San Jose, Calif. – October 3, 2007 – Selectica (NASDAQ: SLTC), a leading provider of enterprise contract lifecycle management and sales configuration solutions, today announced that it has filed with the Securities and Exchange Commission (SEC) all outstanding quarterly and annual reports on Form 10-Q and Form 10-K, respectively, for the fiscal quarter ended September 30, 2006, the fiscal quarter ended December 31, 2006, the fiscal year ended March 31, 2007, and the fiscal quarter ended June 30, 2007. The quarterly and annual reports had been delayed while a Special Committee of the Board of Directors conducted an independent investigation into the Company’s stock option granting practices. The findings of the Special Committee’s investigation were announced on August 24, 2007.
In addition, Selectica has completed the restatement of its financial results for the fiscal years 2000 through 2006, as well as the first quarter of fiscal 2007 to record additional non-cash compensation expense that reflects the new measurement dates of stock option grant awards made during those periods.
For the full 2007 fiscal year ended March 31, 2007, Selectica has reported total revenues of $14.7 million and a net loss of $20.9 million, or ($0.70) per fully diluted share, and a total cumulative, non-cash, stock-based compensation expense adjustment of $5.8 million for periods through fiscal year 2007. The net loss for the fiscal year ended March 31, 2007 includes professional service fees of $2.6 million. For the first quarter of fiscal 2008 ended June 30, 2007, Selectica has reported total revenues of $4.3 million and a net loss of $2.3 million, or ($0.08) per fully diluted share. The net loss for the first quarter ended June 30, 2008 includes professional service fees related to the stock option investigation of $1.9 million. At June 30, 2007, Selectica also reported $52.4 million in cash, cash equivalents and investments, and no long-term debt.
“Completing our financial restatement and coming current with our regulatory filings was a top priority for the Company, and we are pleased to have brought closure to this issue,” said Robert Jurkowski, Chairman and Chief Executive Officer of Selectica. “We can now move forward without distraction on our plans to drive growth and profitability in the business and create long-term value for our shareholders.” All of the regulatory filings made today can be accessed on the investor relations section of Selectica’s website at www.selectica.com or on the SEC’s website at www.sec.gov.
About Selectica, Inc.
Selectica (NasdaqGM:SLTC - News) provides its customers with software solutions that automate the complexities of enterprise contract management and sales configuration lifecycles. The company's high-performance solutions underlie and unify critical business functions including sourcing, procurement, governance, sales and revenue recognition. Selectica has been providing innovative, enterprise-class solutions for the world's largest companies for over 10 years and has generated substantial savings for its customers. Selectica customers represent leaders in manufacturing, technology, retail, healthcare and telecommunications, including: ABB, Ace Hardware, Bell Canada, Cisco, Covad Communications, General Electric, Fireman's Fund Insurance Company, Hitachi, International Paper, Juniper Networks, Levi Strauss & Co., Rockwell Automation, Tellabs, and 7-Eleven. Selectica is headquartered in San Jose, CA. For more information, visit the company's Web site at www.selectica.com.
Forward Looking Statements
The statements contained in this release that are not purely historical are forward-looking statements within the meaning of Section 21E of the Securities and Exchange Act of 1934, including statements regarding Selectica's and its customers' expectations, beliefs, hopes, intentions or strategies regarding the future and expectations regarding performance improvements or increases in sales attributable to Selectica's existing and new products. All forward-looking statements included in this release are based upon information available to Selectica as of the date hereof, and Selectica assumes no obligation to update any such forward-looking statement. Actual results could differ materially from current expectations. Factors that could cause or contribute to such differences include, but are not limited to, (i) market and customer acceptance of new products of Selectica, including the on-demand contract management and sales execution products and the applications developed with business partners, (ii) the success of the ongoing restructuring of Selectica’s operations, (iii) the conclusions resulting from the independent review of the Company’s past stock option granting practices, (iv) the inability of the Company to avoid delisting from The Nasdaq Stock Market due to non-compliance with Marketplace rules, (vi) potential regulatory inquiries and litigation relating to the review of past stock granting practices and the related restatement of the Company’s financial statements and (vii) other factors and risks discussed in Selectica's Annual Report on Form 10-K for the fiscal year ended March 31, 2007 and in other reports filed by Selectica with the Securities and Exchange Commission.
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