Softech Inc (SOFT) research, news, and more from GeoInvesting

Company description

Tue, 19 Jun 2012 04:00:00 GMT

SofTech, Inc. engages in the development, marketing, distribution, and support of computer software solutions for the product lifecycle management (PLM) industry. Its solutions include software technology offerings for computer aided design (CAD) and computer aided manufacturing (CAM), as well as product data management and collaboration technologies. The company’s PLM solutions include ProductCenter PLM Document Management that centralizes and connects all forms of product information; ProductCenter PLM Design Integration; ProductCenter PLM Configuration Control that provides standard organization for parts with various part types and attributes, as well as all information managed and accessible through the ProductCenter Hierarchy Explorer and ProductCenter PLM BOM Editor; ProductCenter PLM Process Management, which automates and accelerates repeatable, mistake-proof business processes, such as design and change approvals; ProductCenter PLM Product Collaboration that offers solutions to facilitate design reviews and collaborative product team meetings; and ProductCenter PLM Enterprise Integration, which enables the exchange of application-independent bills of material with other enterprise applications, such as MRP, ERP, and CRM systems. Its CAD solutions include CADRA, a mechanical design and drafting program the production of mechanical drawings; and DesignGateway 2D/3D design integration solutions. The company’s CAM solutions comprise CADRA N/C, a multi-axis APT-based NC solution that offers a comprehensive suite of features to handle 2.5D mill and lathe applications, as well as 5-axis aerospace work. It markets its products through sales and customer services offices, and resellers in Europe and Asia. The company was founded in 1969 and is based in Lowell, Massachusetts.

Comments & Business Outlook

Wed, 15 Jan 2014 05:00:00 GMT

Second Quarter Fiscal 2014 Results

Revenue for the three months ended November 30, 2013 was approximately $1.41 million as compared to approximately $1.77 million for the same period in the prior fiscal year.
Loss per share was $0.05 compared to income of $0.25 per share for the same period in the prior fiscal year.

“The current management team purchased a controlling equity interest in the business in March 2011 when the Company was facing what appeared to be insurmountable issues on multiple fronts,” said Joe Mullaney, SofTech’s CEO. “The sale of the CADRA product line during the current quarter and the resulting improved liquidity represents a transformative event for the shareholders. The management team is committed to continuing its efforts to carefully and systematically explore alternatives for maximizing shareholder value,” he added.

Mullaney continued: “Since March 2011 we have completed the following actions that we believe have enhanced shareholder value:

Sold the AMT product line in May 2011;
Sold the CADRA product line in October 2013;
Sold five patents in the PLM space to Acacia Research Group and retained a 30% interest in future recoveries in two transactions in early fiscal 2013;
Filed or acquired four new patent applications;
Developed and launched the Connector technology platform that provides a bi-directional bridge between third party CAD and PLM technologies;
Entered into partnership agreements with Aras and SpaceClaim;
Increased our market opportunity for our professional services resulting in profitable revenue growth for our Consulting business group; and
Repurchased approximately 16% of our outstanding shares.

The above actions have significantly increased our liquidity, reduced our debt and our financial risk. We have a fantastic customer base, solid recurring revenue, future cash flow from the CADRA product line both as a reseller and from contingent royalty payments, new products coming on-line and tax assets with a value in excess of $20 million. We will continue to strive to unlock the value of these assets for the benefit of our shareholders.”

The Company also announced that it entered into a five-year office lease for about 9,100 square feet for its new corporate headquarters at 650 Suffolk Street, Lowell, MA. The office is part of the historic Wannalancit Mills, a 19^th century textile mill located alongside the Northern Canal in Lowell. “The 14 foot ceilings, high windows and brick-and-beam design were very appealing,” said Bob Anthonyson, Vice President, Business Development. “The close proximity to downtown Lowell and the University of Massachusetts Lowell Campus are added benefits that we hope to take advantage of in the future,” he added.

Comments & Business Outlook

Wed, 16 Oct 2013 04:00:00 GMT

First Quarter Fiscal 2014 Results

The company reported revenue of approximately $1.38 million, compared to approximately $1.57 million for the same period in the prior fiscal year, a decline of about 12%.
The company reported a loss per share of $0.30, compared to earnings of $0.17 for the same period in the prior fiscal year.

“Our first quarter is often the most challenging and the first quarter of fiscal 2014 fits that pattern,” said Joe Mullaney, SofTech’s CEO. “During the current quarter we experienced flat revenue as compared to last year after adjusting for the patent sale in Q1’13. We had increased development expenses as more effort was directed at new releases and we incurred increased professional fees related to the sale of the CADRA product line, the purchase of 170,000 shares of common stock from a significant shareholder and litigation expenses. On a positive note, Q2’14 is off to a great start with license revenue in September totaling almost $250,000, more than all of Q1. Lastly, the sale of our CADRA product line is nearly complete,” he added.

Comments & Business Outlook

Thu, 29 Aug 2013 04:00:00 GMT

Fourth Quarter Fiscal 2013 Results

Revenue was approximately $1.56 million, an increase of more than 3% from $1.51 million in the same quarter of 2012.

Non-GAAP EPS was $0.13 vs. $0.07 for the same quarter of 2012.

Commenting on current year performance, Joe Mullaney, SofTech CEO since the March 2011 Recapitalization Transaction (described in the Form 10-K), said: “Fiscal 2013, our second full fiscal year since the Recapitalization Transaction, represented significant improvement on multiple fronts in our business including the following:

Experienced the first revenue increase in a current year quarter compared to prior year quarter from products and services since the quarter ended August 31, 2007;
Continued our investment in new products;
Won four new customers for our subscription based, Connector technology;
Increased EBITDA by more than 9%, cash flow from operations improved by a multiple of 10 times;
Secured a multi-million dollar, long term debt facility with reduced borrowing rates and principal repayments for two years;
Repurchased 16% of our outstanding shares in June 2013 (unregistered restricted shares held by largest shareholder); and
Aggressively pursued other alternatives for enhancing shareholder value while improving profitability.

In summary, we achieved organic revenue growth in Q4’13, strengthened our partnership agreement, improved our balance sheet while significantly increasing operating cash flows. Overall, a solid fiscal year and one that we believe we can continue to improve upon.”

Comments & Business Outlook

Mon, 15 Oct 2012 04:00:00 GMT

First Quarter Fiscal 2013

Revenue for the three months ended August 31, 2012 was $1.57 million, essentially unchanged from the same period in the prior fiscal year.

Net income was $173,000 or $.17 per share for the three months ended August 31, 2012, a substantial increase from the net income of $53,000 or $.05 for the same period in the prior fiscal year.

Since the new team took over in March 2011 we have developed and implemented a business plan for profitable growth with a goal of enhancing shareholder value, said Joe Mullaney, President and CEO. At the heart of the plan, we sought to leverage our expertise, technology and customer relationships to develop new profitable revenue streams. These initiatives, including the sale of non-strategic product lines, are taking hold and we expect continued improvement over the coming quarters as a result, he added.

We are very pleased with our first quarter performance, continued Mullaney. We significantly improved on every important measure of profitability in the current quarter as compared to the same period last year. More importantly, our pipeline of forecasted business is more robust than at anytime in the last eighteen months with a half dozen six figure proposals that have been working their way through the approval process. The pipeline includes a mix of existing customers expanding the use of our technology to other divisions as well as new potential customers that we have not done business with previously.

Comments & Business Outlook

Tue, 04 Sep 2012 04:00:00 GMT

Fourth Quarter 2012 Results (Reported on 8/29/2012)

Revenue for the three months ended May 31, 2012 was approximately $1.5 million, down about 3% from the same period in the prior fiscal year.
Net income from continuing operations was $67,000 or $.07 per share for the three months ended May 31, 2012 compared to a net loss from continuing operations of $(744,000) or ($.79) per share for the same period in the prior fiscal year which included approximately $560,000 of non-recurring transaction related expenses from the recapitalization transaction completed in March 2011.

“We have made excellent progress over the course of fiscal 2012 in resolving the pre-recapitalization transaction issues, stabilizing the business and identifying new profitable revenue streams,” said Joe Mullaney, CEO since the March 2011 recapitalization transaction. “There is new energy resulting from these actions that we expect will lead to revenue growth in fiscal 2013. The double-digit growth in product revenue year over year is an early sign that we are on the right track.”