Rainmaker Systems Inc. Reports Unaudited Consolidated Earnings Results for its First Quarter Ended March 31, 2012; Re-Affirms Cash Flow Guidance for Third Quarter of 2012
May 15, 2012 at 04:05 pm EDT
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Rainmaker Systems Inc. reported unaudited consolidated earnings results for its first quarter ended March 31, 2012. Net revenue in the first quarter of 2012 was $8.6 million, compared to net revenue in the first quarter of 2011 of $8.8 million. Net loss for the first quarter of 2012 was $1.5 million, or a loss of $0.05 per basic and diluted share, compared to a net loss in the preceding quarter of $1.9 million, or a loss of $0.07 per basic and diluted share, and a net loss in the first quarter of 2011 of $3.1 million, or a loss of $0.15 per basic and diluted share. First quarter 2012 non-GAAP net loss, which excludes stock-based compensation expense, amortization of purchased intangible assets, and a gain due to change in fair value of warrant liability was $1.3 million, or a loss of $0.05 per share, compared to a non-GAAP net loss in the preceding quarter of $1.6 million, or a loss of $0.06 per share, and a non-GAAP net loss in the first quarter of 2011 of $2.3 million, or a loss of $0.11 per share. Adjusted LBITDA was $614,000 for the three months ended March 31, 2012 and adds back to EBITDA non-cash stock based compensation expense of $187,000 incurred in the first quarter of 2012. The company reported operating loss was $1,408,000, loss before income tax expense was $1,396,000 against $2,997,000 and $3,034,000 respectively a year ago. Net cash provided by operating activities was $673,000 against $1,946,000 a year ago. Purchases of property and equipment were $354,000 against $446,000 a year ago.
The company continues to anticipate achieving a return to positive cash flow in the third quarter of 2012.
Rainmaker Systems, Inc., is an enterprise solutions company. Rainmaker Systems, Inc. and its subsidiaries are focused on serving business enterprises to help increase sales to small and medium sized businesses. The Company's services include lead generation services, SMB sales and contract renewals and training. The Company has developed the Rainmaker Revenue Delivery Platform which combines sales and marketing services coupled with renewals software and business analytics. The Companyâs services include marketing strategy development, personalized renewals and subscription e-commerce and microsite creation and hosting, inbound and outbound e-mail, direct mail, chat, and call center services across the world. The Companyâs ViewCentral SaaS platform provides an end-to-end solution for the management and delivery of training programs for corporations. The ViewCentral Learning Management System platform is a SaaS, cloud based, on-demand, training management system.
Rainmaker Systems Inc. Reports Unaudited Consolidated Earnings Results for its First Quarter Ended March 31, 2012; Re-Affirms Cash Flow Guidance for Third Quarter of 2012