Worldwide Economic Conditions Contributed to Challenging Quarter
HAMILTON, NJ – November 13, 2009 – Voxware, Inc. (Nasdaq: VOXW), a leading supplier of software for voice-driven warehousing operations, reported results for the quarter ended September 30, 2009. Overall revenues decreased 16% to $2.747 million for the quarter ended September 30, 2009 from $3.254 million during the comparable prior year period. Net loss on a Generally Accepted Accounting Principles (“GAAP”) basis was $1.215 million for the quarter ended September 30, 2009, compared to a net loss of $1.970 million for the comparable prior year period. Voxware's financial statements for the quarter ended September 30, 2009, can be found in its Form 10-Q filed with the Securities and Exchange Commission on November 13, 2009.
“We previously stated that we expected challenging economic conditions to continue into Fiscal 2010, and that has been the case,” said Scott Yetter, Voxware CEO. “In addition to the slow summer months, the overall economy continues to influence spending decisions by current and prospective customers.”
“Our cash position remains strong at $3.8 million, and our debt is low. We have taken further steps to ensure that expenses will be more closely aligned with expected revenue during the second half of fiscal 2010.”
Net loss on a non-GAAP basis was $868,000 for the quarter ended September 30, 2009. The difference between the GAAP and non-GAAP net loss is attributable to non-cash stock-based compensation, which was $347,000 for the quarter ended September 30, 2009. A reconciliation of GAAP measures with non-GAAP measures can be found at the end of this release.
Voxware, Inc. (NASDAQ: VOXW), provides voice-driven software products that optimize the full spectrum of warehouse operations for greater accuracy, productivity and flexibility in supply chain execution. Voxware’s corporate headquarters are in Hamilton, New Jersey, with operating offices in Cambridge, Massachusetts, the United Kingdom, and France. Additional information about Voxware can be obtained at www.voxware.com.
About Non-GAAP Financial Measures
To supplement the consolidated financial statements presented in accordance with GAAP, this press release includes the following measure defined by the Securities and Exchange Commission as a non-GAAP financial measure: non-GAAP net loss. This non-GAAP measure is not based on any comprehensive set of accounting rules or principles and should not be considered a substitute for, or superior to, financial measures calculated in accordance with GAAP, and may be different from non-GAAP measures used by other companies. In addition, this non-GAAP measure, the financial statements prepared in accordance with GAAP and reconciliations of Voxware’s GAAP financial statements to such non-GAAP measure should be carefully evaluated.
Management believes that the large amount of stock-based compensation charges incurred during the quarters ended September 30, 2009 and 2008 makes non-GAAP net loss an important metric for investors to value the Company. Non-cash stock-based compensation charges for the quarter ended September 30, 2009 were $347,000 compared to $309,000 in the quarter ended September 30, 2008, an increase of 12%. Accordingly, we believe that non-GAAP net loss, excluding non-cash stock-based compensation costs, are meaningful measures for investors to evaluate our financial performance. Moreover, because of varying available valuation methodologies and the variety of award types that companies can use under current accounting literature, we believe that providing non-GAAP financial measures that exclude non-cash stock-based compensation allows investors to make additional comparisons between our operating results to those of other companies. The presentation of non-GAAP net loss, when read in conjunction with our reported GAAP results, can provide useful supplemental information to our management and investors regarding financial and business trends relating to our financial condition and results of operations.
Stock-based compensation has been and will continue to be for the foreseeable future a significant recurring expense in our business. In addition, other companies may calculate non-GAAP financial measures differently than us, thereby limiting the usefulness of these non-GAAP financial measures as a comparative tool. We compensate for this limitation by providing specific information regarding the GAAP amounts excluded from the non-GAAP net profit and evaluating such non-GAAP financial measures with financial measure calculated in accordance with GAAP.
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This news release contains forward-looking statements. Such statements are subject to certain factors that may cause Voxware’s plans to differ or results to vary from those expected including the risks associated with Voxware’s need to introduce new and enhanced products and services in order to increase market penetration and the risk of obsolescence of its products and services due to technological change; Voxware’s need to attract and retain key management and other personnel with experience in providing integrated voice-based solutions for e-logistics, specializing in the supply chain sector; the potential for substantial fluctuations in Voxware’s results of operations; competition from others; Voxware’s evolving distribution strategy and dependence on its distribution channels; the potential that speech products will not be widely accepted; Voxware’s need for additional capital; and a variety of risks set forth from time to time in Voxware’s filings with the Securities and Exchange Commission. Voxware undertakes no obligation to publicly release results of any of these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unexpected results.
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