Sonic Foundry Inc (NASDAQ:SOFO) Fumbles In Q4, Slips 23%

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Dallas, Texas 12/15/2014 (FINANCIALSTRENDS) – Sonic Foundry Inc (NASDAQ:SOFO) the webcast solutions provider is on a bad roll at the stock markets, beginning Friday, Dec 12. As reports of fourth quarter losses began to trickle in, share prices dropped closing out nearly 23% by end of trading session.

Sonic Foundry Inc (NASDAQ:SOFO) which dominates the web video content frames, also provides wide-ranging content for business to education and entertainment. It is a multi-sector player with different platforms in place for delivery of evens, customer services, Video platofm as well as Mediasite Capture Solutions.

Much of the success for Sonic has also come in from a range of video content it provides for campus and enterprises as well as training rooms, videoconferences.

But, Sonic appears to have missed some of the earlier magic with its content as the prolific producer of quality content is floundering with poor sales in the fourth quarter of this fiscal. The company reported loss of 30 cents per share.

More striking was the fact that the quarter loss has widened from year-to-year. The quarterly revenues though were higher by 25% reaching $8.5million due to the acquisition of assets- Mediasite KK as well as MediaMission BV, it also higher sale of units. Revenues in terms of billing too had increased by over 26% to $9.2 million in under a year. But the impact was in the reduction of margins, which in turn was due to lower product-based gross margins.

Net loss for the company is in the region of $1.3 million and has widened to a loss of $666K for the same quarter a year ago. The company had exited the quarter with ‘cash and cash equivalents,‘ which are to the tune of $929K.

Expert Speak

The revenues for the year as a whole have been high. Fourth-quarter however has been lukewarm in financial terms, and the trend is expected to continue into the next quarter as well with higher expenses. But the range of ‘strategic acquisitions’ will see the company report positive topline and its end to legal tussle with Astute Technology will also help it in leverage gains by way of patents licensing.

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