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
Salary.Com (MM) (NASDAQ:SLRY)
Graphique Historique de l'Action
De Juin 2023 à Juin 2024
