Knobias Clip Report (10-10-2008) ITRA
Submitted By Knobias ClipReport
ITRA: Management Comments on Q2 and Positive Outlook for 2009
By Fain Hughes, fhughes@knobias.com
Shares of Intraware, Inc. (ITRA) were weaker in Friday’s session after the Company reported financial results for the second quarter of its 2009 fiscal year, ended August 31, 2008, on Thursday after the bell.
Total revenues for the second quarter of fiscal 2009 were $3.4 million, compared to $3.2 million in the same period of fiscal 2008, and $3.2 million during the first quarter of fiscal 2009. Net loss for the second quarter of fiscal 2009 was $(105,000), or $(0.02) per basic and diluted share, compared to net income of $144,000, or $0.02 per basic and diluted share in the second quarter of fiscal 2008, and a net loss of $(223,000), or $(0.04) per basic and diluted share in the first quarter of fiscal 2009.
Intraware anticipates that revenues for the third quarter of fiscal 2009 will be between $3.4 million and $3.5 million, and expects net loss per basic and diluted share to be between $(0.02) and $(0.04).
Wendy Nieto, CFO of Intraware, commented in a conference call, “We believe that we are on track with our annual goal of achieving positive non-GAAP operating income for the full fiscal year. We expect to drive positive cash flows from operations in subsequent quarters in 2009 and beyond. Our industry leading technology, loyal and growing customer base and our steady revenue stream gives us confidence that there remains a significant growth opportunity for us.”
Peter Jackson, Chairman and CEO, stated, “Our Q2 results exceeded our expectations. Revenues increased, profit margins improved further and cash flow was positive. We increased our total annual contract value for SubscribeNet(R) customers by $400,000 to $11.9 million. This was the 8th consecutive quarter this metric has increased. Variable billing is also at an all-time high.”
He added, “We continue to be cautiously optimistic regarding our opportunities within our existing customer base and with new customers. This is traditionally a busy time as companies begin planning their new calendar year initiatives and budget. This year feels similar to last, but there is an added layer of uncertainty. We are apprehensive about the current macro-economic conditions and its potential impact on our business. It is important to note that we have benefited during difficult times in the past because of companies’ heightened attention on cost savings and revenue generation during these times. Our value proposition is centered around capturing revenue that currently slips through the cracks due to operational inefficiencies and excessive costs. In addition, our strong and loyal customer base is well established and more resilient through period of economic uncertainty. Our flexible business model provides a valuable service for customers and a recurring revenue stream for us. We continue to see solid opportunities and look forward to expanding our service offerings.”
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