SumTotal Systems Reports Second Quarter Results
<p><strong>Mountain View, Calif. — 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>"In the second quarter, we achieved record revenue, record deferred revenue and record cash flow from operating activities," said Don Fowler, SumTotal chief executive officer. "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."</p>
