 | ||||||
| Total Determine, Inc. stockholders' equity controlling interest | 5,887 | 10,794 | ||||||
| Non-controlling interest | 149 | 113 | ||||||
| Total equity | 6,036 | 10,907 | ||||||
| Total liabilities and equity | $ | 41,997 | $ | 44,213 | ||||
| Determine, Inc. | |||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||
| (In thousands) | |||||||||
| (Unudited) | |||||||||
| Nine Months Ended | |||||||||
| December 31, | December 31, | ||||||||
| 2016 | 2015 | ||||||||
| Operating activities | |||||||||
| Net loss | $ | (7,707 | ) | $ | (9,217 | ) | |||
| Adjustments to reconcile net loss to net cash used in | |||||||||
| operating activities: | |||||||||
| Depreciation and amortization | 2,478 | 1,868 | |||||||
| Loss on disposition of property and equipment | - | 14 | |||||||
| Stock-based compensation expense | 1,867 | 1,870 | |||||||
| Deferred tax liability | (209 | ) | 93 | ||||||
| Changes in assets and liabilities: | |||||||||
| Accounts receivable, net | 272 | 149 | |||||||
| Prepaid expenses and other current assets | 143 | 300 | |||||||
| Other assets | 435 | (380 | ) | ||||||
| Accounts payable | 462 | 113 | |||||||
| Accrued payroll and related liabilities | 147 | 278 | |||||||
| Accrued restructuring costs | (403 | ) | - | ||||||
| Other accrued liabilities and other long-term liabilities | (356 | ) | (13 | ) | |||||
| Deferred revenue | (333 | ) | (281 | ) | |||||
| Net cash used in operating activities | (3,204 | ) | (5,206 | ) | |||||
| Investing activities | |||||||||
| Purchase of property and equipment | (39 | ) | (6 | ) | |||||
| Capitalized software | (1,267 | ) | (1,077 | ) | |||||
| Purchase of business, net of cash | - | (826 | ) | ||||||
| Minority shareholder payment | - | (133 | ) | ||||||
| Net cash used in investing activities | (1,306 | ) | (2,042 | ) | |||||
| Financing activities | |||||||||
| Proceeds from sale of common stock, preferred stock and warrants, net of issuance costs | - | 310 | |||||||
| Employee taxes paid in exchange for restricted stock awards forefeited | 78 | 263 | |||||||
| Issuance of common stock under employee stock plan | 80 | 87 | |||||||
| Credit facility borrowing | 3,000 | 885 | |||||||
| Credit facility payment | (1,139 | ) | (347 | ) | |||||
| Repayment of loan | (185 | ) | (25 | ) | |||||
| Conversion of preferred stock to common stock | - | (17 | ) | ||||||
| Issuance of debt, net of costs | 2,429 | 2,743 | |||||||
| Net cash provided by financing activities | 4,263 | 3,899 | |||||||
| Effect of exchange rate changes on cash | 216 | 11 | |||||||
| Net decrease in cash and cash equivalents | (31 | ) | (3,338 | ) | |||||
| Cash and cash equivalents at beginning of the period | 9,418 | 13,178 | |||||||
| Cash and cash equivalents at end of the period | $ | 9,387 | $ | 9,840 | |||||
| Determine, Inc. | ||||||||||||||||
| Billings Reconciliation | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 31, | December 31, | December 31, | December 31, | |||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Total revenues | $ | 6,852 | $ | 7,100 | $ | 19,928 | $ | 20,080 | ||||||||
| Deferred revenue: | ||||||||||||||||
| End of period | 10,033 | 9,019 | 10,033 | 9,019 | ||||||||||||
| Beginning of period | 9,340 | 8,319 | 10,366 | 8,432 | ||||||||||||
| Change in deferred revenue | 693 | 700 | (333 | ) | 587 | |||||||||||
| Total billings (total revenues plus the change in deferred revenue) | $ | 7,545 | $ | 7,800 | $ | 19,595 | $ | 20,667 | ||||||||
| Determine, Inc. | ||||||||||||||||
| Non-GAAP EBITDA Reconciliation | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| (unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2016 | 2015 | 2016 | 2015 | |||||||||||||
| Reconciliation to non-GAAP EBITDA net loss: | ||||||||||||||||
| Non-GAAP net loss | $ | (1,010 | ) | $ | (1,503 | ) | $ | (4,253 | ) | $ | (4,585 | ) | ||||
| Interest | 461 | 131 | 1,299 | 372 | ||||||||||||
| Depreciation | 348 | 161 | 916 | 498 | ||||||||||||
| Income Taxes and Minority Shareholder | (11 | ) | (233 | ) | (107 | ) | (217 | ) | ||||||||
| Non-GAAP EBITDA net loss | $ | (212 | ) | $ | (1,444 | ) | $ | (2,145 | ) | $ | (3,932 | ) | ||||
Contact Media Relations Rose Lee Determine, Inc. +1.877.806.1932 +1.650.532.1590 pr@determine.com
