Science & Technology
Science and Technology
Science and Technology
Wed, February 18, 2009
Tue, February 17, 2009 Voxware Reports Second Quarter Results for Fiscal 2009
HAMILTON, N.J.--([ BUSINESS WIRE ])--Voxware, Inc. (Nasdaq: VOXW), a leading supplier of software for voice-driven warehousing operations, reported results for the three and six months ended December 31, 2008. Overall revenues decreased 36% to $3.449 million for the quarter ended December 31, 2008 from $5.429 million during the comparable prior year period. Revenues decreased 38% to $6.703 million for the six months ended December 31, 2008 from $10.863 million during the comparable prior year period. Net loss on a Generally Accepted Accounting Principles ("GAAP") basis was $1.693 million for the quarter ended December 31, 2008, compared to $7,000 for the comparable prior year period. Net loss on a GAAP basis was $3.663 million for the six months ended December 31, 2008, compared to a net profit of $447,000 for the six months ended December 31, 2007. Voxware's financial statements for the quarter ended December 31, 2008, can be found in its Form 10-Q filed with the Securities and Exchange Commission on February 17, 2009.
"During our second fiscal quarter, we saw a slight revenue increase over our first quarter," said Scott Yetter, Voxware CEO. "We have implemented cost reduction measures, and the benefit of these steps will begin to be seen in our financial results in subsequent financial reporting periods. Furthermore, our cash position remains strong as we move into the second half of the year."
"Large enterprises continue to seriously evaluate Voxware's software, and we are confident that cost containment projects such as implementing voice in distribution centers will be among the first to be funded when the economic climate improves."
Net loss on a non-GAAP basis was $1.392 million and $3.053 million, respectively, for the three and six months ended December 31, 2008. The difference between the GAAP and non-GAAP net loss is attributable to non-cash stock-based compensation, which was $301,000 and $610,000, respectively for the three and six months ended December 31, 2008. A reconciliation of GAAP measures with non-GAAP measures can be found at the end of this release.
About Voxware
Voxware, Inc. (NASDAQ: VOXW), provides voice-driven software products that optimize the full spectrum of warehouse operations for greater accuracy, productivity and flexibility in supply chain execution. Voxware's corporate headquarters are in Hamilton, New Jersey, with operating offices in Cambridge, Massachusetts, the United Kingdom, and France. Additional information about Voxware can be obtained at [ http://www.voxware.com ].
| Voxware, Inc. and Subsidiaries | ||||||||
| Consolidated Balance Sheets | ||||||||
| (in thousands, except share data) | ||||||||
| December 31, 2008 | June 30, 2008 | |||||||
| (unaudited) | ||||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 2,996 | $ | 3,503 | ||||
| Accounts receivable, net of allowance for doubtful accounts of $209 and | ||||||||
| $201 at December 31, 2008 and June 30, 2008, respectively | 2,355 | 6,134 | ||||||
| Inventory, net | 603 | 533 | ||||||
| Deferred project costs | 54 | 163 | ||||||
| Prepaid expenses and other current assets | 388 | 380 | ||||||
| Total current assets | 6,396 | 10,713 | ||||||
| PROPERTY AND EQUIPMENT, NET | 570 | 663 | ||||||
| OTHER ASSETS | 235 | 316 | ||||||
| TOTAL ASSETS | $ | 7,201 | $ | 11,692 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| CURRENT LIABILITIES | ||||||||
| Current portion of long-term debt | $ | 1,013 | $ | 566 | ||||
| Accounts payable and accrued expenses | 2,502 | 3,305 | ||||||
| Current portion of deferred revenues | 2,357 | 3,043 | ||||||
| Total current liabilities | 5,872 | 6,914 | ||||||
| Long-term portion of deferred revenues | 82 | 105 | ||||||
| Long-term debt, net of current maturities | - | 375 | ||||||
| Total liabilities | 5,954 | 7,394 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| STOCKHOLDERS' EQUITY | ||||||||
| Common Stock, $0.001 par value, 12,000,000 shares authorized as of | ||||||||
| December 31, 2008 and June 30, 2008; 6,536,569 and 6,488,529 | ||||||||
| shares issued and outstanding at December 31, 2008 and | ||||||||
| June 30, 2008, respectively | 7 | 6 | ||||||
| Additional paid-in capital | 79,643 | 79,032 | ||||||
| Accumulated deficit | (78,403 | ) | (74,740 | ) | ||||
| Total stockholders' equity | 1,247 | 4,298 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 7,201 | $ | 11,692 | ||||
Financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in Forms 10-KSB and 10-Q.
| Voxware, Inc. and Subsidiaries | ||||||||||||||||
| Consolidated Statements of Operations | ||||||||||||||||
| (in thousands, except per share data) | ||||||||||||||||
| Three Months Ended December 31, | Six Months Ended December 31, | |||||||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| REVENUES | ||||||||||||||||
| Product revenues | $ | 1,985 | $ | 3,981 | $ | 3,805 | $ | 8,275 | ||||||||
| Services revenues | 1,464 | 1,448 | 2,898 | 2,588 | ||||||||||||
| Total revenues | 3,449 | 5,429 | 6,703 | 10,863 | ||||||||||||
| COST OF REVENUES | ||||||||||||||||
| Cost of product revenues | 772 | 1,401 | 1,622 | 2,691 | ||||||||||||
| Cost of service revenues | 876 | 907 | 1,701 | 1,546 | ||||||||||||
| Total cost of revenues | 1,648 | 2,308 | 3,323 | 4,237 | ||||||||||||
| GROSS PROFIT | 1,801 | 3,121 | 3,380 | 6,626 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| Research and development | 1,013 | 918 | 2,025 | 1,730 | ||||||||||||
| Sales and marketing | 1,451 | 1,383 | 2,931 | 2,958 | ||||||||||||
| General and administrative | 1,025 | 837 | 2,079 | 1,500 | ||||||||||||
| Total operating expenses | 3,489 | 3,138 | 7,035 | 6,188 | ||||||||||||
| OPERATING (LOSS) PROFIT | (1,688 | ) | (17 | ) | (3,655 | ) | 438 | |||||||||
| INTEREST (EXPENSE) INCOME, NET | (3 | ) | 10 | (6 | ) | 16 | ||||||||||
| (LOSS) PROFIT BEFORE INCOME TAXES | (1,691 | ) | (7 | ) | (3,661 | ) | 454 | |||||||||
| PROVISION FOR INCOME TAXES | (2 | ) | - | (2 | ) | (7 | ) | |||||||||
| NET (LOSS) PROFIT | $ | (1,693 | ) | $ | (7 | ) | $ | (3,663 | ) | $ | 447 | |||||
| NET (LOSS) PROFIT PER SHARE | ||||||||||||||||
| Basic | $ | (0.26 | ) | $ | (0.00 | ) | $ | (0.56 | ) | $ | 0.07 | |||||
| Diluted | $ | (0.26 | ) | $ | (0.00 | ) | $ | (0.56 | ) | $ | 0.06 | |||||
| WEIGHTED AVERAGE NUMBER OF SHARES USED IN COMPUTING NET (LOSS) PROFIT PER SHARE | ||||||||||||||||
| Basic | 6,517 | 6,386 | 6,505 | 6,378 | ||||||||||||
| Diluted | 6,517 | 6,386 | 6,505 | 7,289 | ||||||||||||
Financial statements should be read in conjunction with the Notes to Consolidated Financial Statements contained in Forms 10-KSB and 10-Q.
| Voxware, Inc. and Subsidiaries | ||||||||||||
| Reconciliation of Non-GAAP Financial Measures to Comparable GAAP Measures | ||||||||||||
| (in thousands) | ||||||||||||
| Three Months Ended December 31, 2008 | ||||||||||||
| GAAP | Adjustments | Non-GAAP | ||||||||||
| NET LOSS | $ | (1,693) | (b) | $ | 301 | (a) | $ | (1,392) | (b) | |||
| Six Months Ended December 31, 2008 | ||||||||||||
| GAAP | Adjustments | Non-GAAP | ||||||||||
| NET LOSS | $ | (3,663) | (b) | $ | 610 | (c) | $ | (3,053) | (b) | |||
| Notes: | ||
| (a) | Adjustment to exclude non-cash stock-based compensation of $301,000 from Net Loss of which $32,000 was reported in research and development costs, $63,000 was reported in sales and marketing costs, and $206,000 was reported in general and administrative costs. | |
| (b) | GAAP and non-GAAP net loss for the three and six months ended December 31, 2008 are not audited. | |
| (c) | Adjustment to exclude non-cash stock-based compensation of $610,000 from Net Loss of which $63,000 was reported in research and development costs, $126,000 was reported in sales and marketing costs, and $421,000 was reported in general and administrative costs. | |
About Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with GAAP, this press release includes the following measure defined by the Securities and Exchange Commission as non-GAAP financial measures: non-GAAP net profit. This non-GAAP measure is not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, this non-GAAP measure, the financial statements prepared in accordance with GAAP and reconciliations of Voxware's GAAP financial statements to such non-GAAP measure should be carefully evaluated.
Management believes that the large increase in FAS 123R or stock-based compensation charges incurred during the six months ended December 31, 2008 makes non-GAAP net loss an important metric for investors to value the Company. Non-cash stock-based compensation charges for the six months ended December 31, 2008 were $610,000 compared to $311,000 in the six months ended December 31, 2007, an increase of 96%. Accordingly, we believe that non-GAAP net loss, excluding non-cash stock-based compensation costs, are meaningful measures for investors to evaluate our financial performance. Moreover, because of varying available valuation methodologies and the variety of award types that companies can use under FAS 123R, we believe that providing non-GAAP financial measures that exclude non-cash stock-based compensation allows investors to make additional comparisons between our operating results to those of other companies. The presentation of non-GAAP net profit, when read in conjunction with our reported GAAP results, can provide useful supplemental information to our management and investors regarding financial and business trends relating to our financial condition and results of operations.
Stock-based compensation has been and will continue to be for the foreseeable future a significant recurring expense in our business. In addition, other companies may calculate non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. We compensate for this limitation by providing specific information regarding the GAAP amounts excluded from the non-GAAP net profit and evaluating such non-GAAP financial measures with financial measure calculated in accordance with GAAP.
This news release contains forward-looking statements.Such statements are subject to certain factors that may cause Voxware's plans to differ or results to vary from those expected including the risks associated with Voxware's need to introduce new and enhanced products and services in order to increase market penetration and the risk of obsolescence of its products and services due to technological change; Voxware's need to attract and retain key management and other personnel with experience in providing integrated voice-based solutions for e-logistics, specializing in the supply chain sector; the potential for substantial fluctuations in Voxware's results of operations; competition from others; Voxware's evolving distribution strategy and dependence on its distribution channels; the potential that speech products will not be widely accepted; Voxware's need for additional capital and its ability to raise such capital on terms acceptable to Voxware; the potential for Nasdaq delisting proceedings; and a variety of risks set forth from time to time in Voxware's filings with the Securities and Exchange Commission.Voxware undertakes no obligation to publicly release results of any of these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.
