Q2 2013 Financial Results
Revenue in the second quarter of 2013 increased 69% to $2.6 million from $1.6 million in the same year-ago quarter. The increase was due to the $750,000 prepaid license received from Delphi as well as new orders from Polaris Industries’ Indian Motorcycle subsidiary and ARAMARK.
Recurring revenue in the second quarter of 2013 from the company’s hosting and support services increased to $489,000 (19% of total revenue) from $474,000 (30% of total revenue) in the same year-ago quarter. The increase in recurring revenue dollars resulted from the continued extension of support services to more nodes delivered by the company’s network operations center.
Gross margin in the second quarter of 2013 was a record $1.8 million (69% of total revenue) compared to $945,000 (61% of total revenue) in the same year-ago quarter. The increase in gross margin was primarily due to the $750,000 software license sale to Delphi Display Systems in the quarter.
Net loss in the second quarter of 2013 totaled a record low $76,000 or $(0.01) per basic and diluted share, as compared to a net loss of $1.2 million or $(0.26) per basic and diluted share in the same year-ago quarter. The year-over-year improvement was primarily due to increased sales and lower costs.
Non-GAAP operating income was a record $77,000 or $0.01 per common share, as compared to a non-GAAP operating loss of $1.0 million or $(0.22) per basic and diluted share in Q2 2012. The company defines non-GAAP operating loss as GAAP operating loss less stock-based compensation, depreciation and amortization and severance and other one-time charges (see further discussion of this non-GAAP term as well as a reconciliation to GAAP operating loss, below).
At June 30, 2013, cash and cash equivalents totaled $2.2 million, compared to $3.1 million at end of the prior quarter.
First Six Months 2013 Financial Results
Revenue in the first six months of 2013 increased 21% to $4.0 million from $3.3 million in the first six months of 2012. The increase was due to the Delphi license and new orders from Polaris Industries’ Indian Motorcycle subsidiary and ARAMARK.
Recurring revenue in the first half of 2013 increased to $984,000 (24% of total revenue) from $941,000 (28% of total revenue) in the same year-ago period. The dollar increase resulted from continued adoption of support services delivered by the company’s network operations center.
Gross margin in the first half of 2013 was $2.6 million (64% of total revenue) compared to $1.9 million (57% of total revenue) in the same year-ago period. The increase was primarily due to the $750,000 software license sale to Delphi Display Systems.
Net loss in the first half of 2013 was a record low $1.5 million or $(0.27) per basic and diluted share, improving from a net loss of $3.0 million or $(0.66) per basic and diluted share in the first six months of 2012. The improvement was primarily due to increased sales and reduced costs.
Non-GAAP operating loss in the first half of 2013 was $1.1 million or $(0.20) per common share, an improvement from a non-GAAP operating loss of $2.4 million or $(0.53) per basic and diluted share in the same year-ago period.