Voxware Reports 110% Increase in Fiscal Second Quarter Revenue
February 19, 2008
217% Increase in Software License Revenue Fuels Growth of Business
LAWRENCEVILLE, NJ – February 19, 2008 – Voxware, Inc (Nasdaq: VOXW), a leading supplier of software for voice-driven warehousing operations, reported record revenue for its second fiscal quarter. Overall revenues increased 110% to $5.429 million, a record for the Company’s second fiscal quarter. Software license revenue continues to be the fastest growing aspect of Voxware’s business, with a 217% increase over the same period a year ago. The Company has now operated profitably over the past four quarters combined. Voxware's unaudited financial statements for the quarter ended December 31, 2007, can be found in its Form 10-QSB filed with the Securities and Exchange Commission on February 15, 2008.
“Voxware revolutionized the voice industry with open, packaged software products, as opposed to the proprietary, customized systems characteristic of the past,” said Scott Yetter, Voxware CEO. “We believe the effectiveness of our software-based strategy is shown by our results, which are our strongest-ever for the first half of a fiscal year.”
“To extend our product lead, Voxware increased R&D spending by 60% in the quarter ended December 31, 2007, when compared to the same quarter a year ago,” Yetter continued. “We will continue to invest in our software products, which are clearly enabling us to win new customers and are key drivers to the growth of our business.”
During the quarter, the Company took a one-time charge of $118,000 for a tender offer by the Company of certain of its stock options previously granted to employees. On a GAAP basis, the Company recorded a $7,000 loss for the quarter ended December 31, 2007, compared to a loss of $1.398 million for the same period a year ago. The Company reported a profit of $447,000 for the six months ended December 31, 2007, compared to a loss of $2.712 million for the same period a year ago.
Net profits on a non-GAAP basis were $230,000 for the quarter ended December 31, 2007 and $758,000 for the six months ended December 31, 2007. The difference between the GAAP and non-GAAP net profit is due to non-cash stock-based compensation, which increased to $237,000 for the quarter ended December 31, 2007, compared to $74,000 in the quarter ended September 30, 2007.
<typohead type="1" align="left">About Voxware </typohead>
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 Lawrenceville, New Jersey, with operating offices in Cambridge, Massachusetts, the United Kingdom, Belgium 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 non-GAAP financial measures: non-GAAP net profit. 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 large increase in FAS 123R or stock-based compensation charges incurred in the second quarter makes non-GAAP net profit an important metric for investors to value the Company. Non-cash stock-based compensation charges for the second quarter were $237,000 compared to $74,000 in the first quarter, an increase of over 220%. Accordingly, we believe that non-GAAP net profit, 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 FAS 123R, 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 profit, 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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For more information, please contact:
<typohead type="1" align="left">Public Relations Contact:
PR@voxware.com</typohead>
<typohead type="1" align="left">Investor Relations Contact:
IR@voxware.com</typohead>
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<typohead type="1" align="left" class="Sub-titlePressRelease">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; the pending Nasdaq delisting proceedings; 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.</typohead>
