SofTech, Inc. News
SofTech Announces First Quarter Financial Results
Revenue Increase of 71% in Q1 2004 vs. Prior Year; Positive Cash Flow ContinuesTEWKSBURY, Mass. – October 15, 2003 — SofTech, Inc. (OTCBB:SOFT), a leading provider of design-through-manufacturing productivity solutions, today announced Q1 fiscal 2004 results. Revenue for Q1 FY 2004 was about $2.9 million, an increase of 71% as compared to the same period last year. The net loss for the current quarter was ($478,000) or ($.04) per share as compared to a net loss of ($532,000) or ($.04) per share for the same period in the prior fiscal year.
Pro forma net income, which excludes non-cash expenses related to amortization of intangible assets, was $132,000 for the current quarter as compared to a pro forma net loss of ($147,000) for the same period in the prior fiscal year. Free Cash Flow, defined as net loss adjusted for non-cash expenses less capital expenditures, totaled $173,000 for the current quarter. During the first quarter of fiscal 2003 Free Cash Flow was ($94,000). It is management’s view that these non-GAAP financial measures of cash flow provide important information in understanding the Company’s performance. A reconciliation is provided on the attached Financial Summary.
“While I was pleased that we generated positive cash flow for the first quarter of fiscal 2004 and have dramatically improved our financial performance as compared to the prior year, I was disappointed with our license revenue” said Joe Mullaney, President and COO of SofTech, Inc. “Our services revenue and spending were on plan and we look to improve on license revenue over the coming quarters as a result of our recently integrated sales and sales support organizations worldwide and as we continue to deliver on customer-driven product advancements.”
About SofTech
SofTech, Inc. (OTCBB: SOFT) provides design-through-manufacturing productivity solutions with its computer-aided design (CAD), computer-aided manufacturing (CAM) and product data management (PDM) products including CADRA?, DesignGateway™, Prospector™, and ProductCenter™ (through SofTech’s Workgroup Technology Division). SofTech’s solutions optimize product lifecycle management at the lowest cost by fostering innovation, extended enterprise collaboration, product quality improvements, and compressed time-to-market cycles.
SofTech has more than 100,000 users benefiting from its solutions, including Boeing, FlightSafety International, General Electric Company, Goodrich Turbine Fuel Technologies, Honeywell, Millipore Corporation, Siemens, Sikorsky Aircraft, U.S. Army, and Whirlpool Corporation.
Headquartered in Tewksbury, Massachusetts, SofTech (www.softech.com) has locations and distribution partners throughout North America, Europe, and Asia.
Cautionary Note Regarding Forward-Looking Statements
The statements made above with respect to SofTech’s outlook for fiscal 2004 and beyond represent “forward looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities and Exchange Act of 1934 and are subject to a number of risks and uncertainties. These include, among other risks and uncertainties, general business and economic conditions, generating sufficient cash flow from operations to fund working capital needs, potential obsolescence of the Company’s technologies, maintaining existing relationships with the Company’s lenders, successful introduction and market acceptance of planned new products and the ability of the Company to attract and retain qualified personnel both in our existing markets and in new territories.
Contact: Joseph P. Mullaney
President and COO
(781) 890-8373
