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Record Revenues for Fiscal 1999
Sonic Foundry, Inc. (Nasdaq: SOFO) today announced record revenues for its fourth quarter and fiscal year ended September 30, 1999.
Revenues for the 1999 fiscal year advanced to a record $14.8 million, an increase of 98.5 percent, from $7.5 million reported for the prior year. Results reflect the broadened consumer market for the Company's products, as well as the growth in Internet-based applications.
The Company posted a net loss for the 1999 fiscal year of $6.0 million, or $2.11 per share, compared with a net loss of $632,000, or $0.47 per diluted share, for the 1998 fiscal year. The loss was primarily attributable to increased sales and marketing expenses in connection with the Company's new product introductions to an expanded consumer market, as well as strengthened research and development efforts.
For the fourth quarter ended September 30, 1999, revenues increased 65 percent to $5.1 million, from $3.1 million in the fourth quarter a year ago. Revenues were fueled primarily by OEM agreements involving Siren, the release of Vegas Pro, and sales of ACID version 2.0, including significant international sales. The net loss for the same period was $1.8 million, or $0.54 per share, compared with net earnings of $14,066 or $0.00 per diluted share, for the comparable period last year.
"Our fiscal 1999 revenue growth reflects Sonic Foundry's position as a leading provider of media tools for an increasing number of audiences, from professional musicians to Web site developers to consumers," said Rimas Buinevicius, Sonic Foundry's Chairman and Chief Executive Officer. "Our consumer universe and distribution channels broadened significantly in 1999. Looking forward, we are excited about the market potential for our new Media Services division, which is well positioned to capitalize on the rapidly growing marketplace for encoding large catalogs of digital media for final delivery over the Internet.
"The fourth quarter marked several major accomplishments for Sonic Foundry," Buinevicius continued. "We assembled a team of high caliber executives to lead both our products group and new Media Services division, repositioned ACIDplanet.com as a premier content destination site on the Internet, launched the final and beta version, respectively, of Stream Anywhere[TM] and SIREN[TM], and formed strategic partnerships with some of the world's leading companies. We believe that we are equipped for strong continued growth."
SONIC FOUNDRY, INC.
BALANCE SHEETS
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $5,889,107 | $6,939,533 |
| Marketable securities | |
3,000,000 |
| Total accounts receivable, net of allowances of $1,314,750 and $73,344 | 3,760,720 | 1,690,175 |
| Revenues in excess of billings for software license fees | |
705,263 |
| Inventories | 1,040,927 | 316,140 |
| Prepaid expenses and other current assets | 880,123 | 285,703 |
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| Total current assets | 11,570,877 | 12,936,814 |
| Property and equipment: | ||
| Land | 190,000 | 190,000 |
| Buildings and improvements | 1,737,962 | 1,491,228 |
| Equipment | 2,218,113 | 1,186,818 |
| Furniture and fixtures | 202,187 | 132,802 |
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| 4,348,262 | 3,000,848 | |
| Less accumulated depreciation | 923,051 | 389,863 |
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| Net property and equipment | 3,425,211 | 2,610,985 |
| Capitalized software development costs, net | 643,220 | 401,629 |
| Other assets | 1,069,952 | 261 |
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| Total assets | $16,709,260 | $15,949,689 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 1,866,821 | $828,086 |
| Accrued liabilities | 812,401 | 316,677 |
| Current portion of long-term debt | 48,569 | 636,081 |
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| Total current liabilities | 2,727,791 | 1,780,844 |
| Long-term debt | 5,234,525 | 77,472 |
| Stockholders' equity: | ||
| Preferred Stock, $.01 par value, authorized 5,000,000 shares; none issued and outstanding | ||
| 5% preferred stock, Series B, voting, cumulative, convertible, $.01 par value (liquidation preference at par), authorized 10,000,000 shares, 7,223,719 shares issued and outstanding in 1998 | 72,237 | |
| Common stock, $.01 par value, authorized 20,000,000 shares; 6,497,249 and 2,665,935 shares issued and outstanding | 64,973 | 26,660 |
| Common stock warrants and options | 1,011,375 | 159,500 |
| Unearned compensation | (200,000) | |
| Additional paid-in capital | 15,336,252 | 15,297,096 |
| Accumulated deficit | (7,465,656) | (1,464,120) |
| Total stockholders' equity | 8,746,944 | 14,091,373 |
| Total liabilities and stockholders' equity | $16,709,260 | $15,949,689 |
SONIC FOUNDRY, INC.
STATEMENTS OF OPERATIONS
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| Revenues | $5,090,538 | $3,081,416 | $14,829,639 | $7,469,658 | |
| Cost of revenues | 875,149 | 773,626 | 3,389,403 | 2,027,918 | |
| 4,215,389 | 2,307,790 | 11,440,236 | 5,441,740 | ||
| Selling and marketing expenses | 3,266,036 | 1,167,606 | 10,484,036 | 3,230,448 | |
| General and administrative expenses | 1,658,768 | 709,595 | 4,253,403 | 1,878,377 | |
| Product development expenses | 1,115,392 | 539,964 | 2,875,174 | 1,046,055 | |
| 6,040,196 | 2,417,165 | 17,612,613 | 6,154,880 | ||
| Loss from operations | (1,824,807) | (109,375) | (6,172,377) | (713,140) | |
| Other income (expense): | |||||
| Interest expense | (34,299) | (9,311) | (53,980) | (111,239) | |
| Interest and other income | 36,998 | 132,752 | 229,209 | 241,030 | |
| 2,699 | 123,441 | 175,229 | 129,791 | ||
| Income (loss) before extraordinary item | (1,822,108) | 14,066 | (5,997,148) | (583,349) | |
| Extraordinary item - early extinguishment of debt | (48,750) | ||||
| Net Income (loss) | $(1,822,108) | $14,066 | $(5,997,148) | $(632,099) | |
| Per common share: | |||||
| Income (loss) before extraordinary item | $(0.54) | $0.01 | $(2.11) | $(0.43) | |
| Extraordinary item - early extinguishment of debt | (0.04) | ||||
| Net income (loss) - basic | $(0.54) | $0.01 | $(2.11) | $(0.47) | |
| Net income (loss) - diluted | $(0.54) | $ |
$(2.11) | $(0.47) | |
| Weighted average shares outstanding | |||||
| Basic | 3,387,895 | 2,665,935 | 2,847,915 | 1,356,478 | |
| Diluted | 3,387,895 | 2,665,935 | 2,847,915 | 1,356,478 | |
About Sonic Foundry®, Inc.
Sonic Foundry (NASDAQ: SOFO) is the trusted market leader for enterprise webcasting solutions, providing video content management and distribution for education, business and government. Powered by the patented Mediasite webcasting platform and webcast services of Mediasite Events, the company empowers people to advance how they share knowledge online, using video webcasts to bridge time and distance, enhance learning outcomes and improve performance.