SumTotal Systems Reports Second Quarter Results

<p><strong>Mountain View, Calif. &mdash; Aug. 2</strong><br />SumTotal Systems, a global provider of talent and learning management solutions, has announced its financial results for the second quarter ended June 30.</p><p>On a generally accepted accounting principles (GAAP) basis, total revenue for the second quarter of 2007 was $30.2 million, an increase of 20 percent from the $25.1 million reported in the second quarter of 2006.</p><p>GAAP net loss was $1.5 million, or 5 cents per share on a basic and diluted basis, compared with a net loss of $2.3 million, or 9 cents per share on a basic and diluted basis in the same quarter of 2006.</p><p>Subscription and support revenue increased 29 percent to $15.1 million from $11.7 million in the second quarter of 2006.<br /><br />Deferred revenue increased 28 percent year-over-year to end the second quarter of 2007 at $35.9 million, compared with $28.1 million for the same quarter of the previous year.<br /><br />Cash flow from operating activities for the quarter was $6.5 million, compared with $4.4 million for the same period last year.<br /><br />Non-GAAP revenue in the second quarter increased 15 percent to $30.5 million from $26.5 million reported for the second quarter of 2006.</p><p>Non-GAAP net income was $1.9 million, or 6 cents on a diluted basis, compared with net income of $2.3 million, or 9 cents on a diluted basis in the same quarter of 2006. </p><p>Subscription and support revenue increased 22 percent to $15.4 million from $12.6 million in the same quarter last year.<br /><br />Non-GAAP results exclude the impact of certain one-time charges primarily related to restructuring activities, as well as noncash accounting adjustments and charges primarily related to acquisition accounting, stock-based compensation and any related income tax effects. </p><p>&quot;In the second quarter, we achieved record revenue, record deferred revenue and record cash flow from operating activities,&quot; said Don Fowler, SumTotal chief executive officer. &quot;By focusing on our strategy, we hope to continue to produce strong results and to end the year with a revenue growth rate at or above the levels of the rest of the market.&quot;</p>