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MADISON, Wis--Sonic Foundry, Inc.
, a rich media solutions company, today announced results for its fiscal 2003 year ended Sept. 30, 2003. During fiscal 2003, the company completed a major transformation of its business, selling off both its Media Services and Desktop Software divisions to focus exclusively on the rich media Web communications market.
Sonic Foundry finished the year with a strong ramp up in sales in line with early stage business development efforts for its continuing Web communications business. For the year, revenues increased to $1.3 million, up 47 percent, compared to total revenues of $859,000 recorded in fiscal 2002. Mediasite Live sales and related support revenue grew significantly from the previous year, increasing nearly six times from the $218,000 reported in fiscal 2002 to the $1.3 million in revenues the company reported for fiscal 2003.
The $2.9 million loss from operations of the Media Services and Software business units sold earlier this year are presented separately as discontinued operations, along with the $11.9 million gain on the sale of discontinued businesses. These items led to the company reporting net income of $1.5 million, or 5 cents per share, for fiscal 2003 compared to a loss of $56.7 million, or $2.12 per share, reported for the 12 months in fiscal 2002. The company's 2002 loss also included a one-time charge of $44.7 million due to a change in accounting.
The company paid off all its debt, and increased its cash and cash equivalents to $12.6 million compared to $3.7 million reported for the same period one year ago.
Operating costs from continuing operations significantly declined from $8.4 million to $7.9 million, yet contain general and administrative expenses in both fiscal periods related to its previous Media Services and Software businesses that were not allocable to discontinued operations. Operating expenses are expected to continue to decline in 2004 as a result of the company's streamlined operations in line with its new strategy and core focus on Web communications.
Going forward, the company anticipates revenues will continue to grow at a fairly rapid clip -- increasing to between $700,000 and $800,000 for the first quarter of fiscal 2004. Together with anticipated improvements in gross margin and a continued decline in operating expenses, it expects to report a net loss of approximately 5 cents per share for the first quarter 2004 period.