SumTotal Systems Announces First Quarter 2009 Results…from SumTotal Systems

 

HRchitect featured SumTotal Systems in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems and top Learning Management Systems vendors that businesses should consider. SumTotal Systems competed in the HRchitect Beauty Pageant on Employee Performance Management Systems in February 2009, where they were crowned the winner. Kimberley Kasper, VP of Marketing, and Jon Ciampi, VP of Product Management, will participate in the HRchitect WebMingle on May 2, 2009.

 

SumTotal Systems (Nasdaq: SUMT), the market leader and a global provider of talent development solutions, today announced its financial results for the first quarter ended March 31, 2009.

First Quarter 2009 Results
On an unaudited Generally Accepted Accounting Principles (GAAP) basis, total revenue for the first quarter 2009 was $23.7 million compared to $36.0 million for the first quarter 2008. Unaudited GAAP net loss was $5.2 million, or $0.17 per share on a basic and diluted basis, compared to net income of $1.5 million, or $0.05 per share on a diluted basis, for the first quarter 2008.

For the first quarter 2009, cash flows from operating activities were $4.1 million compared to $3.6 million in the first quarter 2008.

Deferred revenue for the quarter ended March 31, 2009, was $35.6 million compared with $33.2 million at the end of the same quarter the previous year.

Non-GAAP revenue for the quarter was $23.7 million compared to $36.1 million for the same quarter the prior year. Non-GAAP net loss for the quarter was $2.1 million, or $0.07 per share on a basic and diluted basis, compared to non-GAAP net income of $4.6 million, or $0.14 per share on a diluted basis, for the prior year.

Non-GAAP results exclude the impact of certain charges primarily related to restructuring activities and non-cash charges related to acquisition accounting, stock-based compensation, and any related income tax effects. A reconciliation to the GAAP results is provided in the attached statements.

As previously announced on April 24, 2009, SumTotal entered into a definitive merger agreement with affiliates of Accel-KKR, under which all of the outstanding shares of SumTotal common stock will be acquired for $3.80 per share in cash. The transaction is subject to customary closing conditions, including the approval of SumTotal’s stockholders. There is no financing condition to the transaction. For further information about this transaction, please see the Company’s April 24, 2009 press release and the Merger Agreement filed with the SEC on Form 8-K.

SumTotal will not host a conference call to discuss financial results for the first quarter 2009.

 

For more information on SumTotal Systems, please visit www.sumtotalsystems.com

Matt Lafata, HRchitect