Message #30 From:
Jason Date: April 27, 2008 02:27:43 PM
SofTech Announces Third Quarter Financial Results for FY 2008
SofTech Announces Third Quarter Financial Results for FY 2008
SofTech, Inc. (OTCBB:SOFT), a proven provider of product lifecycle
management (PLM) solutions, today announced Q3 results. Revenue for Q3
FY 2008 was $2.4 million as compared to $2.9 million for the same period
in fiscal 2007. The net loss for the current quarter was $(133,000) or
$(.01) per share as compared to the net loss of ($116,000) or ($.01) per
share for the same period in the prior fiscal year.
Revenue for the nine months ended February 29, 2008 was about $7.7
million as compared to about $8.4 million for the same period in the
prior fiscal year. The net loss for the nine months ended February 29,
2008 was ($350,000) or ($.03) per share as compared to a net loss of
($1,077,000) or ($.09) per share for the same period in the prior fiscal
year.
Earnings before Interest, Taxes, Depreciation and Amortization (“EBITDA”),
a non-GAAP financial measure, was $560,000 for the current quarter, as
compared to $623,000 in the comparable prior period. EBITDA for the nine
months ended February 29, 2008 was $1,790,000, as compared to $1,099,000
in the comparable prior period. A reconciliation of EBITDA to Net Loss
is provided on the attached Financial Summary.
The Company’s revenue is derived almost
entirely from technology acquisitions completed between 1997 and 2002,
and the Company’s operations are not capital
intensive. As of February 29, 2008 approximately 61% of the Company’s
assets represent intangible assets related to these historical
acquisitions. The Company does not anticipate making further
acquisitions in the foreseeable future. For the current quarter, the
amortization of these intangible assets was approximately 14% of total
expenses and 14% of total revenue. Further, the periods over which these
intangible costs are expensed are highly judgmental.
The Company believes that EBITDA is useful supplemental information for
investors, when considered along with net income and other income
statement data The Company believes that EBITDA is useful because it
provides investors with information concerning the potential longer term
profitability of the Company’s technology
assets (subsequent to full amortization of costs), as amortization of
acquisition costs has been added back to net income in arriving at
EBITDA. Further, management believes that EBITDA provides a useful
financial metric by which the Company can be compared with other
companies that have different capital structures (interest (a cost of
capital) has been added back to net income in arriving at EBITDA). It is
also management’s belief that this non-GAAP
measure of performance continues to be used in the investment community
as a financial metric for business valuation purposes.
However, the Company believes that EBITDA is not a substitute for cash
flow from operations, which is disclosed in the Company’s
financial statements. Investors should carefully review the financial
statements of the Company in their entirety in order to obtain a
complete understanding of the Company’s
financial condition and results of operations.
SofTech, Inc. (OTCBB: SOFT) is a proven provider of product lifecycle
management (PLM) solutions with its flagship ProductCenter™
PLM solution, and its computer-aided design and manufacturing (CAD/CAM)
products, including CADRA™ and Prospector™.
SofTech's solutions accelerate products and profitability by fostering
innovation, extended enterprise collaboration, product quality
improvements, and compressed time-to-market cycles. SofTech excels in
its sensible approach to delivering enterprise PLM solutions, with
comprehensive out-of-the-box capabilities, to meet the needs of
manufacturers of all sizes quickly and cost-effectively.
Over 100,000 users benefit from SofTech solutions, including General
Electric Company, Goodrich, Honeywell, Siemens, Sikorsky Aircraft, U.S.
Army, and Whirlpool Corporation. Headquartered in Lowell, Massachusetts,
SofTech (www.softech.com) has
locations and distribution partners throughout North America, Europe,
and Asia.
SofTech, CADRA, ProductCenter and Prospector are trademarks of SofTech,
Inc. All other products or company references are the property of their
respective holders.
The statements made below with respect to SofTech’s
outlook for fiscal 2008 and beyond represent “forward
looking statements” within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities and Exchange Act of 1934 and are subject to a number of risks
and uncertainties. These include, among other risks and uncertainties,
whether we will be able to generate sufficient cash flow from operations
to fund working capital needs, successfully integrate acquired entities,
maintain existing relationships with our lenders, successfully introduce
and attain market acceptance of planned new products, attract and retain
qualified personnel both in our existing markets and in new territories
in an extremely competitive environment, and potential obsolescence of
our technologies,.
