Back in July, the enterprise software developer Saba
In the fiscal second quarter, revenues increased 61% to $26.2 million (part of the boost came from the acquisition of Centra Software). There was a 36% increase in software license revenues, to $6.9 million. Such revenues are critical, since they generally lead to ongoing services and maintenance revenues.
There was also traction in Saba's Web-based software segment, with a 371% increase in sales to $3.8 million.
However, the company posted a net loss of $1 million, or $0.04 per share, which is down from net income of $131,000, or $0.01 per share, in the same period a year ago. The good news is that the latest quarter showed positive cash flow from operations of $3.1 million.
Saba develops so-called human capital management (HCM) software. This helps customers with things like online training, employee performance tracking and evaluation, and even succession planning (that is, planning for when key employees leave). Some of its marquee customers include Starbucks
In terms of guidance, Saba expects revenues for the fiscal third quarter to range from $26.5 million to $27.5 million and net income to range from breakeven to $0.03 per share.
What's more, the company is about to launch a variety of new products during the first half of 2007. For example, Saba will now be launching a version for Apple
With its larger customer footprint because of the Centra acquisition, Saba has an opportunity to boost revenues and profitability. In other words, it looks like the momentum will continue.
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