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: October 15, 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 Rd
(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)
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 9.01. Financial Statements and Exhibits (a) Financial statements: None (b) Pro forma financial information: None (c) Shell company transactions: None (d) Exhibits 99.1 Press Release of Forgent Networks, Inc. dated October 15, 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: October 15, 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 October 15, 2008 |
Software and Services Revenue Advances 140% for Fiscal Year
AUSTIN, TX -- 10/15/2008 -- Asure Software (NASDAQ: ASUR), a leading provider of workforce management software, today announced the financial results for its 2008 fourth quarter and full fiscal year, ended July 31, 2008.
Highlights included:
- -- Decreased our EBITDA loss by 30% to approximately $900,000, compared
to Q3-2008.
- -- Software and services revenue advanced 140% for the fiscal year ended
July 31, 2008, to $10.2 million, compared to $4.2 million in FY2007.
- -- Q4-2008 revenue increased 5.9%, to $2.9 million, compared to $2.7
million in Q3-2008.
- -- Gross margins increased from 76% to 78%, compared to Q3-2008.
- -- In Q4-2008, ASUR incurred a $7.4 million goodwill impairment due to
the company's market capitalization relative to the amount of goodwill on
the company's books.
- -- Total operating expenses declined 2.1% in Q4-2008, to $3.6 million,
compared to $3.7 million in Q3-2008.
"Change and transitions can prove challenging," noted Richard Snyder, Chairman and Chief Executive Officer of Asure Software. "We are making progress with our new business model as an operating company selling workforce management software and services to a large target market. I continue to be excited about our business prospects. We are living at the intersection of technology, need, and opportunity. Especially in today's challenging macroeconomic environment, enterprises and organizations both large and small are embracing automation in workforce management as a way to create better efficiencies in their operating expenses, as well as allow them to better compete for top talent. With our NetSimplicity and iEmployee products, as well as the new products and enhancements being produced from our R&D investments, we are well-positioned to take advantage of the push toward automation in human resources management."
Additional Fourth Quarter Highlights
Sequentially, Asure saw total revenue advance 5.9% in Q4-2008, to $2.9 million, from $2.7 million in Q3-2008.
Gross margin in Q4-2008 was 77.7%, a sequential improvement compared to the 76.4% gross margin in Q3-2008.
Selling, general and administrative expenses saw a sequential decline of 2.3% in Q4-2008, to $2.9 million, compared to $3.0 million in Q3-2008.
Research and development expenses were relatively flat in Q4-2008, at $0.6 million, compared to $0.6 million in Q3-2008.
At July 31, 2008, the Company had working capital of $10.1 million and cash, cash equivalents and short-term investments of $14.7 million.
Asure Software has scheduled a conference call for Wednesday, October 15, 2008 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 Richard Snyder, Chairman and Chief Executive Officer; Jay Peterson, Vice President Finance; and Nancy Harris, Chief Operating Officer.
To take part, please dial 888-713-4214 ten minutes before the conference call begins, ask for the Asure Software event and use passcode 31760170. International callers should dial 617-213-4866 and reference the same passcode, 31760170.
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
Headquartered in Austin, Texas, Asure Software (NASDAQ: 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 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, expense management, meeting and event management, and asset tracking and reservations. 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" 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. Such risks and uncertainties could cause actual results to differ from those contained in the forward-looking statements.
FORGENT NETWORKS, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except per share data)
JULY 31,
------------------
2008 2007
-------- --------
ASSETS
Current assets:
Cash and cash equivalents $ 12,062 $ 33,524
Short-term investments 2,627 1,538
Accounts receivable, net of allowance for
doubtful accounts of $41 and $21 at July 31, 2008
and 2007, respectively 1,718 1,040
Inventory 74 --
Prepaid expenses and other current assets 191 211
-------- --------
Total current assets 16,672 36,313
Property and equipment, net 907 767
Intangible assets, net 4,729 --
Other assets -- 212
-------- --------
$ 22,308 $ 37,292
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 3,778 $ 10,970
Accrued compensation and benefits 203 557
Lease impairment and advance 373 401
Other accrued liabilities 384 454
Deferred revenue 1,844 1,076
-------- --------
Total current liabilities 6,582 13,458
Long-term liabilities:
Deferred revenue 25 28
Lease impairment and advance 564 925
Other long-term obligations 217 261
-------- --------
Total long-term liabilities 806 1,214
Stockholders' equity:
Preferred stock, $.01 par value; 10,000 shares
authorized; none issued or outstanding -- --
Common stock, $.01 par value; 40,000 shares
authorized; 32,892 and 27,388 shares issued, 31,102
and 25,598 shares outstanding at July 31, 2008 and
2007, respectively 329 274
Treasury stock at cost, 1,790 shares at July 31, 2008
and 2007, respectively (4,815) (4,815)
Additional paid-in capital 270,657 265,647
Accumulated deficit (251,214) (238,506)
Accumulated other comprehensive income (37) 20
-------- --------
Total stockholders' equity 14,920 22,620
-------- --------
$ 22,308 $ 37,292
======== ========
FORGENT NETWORKS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share data)
For the For the
Three Months Ended, Twelve Months Ended
July 31,
July 31, April 30,
2008 2008 2008 2007
(Unaudited) (Unaudited)
REVENUES:
Software and services $ 2,866 $ 2,707 $ 10,182 $ 4,245
Intellectual property
licensing -- -- -- 36,162
----------- ----------- ----------- -----------
Total revenues 2,866 2,707 10,182 40,407
COST OF SALES:
Software and services 640 639 2,238 962
Intellectual property
licensing -- -- -- 18,270
----------- ----------- ----------- -----------
Total cost of sales 640 639 2,238 19,232
GROSS MARGIN 2,226 2,068 7,944 21,175
OPERATING EXPENSES:
Selling, general and
administrative 2,884 2,951 11,237 12,008
Research and
development 606 616 2,153 611
Impairment of assets 7,391 -- 7,391 --
Amortization of
intangible assets 150 149 490 4
----------- ----------- ----------- -----------
Total operating
expenses 11,031 3,716 21,271 12,623
(LOSS) INCOME FROM
OPERATIONS (8,805) (1,648) (13,327) 8,552
OTHER INCOME (EXPENSE):
Interest income 73 109 715 981
Gain on sale of
assets -- -- -- 2,899
Foreign currency
translation 23 2 14 (24)
Interest expense and
other (37) (22) (89) (66)
----------- ----------- ----------- -----------
Total other income 59 89 640 3,790
(LOSS) INCOME FROM
OPERATIONS
BEFORE INCOME
TAXES (8,746) (1,559) (12,687) 12,342
Provision for income
taxes 13 (14) (21) (94)
----------- ----------- ----------- -----------
NET (LOSS) INCOME $ (8,733) $ (1,573) $ (12,708) $ 12,248
=========== =========== =========== ===========
BASIC & DILUTED (LOSS)
INCOME PER SHARE:
Basic $ (0.28) $ (0.05) $ (0.42) $ 0.48
=========== =========== =========== ===========
Diluted $ (0.28) $ (0.05) $ (0.42) $ 0.47
=========== =========== =========== ===========
WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 31,094 30,848 30,026 25,515
Diluted 31,094 30,848 30,026 26,049
Investor contacts: Jay Peterson 512-437-2476 jay_peterson@asuresoftware.com Sean Collins Senior Partner CCG Investor Relations 310-477-9800, ext. 202 www.ccgir.com Media contact: Lisa Flynn 512-437-2678 lisa_flynn@asuresoftware.com