Bracknell, UK, September 18, 2013 - Saba (OTC Pink: SABA), a global leader in next-generation cloud solutions for talent management, today provided an update on its business momentum and its progress on the restatement of certain historical financial results.
While the Company is not yet in a position to report detailed financial results for fiscal year 2013, ended May 31, 2013, as a result of its pending restatement of certain historical financial results, the Company is providing the following selected financial metrics that are not expected to be impacted by the restatement:
- Cloud bookings (the annual contract value of cloud subscription arrangements) grew 25% in fiscal year 2013 over fiscal year 2012 with contribution across geographies
- Cloud renewal rates remained at historic highs in excess of 90% for fiscal year 2013
- 203 new customers were added in fiscal year 2013, increasing 44% over the 141 new customers added in fiscal year 2012, driven by growth in both the enterprise and mid-market segments
- Cloud subscribers increased to 11.1 million
- Positive cash flow from operations of $5 million in the fourth quarter of fiscal year 2013 and $3 million for fiscal year 2013 (excluding $4 million in the fourth quarter of fiscal year 2013 and $11 million in fiscal year 2013 associated with non-recurring matters arising out of the financial restatement, and specified acquisition and restructuring related items)
- Cash and cash equivalents were $22 million (after payment of non-recurring and specified items of $11 million in fiscal year 2013) and total debt was $35 million at May 31, 2013
- In the first quarter of fiscal year 2014, the Company secured an additional $25 million five-year credit facility to enhance its financial position
During fiscal year 2013, Saba released its next generation talent management platform, Saba Cloud, which puts the power of talent management in the hands of managers and employees. Key Saba Cloud innovations, centered around social, mobile, intelligence, learning, and end user engagement, include:
- Simplified course creation, ability to create and administer assessments on-the-fly, a consolidated messaging center, support for continuing education credits, enhanced analytics, and enhanced performance reviews with offline support
- Native mobile applications, with the ability to view a wide variety of content types (including community generated, SCORM, Tin Can, and video), attend virtual meetings, and enterprise class security (including SAML authentication, time to live, and download controls)
- Enhanced instructor controls and customized registration forms with social media links and branding options for virtual meetings
- User experience based on consumer design patterns and engagement models
In fiscal year 2013, Saba customers, including some of the largest organizations around the globe, continued to standardize on Saba's cloud solutions, driving increased adoption and end user engagement. The superior flexibility, scalability and security of the Saba cloud platform is demonstrated by increased use among these customers, including:
- Approximately 200 million cumulative course completions as of May 31, 2013, up 100% from the end of the prior fiscal year
- Over 340,000 assessments administered in fiscal year 2013, up 20% from fiscal year 2012
- Over 640,000 subscribers supported in an organization, up from 400,000 subscribers previously reported
The Company has made significant progress on the restatement and has achieved several key milestones, including the determination of completion dates for significant consulting services arrangements. The Company is now evaluating potential relationships among services arrangements as well as between services arrangements and product bookings to determine which completion dates will drive the timing of revenue recognition. The Company continues to work diligently to complete the restatement and regain compliance with its reporting requirements as soon as practicable. Although the Company has set a revised objective to complete the restatement process in the coming months, there are some inherent uncertainties in the amount of time required to complete the work and there can be no assurance that the Company will be successful in meeting this timing objective.
In connection with becoming current in its SEC filing requirements, the Company intends to apply for prompt readmission to the NASDAQ Global Select Market so that it can trade on that market as early as possible after regaining compliance with the listing requirements.