Covisint Corporation (Nasdaq:COVS), the leading Cloud Platform for building Identity and Internet of Things (IoT) applications, today announced financial results for the fourth quarter and full fiscal year ended March 31, 2017.
Fiscal 2017 Financial Results
Revenue
- Total revenue was $70.2 million, a decrease of 8% compared to $76.0 million in the prior year.
- Subscription revenue was $60.7 million, a decrease of 4% compared to $63.4 million in the prior fiscal year.
- Services revenue was $9.5 million, a decrease of 25% compared to $12.7 million in the prior fiscal year.
Profitability
- GAAP gross margin was 53%, compared to 54% in the prior year.
- Non-GAAP gross margin was 59%, in-line with the prior year.
- GAAP net loss was $12.7 million or ($0.31) per share, compared to net loss of $14.9 million or ($0.38) per share in the prior year.
- Non-GAAP net loss was $9.4 million or ($0.23) per share, compared to net loss of $12.9 million or ($0.33) per share in the prior year.
Fourth Quarter Fiscal 2017 Financial Highlights
Revenue
- Total revenue was $19.0 million, a decrease of 5% compared to $20.0 million in the same period last year.
- Subscription revenue was $16.8 million, a decrease of 2% compared to $17.2 million in the same period last year.
- Services revenue was $2.2 million, a decrease of 21% compared to the same period last year.
Profitability
- GAAP gross margin was 60%, compared to 49% in the prior fiscal quarter and 61% in the same period last year.
- Non-GAAP gross margin was 66%, compared to 56% in the prior fiscal quarter and 65% in the same period last year.
- GAAP net income was $1.6 million or $0.04 per diluted share, compared to net loss of $0.1 million or ($0.00) per share in the same period last year.
- Non-GAAP net income was $2.6 million or $0.06 per diluted share, compared to net loss of $0.5 million or ($0.01) per share in the same period last year.
Balance Sheet
- The Company had $33.2 million in cash and cash equivalents at March 31, 2017, compared with $30.4 million at December 31, 2016.
Fourth Quarter Fiscal 2017 Business Highlights
- Hosted customers and showcased the Covisint IoT Platform at the 2017 Consumer Electronics Show (CES) in Las Vegas.
- Sponsored AutoMobili-D 2017, in conjunction with the North American International Auto Show (NAIAS), with a “Connecting the Global Automotive Ecosystem” themed exhibit and presented on “Enabling and Monetizing Connected Cars.”
- Announced that Covisint was recognized as “Supplier of the Year” for the second consecutive year by SAIC General Motors.
- Launched the most complete IoT Platform for enabling digital transformation, unlocking the full business value of enterprise IoT solutions by securely connecting complete ecosystems of people, systems and things.
- Exhibited at the 2017 RSA Conference in San Francisco, and showcased an identity-centric approach to the Internet of Things with the Covisint Platform.
- Showcased the Covisint Platform at the Gartner Identity & Access Management Summit in London in March 2017. Covisint Chief Security Officer, David Miller, presented on “Orchestrating Identities Across the Internet of Things.”
Use of Non-GAAP Financial Measures
In addition to reporting financial results in accordance with generally accepted accounting principles in the United States (“GAAP”), Covisint monitors non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income (loss), and non-GAAP net income (loss) per diluted share. Each of these financial measures excludes the impact of certain items (the impact of stock award compensation expense, the amortization and impairment of intangible assets and amounts incurred for capitalized internal software costs) and, therefore, has not been calculated in accordance with GAAP.
Covisint monitors these non-GAAP measures to evaluate its ongoing operational performance and enhance an overall understanding of its past financial performance. Covisint believes that these non-GAAP metrics help illustrate underlying trends in its business that could otherwise be masked by the effect of the expenses that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income (loss), and non-GAAP net income (loss) per diluted share. Furthermore, Covisint uses these measures to establish budgets and operational goals for managing its business and evaluating its performance. Covisint also believes that these non-GAAP measures provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods against other companies in its industry.
The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.
