ProductCenter Revenue Increases 20.5% in Q3’15 vs Q3’14; New Product Enters Beta Testing
LOWELL, Mass. — (BUSINESS WIRE) — April 14, 2015 — SofTech, Inc. (OTCQB: SOFT), a proven provider of Product Lifecycle Management (“PLM”) solutions today announced its third quarter fiscal year 2015 operating results. Revenue for the three months ended February 28, 2015 was approximately $.925 million as compared to approximately $1.342 million for the same period in the prior fiscal year. The net loss for the current quarter was approximately ($356,000) or ($.40) per share compared to approximately $(339,000) or $(.39) per share for the same period in the prior fiscal year. EBITDA for current quarter was approximately $(171,000) as compared to approximately $(259,000) for the same period in fiscal year 2014.
Revenue for the nine months ended February 28, 2015 was approximately $2.8 million as compared to approximately $4.1 million for the same period in the prior fiscal year. The net loss for the first nine months of the current fiscal year was approximately ($1,307,000) or ($1.47) per share compared to a net loss of approximately $(91,000) or $(.10) per share for the same period in the prior fiscal year. The prior year operating results included a one-time gain from the sale of the CADRA product line of approximately $649,000.
EBITDA for the first nine months of the current fiscal year was $(686,000) as compared to approximately $3,580,000 for the same period in fiscal 2014. The EBITDA generated by the sale of the CADRA product line totaled approximately $3,954,000 (gain of $649,000 which included non-cash expenses of $3,305,000) in the nine months ended February 28, 2014.
The sale of the CADRA product line was completed on October 18, 2013. Because the Company continued to market and support the technology as a reseller in Europe, the sale did not qualify for presentation as discontinued operations. The decline in revenue and profitability for the three and nine month periods ended February 28, 2015 compared to the same periods in the prior fiscal year is almost entirely attributable to the sale of the CADRA product line as depicted in the tables below.
The following summarizes total revenue by product line for each of the periods (in thousands, except %):
| For three months ended | ||||||||||||||
| 2/28/2015 | 2/28/2014 | $ | Change | % Change | ||||||||||
| ProductCenter | $ | 783 | $ | 650 | $ | 133 | 20.5% | |||||||
| CADRA | 80 | 542 | (462) | -85.2% | ||||||||||
| Other | 62 | 150 | (88) | -58.7% | ||||||||||
| Total revenue | $ | 925 | $ | 1,342 | $ | (417) | -31.1% | |||||||
| For nine months ended | ||||||||||||||
| 2/28/2015 | 2/28/2014 | $ | Change | % Change | ||||||||||
| ProductCenter | $ | 2,301 | $ | 2,119 | $ | 182 | 8.6% | |||||||
| CADRA | 366 | 1,807 | (1,441) | -79.7% | ||||||||||
| Other | 149 | 205 | (56) | -27.3% | ||||||||||
| Total revenue | $ | 2,816 | $ | 4,131 | $ | (1,315) | -31.8% | |||||||
