Knobias Clip Report (01-09-20009) SABA
Submitted By Knobias ClipReport
SABA: Management Comments on Q2 Results and Outlook for FY09
Friday , January 09, 2009 11:13ET
By Fain Hughes, fhughes@knobias.com
Shares of Saba Software, Inc. (SABA) declined during Friday’s session after the Company reported financial results for its second quarter ended November 30, 2008.
Total revenues in the second quarter were $25.8 million compared to $26.7 million in the same quarter last year. On a non-GAAP basis, net income in the second quarter of fiscal 2009 increased to $1.1 million, or $0.04 per share, from net income of $579,000, or $0.02 per share, in the second quarter of fiscal 2008.
Bobby Yazdani, Chairman and CEO of Saba, commented in a conference call, “During Q2, we witnessed a significant slowdown in the approval process for a number of customer transactions that we expected to complete, as many businesses and public sector entities began experiencing the impact of economic contraction. We also felt the unfavorable impact of the stronger U.S. dollar on our international sales. However, we continued to add new customers and delivered imporved non-GAAP profitability.”
William Slater, CFO of Saba, explained, “The most significant factor impacting revenue was a delay in the customer decision making process that occurred during the quarter from a number of customers, as they evaluate purchases in this economic environment. The erosion in gross margins came as a result of mix shift away from our high gross margin License revenue in favor of lower gross margin On-Demand revenue and Service revenue.”
He added, “We expect gross margins to improve in the second half of the year. We also expect to be cash flow positive for the year.
For fiscal year 2009, Saba expects non-GAAP net earnings ranging from $0.18 per share to $0.23 per share.
Mr. Yazdani concluded, “Our primary focus for the remainder of the year is to manage our business to meet our profitability objectives, while preserving the appropriate level of R&D investments.
Visit 1800blogger to see all of our industry leading blogs.
