- Revenue of $5.4 million increased 38% Y/Y and cash billings increased 22% Y/Y to $5.5 million
- Education billings increased 18% Y/Y to $3.3 million and non-EDU billings were up 29% to $2.2 million
- Gross margin was 75.4% versus 70.6% in the prior year quarter for gross profit of $4.1 million
- Operating expenses totaled $4.2 million, down 16% Y/Y bringing reported (GAAP) operating income to a modest loss of $144 thousand and reported net income to a loss of $152 thousand
- Adjusted operating and net income (adding back non-cash items) were approximately $300 thousand
- TTM revenue totaled $18.6 million (+17% Y/Y), billings were $20.2 million (+13% Y/Y), and, importantly, cash operating loss was only $109 thousand
- Net cash on balance sheet declined to $1.8 million at 3/31/09 from $2.9 million at 12/31/08 (due to working capital cash consumption to fund top-line growth)
- Management maintained its forecast for +15-20% revenue growth and positive adjusted net income for fiscal 2009
Conclusion: the Mediasite franchise keeps growing and we believe steady to higher demand for productivity enhancing -- money saving -- software/hardware products such as Mediasite will continue through the recession, whether short or prolonged. For those interested in watching Sonic Foundry's short F2Q call, the link is here.
Disclosure: long SOFO.
© 2009 Jeffrey Walkenhorst
Please see important Risk Factors & Disclaimer