March 21, 2019 (December 31, 2018) Date of Report (Date of earliest event reported) | ||||
Sonic Foundry, Inc. (Exact name of registrant as specified in its charter) | ||||
Maryland (State or other jurisdiction of incorporation) | 000-30407 (Commission File Number) | 39-1783372 (IRS Employer Identification No.) |
222 W. Washington Ave Madison, WI 53703 (Address of principal executive offices) | (608) 443-1600 (Registrant's telephone number) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |
(a) | Exhibits |
By: | /s/ Kenneth A. Minor | |
By: | Kenneth A. Minor | |
Title: | Chief Financial Officer | |
• | Billings totaled $6.1 million in the first quarter of 2019, a decrease of 20 percent compared to the same period last year |
• | Total revenues were $7.5 million ($8.4 million without distribution impact) compared to $8.9 million in the first quarter of 2018 |
• | Gross margin was $5.7 million or 75 percent of sales compared to $6.5 million, or 73 percent of sales in the first quarter of 2018 |
• | Adjusted EBITDA of $(1.2) million ($(557,000) without distribution impact), compared to $(335,000) in the first quarter of 2018 |
• | Net loss of $(1.8) million ($(1.1) million without distribution impact), or $(0.36) per share compared to net income of $320,000, or $0.06 per share in the first quarter of 2018 (net income in the first quarter of 2018 benefited from a tax gain of $1.3 million related to tax legislation changes in December 2017) |
• | Unearned revenue decreased to $11.2 million as of December 31, 2018. |
• | Successfully raised $5 million in privately negotiated transactions to replace revolving line of credit that matured on January 31, 2019 |
Three Months Ended December 31, | |||||||
2018 | 2017 | ||||||
Net income (loss) | $ | (1,785 | ) | $ | 320 | ||
Add: | |||||||
Depreciation and amortization | 258 | 395 | |||||
Income tax benefit | (12 | ) | (1,387 | ) | |||
Interest expense | 154 | 92 | |||||
Stock-based compensation expense | 161 | 245 | |||||
Adjusted EBITDA | $ | (1,224 | ) | $ | (335 | ) | |