While some of us were out of the office over the holiday break, others were clearly hard at work generating news, including a couple of earnings items.
Softech continues to get its financial house in order, completing both a private placement of shares in December and announcing its first profitable quarter since early 2011. First, Softech announced that it raised $225,000 by selling 45,000 shares of common stock in transactions to a limited number of accredited investors. The proceeds will be used for “general corporate purposes”. Then, in late December, Softech announced that revenue for the three months ended November 30, 2012 was $1.8 million, up 4% year/year, resulting in a net income of $252,000 for the period, an increase of nearly 35%. CEO Joe Mullaney said that revenue from the CADRA product line was 10% higher than the same period a year ago and “represented the best quarterly performance in four years.” He also sees a “strengthening” pipeline for the company’s ProductCenter and Connector technology offerings. Total product revenue in FQ2 2013 was $478,000, up 43%; services revenue was $1.2 million, down 13%. During the quarter, the company recognized $100,000 in royalties from the the sale of patents. Mr. Mullaney told Mass High Tech that ““It is a great comeback story for a 42-year-old Massachusetts company started up by four MIT guys in 1969. Not many from that year still around.”
Delcam had forecast that 2012 would end on a high note and, apparently, it did. On January 3, the company announced that it had hit a new one-month record in December 2012 for orders of software licences and maintenance contracts, with orders up more than 10% over the December 2011. In all, the fourth quarter also hit a new record. Delcam says the uptick came from its traditional auto and aero customers as well as from newer markets, like dental. It singled out the Beijing and Philadelphia offices, its Italian subsidiary and its Korean joint venture as strong contributors in Q4. We’ll learn more about the results later this winter but I, for one, am curious to understand a statement that lumps together Beijing (in a BRIC), Philadelphia (a manufacturing hub?), Italy and (presumably South) Korea.
In case you’re keeping track, right about now is traditionally when companies whose quarter ended around December 31 announce shortfalls. The silence so far is a good thing.