UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: February 10, 2010
(Date of earliest event reported)
Asure Software, Inc.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)
0-20008
(Commission File Number)
74-2415696
(IRS Employer
Identification Number)
108 Wild Basin Rd
(Address of principal executive offices)
78746
(Zip Code)
512-437-2700
(Registrant's telephone number, including area code)
Forgent Networks, Inc.
(Former Name or Former Address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
- o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
- o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
- o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
- o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Item 2.02. Results of Operations and Financial Condition Asure Software Announces 2Q 2010 Financial Results.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: February 10, 2010 |
ASURE SOFTWARE, INC.
By: /s/ David Scoglio |
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| Exhibit No. | Description |
| 99.1 | Press Release of Asure Software, Inc. dated February 10, 2010 |
AUSTIN, TX -- (Marketwire - February 10, 2010) - Asure Software, Inc. (NASDAQ: ASUR), a leading provider of workforce management software, today announced financial results for the fiscal second quarter 2010, ended December 31, 2009. The Fiscal second quarter is a short period consisting of the two months of November and December, 2009. As of January 1, 2010, Asure switched to calendar year reporting and its next fiscal quarter will close on March 31, 2010.
Q2 Highlights:
- -- Revenue growth of $0.2M, 14%, over November/December 2008; or $0.3M,
20%, excluding the divested Visual Asset Manager (VAM) product revenue
in November/December 2008. Revenue Growth was driven by hardware sales
in both product lines, $0.2M, as well as growth in NetSimplicity's SaaS
offering.
- -- EBITDA of $0.3M
-- EBITDA is defined as operating income (earnings) before interest
expense, income taxes, depreciation & amortization
- -- Operating Income of $49K; or $0.02 per share, compared to a loss of
($0.9M) ($0.29) per share (split-adjusted), in November & December
2008; and previously published quarterly losses of ($1.5M)
($0.48)/share (split-adjusted), and ($5.3M) ($1.69)/share
(split-adjusted), in fiscal Q1'10 and fiscal Q4'09 respectively.
Operating income is comprised of the following components:
-- Austin HQ excess lease impact, ($105K)
-- Net onetime items, $264K
-- Core business lines margin, ($110K)
- -- Operating Expenses were reduced by 49%, or ($1.1M) compared to
November/December 2008 largely due to both headcount & rate per head
efficiencies ($0.3M), the net effect of one-time items, (0.3M), as well
as other cost reductions. One-time items were driven by the
renegotiation of certain outstanding payables deemed excessive by
current management.
Pat Goepel, Asure's Chief Executive Officer, remarked: "After two recent difficult quarters, and almost 2 and a half years of unprofitable results, we are beginning to make progress on turning this business around. I am pleased with the results of the short period of fiscal Q2'10 and confirm that our upcoming calendar Q1, 2010 outlook is expected to be on target with our previous estimates. We are targeting positive EBITDA and potentially breakeven operating income, excluding the negative impact of the Austin headquarters lease arrangement."
Asure's newly appointed Chief Financial Officer, David Scoglio, added: "We have substantially reduced overhead and are carefully investing in areas that will support our revenue plan in the coming first quarter of the calendar year 2010. These investments will include strategic augmentation of our sales force and enhancements to our products' features and functionality. This strategy, a keen focus on maintaining current levels of fixed expenses and our momentum of 72% repetitive revenue from the current period should propel us forward to achieving our profitability goals of this calendar year 2010, in spite of a projected $1M in full year excess lease expense ($1.5M cash). Also notable, as we attain profitability, we have significant Net Operating Losses carry forwards at our disposal for up to 20 years, which we hope to utilize to create shareholder value."
Pat Goepel continued, "In the short period of November & December 2009, Asure incurred $0.1M of expenses associated with its Austin lease. As discussed previously, Asure is actively pursuing options to improve this arrangement, which would only help provide transparency into the increasingly successful core businesses of Asure Software, Inc. Asure's Board of Directors and management team are committed to growing this business by 20% year over year and achieving levels of 20% EBITDA by calendar year end 2010."
Conference Call Details
Asure Software, Inc. has scheduled a conference call for Wednesday, February 10, 2010 at 11:00 a.m. ET (10:00 a.m. CT) to discuss its most recent financial results and outlook. Participating in the call will be Pat Goepel, Chief Executive Officer. To take part, please dial 800-299-7089 ten minutes before the conference call begins, ask for the Asure Software event and use passcode 16877542. International callers should dial 617-801-9714 and reference the same passcode, 16877542.
Investors, analysts, media and the general public will also have the opportunity to listen to the conference call in listen-only mode via the Internet by visiting the investor relations page of Asure's web site at www.asuresoftware.com. To monitor the live call, please visit the web site at least 15 minutes early to register, download and install any necessary audio software. For those who cannot listen to the live broadcast, an archived replay will be available shortly after the call on the investor relations page of the Company's web site at www.asuresoftware.com
About Asure Software, Inc.
Headquartered in Austin, Texas, Asure Software empowers small to mid-size organizations and divisions of large enterprises to operate more efficiently, increase worker productivity and reduce costs through a comprehensive suite of on-demand workforce management software and services. Asure's market-leading suite includes products that optimize workforce time and attendance tracking, benefits enrollment and tracking, pay stubs and W2 documentation, and room scheduling and resource management. With additional offices in Warwick, Rhode Island, Vancouver, British Columbia, and Mumbai, India, Asure serves 3,500 customers around the world. For more information, please visit www.asuresoftware.com.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Asure's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. Such risks and uncertainties, which include those associated with continued listing of the Company's securities on the NASDAQ Capital Market, could cause actual results to differ from those contained in the forward-looking statements.
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
December 31, JULY 31,
2009 2009
(UNAUDITED)
ASSETS
Current Assets:
Cash and equivalents $ 2,263 $ 4,375
Short-term investments 0 5,339
Accounts receivable, net of allowance for
doubtful accounts of $34 and $20 at December 31,
2009 and July 31, 2009, respectively 1,526 1,207
Inventory 49 3
Prepaid expenses and other current assets 213 143
---------- ----------
Total Current Assets 4,051 11,067
Property and equipment, net 581 672
Intangible assets, net 3,623 3,949
---------- ----------
Total Assets $ 8,255 $ 15,688
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $ 1,039 $ 6,294
Accrued compensation and benefits 79 278
Lease impairment and advance 562 899
Other accrued liabilities 411 541
Deferred revenue 1,744 1,897
---------- ----------
Total Current Liabilities 3,835 9,909
Long-Term Liabilities:
Deferred revenue 134 119
Lease impairment and advance 196 250
Other long-term obligations 212 206
---------- ----------
Total Long-Term Liabilities 542 575
Stockholders' Equity:
Preferred stock, $.01 par value; 1,500 shares
authorized; none issued or outstanding -- --
Common stock, $.01 par value; 6,500 shares
authorized; 3,375 and 3,290 shares issued;
3,162 and 3,112 shares outstanding at
December 31, 2009 and July 31, 2009,
respectively 334 329
Treasury stock at cost, 213 and 179 shares at
December 31, 2009 and July 31, 2009,
respectively (4,907) (4,815)
Additional paid-in capital 270,925 270,738
Accumulated deficit (262,404) (260,947)
Accumulated other comprehensive income (70) (101)
---------- ----------
Total Stockholders' Equity 3,878 5,204
---------- ----------
Total Liabilities and Stockholders'
Equity $ 8,255 $ 15,688
========== ==========
ASURE SOFTWARE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
FOR THE FOR THE
TWO MONTHS ENDED FIVE MONTHS ENDED
DECEMBER 31, DECEMBER 31,
2009 2008 2009 2008
---------- ---------- ---------- ----------
(UNAUDITED) (UNAUDITED)
Revenues $ 1,679 $ 1,467 $ 4,000 $ 4,259
Cost of Sales (435) (294) (914) (858)
---------- ---------- ---------- ----------
Gross Margin 1,244 1,173 3,086 3,401
OPERATING EXPENSES:
Selling, general and
administrative 797 1,857 3,537 5,036
Research and development 264 343 676 904
Amortization of
intangible assets 100 99 249 248
---------- ---------- ---------- ----------
Total Operating
Expenses 1,161 2,299 4,462 6,188
INCOME (LOSS) FROM
OPERATIONS 83 (1,126) (1,376) (2,787)
OTHER INCOME AND (EXPENSES):
Interest income 2 25 9 80
Foreign currency
translation (15) (19) (46) 102
Gain on sale of assets 0 250 0 250
Interest expense and
other (8) (17) (20) (27)
---------- ---------- ---------- ----------
Total Other Income (21) (239) (57) 405
INCOME (LOSS) FROM
OPERATIONS, BEFORE INCOME
TAXES 62 (887) (1,433) (2,382)
Provision for income taxes (13) 0 (25) (25)
---------- ---------- ---------- ----------
NET INCOME (LOSS) $ 49 $ (887) $ (1,458) $ (2,407)
========== ========== ========== ==========
BASIC AND DILUTED LOSS
PER SHARE:
Net income (loss) per
share - basic $ 0.02 $ (0.29) $ (0.46) $ (0.77)
Net income (loss) per
share - diluted $ 0.02 $ (0.29) $ (0.46) $ (0.77)
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 3,156 3,111 3,141 3,111
Diluted 3,162 3,111 3,141 3,111
CONTACTS: Lisa Flynn lisa_flynn@asuresoftware.com Pat Goepel pat_goepel@asuresoftware.com