CARY, N.C., May 3, 2012 (GLOBE NEWSWIRE) -- SciQuest, Inc. (Nasdaq:SQI), a leading provider of on-demand source-to-settle solutions, today announced its financial results for the first quarter ended March 31, 2012.
Stephen Wiehe, President and Chief Executive Officer of SciQuest, said, "We are pleased with our performance in the first quarter that drove financial results that were at the upper end of our expectations. We gained traction with new customers and continued to see strong up-sell activity within existing customers. Our strong performance and execution in the first quarter make us incrementally more confident in our outlook for 2012. Moreover, we made significant headway toward new product initiatives and broadening our market reach in the eProcurement market, which we expect to drive even faster growth in 2013 and beyond."
First Quarter 2012 Results
SciQuest reported total revenue of $14.4 million for the quarter ended March 31, 2012, an increase of 15% compared to revenue of $12.5 million for the comparable period in 2011.
GAAP income from operations in the first quarter of 2012 was $0.3 million, compared to income from operations of $0.8 million in the first quarter of 2011. GAAP net income was $153,000 or $0.01 per share, in the first quarter of 2012, compared to $424,000, or $0.02 per share, in the comparable period in 2011.
Non-GAAP income from operations was $1.7 million in the first quarter of 2012, excluding stock-based compensation expenses and amortization of intangible assets. Non-GAAP income from operations was $1.9 million in the first quarter of 2011, excluding stock-based compensation expenses, amortization of intangible assets and acquisition-related expenses.
Non-GAAP net income was $1.1 million, or $0.05 per share, for the first quarter of 2012, based on 22.6 million weighted average diluted shares outstanding, excluding stock-based compensation expenses, and amortization of intangible assets. This compared to non-GAAP net income of $1.2 million, or $0.06 per share, in the first quarter of 2011, based on 21.3 million weighted average diluted shares outstanding, excluding stock-based compensation expenses, amortization of intangible assets and acquisition related expenses.
A reconciliation of the most comparable GAAP financial measure to the non-GAAP measures used above is included with the financial tables at the end of this release.
Other First Quarter and Recent Highlights
- SciQuest ended the first quarter with 325 customers, an increase from 313 customers at the end of the first quarter of 2011
- New customer wins included the Moffitt Cancer Center, the City of Los Angeles, the University of Massachusetts system, and Qatar University in Doha, Qatar
Business Outlook
Based on information available as of May 3, 2012, SciQuest is issuing guidance for the second quarter and full year 2012 as follows:
Second Quarter 2012: The Company expects second quarter revenue to be in the range of $14.9 million to $15.1 million. The Company expects GAAP net income of between breakeven and $0.01 cent per share.
The Company expects non-GAAP net income of $0.05 to $0.06 cents per share based on diluted weighted average shares outstanding of 22.7 million shares. Non-GAAP net income excludes stock-based compensation expenses of approximately $1.4 million and amortization of acquired software and intangible assets of approximately $0.3 million.
Full Year 2012: The Company is reiterating its 2012 guidance and expects full year 2012 revenue to be in the range of $62.0 million to $64.0 million. The Company expects full year GAAP net income per share to be in the range of $0.05 to $0.09, unchanged from prior guidance.
Non-GAAP net income per share is expected to be in the range of $0.25 to $0.29 based on diluted weighted average shares outstanding of 22.8 million shares. Non-GAAP net income excludes stock-based compensation expenses of approximately $5.5 million, amortization of acquired software and intangible assets of approximately $1.0 million.
The Company expects operating cash flow in 2012 to be in the range of $20.0 to $21.0 million. Free cash flow, which is defined as cash flow from operations less purchases of property and equipment of approximately $1.5 million, and capitalization of software development costs of approximately $2.5 million, to be in the range of $16.0 to $17.0 million in 2012.
Conference Call Information
| What: | SciQuest's first quarter 2012 financial results conference call |
| When: | Thursday, May 3, 2012 |
| Time: | 4:30 p.m. ET |
| Webcast: | http://investor.sciquest.com (live and replay) |
| Live Call: | (877) 430-3736, domestic |
| (760) 298-5046, international | |
| Replay: | (855) 859-2056, domestic |
| (404) 537-3406, international |
Live and replay conference ID code: 71164617
Non-GAAP Financial Measures
SciQuest provides all information required in accordance with GAAP, but believes evaluating its ongoing operating results may not be as useful if an investor is limited to reviewing only GAAP financial measures. Accordingly, SciQuest presents non-GAAP financial measures in reporting its financial results to provide investors with additional tools to evaluate SciQuest's operating results in a manner that focuses on what SciQuest believes to be its ongoing business operations and what SciQuest uses to evaluate its ongoing operations and for internal planning and forecasting purposes. SciQuest's management does not itself, nor does it suggest that investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. SciQuest's management believes it is useful for itself and investors to review, as applicable, both GAAP information that includes: (i) the amortization of acquired intangible assets; (ii) the impact of stock-based compensation; (iii) other significant items, such as acquisition related expense in 2011, and (iv) the income tax effect of non-GAAP pre-tax adjustments from the provision for income taxes; and the non-GAAP measures that exclude such information in order to assess the performance of SciQuest's business and for planning and forecasting in subsequent periods. Whenever SciQuest uses such a non-GAAP financial measure, it provides a reconciliation of the non-GAAP financial measure to the most closely applicable GAAP financial measure. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measure as detailed herein.
About SciQuest
SciQuest (Nasdaq:SQI) is the only company that puts the Power of Q into your supply chain. What is the Q? It is part philosophy, part partnership, and all about customers.
SciQuest delivers industry-leading comprehensive source-to-settle supply chain solutions that help you turn spending into a source of savings, but it is really the Power of Q that ensures that our customers are at the center of everything we do. Q is about quality, it's about asking tough questions and it's about being on a quest to get what you pay for. Only SciQuest provides the scale, industry expertise and transparency that organizations require to improve their bottom line.
To join the conversation and tell us "what's your Q," please visit our blog, The Open Kitchen—http://www.sciquest.com/blog.
Cautionary Note Regarding Forward-Looking Statements
Any statements in this release that are not historical or current facts are forward-looking statements, including all references to our outlook for 2012, growth in 2013 and all statements in the "Business Outlook" section. All forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the "Risk Factors" section of our Registration Statement on Form S-1 and other required reports, as filed with the SEC, which are available free of charge on the SEC's website at http://www.sec.gov or on our website at www.sciquest.com. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. These forward-looking statements speak only as of the date hereof, and we undertake no obligation to update, amend or clarify any forward-looking statement for any reason.
SQI-F
| SCIQUEST, INC. | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (in thousands except share and per share amounts) | ||
| As of March 31, | As of December 31, | |
| 2012 | 2011 | |
| (unaudited) | ||
| Assets | ||
| Current assets: | ||
| Cash and cash equivalents | $ 18,971 | $ 14,958 |
| Short-term investments | 40,865 | 44,685 |
| Accounts receivable, net | 8,047 | 10,746 |
| Prepaid expenses and other current assets | 1,068 | 1,015 |
| Deferred tax asset | 73 | 70 |
| Total current assets | 69,024 | 71,474 |
| Property and equipment, net | 5,171 | 4,028 |
| Goodwill | 15,719 | 15,719 |
| Intangible assets, net | 5,182 | 5,433 |
| Deferred project costs | 7,113 | 7,025 |
| Deferred tax asset | 12,468 | 12,634 |
| Other | 170 | 55 |
| Total assets | $ 114,847 | $ 116,368 |
| Liabilities and Stockholders' Equity | ||
| Current liabilities: | ||
| Accounts payable | $ -- | $ 102 |
| Accrued liabilities | 4,141 | 5,945 |
| Deferred revenues | 35,052 | 36,836 |
| Total current liabilities | 39,193 | 42,883 |
| Deferred revenues, less current portion | 13,463 | 12,778 |
| Stockholders' equity: | ||
| Common stock, $0.001 par value; 50,000,000 shares authorized; 22,167,102 and 22,133,036 shares issued and outstanding as of March 31, 2012 and December 31, 2011, respectively | 22 | 22 |
| Additional paid-in capital | 75,408 | 74,083 |
| Accumulated other comprehensive income | 6 | -- |
| Accumulated deficit | (13,245) | (13,398) |
| Total stockholders' equity | 62,191 | 60,707 |
| Total liabilities and stockholders' equity | $ 114,847 | $ 116,368 |
| SCIQUEST, INC. | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||
| (in thousands except per share amounts) | ||
| Three Months Ended March 31, | ||
| 2012 | 2011 | |
| (unaudited) | ||
| Revenues | $ 14,408 | $ 12,524 |
| Cost of revenues (1)(2) | 4,177 | 2,827 |
| Gross profit | 10,231 | 9,697 |
| Operating expenses: (1) | ||
| Research and development | 3,037 | 2,753 |
| Sales and marketing | 4,106 | 3,784 |
| General and administrative | 2,572 | 2,116 |
| Amortization of intangible assets | 209 | 209 |
| Total operating expenses | 9,924 | 8,862 |
| Income from operations | 307 | 835 |
| Other income, net: | ||
| Interest income | 24 | 23 |
| Other income, net | 15 | 13 |
| Total other income, net | 39 | 36 |
| Income before income taxes | 346 | 871 |
| Income tax | (193) | (447) |
| Net income | $ 153 | $ 424 |
| Other comprehensive income: | ||
| Foreign currency translation adjustments | 6 | -- |
| Comprehensive income | $ 159 | $ 424 |
| Net income per share | ||
| Basic | $ 0.01 | $ 0.02 |
| Diluted | $ 0.01 | $ 0.02 |
| Weighted average shares outstanding used in computing per share amounts | ||
| Basic | 22,190 | 20,679 |
| Diluted | 22,643 | 21,334 |
| (1) Amounts include stock-based compensation expense, as follows: | ||
| Three Months Ended March 31, | ||
| 2012 | 2011 | |
| (unaudited) | ||
| Cost of revenues | $ 121 | $ 47 |
| Research and development | 241 | 242 |
| Sales and marketing | 298 | 266 |
| General and administrative | 493 | 147 |
| $ 1,153 | $ 702 | |
| (2) Cost of revenues includes amortization of capitalized software development costs of: | ||
| Amortization of capitalized software development costs: | $ 148 | $ 72 |
| Amortization of acquired software: | 42 | 42 |
| $ 190 | $ 114 | |
| SCIQUEST, INC. | ||
| NON-GAAP CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (in thousands except per share amounts) | ||
| Three Months Ended March 31, | ||
| 2012 | 2011 | |
| (unaudited) | ||
| Revenues | $ 14,408 | $ 12,524 |
| Non-GAAP cost of revenues (1)(2) | 4,014 | 2,738 |
| Gross profit | 10,394 | 9,786 |
| Non-GAAP operating expenses: (1) | ||
| Research and development | 2,796 | 2,511 |
| Sales and marketing | 3,808 | 3,518 |
| General and administrative | 2,079 | 1,835 |
| Amortization of intangible assets | -- | -- |
| Total Non-GAAP operating expenses | 8,683 | 7,864 |
| Non-GAAP income from operations | 1,711 | 1,922 |
| Other income, net: | ||
| Interest income | 24 | 23 |
| Other income, net | 15 | 13 |
| Total other income, net | 39 | 36 |
| Non-GAAP income before income taxes | 1,750 | 1,958 |
| Income tax | (193) | (447) |
| Tax effect of adjustments | (488) | (315) |
| Non-GAAP net income | $ 1,069 | $ 1,196 |
| Non-GAAP net income per share | ||
| Basic | $ 0.05 | $ 0.06 |
| Diluted | $ 0.05 | $ 0.06 |
| Weighted average shares outstanding used in computing per share amounts | ||
| Basic | 22,190 | 20,679 |
| Diluted | 22,643 | 21,334 |
| (1) Amounts exclude stock-based compensation expense, as follows: | ||
| Three Months Ended March 31, | ||
| 2012 | 2011 | |
| (unaudited) | ||
| Cost of revenues | $ 121 | $ 47 |
| Research and development | 241 | 242 |
| Sales and marketing | 298 | 266 |
| General and administrative | 493 | 147 |
| $ 1,153 | $ 702 | |
| (2) Cost of revenues excludes amortization of acquired software of: | $ 42 | $ 42 |
| SCIQUEST, INC. | ||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||
| (in thousands) | ||
| Three Months Ended March 31, | ||
| 2012 | 2011 | |
| (unaudited) | ||
| Cash flows from operating activities | ||
| Net income | $ 153 | $ 424 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 699 | 491 |
| Stock-based compensation expense | 1,153 | 702 |
| Deferred taxes | 163 | 539 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | 2,699 | 1,432 |
| Prepaid expense and other current assets | (53) | 242 |
| Deferred project costs and other assets | (203) | (117) |
| Accounts payable | (102) | 39 |
| Accrued liabilities | (1,804) | (1,216) |
| Deferred revenues | (1,099) | (764) |
| Net cash provided by operating activities | 1,606 | 1,772 |
| Cash flows from investing activities | ||
| Business acquisition, net of cash acquired | -- | (7,346) |
| Addition of capitalized software development costs | (589) | (195) |
| Purchase of property and equipment | (1,002) | (312) |
| Purchase of short-term investments | (1,200) | (1,790) |
| Maturities of short-term investments | 5,020 | -- |
| Net cash provided by (used in) investing activities | 2,229 | (9,643) |
| Cash flows from financing activities | ||
| Public offering costs | -- | (134) |
| Repayment of notes receivable from stockholders | -- | 5 |
| Proceeds from exercise of common stock options | 172 | 25 |
| Net cash provided by (used in) financing activities | 172 | (104) |
| Effect of exchange rate change on cash and cash equivalents | 6 | -- |
| Net increase (decrease) in cash and cash equivalents | 4,013 | (7,975) |
| Cash and cash equivalents at beginning of the period | 14,958 | 17,494 |
| Cash and cash equivalents at end of the period | $ 18,971 | $ 9,519 |
| RECONCILIATION DATA | ||
| (UNAUDITED) | ||
| (in thousands except per share amounts) | ||
| Reconciliation of Net Income to Non-GAAP Net Income: | Three Months Ended March 31, | |
| 2012 | 2011 | |
| Net income | $ 153 | $ 424 |
| Amortization of intangible assets | 209 | 209 |
| Amortization of acquired software | 42 | 42 |
| Stock-based compensation | 1,153 | 702 |
| Acquisition-related costs | -- | 134 |
| Tax effect of adjustments | (488) | (315) |
| Non-GAAP net income | $ 1,069 | $ 1,196 |
| Non-GAAP net income per share: | ||
| Basic | $ 0.05 | $ 0.06 |
| Diluted | $ 0.05 | $ 0.06 |
| Weighted average shares outstanding used in computing per share amounts: | ||
| Basic | 22,190 | 20,679 |
| Diluted | 22,643 | 21,334 |
| Reconciliation of Income from Operations to Non-GAAP Income from Operations: | Three Months Ended March 31, | |
| 2012 | 2011 | |
| Income from operations | $ 307 | $ 835 |
| Amortization of intangible assets | 209 | 209 |
| Amortization of acquired software | 42 | 42 |
| Stock-based compensation | 1,153 | 702 |
| Acquisition-related costs | -- | 134 |
| Non-GAAP income from operations | $ 1,711 | $ 1,922 |
| Reconciliation of Operating Expenses to Non-GAAP Operating Expenses: | Three Months Ended March 31, | |
| 2012 | 2011 | |
| Operating expenses | $ 9,924 | $ 8,862 |
| Amortization of intangible assets | (209) | (209) |
| Stock-based compensation | (1,032) | (655) |
| Acquisition-related costs | -- | (134) |
| Non-GAAP operating expenses | $ 8,683 | $ 7,864 |
| Reconciliation of Net Cash Provided by Operating Activities to Adjusted Free Cash Flow: | Three Months Ended March 31, | |
| 2012 | 2011 | |
| Net cash provided by operating activities | $ 1,606 | $ 1,772 |
| Purchase of property and equipment | (1,002) | (312) |
| Capitalization of software development costs | (589) | (195) |
| Free cash flow | 15 | 1,265 |
| Acquisition-related costs | -- | 124 |
| Adjusted free cash flow | $ 15 | $ 1,389 |
| RECONCILIATION DATA | ||
| (UNAUDITED) | ||
| (in thousands) | ||
| Reconciliation of Cost of Revenues to Non-GAAP Cost of Revenues: | Three Months Ended March 31, | |
| 2012 | 2011 | |
| Cost of revenues | $ 4,177 | $ 2,827 |
| Amortization of acquired software | (42) | (42) |
| Stock-based compensation | (121) | (47) |
| Non-GAAP Cost of revenues | $ 4,014 | $ 2,738 |
| Reconciliation of Research and Development to Non-GAAP Research and Development: | Three Months Ended March 31, | |
| 2012 | 2011 | |
| Research and development | $ 3,037 | $ 2,753 |
| Stock-based compensation | (241) | (242) |
| Non-GAAP Research and development | $ 2,796 | $ 2,511 |
| Reconciliation of Sales and Marketing to Non-GAAP Sales and Marketing: | Three Months Ended March 31, | |
| 2012 | 2011 | |
| Sales and marketing | $ 4,106 | $ 3,784 |
| Stock-based compensation | (298) | (266) |
| Non-GAAP Sales and marketing | $ 3,808 | $ 3,518 |
| Reconciliation of General and Administrative to Non-GAAP General and Administrative: | Three Months Ended March 31, | |
| 2012 | 2011 | |
| General and administrative | $ 2,572 | $ 2,116 |
| Stock-based compensation | (493) | (147) |
| Acquisition-related costs | -- | (134) |
| Non-GAAP General and administrative | $ 2,079 | $ 1,835 |
| Reconciliation of Amortization of Intangible Assets to Non-GAAP Amortization of Intangible Assets: | Three Months Ended March 31, | |
| 2012 | 2011 | |
| Amortization of intangible assets | $ 209 | $ 209 |
| Amortization of intangible assets | (209) | (209) |
| Non-GAAP Amortization of intangible assets | $ -- | $ -- |