Salary.com, Inc. (NASDAQ: SLRY), a leading provider of on-demand talent management and compensation solutions, today announced financial results for the first quarter of fiscal 2011, which ended June 30, 2010.

Revenue from continuing operations was $9.7 million in the first quarter, an increase of 4% from the fourth quarter of fiscal 2010 and a decrease of 2% over the first quarter of fiscal 2010. Bookings were $11.3 million, an increase of 15% from the fourth quarter of 2010, and an increase of 9% over the first quarter of fiscal 2010. Non-GAAP operating cash flow, which excludes cash payments for severance related and CEO transition costs, was a positive $0.6 million in the first quarter, compared to $0.4 million in the first quarter of 2010, and a significant improvement compared to an outflow of $1.1 million in the fourth quarter of 2010. GAAP operating cash flow was a positive $0.1 million in the first quarter, consistent with the first quarter of 2010, and an improvement from an outflow of $1.9 million in the fourth quarter of 2010.

Paul Daoust, interim chief executive officer, stated, "We made great progress in the first quarter towards our goals of continuing to invest in our leading compensation data-enabled on-demand software solutions, streamlining our talent management suite, and divesting non-core businesses. Not only did we see a return to bookings growth on a year-over-year basis, but I am also very pleased to report that we were able to achieve positive non-GAAP operating cash flow earlier than we had anticipated. Our strategic realignment is essentially complete and we believe Salary.com is well positioned to continue deliver growth with positive cash flow as we continue to expand our leadership position in the on-demand compensation and talent management markets."

First Quarter 2011 Financial Summary

-- First quarter revenue was $9.7 million, a decrease of 2% over the first
   quarter of fiscal 2010, and an increase of 4% compared to the fourth
   quarter of fiscal 2010.

-- On a GAAP basis, for the first quarter of fiscal 2011, Salary.com
   reported a net loss from continuing operations of $5.8 million, or
   ($0.34) per diluted share, compared to a net loss from continuing
   operations of $4.6 million, or ($0.29) per diluted share, in the first
   quarter of fiscal 2010.

-- On a non-GAAP basis, excluding the impact of restructuring expenses, CEO
   transition costs, stock-based compensation expense and amortization of
   intangibles, Salary.com reported a net loss from continuing operations
   of $2.4 million, or ($0.14) per diluted share, for the first quarter of
   fiscal 2011, compared to a net loss from continuing operations of
   $2.3 million, or ($0.14) per diluted share, in the first quarter of
   fiscal 2010.

-- Cash and cash equivalents as of June 30, 2010 were $8.9 million,
   including $450,000 of cash held by Salary.com's Genesys subsidiary
   which was classified as discontinued operations for the first quarter
   of fiscal 2011. This compares to cash and cash equivalents of $8.8
   million as of March 31, 2010. Net cash, including $450,000 in cash held
   in discontinued operations, was $6.3 million as of June 30, 2010,
   compared to $6.2 million as of March 31, 2010.

-- Excluding non-recurring cash payments for severance related costs and
   CEO transition costs, non-GAAP cash flow from operations was a positive
   $0.6 million in the first quarter of fiscal 2011, compared to a positive
   of $0.4 million in the first quarter of 2010. Including these non-
   recurring payments, GAAP cash flow from operations for both the first
   quarter of fiscal 2011 and 2010 was a positive of $0.1 million.

Additional First Quarter and Fiscal 2011 Business Highlights

-- Salary.com added approximately 100 new enterprise customers in the first
   quarter of fiscal 2011, ending the quarter with approximately 3,800
   enterprise customers.

-- New customer additions in the first quarter of fiscal 2011 included
   Bowling Green State University, IAG New Zealand, Kenneth Cole
   Productions, LCA-Vision, Pitney Bowes, Siemens, University of
   Cincinnati, University of Mississippi Medical Center, and the University
   of Iowa Health System

-- In the first quarter, 12 transactions larger than $100,000 were
   completed, including one that was larger than $250,000.

Discontinued Operations

During the quarter ended June 30, 2010, the Company finalized its plans to divest its payroll reporting unit. The payroll reporting unit primarily consists of the Company's enterprise payroll and human resource management software sold by the Company's Genesys subsidiary and its small business payroll products. As a result, the Company will begin reporting its payroll reporting unit as a discontinued operation beginning in the first quarter of fiscal 2011. All financial information included in this release (including information for prior years) excludes our discontinued operations unless specifically indicated otherwise. Loss from discontinued operations, net of tax was approximately $0.1 million for the three months ended June 30, 2010.

Business Outlook

Bryce Chicoyne, Salary.com's chief financial officer said, "We are pleased to have met our commitments for sequential revenue growth and to have returned to positive non-GAAP operating cash flow in the first quarter, which was earlier than we anticipated. Our GAAP operating expenses, which include restructuring charges and CEO transition costs, were higher than expected as a result of activities related to our restructuring and realignment plan, as well as divesting our payroll operations. However, we do not expect these non-recurring expenses to have a material impact on our business on a go-forward basis. Furthermore, we were successful in reducing our overall cost structure by an annualized $7 million and expect to see the full impact of that in the second quarter. With our cost structure reduced and our core product line strengthening, we believe we are positioning ourselves for long-term profitable growth."

For the second quarter of fiscal 2011, Salary.com expects total revenue in the range of $9.7 million to $10.2 million. Non-GAAP net loss from continuing operations is expected to be in the range of $0.1 million to $0.6 million, and excludes restructuring charges of approximately $0.3 million, non-cash stock-based compensation expenses of approximately $1.6 million, and amortization of intangibles of approximately $0.9 million. GAAP net loss from continuing operations for the second quarter of fiscal 2011 is expected to be in the range of $2.8 million to $3.3 million. Weighted average diluted shares for the quarter are estimated to be approximately 17.4 million shares.

Salary.com is reiterating expectations for fiscal 2011 revenue in the range of $41.5 million to $42.5 million and positive non-GAAP cash flow from operations in the range of $4.0 million to $5.0 million. Non-GAAP net income from continuing operations is expected to be in the range of $0.5 million to $1.5 million, and excludes restructuring charges of approximately $1.0 million, non-cash impact of stock-based compensation expense of approximately $6.1 million, and amortization of intangibles of approximately $3.4 million. On a GAAP basis, net loss from continuing operations for fiscal 2011 is expected to be in the range of $9.0 million to $10.0 million. Weighted average diluted shares for the year are estimated to be approximately 17.5 million shares.

Conference call

What:       Conference call to discuss Salary.com's first quarter 2011
            financial results and other matters.
When:       Tuesday, August 10, 2010
Time:       5:00 PM ET
Live Call:  (877) 755-7407, domestic
            (973) 200-3090, international
Replay:     (800) 642-1687, domestic, passcode 88010215
            (706) 645-9291, international, passcode 88010215
Webcast:    http://investor.salary.com/events.cfm (live and replay)

NON-GAAP FINANCIAL MEASURES

The non-GAAP financial measures in the text of this press release and accompanying non-GAAP supplemental information represent financial measures used by Salary.com's management to evaluate the operating performance of the Company and to conduct its business operations. Non-GAAP financial measures discussed in the press release relate to the Company's net income and operating expenses and exclude amortization of intangible assets, stock-based compensation and restructuring and CEO transition costs. This press release also discusses operating cash flows excluding severance related payments and CEO transition costs. By excluding these items and by providing information on the Company's bookings in addition to its GAAP revenues, Salary.com can evaluate its operations and can compare its results on a more consistent basis to the results of other companies in the industry. Management uses the non-GAAP financial measures for planning purposes, including the preparation of operating budgets and to determine appropriate levels of operating and capital investments. Management also believes that the non-GAAP financial measures provide additional insight for analysts and investors in evaluating the Company's financial and operational performance and in assisting investors in comparing the Company's financial performance to those of other companies in the Company's industry, many of which present similar non-GAAP financial measures to investors. However, these non-GAAP financial measures are not intended to be an alternative to financial measures prepared in accordance with GAAP and should not be considered in isolation from our GAAP results of operations. Pursuant to the requirements of the SEC Regulation G, a detailed reconciliation between the Company's GAAP and non-GAAP financial results is provided in this press release and investors are advised to carefully review and consider this information as well as the GAAP financial results that are disclosed in the Company's SEC filings.

About Salary.com, Inc.

Salary.com is a leading provider of on-demand talent management and compensation solutions. Salary.com's highly configurable software applications and proprietary content help executives, line managers and compensation professionals automate, streamline and optimize critical talent management processes including: market pricing, compensation planning, performance management, competency management, and succession planning. Built with compensation and competency data at the core, Salary.com solutions provide businesses of all sizes with the most productive and cost-effective way to manage and inspire their most important asset -- their people. For more information, visit www.salary.com.

Safe Harbor Statement

This release contains "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These are statements that are predictive in nature, that depend upon or refer to future events or conditions, or that include words such as "may," "will," "expects," "projects," "anticipates," "estimates," "believes," "intends," "plans," "should," "seeks," and similar expressions. This press release contains forward-looking statements relating to, among other things, Salary.com's expectations and assumptions concerning future performance and growth, including expectations of financial performance in the second quarter of 2011 and the full fiscal year 2011, as well as plans to divest businesses, expected benefits from divested businesses, reduce product offerings, and to focus on particular products. Forward-looking statements involve known and unknown risks and uncertainties that may cause actual future results to differ materially from those projected or contemplated in the forward-looking statements. The risks and uncertainties referred to above include, but are not limited to, the impact of the recent global economic recession and uncertainty in the information technology spending environment, potential disruption to our business from our workforce reduction and potential sale of certain product lines, risks associated with possible fluctuations in our operating results and rate of growth, integration and performance of acquired businesses, our history of operating losses, the possibility that we will not achieve GAAP profitability, our ability to expand our customer base and effectively execute on our plans to divest additional businesses and reduce or consolidate product and service offerings, the impact of non-recurring expenses, interruptions or delays in our service or our Web hosting, our business model, breach of our security measures, our ability to hire, retain and motivate our employees and manage our growth, our ability to generate additional revenues from our investments in sales and marketing, competition, our ability to continue to release and gain customer acceptance of new and improved versions of our service, successful customer deployment and utilization of our services, our ability to convert on our pipeline, fluctuations in the number of shares outstanding and general economic factors, as well as those risks and uncertainties described in Salary.com's filings with the Securities and Exchange Commission, including the Company's Form 10-K for the year ended March 31, 2010. Salary.com expressly disclaims any obligation to update any forward-looking statements.

(SLRY-F)

Exhibit 1

                             Salary.com, Inc.
                  Condensed Consolidated Balance Sheets
                        (in thousands, unaudited)


                                                       June 30,   March 31,
ASSETS                                                   2010       2010
                                                       ---------  ---------
Current assets:
 Cash and cash equivalents                             $   8,422  $   8,773
 Accounts receivable, net of allowance for doubtful
  accounts                                                 5,990      7,695
 Prepaid expenses and other current assets                 1,660      2,069
 Assets of discontinued operations - held for sale         9,733          -
                                                       ---------  ---------
Total current assets before funds held for clients        25,805     18,537
 Funds held for clients                                        -     12,967
                                                       ---------  ---------
    Total current assets                                  25,805     31,504
                                                       ---------  ---------
Property, equipment and software, net                      1,328      2,094
Goodwill and intangible assets, net                       19,911     25,027
Other assets                                               1,330      1,381
                                                       ---------  ---------
    Total assets                                       $  48,374  $  60,006
                                                       =========  =========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Revolving credit facility                             $   2,525  $   2,525
 Accounts payable and accrued compensation                 3,667      3,711
 Accrued expenses and other current liabilities            5,421      6,251
 Deferred revenue, current portion                        27,028     29,356
 Liabilities of discontinued operations - held for
  sale                                                     8,240          -
                                                       ---------  ---------
Total current liabilities before client funds
 obligations                                              46,881     41,843
 Client funds obligations                                      -     12,967
                                                       ---------  ---------
    Total current liabilities                             46,881     54,810
                                                       ---------  ---------

 Deferred revenue, net of current portion                  3,377      2,812
 Long term liabilities                                     1,559      1,566
                                                       ---------  ---------
    Total liabilities                                     51,817     59,188
                                                       ---------  ---------

Total stockholders' equity
  Total stockholders' equity                              (3,443)       818
                                                       ---------  ---------
    Total liabilities and stockholders' equity         $  48,374  $  60,006
                                                       =========  =========




Exhibit 2
                             Salary.com, Inc.
                  Consolidated Statements of Operations
                        (in thousands, unaudited)


                                                        Three Months Ended
                                                             June 30,
                                                        ------------------
                                                          2010      2009
                                                        --------  --------
Revenues:
 Subscription revenues                                  $  8,918  $  8,972
 Advertising revenues                                        786       913
                                                        --------  --------
Total revenues                                             9,704     9,885

 Cost of revenues (1)                                      2,395     2,451
                                                        --------  --------
Gross profit                                               7,309     7,434
                                                        --------  --------

Operating expenses:
 Research and development (1)                              2,077     1,982
 Sales and marketing (1)                                   5,351     5,614
 General and administrative (1)                            3,979     3,898
 Amortization of intangible assets                           450       470
 Impairment charges                                            -         -
 Restructuring and CEO transition costs                    1,110         -
                                                        --------  --------
Total operating expenses                                  12,967    11,964
                                                        --------  --------
Loss from operations                                      (5,658)   (4,530)
                                                        --------  --------

Other income:
 Interest income                                               -         7
 Other income (expense)                                     (100)      (99)
                                                        --------  --------
Total other income                                          (100)      (92)
                                                        --------  --------
Loss from continuing operations before provision for
 income taxes                                             (5,758)   (4,622)
Provision for income taxes                                    28        26
                                                        --------  --------
Income (loss) from continuing operations                  (5,786)   (4,648)
Discontinued operations, net of tax                         (135)     (500)
                                                        --------  --------
Net loss                                                $ (5,921) $ (5,148)

Net (loss) income per share:
 Basic and diluted loss per share from continuing
  operations                                            $  (0.34) $  (0.29)
 Discontinued operations                                   (0.01)    (0.03)
                                                        --------  --------
Basic and diluted loss per share (2)                    $  (0.34) $  (0.32)
                                                        ========  ========

Weighted average shares outstanding - basic and diluted   17,176    16,175

(1)  Amounts include stock-based compensation expense, as follows:


                                                        Three Months Ended
                                                             June 30,
                                                        ------------------
                                                          2010      2009
                                                        --------  --------

 Cost of revenues                                       $    147  $    225
 Research and development                                    199       260
 Sales and marketing                                         317       581
 General and administrative                                  799       419
 Stock-based compensation related to CEO transition          207         -
 Stock-based compensation related to restructuring           282         -
                                                        --------  --------
                                                        $  1,951  $  1,485
                                                        ========  ========

(2) Totals may not add due to rounding.




Exhibit 3
                             Salary.com, Inc.
              Condensed Consolidated Statements of Cash Flows
                        (in thousands, unaudited)


                                                        Three Months Ended
                                                             June 30,
                                                        ------------------
                                                          2010      2009
                                                        --------  --------

Cash flows from operating activities:
 Net loss                                               $ (5,921) $ (5,148)
 Adjustments to reconcile net loss to net cash provided
  by operating activities:
   Depreciation and amortization                           1,190     1,619
   Stock-based compensation                                1,951     1,485
   Other non-cash items                                       42       408
   Change in operating assets and liabilities              2,843     1,724
                                                        --------  --------
       Net cash provided by operating activities             105        88
                                                        --------  --------

Cash flows from investing activities:
 Cash paid for intangible assets                               -       (42)
 Increase in restricted cash                                   -        (1)
 Purchases of property and equipment                         (49)      (64)
 Capitalization of software development costs                (35)      (39)
 Proceeds on sale of property and equipment                  253         1
 Net increase in assets held to satisfy client funds
  obligations                                              9,145    10,619
                                                        --------  --------
       Net cash provided by investing activities           9,314    10,474
                                                        --------  --------

Cash flows from financing activities:
 Net proceeds from exercise (buyback) of common stock
  options and warrants                                        18    (1,672)
  Net proceeds from line of credit and notes payable         (72)   (2,172)
  Net increase in client funds obligation                 (9,145)  (10,619)
                                                        --------  --------
       Net cash used in financing activities              (9,199)  (14,463)
                                                        --------  --------

Effect of exchange rate changes on cash and cash
 equivalents                                                (119)     (166)
                                                        --------  --------
Decrease in cash and cash equivalents                        101    (4,067)

Cash and cash equivalents, beginning of period             8,773    21,085
                                                        --------  --------

Cash and cash equivalents, end of period                $  8,874  $ 17,018
                                                        ========  ========




Exhibit 4
                             Salary.com, Inc.
                    Reconciliation of Non-GAAP Measures
                        (in thousands, unaudited)


                                                        Three Months Ended
                                                             June 30,
                                                        ------------------
                                                          2010      2009
                                                        --------  --------
Reconciliation of GAAP loss from operations to non-GAAP
 loss from operations:

   Loss from operations                                 $ (5,658) $ (4,530)
   Amortization of intangible assets                         450       470
   Amortization of intangible assets (included in cost
    of revenues)                                             407       414
   Stock-based compensation                                1,462     1,485
   Stock-based compensation (included in restructuring
    and CEO transition costs)                                489         -
   Restructuring and CEO transition costs                    621         -
                                                        --------  --------
Non-GAAP loss from operations                           $ (2,229) $ (2,161)
                                                        ========  ========

Reconciliation of GAAP net loss from continuing
 operations to non-GAAP net loss from continuing
 operations:

   GAAP net loss from continuing operations             $ (5,786) $ (4,648)
   Amortization of intangible assets                         450       470
   Amortization of intangible assets (included in cost
    of revenues)                                             407       414
   Stock-based compensation                                1,462     1,485
   Stock-based compensation (included in restructuring
    and CEO transition costs)                                489         -
   Restructuring and CEO transition costs                    621         -
                                                        --------  --------
   Non-GAAP net loss from continuing operations         $ (2,357) $ (2,279)
                                                        ========  ========

Non-GAAP net loss per share from continuing operations  $  (0.14) $  (0.14)
                                                        ========  ========

Weighted average shares outstanding - basic and diluted   17,176    16,175





Exhibit 5
                                SALARY.COM
      Reconciliation of Certain GAAP to Non-GAAP Financial Measures
                        (In thousands, unaudited)


                                 Three months ended June 30, 2010
                       ----------------------------------------------------

                                                       Restruct-
                                 Amortiza-    Stock-     uring
                                  tion of   based Comp- and CEO
                       US GAAP   Intangible  ensation   Transiti-  Non-GAAP
                       Results     Assets    Expense    on Costs   Results
                       --------- ---------  ---------  ---------  ---------

Cost of revenues       $   2,395 $    (407) $    (147) $       -  $   1,841

Research and
 development expenses      2,077         -       (199)         -      1,878
Sales and marketing
 expenses                  5,351         -       (317)         -      5,034
General and
 administrative
 expenses                  3,979         -       (799)         -      3,180
Amortization of
 intangible assets           450      (450)         -          -          -
Restructuring and CEO
 transition costs          1,110         -       (489)      (621)         -
                       --------- ---------  ---------  ---------  ---------
   Total operating
    expenses           $  12,967 $    (450) $  (1,804) $    (621) $  10,092
                       ========= =========  =========  =========  =========



                                 Three months ended June 30, 2009
                       ----------------------------------------------------

                                                       Restruct-
                                 Amortiza-    Stock-     uring
                                  tion of   based Comp- and CEO
                       US GAAP   Intangible  ensation   Transiti-  Non-GAAP
                       Results     Assets    Expense    on Costs   Results
                       --------- ---------  ---------  ---------  ---------

Cost of revenues       $   2,451 $    (414) $    (225) $       -  $   1,812

Research and
 development expenses      1,982         -       (260)         -      1,722
Sales and marketing
 expenses                  5,614         -       (581)         -      5,033
General and
 administrative
 expenses                  3,898         -       (419)         -      3,479
Amortization of
 intangible assets           470      (470)         -          -          -
                       --------- ---------  ---------  ---------  ---------
   Total operating
    expenses           $  11,964 $    (470) $  (1,260) $       -  $  10,234
                       ========= =========  =========  =========  =========





Exhibit 6
                             Salary.com, Inc.
                    Reconciliation of Non-GAAP Measures
                        (in thousands, unaudited)


                                                        Three Months Ended
                                                             June 30,
                                                        -------------------
                                                          2010      2009
                                                        --------- ---------

 Net cash provided by operating activities              $     105 $      88
 Payments of severance related costs                          407       287
 Payments of CEO transition costs                             123         -
                                                        --------- ---------
 Non-GAAP cash provided by operating activities         $     635 $     375
                                                        ========= =========
Salary.Com (MM) (NASDAQ:SLRY)
Graphique Historique de l'Action
De Mai 2024 à Juin 2024 Plus de graphiques de la Bourse Salary.Com (MM)
Salary.Com (MM) (NASDAQ:SLRY)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024 Plus de graphiques de la Bourse Salary.Com (MM)