SumTotal Systems Reports Record Fourth Quarter
Mountain View, Calif. — Feb. 5
SumTotal Systems, a global provider of learning, performance and talent management solutions, announced its financial results for the fourth quarter and full year that ended Dec. 31.
Fourth-Quarter 2007 Results
On a Generally Accepted Accounting Principles (GAAP) basis, total revenue for the fourth quarter 2007 was $33.3 million, an increase of 12% from the $29.6 million in the fourth quarter 2006. GAAP net loss was $2.4 million, or $0.07 per share on a basic and diluted basis, compared to a net loss of $2.5 million, or $0.10 per share on a basic and diluted basis, in the fourth quarter 2006.
Non-GAAP revenue for the fourth quarter increased by 12% to $33.5 million from $30.0 million in the fourth quarter 2006. Non-GAAP net income was $1.7 million, or $0.05 per share on a diluted basis, compared to non-GAAP net income of $2.2 million, or $0.08 per share on a diluted basis, a year ago.
Deferred revenue on a GAAP basis at the end of the fourth quarter increased 20% year-over-year to $36.8 million compared to $30.7 million for the same quarter of the previous year.
Full-Year 2007 Results
On a GAAP basis, total revenue for the full year 2007 was $121.9 million, an increase of 15 percent from $106.0 million in the full year 2006. GAAP net loss was $7.7 million, or $0.25 per share on a basic and diluted basis, compared to a net loss of $12.0 million, or $0.47 per share on a basic and diluted basis, for the full year 2006.
Non-GAAP revenue for the year increased by 12 percent to $123.1 million from revenue of $110.3 million in the full year of 2006. Non-GAAP net income for the year was $7.1 million, or $0.23 per share on a diluted basis, compared to non-GAAP net income of $6.6 million, or $0.25 per share on a diluted basis, for the prior year.
Non-GAAP results exclude the impact of certain one-time charges primarily related to restructuring activities, if any, and noncash accounting adjustments and charges primarily related to acquisition accounting, stock-based compensation and any related income-tax effects. A reconciliation to the GAAP results is provided in the attached statements.
“I am pleased that we were able to achieve record revenue for both the fourth quarter and the full year 2007,” said Don Fowler, SumTotal’s chief executive officer. “During the quarter, we saw strength in North America where the team continued to exceed expectations, and we saw great progress from our international team. We are also pleased with the progress of our performance management business.
“During 2007, our on-demand subscriptions bookings grew approximately 38 percent to $29 million,” Fowler continued. “As a result, our recurring revenue stream, which also includes support revenue, increased to over 50 percent of our total revenue in 2007 from 47 percent in 2006, 42 percent in 2005 and 37 percent in 2004. As we continue to add resources to our small- and medium-sized business (SMB) efforts, our on-demand revenue should continue to increase as a percentage of our total business,
thereby providing us with better visibility into our future revenue streams.”
- During the fourth quarter, demonstrated strength in North America, signing contracts with new and existing customers including BEA Systems, Deluxe Corporation, Alticor and Advocate Health.
- Also in the fourth quarter, saw significant improvement in its international results — winning contracts including a large European financial services company, Pemex, Abbott Brasil, Axtel and an automobile manufacturer in China — expanded its partnership with NEC in Japan and announced new partnership with Key Logic in China.
- In performance management, signed 26 deals, including SickKids Foundation, Unified Grocers, and a large, U.K.-based investment bank.
- Throughout the year, continued to grow its on-demand subscription business, signing contracts with companies including the American Management Association, Arizona Federal Credit Union, Hawker Pacific Aerospace, and Uponor.
- In 2007, released SumTotal Enterprise Suite(TM) 7.6, SumTotal’s newest version of its talent management suite, as well as provided ongoing updates to ResultsonDemand.
- Recognized as a leader in the Gartner’s Marketscope for Employee Performance Management, 2007; awarded the Deloitte Fast 50; recognized as a Bersin & Associates’ Learning Leader 2007 for Innovative Initiatives around internal talent management programs; and earned a place on the Military Training Technology 2007 Top 100 List for the fourth consecutive year.