SofTech, Inc. Announces Earnings Results for the Fourth Quarter and Full Year Ended May 31, 2013
August 28, 2013 at 09:25 pm
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SofTech, Inc. announced earnings results for the fourth quarter and full year ended May 31, 2013. The company's revenue for the three months ended May 31, 2013 was approximately $1.56 million, an increase of more than 3% from the same period in the prior fiscal year. This was the first fiscal quarter since August 31, 2007 in which the company experienced an increase in its quarterly revenue when compared to the same period in the prior fiscal year, excluding the revenue increase resulting from the sale of patents in the first quarter and second quarter of fiscal year 2013. Net loss for the current quarter was about $51,000 or $0.05 per share compared to net income of $67,000 or $0.07 per share for the same period in the prior fiscal year. Included in the current quarter operating results were the following non-recurring charges related to the fourth quarter of 2013 debt refinancing: Included in SG&A, a non-cash charge of $108,000 of unamortized debt issuance costs from the company's previous debt facility that was fully repaid during the quarter; and Included in Interest expense, an accrual of $75,000 as an estimate of payments due the company's former lender equal to 1.5% of quarterly revenue for each of the first three fiscal quarters of 2014. EBITDA for current quarter was about $292,000 as compared to about $212,000 for the same period in fiscal year 2012, an increase of 37.7%. Operating income was $112,000 against $163,000 a year ago. Loss from operations before income taxes was $36,000 against income from operations before income taxes $70,000 a year ago.
The company's revenue for fiscal year 2013 was approximately $6.36 million, down approximately 1.2% from the prior fiscal year. Net income for fiscal year 2013 was $360,000 or $0.35 per share as compared to a net income of $444,000 or $0.45 per share for the prior fiscal year. Fiscal year 2013 results included the above detailed non-recurring expenses totaling $183,000 related to the refinancing of the company's debt facility. EBITDA for fiscal year 2013 was approximately $1.12 million as compared to about $1.03 million for fiscal year 2012, an increase of about 9.4%. Operating income was $710,000 against $798,000 a year ago. Income from operations before income taxes was $375,000 against $447,000 a year ago.
SofTech, Inc. is engaged in the development, marketing, distribution and support of computer software solutions that enable companies to manage the lifecycle of their products from conception through design and manufacture, to service and disposal. The Company's service offerings include consulting, training and discrete engineering services. These solutions include software technology offerings for computer aided design (CAD), and product data management (PDM) and collaboration technologies. In addition, the Company offers a technology platform that allows data exchange between various third party technology offerings known as the Company's connector offering. The Company's products include ProductCenter, Connector Platform, HomeView and CADRA. The Company operates in the United States and Europe and has sales and customer support offices in the United States and Italy. The Company also operates through re-sellers in North America, Europe and Asia.