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: March 13, 2008
(Date of earliest event reported)
Forgent Networks, Inc.
(Exact name of registrant as specified in its charter)
TX
(State or other jurisdiction
of incorporation)
0-20008
(Commission File Number)
74-2415696
(IRS Employer
Identification Number)
108 Wild Basin Road
(Address of principal executive offices)
78746
(Zip Code)
512-437-2700
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
Item 9.01. Financial Statements and Exhibits (a) Financial statements: None (b) Pro forma financial information: None (c) Shell company transactions: None (d) Exhibits Forgent Networks, Inc. Earnings Press Release
99.1 Press Release of Forgent Networks, Inc. dated March 13, 2008
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: March 13, 2008 |
FORGENT NETWORKS, INC.
By: /s/ Jay C. Peterson |
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Exhibit No. | Description |
99.1 | Press Release of Forgent Networks, Inc. dated March 13, 2008 |
Software and Services Revenues Increase 46 Percent
AUSTIN, TX -- 03/13/2008 -- Asure Software (NASDAQ: ASUR) today announced results for the 2008 fiscal second quarter ended January 31, 2008. Highlights for the quarter include:
- -- Software and services revenues increased by $0.9 million, or 46 percent, to $2.7 million. - -- Integration of the iEmployee workforce management software acquisition continued. - -- Gross margin as a percent of revenues decreased to 77 percent. - -- Total employee headcount decreased by 21% to 149. - -- Availability of Mobile Workforce Manager and Visual Asset Manager for RFID was announced.
"Our business continues to grow and our strategy is on track. We continue to watch expenses closely and work on integrating the iEmployee business we acquired in October 2007. Our recently acquired products are responding well to our web-based marketing model, which is clear evidence that there is healthy demand in the marketplace for these solutions. We believe we have the plans in place to continue our growth in this large and expanding workforce management market," said Richard N. Snyder, Chairman and Chief Executive Officer of Asure Software.
Software and Services Business
Software and services revenue for the three months ended January 31, 2008 was $2.7 million, an increase of $0.9 million, or 46 percent, from the $1.9 million reported for the three months ended October 31, 2007. Revenues include sales of the NetSimplicity scheduling and asset management software, including Meeting Room Manager ("MRM"), Visual Asset Manager ("VAM"), and sales of the Company's iEmployee workforce management software. Also included in these revenues are software maintenance and support services and professional services. Software and services revenue increased $1.7 million or 168% from the three months ended January 31, 2007 to the three months ended January 31, 2008.
Gross Margin
Software and services gross margin for the 2008 fiscal second quarter was $2.1 million, an increase of $.6 million or 36 percent, versus $1.5 million achieved for the 2008 fiscal first quarter. Gross margin as a percentage of revenues was 77%, down slightly from historical levels, due to costs relating to the acquisition of iEmployee. Software and services gross margins increased $1.3 million or 148% for the three months ended January 31, 2007 versus the three months ended January 31, 2008.
Operating Expenses
Total operating expenses for the three months ended January 31, 2008, were $3.8 million, an increase of $1 million, or 36 percent, from the 2008 fiscal first quarter. This quarter's operating expenses reflect a full quarter of both iEmployee and NetSimplicity spending.
Net Loss
The Company reported a net loss of $1.5 million, or ($0.05) per share, during the three months ended January 31, 2008.
Outlook
The Company continues to integrate the iEmployee operations, develop its sales force to increase sales performance, and release new software updates. Management believes its software and services revenues will continue to increase. Gross margins from the segment are expected to improve during the next fiscal quarter. Management will continue to evaluate additional operational synergies from the iEmployee acquisition and further extend its market reach both domestically and in the international markets.
The Company did not have any intellectual property licensing revenues for the three or six months ended January 31, 2008. Management does not anticipate any additional licensing revenues from the patents which have generated such revenues in prior fiscal years.
Conference Call and Webcast
Asure Software has scheduled a conference call with the investment community for Thursday, March 13, 2008, at 10:00 a.m. CT (11:00 a.m. ET) to discuss the quarter and outlook. To take part in the call, please dial 888-713-4214 ten minutes before the conference call begins, ask for the Asure Software event, and use pass code 20424492. International callers should dial 617-213-4866 and reference the same pass code. Investors, analysts, media and the general public will also have the opportunity to listen to the conference call over the Internet by visiting the investor relations page of Asure's web site at www.asuresoftware.com. To listen to 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, a replay will be available shortly after the call on the investor relations page of our web site at www.asuresoftware.com.
About Asure Software
Headquartered in Austin, Texas, Asure Software (ASUR), (a d/b/a of Forgent Networks, Inc.), empowers small to mid-size organizations and divisions of large enterprises to operate more efficiently, increase worker productivity and reduce costs through a suite of on-demand workforce management software and services. Asure's market-leading products include workforce time and attendance tracking, benefits enrollment and tracking, pay stubs and W2 documentation, expense management, meeting room management, and asset tracking. With additional offices in Seekonk, Mass., Vancouver, British Columbia, and Mumbai, India, Asure serves 3,500 customers around the world. For more information, please visit www.asuresoftware.com.
Safe Harbor
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Forgent's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.
JANUARY 31, JULY 31, 2008 2007 ----------- ---------- (UNAUDITED) ASSETS Current Assets: Cash and cash equivalents $ 13,939 $ 33,524 Short-term investments 3,862 1,538 Accounts receivable, net of allowance for doubtful accounts of $39 and $21 at January 31, 2008 and July 31, 2007, respectively 1,582 1,040 Prepaid expenses and other current assets 298 211 ----------- ----------- Total Current Assets 19,681 36,313 Property and equipment, net 1,005 767 Goodwill 7,202 -- Intangible assets, net 4,959 -- Other assets 51 212 ----------- ----------- $ 32,898 $ 37,292 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 3,975 $ 10,970 Accrued compensation and benefits 499 557 Other accrued liabilities 828 855 Deferred revenue 1,311 1,076 ----------- ----------- Total Current Liabilities 6,613 13,458 Long-Term Liabilities: Deferred revenue 29 28 Other long-term obligations 943 1,186 ----------- ----------- Total Long-Term Liabilities 972 1,214 Stockholders' Equity: Preferred stock, $.01 par value; 10,000 authorized; none issued or outstanding -- -- Common stock, $.01 par value; 40,000 authorized; 32,739 and 27,388 shares issued; 30,949 and 25,598 shares outstanding at January 31, 2008 and July 31, 2007, respectively 325 274 Treasury stock at cost, 1,790 issued at January 31, 2008 and July 31, 2007 (4,815) (4,815) Additional paid-in capital 270,666 265,647 Accumulated deficit (240,908) (238,506) Accumulated other comprehensive income 45 20 ----------- ----------- Total Stockholders' Equity 25,313 22,620 ----------- ----------- $ 32,898 $ 37,292 =========== =========== FOR THE FOR THE THREE MONTHS ENDED SIX MONTHS ENDED JANUARY 31, JANUARY 31, 2008 2007 2008 2007 -------- -------- -------- -------- (UNAUDITED) (UNAUDITED) REVENUES Software & Professional Services $ 2,734 $ 1,017 $ 4,608 $ 1,979 Intellectual Property Licensing -- 28 -- 8,162 -------- -------- -------- -------- Total Revenue 2,734 1,045 4,608 10,141 COST OF SALES Software & Professional Services 629 192 958 502 Intellectual Property Licensing -- 3 -- 3,543 -------- -------- -------- -------- Total Cost of Sales 629 195 958 4,045 GROSS MARGIN 2,105 850 3,650 6,096 OPERATING EXPENSES: Selling, general and administrative 2,962 2,539 5,402 5,039 Research and development 640 132 931 248 Amortization of intangible assets 155 -- 191 4 -------- -------- -------- -------- Total operating expenses 3,757 2,671 6,524 5,291 LOSS FROM OPERATIONS (1,652) (1,821) (2,874) 805 OTHER INCOME AND (EXPENSES): Interest income 195 234 533 390 Gain on sale of assets -- 2,896 -- 2,896 Interest expense and other (20) (11) (40) (44) -------- -------- -------- -------- Total other income and (expenses) 175 3,119 493 3,242 (LOSS) INCOME FROM OPERATIONS, BEFORE INCOME TAXES (1,477) 1,298 (2,381) 4,047 Provision for income taxes (7) -- (21) -- -------- -------- -------- -------- NET (LOSS) INCOME $ (1,484) $ 1,298 $ (2,402) $ 4,047 ======== ======== ======== ======== BASIC AND DILUTED (LOSS) INCOME PER SHARE: $ (0.05) $ 0.05 $ (0.08) $ 0.16 ======== ======== ======== ======== WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 30,940 25,489 29,017 25,435 Diluted 30,940 26,086 29,017 25,867
Investor contact: Jay Peterson 512-437-2476 jay_peterson@asuresoftware.com Media contact: Susan Tull 512-577-2956 susan_tull@asuresoftware.com