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  • Israel masses troops around Gaza, threatening major escalation
    MarketWatch

    Israel masses troops around Gaza, threatening major escalation

    Israel on Thursday said it was massing troops along the Gaza frontier and calling up 9,000 reservists ahead of a possible ground invasion of the Hamas-ruled territory, as the two bitter enemies plunged closer to all-out war. Egyptian mediators rushed to Israel for cease-fire efforts but showed no signs of progress.

  • ROOT ALERT: The Klein Law Firm Announces a Lead Plaintiff Deadline of May 18, 2021 in the Class Action Filed on Behalf of Root, Inc Limited Shareholders
    Newsfile

    ROOT ALERT: The Klein Law Firm Announces a Lead Plaintiff Deadline of May 18, 2021 in the Class Action Filed on Behalf of Root, Inc Limited Shareholders

    New York, New York--(Newsfile Corp. - May 13, 2021) - The Klein Law Firm announces that a class action complaint has been filed on behalf of shareholders of Root, Inc (NASDAQ: ROOT) alleging that the Company violated federal securities laws.This lawsuit is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Root Class A common stock pursuant and/or traceable to the Offering Documents issued ...

  • Sonic Foundry Announces Fiscal 2021 Second Quarter Financial Results
    GlobeNewswire

    Sonic Foundry Announces Fiscal 2021 Second Quarter Financial Results

    MADISON, Wis., May 13, 2021 (GLOBE NEWSWIRE) -- Sonic Foundry, Inc. (OTC Pink Sheets: SOFO), the trusted leader for video creation, management solutions as well as virtual and hybrid events, today announced consolidated financial results for its fiscal 2021 second quarter ended March 31, 2021. Fiscal 2021 Second Quarter Highlights Total revenues of $8.7 million, exceeding the plan and slightly ahead of $8.7 million in the second quarter of 2020; This despite the second quarter of 2021 being fully under COVID-19 constraints, while second quarter of 2020 had minimal COVID-19 impact.Gross margin was $6.1 million, or 70 percent of sales, compared to $6.3 million, or 72 percent of sales, in the second quarter of 2020.Net income attributable to common stockholders of $257,000, or $0.03 per share, compared to net income of $95,000, or $0.01 per share in the second quarter of 2020.Adjusted EBITDA was $851,000 compared to $710,000 in the second quarter of 2020. Year-to-date Financial Highlights Total year-to-date revenues of $17.9 million compared to $16.7 million at the second quarter of 2020, a $1.2 million or 7 percent increase.Gross margin was $12.9 million, or 72 percent of sales, compared to $12.1 million, or 73 percent of sales, in the second quarter of 2020.Year-to-date net income attributable to common stockholders of $889,000, or $0.11 per share, compared to net loss of $725,000, or $(0.11) per share, year-to-date at the second quarter of 2020.Year-to-date adjusted EBITDA was $2.2 million compared to $564,000, year-to-date at the second quarter of 2020. Fiscal 2021 Second Quarter ReviewService revenue, including support, hosting, events, and installs were $6.1 million, compared to $5.9 million in the prior year. Product revenue was $2.6 million during the second quarter of fiscal year 2021 compared to $2.7 million in the same quarter last year. Revenue related to hosting increased 27 percent in the second quarter of 2021 compared to the same quarter last year. The increase reflects the company’s strategy to invest and execute services in the hosting services product offering. Year-to-date Financial ReviewService revenue, including support, hosting, events, and professional services were $13.2 million year to date this year, compared to $11.8 million in the prior year. Product revenue was $4.7 million year to date through the second quarter of 2021 compared to $4.9 million as of the same period last year. Notably, year-to-date revenue related to hosting increased 42 percent as of the second quarter of 2021 compared to the same period last year. The company expects to recognize $3.8 million of the current unearned revenue in the third quarter of fiscal 2021. “We continue to exceed our plan and outperform the prior year by addressing and overcoming challenges presented by the pandemic,” said Joe Mozden Jr., CEO, Sonic Foundry. “Traditionally, the classroom has been our primary focus in the marketplace with major components of our revenue coming from in-room activity. Even though no one has been in the classroom the past year, we overcame this challenge and I’m pleased to once again say that our quarter delivered strong results across several key financial metrics. I attribute overcoming this roadblock and success to the deliberate, strategic decisions we made at the start of the pandemic to invest in and aggressively pursue two new large growth markets – video hosting management and hybrid events – components of our larger plan to create greater long-term, sustainable growth at Sonic Foundry. We anticipated the demand for services in these areas, invested accordingly and we positioned our company to best help our clients through the uncertainty of the past year.” Mozden continued: “We believe these new areas of focus will continue to grow substantially for us. We're encouraged by the overall growth in both our hosting and events businesses. The hosting business has increased by 42%. We believe the events business will grow based on year-to-date sales activity and growing pipeline. Post-COVID, we anticipate not only the positive momentum from our new businesses but also a renewed energy and growth in the traditional classroom. Classrooms will open again in the near future, and the need for video technologies like Mediasite to deliver anytime, anywhere education is a critical piece of the puzzle for schools.” “Our technology is unmatched, and we have an extensive customer base that understands the new realities their students and instructors demand. I’m proud of the progress we’ve made as a business to date, and fully anticipate we will continue to create new revenue streams to grow our business,” Mozden concluded. Non-GAAP Financial InformationTo supplement and enhance the reader’s understanding of our operating performance, we disclose adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (adjusted EBITDA), a non-GAAP measure of operating performance. Our adjusted EBITDA measure additionally adds back stock compensation expense from the SEC definition of EBITDA. As such, our adjusted EBITDA may not be comparable to similarly titled measures reported by other companies and should not be viewed as an alternative to net income as a measurement of our operating performance. A reconciliation of net income to adjusted EBITDA for the second quarter ended March 31, 2021 and 2020 are included in the release. About Sonic Foundry®, Inc. Sonic Foundry (OTC Pink Sheets: SOFO) is the global leader for video capture, management and streaming solutions as well as virtual and hybrid events. Trusted by more than 5,200 educational institutions, corporations, health organizations and government entities in over 65 countries, its Mediasite Video Platform quickly and cost-effectively automates the capture, management, delivery and search of live and on-demand streaming videos. Learn more at www.sonicfoundry.com. © 2021 Sonic Foundry, Inc. Product and service names mentioned herein are the trademarks of Sonic Foundry, Inc. or their respective owners. Forward Looking StatementsThis news release contains forward-looking statements about the products and services of Sonic Foundry within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward looking statements include statements about our products and services, our customer base, strategic investments, new partnerships, our future operating results and any statements we make about the company’s future. These types of statements address matters that are subject to many risks and uncertainties. Actual results could differ materially from the forward-looking guidance we provide. Any forward-looking statements should be considered in context of the risk factors disclosed in our periodic forms 10Q, 10K and other filings with the SEC. These filings can be accessed on-line at www.sec.gov and other websites or can be obtained from the company’s investor relations department. All of the information and disclosures we make in this news release regarding our business, including any forward looking guidance, are as of the date given and we assume no obligation to update or change this information, regardless of subsequent events. Contacts:Media:Nicole Wise, Director of Communications920.226.0269nicolew@sonicfoundry.com Sonic Foundry, Inc.Condensed Consolidated Balance Sheets(in thousands, except for share and per share data) March 31, September 30, 2021 2020 Assets Current assets: Cash and cash equivalents $5,425 $7,619 Accounts receivable, net of allowances of $233 & $236 5,109 6,250 Inventories 1,090 1,167 Investment in sales-type lease, current 203 275 Capitalized commissions, current 315 440 Prepaid expenses and other current assets 1,083 1,065 Total current assets 13,225 16,816 Property and equipment: Leasehold improvements 1,113 1,128 Computer equipment 8,282 7,960 Furniture and fixtures 1,400 1,366 Total property and equipment 10,795 10,454 Less accumulated depreciation and amortization 7,760 7,295 Property and equipment, net 3,035 3,159 Other assets: Investment in sales-type lease, long-term 72 76 Capitalized commissions, long-term 71 100 Right-of-use assets under operating leases 1,403 2,081 Other long-term assets 467 397 Total assets $18,273 $22,629 Liabilities and stockholders’ equity (deficit) Current liabilities: Accounts payable $1,077 $2,689 Accrued liabilities 2,454 2,565 Current portion of unearned revenue 7,813 10,402 Current portion of finance lease obligations 85 119 Current portion of operating lease obligations 1,135 1,425 Current portion of notes payable and warrant debt, net of discounts 1,086 1,104 Total current liabilities 13,650 18,304 Long-term portion of unearned revenue 1,766 1,736 Long-term portion of finance lease obligations 46 89 Long-term portion of operating lease obligations 267 665 Long-term portion of notes payable and warrant debt, net of discounts 2,089 2,673 Derivative liability, at fair value 85 66 Other liabilities 154 144 Total liabilities 18,057 23,677 Commitments and contingencies Stockholders’ equity (deficit): Preferred stock, $.01 par value, authorized 500,000 shares; none issued — — 9% Preferred stock, Series A, voting, cumulative, convertible, $.01 par value(liquidation preference of $1,000 per share), authorized 4,500 shares; zeroshares issued and outstanding, at amounts paid in — — 5% Preferred stock, Series B, voting, cumulative, convertible, $.01 par value(liquidation preference at par), authorized 1,000,000 shares, none issued — — Common stock, $.01 par value, authorized 10,000,000 shares; 8,063,713 and7,965,325 shares issued, respectively and 8,050,997 and 7,952,609 sharesoutstanding, respectively 81 80 Additional paid-in capital 209,523 209,022 Accumulated deficit (208,630) (209,519) Accumulated other comprehensive loss (589) (462) Treasury stock, at cost, 12,716 shares (169) (169) Total stockholders’ equity (deficit) 216 (1,048) Total liabilities and stockholders’ equity (deficit) $18,273 $22,629 Sonic Foundry, Inc.Consolidated Statements of Operations(in thousands, except for share and per share data)(Unaudited) Three Months EndedMarch 31, Six Months EndedMarch 31, 2021 2020 2021 2020 Revenue: Product and other $2,571 $2,812 $4,747 $4,867 Services 6,140 5,854 13,129 11,814 Total revenue 8,711 8,666 17,876 16,681 Cost of revenue: Product and other 951 1,158 1,764 1,989 Services 1,624 1,247 3,222 2,595 Total cost of revenue 2,575 2,405 4,986 4,584 Gross margin 6,136 6,261 12,890 12,097 Operating expenses: Selling and marketing 2,895 3,057 5,905 6,453 General and administrative 1,055 1,176 2,253 2,617 Product development 1,731 1,499 3,472 3,089 Total operating expenses 5,681 5,732 11,630 12,159 Income (loss) from operations 455 529 1,260 (62) Non-operating expenses: Interest expense, net (23) (218) (52) (481) Other expense, net (38) (58) (27) (43) Total non-operating expenses (61) (276) (79) (524) Income (loss) before income taxes 394 253 1,181 (586) Income tax benefit (expense) (137) (158) (292) (139) Net income (loss) $257 $95 $889 $(725) Dividends on preferred stock — — — — Net income (loss) attributable to commonstockholders $257 $95 $889 $(725) Income (loss) per common share – basic $0.03 $0.01 $0.11 $(0.11) – diluted $0.03 $0.01 $0.11 $(0.11) Weighted average common shares – basic 8,040,513 6,785,180 8,001,723 6,760,779 – diluted 8,557,788 6,933,227 8,451,913 6,760,779 Sonic Foundry, Inc.Consolidated Statements of Cash Flows(in thousands)(Unaudited) Six Months Ended March 31, 2021 2020 Operating activities Net Income (loss) $889 $(725) Adjustments to reconcile net income ( loss ) to net cash provided by (usedin) operating activities: Amortization of other intangibles 33 150 Depreciation and amortization of property and equipment 539 433 Loss on sale of fixed assets 5 — Provision for doubtful accounts - including financing receivables 3 9 Stock-based compensation expense related to stock options 283 86 Stock issued for board of director fees — 64 Deferred loan interest to related party — 264 Remeasurement loss (gain) on derivative liability 19 63 Changes in operating assets and liabilities: Accounts receivable 925 175 Inventories 71 (45) Investment in sales-type lease 63 126 Capitalized commissions 154 134 Prepaid expenses and other current assets (45) 64 Right-of-use assets under operating leases 655 562 Operating lease obligations (665) (578) Other long-term assets (93) 4 Accounts payable and accrued liabilities (1,628) (162) Other long-term liabilities 17 (1) Unearned revenue (2,495) 57 Net cash provided by (used in) operating activities (1,270) 680 Investing activities Purchases of property and equipment (448) (118) Net cash used in investing activities (448) (118) Financing activities Proceeds from notes payable — 463 Payments on notes payable (618) (618) Proceeds from issuance of preferred stock and common stock 10 — Proceeds from exercise of common stock options 209 1 Payments on finance lease obligations (76) (124) Net cash used in financing activities (475) (278) Changes in cash and cash equivalents due to changes in foreign currency (1) 7 Net increase (decrease) in cash and cash equivalents (2,194) 291 Cash and cash equivalents at beginning of year 7,619 4,295 Cash and cash equivalents at end of period $5,425 $4,586 Supplemental cash flow information: Interest paid $31 $479 Income taxes paid, foreign 44 90 Non-cash financing and investing activities: Property and equipment financed by finance lease or accounts payable — 821 Sonic Foundry, Inc.Consolidated Non-GAAP Adjusted EBITDA Reconciliation(in thousands) Three Months EndedMarch 31, Six Months EndedMarch 31, 2021 2020 2021 2020 Net income (loss) $257 $95 $888 $(725) Add: Depreciation and amortization 270 262 538 583 Income tax expense (benefit) 137 158 292 139 Interest expense 23 218 52 481 Stock-based compensation expense 165 34 284 86 Severance - - 101 0 Adjusted EBITDA $852 $767 $2,155 $564