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Sonic Foundry Announces Fiscal 2019 Second Quarter Financial Results
Sonic Foundry Announces Fiscal 2019 Second Quarter Financial Results.
About this update from Sonic Foundry, Inc.
[{"type":"text","content":"\nMADISON, Wis., May 17, 2019 (GLOBE NEWSWIRE) -- Sonic Foundry, Inc. (OTC Pink Sheets: SOFO), the trusted leader for video creation and management solutions, today announced consolidated financial results for its fiscal 2019 second quarter ended March 31, 2019.\n Fiscal 2019 Second Quarter Highlights Total revenue was $8 million ($8.6 million without distribution impact) compared to $8.5 million in the second quarter of 2018Gross margin was $6 million or 75 percent of sales compared to $5.9 million, or 70 percent of sales in the second quarter of 2018Adjusted EBITDA of $(830,000), compared to $(808,000) in the second quarter of 2018Net loss of $(1.5) million ($(1.1) million without distribution impact), or $(0.29) per share compared to net loss of $(1.4) million, or $(0.34) per share in the second quarter of 2018Billings totaled $7.5 million in the second quarter of 2019, a decrease of 13 percent compared to the same period last yearNet loss in the first quarter of 2019 remained unchanged from preliminary results released on March 21, 2019Unearned revenue decreased to $10.6 million as of March 31, 2019 Fiscal 2019 Second Quarter ReviewService billings, including support, hosting, events, and installs saw a decrease of 9 percent from prior year for a total of $5.2 million. Product billings were down 21 percent to $2.3 million during the second quarter of fiscal year 2019 compared to the same period last year. Product billings and revenue were negatively impacted by a planned reduction of product inventory maintained by domestic distributors of $557 thousand during the quarter and $1.2 million year to date. The remaining balance of approximately  $88,000 is expected to be eliminated in the third fiscal quarter. The company expects to recognize $3.5 million of the current unearned revenue in the third quarter of fiscal 2019. Recurring revenue of $6.7 million was 84 percent of total revenue in the second quarter of 2019, up from $6.2 million, or 74 percent of total revenue in the second quarter of 2018. The increase was driven by the strong demand for annual support renewals. Operating expenses were $7.1 million, down $72,000 or 1 percent from the same period in 2018. The net loss of $1.5 million was comparable to the same period in 2018. “We are undertaking an in-depth look at our execution to s...