- Subscription revenue of $15.3 million
- Total revenue of $18.4 million
- Updates progress of strategic initiatives to reposition business for growth
- Adds new capabilities to accelerate development and deployment of Internet of Things applications and solutions
DETROIT, Nov. 10, 2015 (GLOBE NEWSWIRE) -- Covisint Corporation (Nasdaq:COVS), the leading Cloud Platform for building Identity and Internet of Things (IoT) applications, today announced financial results for the second quarter of its fiscal year 2016 ended September 30, 2015.
"Covisint continues to make significant progress towards the execution of the four key initiatives that we had outlined as core to our year of execution. We are focused on building out our direct sales organization, developing additional strategic partners, refining our brand and platform positioning, and enhancing our platform to meet market demands," said Covisint Chairman and CEO, Sam Inman. “In September, we further enhanced our platform with important functions that our customers and the market need in IoT. These enhancements provide a complete solution, incorporating real-time messaging, data modeling, and a new concept of ‘life-cycle management’ which greatly simplifies the challenge of configuring, managing, and monitoring secure IoT solutions.”
Second Quarter 2016 Financial Results
- Revenues: Subscription revenue decreased 9% year-over-year to $15.3 million. Services revenue decreased 37% year-over-year to $3.1 million. Total revenues decreased by 15% year-over-year to $18.4 million.
- Gross Profit: GAAP gross profit was $9.9 million. GAAP gross margin was 54%. Non-GAAP gross profit was $10.9 million. Non-GAAP gross margin was 59%.
- Earnings: GAAP diluted loss per share was ($0.10) compared to ($0.19) in the same quarter last year. Non-GAAP diluted loss per share was ($0.09) compared to ($0.13) in the same quarter last year.
Second Quarter Fiscal 2016 Business Highlights
In the second quarter, Covisint:
- Announced the addition of IoT Messaging and IoT Lifecycle Management Services to the Covisint Cloud Platform - new capabilities unlock the business value from complex, connected product ecosystems that require sharing trusted information securely, and at scale with the ecosystem of related people, systems and things around the connected asset.
- Launched innovative visibility network for tracking in-transit inventory with FreightVerify. Initiative enables real-time data for manufacturing operations to accelerate decision-making, proactively manage freight exceptions and increase efficiency in freight operations.
- Chief Security Officer, Dave Miller, presented at IoT Evolution Conference & Expo 2015 on the proliferation of connected transportation and how new business models are taking connectivity to new levels in the automotive world - and the impact those models will have on the industry.
- Spoke at TU-Automotive's Insurance Telematics USA Conference, discussing how the connected car is changing the face of mobility, weighing the differing needs of aging populations and millennial generation in terms of vehicle ownership, including emerging mobility models such as car sharing and ridesharing, and how these factor into usage-based insurance policies.
Use of Non-GAAP Financial Measures
In addition to reporting financial results in accordance with generally accepted accounting principles (“GAAP”), Covisint monitors non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share and adjusted EBITDA. Each of these financial measures excludes the impact of certain items (the impact of stock award compensation expense, the amortization and impairment of intangible assets and amounts incurred for capitalized internal software costs) and, therefore, has not been calculated in accordance with GAAP.
Covisint monitors these non-GAAP measures to evaluate its ongoing operational performance and enhance an overall understanding of its past financial performance. Covisint believes that these non-GAAP metrics help illustrate underlying trends in its business that could otherwise be masked by the effect of the income or expenses, as well as the related tax effects, that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share and adjusted EBITDA. Furthermore, Covisint uses these measures to establish budgets and operational goals for managing its business and evaluating its performance. Covisint also believes that these non-GAAP measures provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods against other companies in its industry.
The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.
Conference Call and Webcast Information
Covisint management will hold a conference call at 5:00 p.m. (Eastern time) today to discuss these results. The U.S. toll free dial-in for the conference call is 1-877-407-4018, and the international dial-in number is 1-201-689-8471. No passcode is required. A live webcast of the conference call will also be available on the company's website at investors.covisint.com.
For those unable to participate in the conference call, a replay will be available after the conclusion of the earnings call on November 10, 2015, through November 17, 2015. The U.S. toll-free replay dial-in number is 1-877-870-5176 and the international replay dial-in number is 1-858-384-5517. The replay passcode is 13622381.
About Covisint Corporation
Covisint is the leading Cloud Platform for building Identity and Internet of Things (IoT) applications, and enables the identification, authorization and connection of complex networks of people, processes, systems and things.
Covisint's open, developer-friendly, enterprise-class Cloud Platform facilitates the rapid development and deployment of the Internet of Things (IoT), Identity Management (IdM) and Connected Supply Chain solutions - enabling customers to securely identify, authenticate and connect users, devices, applications and information. Covisint has been successfully operating globally at enterprise scale for more than 12 years. Today, the Covisint Platform enables more than 3,000 organizations to connect with more than 212,000 business partners and customers, and supports more than $4 billion in ecommerce transactions annually. Learn more at http://www.covisint.com/.
This press release contains forward-looking statements, including statements regarding Covisint's future financial performance, market growth, the demand for Covisint's solutions, and general business conditions. Any forward-looking statements contained in this press release are based upon Covisint's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Covisint's expectations as of the date of this press release. Subsequent events may cause these expectations to change, and Covisint disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially. Important factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, our ability to attract new customers; the extent to which customers renew their contracts; the extent we are able to maintain pricing with our customers at renewal; the continued growth of the market for our solutions; the success of our channel partner and certified partner strategies; competition from current competitors and new market entrants; unpredictable macro-economic conditions; the loss of any of our key employees; the length of the sales for our solutions; and other risk and uncertainties. Further information on potential factors that could affect actual results is included in Covisint's reports filed with the SEC.
|CONSOLIDATED BALANCE SHEETS|
|September 30, 2015||March 31, 2015|
|Accounts receivable, net||12,595||15,348|
|Deferred tax asset, net||13||16|
|Other current assets||2,345||4,209|
|Total current assets||59,358||72,810|
|PROPERTY AND EQUIPMENT, LESS ACCUMULATED DEPRECIATION AND AMORTIZATION||9,190||8,809|
|CAPITALIZED SOFTWARE AND OTHER INTANGIBLE ASSETS, NET||10,363||10,646|
|Deferred tax asset, net||1,457||1,528|
|Total other assets||28,165||29,577|
|LIABILITIES AND SHAREHOLDERS' EQUITY|
|Deferred tax liability, net||1,564||1,597|
|Total current liabilities||29,346||33,959|
|ACCRUED LIABILITIES AND OTHER||2,687||2,622|
|COMMITMENTS AND CONTINGENCIES|
|Additional paid-in capital||159,304||157,004|
|Accumulated other comprehensive loss||(106||)||(24||)|
|Total shareholders' equity||72,853||81,347|
|TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY||$||107,076||$||121,842|