Viewing Profits with Video Solutions
With the launch of Mediasite Enterprise Video Platform and My Mediasite, Sonic Foundry (NASDAQ: SOFO) is providing customers with the most comprehensive video strategy solution on the market.
As the company focuses on bringing these and other innovations to leading colleges, universities and corporations, Sonic Foundry will continue to see growth in new annual licenses and renewals.
Sonic Foundry is a market leader for enterprise webcasting solutions, providing video content management and distribution for education, business and government.
Powered by the patented Mediasite webcasting platform and webcast services of Mediasite Events, the company empowers people to share knowledge online, using video webcasts to bridge time and distance, enhance learning outcomes and improve performance.
The company’s momentum is expected to translate into revenue and income growth that will meet or exceed the company’s three-year goal of a minimum of $40 million in revenue with 15 percent pre-tax net income.
Sonic Foundry reported earnings per share (EPS) of $0.16 in the second quarter, reversing a net loss of $0.02 in EPS in the same quarter last year, and beating Wall Street’s expectations of a net loss of $0.07 in EPS. Revenue was up 8 percent over the same quarter last year to $6.4 million, also topping projections by around $200,000.
The company had increased billings across the product spectrum, with total billings of $6.6 million, an increase of 19 percent over the second quarter of fiscal 2012.
Many of the billings now represent recurring service and product fees and, therefore, are deferred. The billings growth represents a leading indicator, however, of future revenues based on the deferral of those billings.
Product revenue increased 13 percent year-over-year to $3 million, primarily as a result of an increase in product revenue from current partner, Mediasite KK, which supports higher education demand in Japan.
On March 31, 2013, $6.1 million of revenue was deferred, of which the company expects to realize approximately $2.5 million in the quarter ending June 30, 2013. Revenue from service contracts is recognized over the life of the contract. Services revenue includes Mediasite customer support contracts as well as training, installation, rental, event and content hosting services.
In terms of the standard metrics of the business, international was strong in the quarter, and the company thinks that based on its opportunities outside of the United States, that will continue to be the trend in the third and fourth quarters as well.
Sonic Foundry recently announced that the company has renewed its line of credit with Silicon Valley Bank, which maintains a maximum availability of $3 million and extends the maturity of the existing line of credit by two years to October 1, 2015.
Moreover, the company announced a stock repurchase program that enables the company to purchase up to $1 million in common stock. Sonic Foundry has a total market cap of $38 million.
This year and into 2014, Sonic Foundry will position new technology to deliver value for the customer that isn’t just focused on capture, but also on data management, storage and search.
The company’s latest innovation is called voice search. The company has implemented a technology to allow it to take audio voice attached to a video, and index it according to a word list.
The stock is up 37 percent in the past year and an impressive 42 percent in the past month, following the second quarter earnings release. Sonic Foundry is projected to grow EPS by 100 percent in the next year.
We project for Sonic Foundry a price target of 13.
Greg Pugh, an income-investing expert, publishes a newsletter called Investing for Monthly Income.
As the company focuses on bringing these and other innovations to leading colleges, universities and corporations, Sonic Foundry will continue to see growth in new annual licenses and renewals.
Sonic Foundry is a market leader for enterprise webcasting solutions, providing video content management and distribution for education, business and government.
Powered by the patented Mediasite webcasting platform and webcast services of Mediasite Events, the company empowers people to share knowledge online, using video webcasts to bridge time and distance, enhance learning outcomes and improve performance.
The company’s momentum is expected to translate into revenue and income growth that will meet or exceed the company’s three-year goal of a minimum of $40 million in revenue with 15 percent pre-tax net income.
Sonic Foundry reported earnings per share (EPS) of $0.16 in the second quarter, reversing a net loss of $0.02 in EPS in the same quarter last year, and beating Wall Street’s expectations of a net loss of $0.07 in EPS. Revenue was up 8 percent over the same quarter last year to $6.4 million, also topping projections by around $200,000.
The company had increased billings across the product spectrum, with total billings of $6.6 million, an increase of 19 percent over the second quarter of fiscal 2012.
Many of the billings now represent recurring service and product fees and, therefore, are deferred. The billings growth represents a leading indicator, however, of future revenues based on the deferral of those billings.
Product revenue increased 13 percent year-over-year to $3 million, primarily as a result of an increase in product revenue from current partner, Mediasite KK, which supports higher education demand in Japan.
On March 31, 2013, $6.1 million of revenue was deferred, of which the company expects to realize approximately $2.5 million in the quarter ending June 30, 2013. Revenue from service contracts is recognized over the life of the contract. Services revenue includes Mediasite customer support contracts as well as training, installation, rental, event and content hosting services.
In terms of the standard metrics of the business, international was strong in the quarter, and the company thinks that based on its opportunities outside of the United States, that will continue to be the trend in the third and fourth quarters as well.
Sonic Foundry recently announced that the company has renewed its line of credit with Silicon Valley Bank, which maintains a maximum availability of $3 million and extends the maturity of the existing line of credit by two years to October 1, 2015.
Moreover, the company announced a stock repurchase program that enables the company to purchase up to $1 million in common stock. Sonic Foundry has a total market cap of $38 million.
This year and into 2014, Sonic Foundry will position new technology to deliver value for the customer that isn’t just focused on capture, but also on data management, storage and search.
The company’s latest innovation is called voice search. The company has implemented a technology to allow it to take audio voice attached to a video, and index it according to a word list.
The stock is up 37 percent in the past year and an impressive 42 percent in the past month, following the second quarter earnings release. Sonic Foundry is projected to grow EPS by 100 percent in the next year.
We project for Sonic Foundry a price target of 13.
Greg Pugh, an income-investing expert, publishes a newsletter called Investing for Monthly Income.