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Re: 10.5 million loss.....

By: Cactus Flower in ALEA | Recommend this post (0)
Sat, 17 Mar 12 2:34 AM | 130 view(s)
Boardmark this board | The Trust Matrix 		Msg. 06872 of 54959
(This msg. is a reply to 06871 by faul)
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Hi doma,

Q1-3 company losses were around $5.9m so the Q4 Group loss looks to be around $4.6m.

Bear in mind that Safend's losses will be added to Wave's losses in Q4 to make group numbers.

Wave's company revenue looks to have been around $9.3m in Q4 to generate annual revenue of $34.4m for the year, with whatever Safend has contributed on top of that. So perhaps $36m for the Group's top line in 2012 and 10.7m - 11.0m for the quarter.

The sales team really isn't contributing as much as I would have expected given the increase in the numbers of staff. I was hoping for an extra million in sales. The sales team costs a lot, but it isn't generating so much. That's an old story. The question remains - will the demand emerge? And when? Why did SKS hire these people if it wasn't with the expectation of sales appearing soon?

I imagine someone else will work this out. But up to this point, iHub's righteous (if somewhat partial) policies mean that those who can figure what the numbers are don't post them there.

So who brings value to the conversation? iHub? Or the folks who post information to the board? ;-)


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The above is a reply to the following message:
10.5 million loss.....
By: faul in ALEA
Sat, 17 Mar 12 1:24 AM 		Msg. 06871 of 54959

Was this expected?

The Company expects to report significant changes in the results of its operations in 2011 from its results of operations in 2010. These changes relate to a combination of (i) the Company’s acquisition of Safend in September of 2011, (ii) the completion of the consolidation and purchase accounting for the Safend acquisition and (iii) the Company’s operating performance in 2011. However, the Company is still in the process of assessing the errors in the Safend financial statements and completing the consolidation and related purchase accounting for Safend.

Based on the Company’s current estimates and depending on the completion of the accounting error assessment for its Safend subsidiary, the Company expects to report a net loss for the year ended December 31, 2011 of approximately $10.5 million as compared to a net loss of approximately $4.1 million for the year ended December 31, 2010. Factors contributing to this estimated increase in net loss include (i) an increase in non-Safend stock based compensation of approximately $2.6 million as a result of increased estimated fair values for the 2011 stock-based payment awards, (ii) an increase in non-Safend salaries and related benefits totaling approximately $5.7 million in support of its growing customer base, (iii) an increase of approximately $1.8 million in non-Safend professional services expenses, consisting primarily of acquisition costs, recruitment fees and outsourced engineering services and (iv) the net loss of Safend, a wholly-owned subsidiary acquired on September 22, 2011, the sum of which are expected to be partially offset by an increase in non-Safend net revenues of approximately $8.3 million, primarily as the result of revenue recognized on its large class customer license upgrades which were recognized ratably during 2011 and for which the Company had not achieved vendor-specific objective evidence.

All of the foregoing estimates are subject to the completion of the Company’s 2011 financial statements as well as the Company’s continuing review and assessment of the above referenced accounting errors for Safend and their impact on the accounting for the purchase business combination. Accordingly, the estimates above could change. The Company expects to report on its final results of operations promptly following the completion of its 2011 annual financial statements.

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