BEDFORD, Mass., Nov. 5, 2009 (GLOBE NEWSWIRE) -- SoundBite Communications, Inc. (Nasdaq:SDBT) today announced its financial results for the third quarter of 2009. Third quarter revenues were $10.5 million, a decrease of 1% from the same quarter in 2008. Loss per share was $0.04 versus loss per share of $0.10 in the same quarter of 2008.
Jim Milton, SoundBite's president and CEO, stated "I am extremely pleased to have exceeded the high end of our guidance range again this quarter and that we grew our large B2C revenues by 16%. With our strong operational discipline as a backdrop, the revenue upside from our large B2C business coupled with the continued stabilization in our collection agency vertical resulted in cash generation during the third quarter."
Milton continued, "In addition to achieving strong financial results in the quarter, we were pleased with the continued adoption of proactive customer communications as a powerful way for our clients to interact with their customers. As SoundBite continues to offer new solutions, like our recently announced Preference Management solution, we are strengthening our position in the proactive customer communications market."
Quarterly Results
Gross margin for the third quarter of 2009 was 59.8% versus 60.8% in the third quarter of 2008. Operating expenses were $7.0 million in the third quarter of 2009 and as a percentage of revenues were 66.5% versus 77.3% in the year-earlier period.
Net loss was $689,000 for the third quarter of 2009 versus a net loss of $1.5 million in the third quarter of 2008. Loss per share for the third quarter of 2009 was $0.04 versus a loss per share of $0.10 in the same quarter of 2008.
Net loss in the third quarter of 2009 included stock-based compensation expense of $287,000 and amortization of intangibles of $30,000. Net loss in the third quarter of 2008 included stock based compensation of $243,000 and amortization of intangibles of $43,000 (see the attached table for a breakdown of stock-based compensation expense by operating statement line item).
Other Highlights of the Quarter
* Announced the availability of its enhanced Web Services API with three new modules: SoundBite Connect for Computer Telephony Integration (CTI) integration, SoundBite Automate for automated data exchange and SoundBite Trigger for real-time messaging. * Introduced new campaign management tools to increase contact center productivity and provide contact center managers with a unique view into real-time campaign activity and contact center resources. * Packaged two new proactive customer communications solutions; one aimed at mortgage servicers participating in the Making Home Affordable (MHA) loan modification program and the second to help utility companies maximize enrollments in Low Income Energy Assistance Programs (LIHEAP) for low-income households.
Fourth Quarter 2009 Guidance
For the fourth quarter of 2009, SoundBite currently projects revenues in the range of $9.4 million to $10.2 million and gross margin in the range of 58% to 60%. Operating expenses are expected to be approximately $6.8 million. The projection for pro forma operating loss is in the range of $800,000 to $1.3 million. Excluded from the pro forma operating loss projection are stock based compensation of approximately $300,000, and amortization of intangibles of $30,000. Interest income is projected to be approximately $11,000. The basic weighted average share count is expected to be 16.3 million for the fourth quarter of 2009. SoundBite expects capital expenditures to be approximately $400,000 and depreciation expense to be approximately $550,000.
Webcast and Teleconference Information
The company will host a conference call today at 5:00 p.m. ET to discuss its financial results. A live and archived webcast of the event will be available at http://ir.soundbite.com/events.cfm.A live dial-in is available domestically at 888-778-8873 and internationally at 913-312-1513.
A podcast as well as replay of the call will be available. To access the podcast, please visit SoundBite's website and enter the passcode SDBTPC. A replay of the call will be accessible two hours after the live call until 11:59 p.m. ET on November 19, 2009 and by dialing 888-203-1112 for domestic callers and 719-457-0820 for international callers and entering passcode 1798914.
About SoundBite Communications
SoundBite Communications provides on-demand, integrated multi-channel communications solutions that enable clients to achieve superior business results. Building on its foundation as a leading provider of automated voice messaging services, SoundBite offers integrated voice, text and email messaging solutions that help clients deliver the right message, to the right customer, using the right channel, at the right time. Organizations in industries such as collections, financial services, retail, telecom and media, and utilities rely on the SoundBite Intelligent Communications Platform to send over a billion messages annually for collections, customer care, and sales and marketing applications. For more information, visit http://www.SoundBite.com.
Forward-Looking Statements
This is a "safe harbor" statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained in this press release, including statements made in the third paragraph of this press release and statements under "Fourth Quarter 2009 Guidance" are based upon SoundBite's historical performance and its current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by SoundBite, its management or any other person that the future plans, estimates or expectations contemplated by SoundBite will be achieved. These forward-looking statements represent SoundBite's expectations as of the date of this press release. Subsequent events may cause these expectations to change, and SoundBite disclaims any obligation to update the forward-looking statements in the future. Matters subject to forward-looking statements involve known and unknown risks and uncertainties, including: slower than anticipated development of the market for automated voice messaging services; defects in SoundBite's platform, disruptions in its service or errors in its execution; discontinued or decreased use of SoundBite's service by its clients, which are not subject to minimum purchase requirements for any reason, including market conditions and regulatory developments; and the occurrence of events adversely affecting the collection agencies industry or in-house collection departments, which account for a significant portion of SoundBite's revenues. These and other factors, including the factors set forth under the caption "Item 1A. Risk Factors" in SoundBite's most recent quarterly report on Form 10-Q filed with the Securities and Exchange Commission, could cause SoundBite's performance or achievements to be materially different from those expressed or implied by the forward-looking statements.
SoundBite is a registered service mark of SoundBite Communications, Inc.
(SDBT: F)
SOUNDBITE COMMUNICATIONS, INC.
Condensed Consolidated Statements of Operations
(Unaudited)
(in thousands, except share and per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues $ 10,457 $ 10,613 $ 29,574 $ 32,556
Cost of revenues(1) 4,202 4,155 11,740 12,555
---------- ---------- ---------- ----------
Gross profit 6,255 6,458 17,834 20,001
---------- ---------- ---------- ----------
Operating expenses:
Research and
development(1) 1,420 1,283 4,186 3,834
Sales and marketing(1) 3,704 4,659 10,875 13,500
General and
administrative(1) 1,831 2,050 6,045 7,969
Impairment of goodwill 0 208 121 208
---------- ---------- ---------- ----------
Total operating
expenses 6,955 8,200 21,227 25,511
---------- ---------- ---------- ----------
Operating loss (700) (1,742) (3,393) (5,510)
Other income:
Interest income 11 233 66 798
Gain on litigation
settlement -- -- -- 4,600
---------- ---------- ---------- ----------
Total other income 11 233 66 5,398
---------- ---------- ---------- ----------
Net loss $ (689) $ (1,509) $ (3,327) $ (112)
========== ========== ========== ==========
Net loss per common
share:
Basic and Diluted $ (0.04) $ (0.10) $ (0.21) $ (0.01)
Weighted average common
shares outstanding:
Basic and Diluted 16,128,593 15,439,546 15,844,296 15,328,768
(1) Amounts include stock-based compensation expense, as follows:
Three Months Ended Nine Months Ended
------------------ ------------------
September 30, September 30,
------------- -------------
2009 2008 2009 2008
---- ---- ---- ----
Cost of revenues $ 8 $ 11 $ 21 $ 22
Research and development 30 25 76 60
Sales and marketing 123 108 327 276
General and administrative 126 99 356 240
-------- -------- -------- --------
$ 287 $ 243 $ 780 $ 598
======== ======== ======== ========
SOUNDBITE COMMUNICATIONS, INC.
Condensed Consolidated Balance Sheets
(in thousands, except share amounts)
September 30, December 31,
2009 2008
------------ ------------
(unaudited)
Assets
Current assets:
Cash and cash equivalents $ 37,126 $ 37,425
Accounts receivable, net of allowance for
doubtful accounts of $171 at
September 30, 2009 and $218 at
December 31, 2008 6,153 6,641
Prepaid expenses and other current assets 1,208 1,221
------------ ------------
Total current assets 44,487 45,287
------------ ------------
Property and equipment, net 3,135 4,276
Goodwill 95 --
Intangible assets, net 109 205
Other assets 28 62
------------ ------------
Total assets $ 47,854 $ 49,830
============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 782 $ 464
Accrued expenses 3,105 3,158
------------ ------------
Total current liabilities 3,887 3,622
------------ ------------
Non-current liabilities:
Other liabilities 408 454
------------ ------------
Total liabilities 4,295 4,076
------------ ------------
Stockholders' equity:
Common stock, $0.001 par value --
75,000,000 shares authorized; 16,504,018
shares issued and 16,308,633 shares
outstanding at September 30, 2009;
15,701,644 shares issued and 15,506,259
shares outstanding at December 31, 2008 17 16
Additional paid-in capital 67,811 66,703
Treasury stock, at cost --195,385 shares
at September 30, 2009 and
December 31, 2008 (132) (132)
Accumulated other comprehensive loss (49) (72)
Accumulated deficit (24,088) (20,761)
------------ ------------
Total stockholders' equity 43,559 45,754
------------ ------------
Total liabilities and stockholders'
equity $ 47,854 $ 49,830
============ ============
SOUNDBITE COMMUNICATIONS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
Nine Months Ended
September 30,
------------------
2009 2008
---- ----
Cash flows from operating activities:
Net loss $ (3,327) $ (112)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Depreciation of property and equipment 1,912 2,582
Amortization of intangible assets 96 101
(Recovery) provision for doubtful accounts (47) 17
Stock-based compensation 780 598
Impairment of goodwill 121 208
Gain (loss) on disposal of equipment 21 (15)
Change in operating assets and liabilities, net of
effect of acquisition:
Accounts receivable 536 691
Prepaid expenses and other current assets 14 309
Other assets 37 108
Accounts payable 344 762
Accrued expenses (95) (666)
-------- --------
Net cash provided by operating activities 392 4,583
-------- --------
Cash flows from investing activities:
Proceeds received from sale of equipment -- 21
Cash paid related to acquisition of business (216) (611)
Purchases of property and equipment (804) (1,442)
-------- --------
Net cash used in investing activities (1,020) (2,032)
-------- --------
Cash flows from financing activities:
Proceeds from issuance of common stock upon
exercise of stock options 329 109
-------- --------
Net cash provided by financing activities 329 109
-------- --------
Effect of exchange rate changes on cash and cash
equivalents -- (17)
-------- --------
Net (decrease) increase in cash and cash
equivalents (299) 2,643
Cash and cash equivalents, beginning of period 37,425 35,674
-------- --------
Cash and cash equivalents, end of period $ 37,126 $ 38,317
======== ========
Supplemental disclosure of cash flow information:
Contingent cash payments payable to Mobile
Collect $ 95 $ 28
======== ========
Supplemental disclosure of non-cash investing
activities:
Property and equipment, included in accounts
payable $ 26 $ 5
======== ========