Covisint, Corp. (NASDAQ:COVS) Announces Second Quarter Fiscal 2017 Financial Results, How Will the Crowd Respond?

Leading Cloud Platform, Covisint, Corp. (NASDAQ:COVS), announces financial results for Q2, 2017.

DETROIT, Nov. 03, 2016 (GLOBE NEWSWIRE) — Covisint Corporation (COVS), the leading Cloud Platform for building Identity and Internet of Things (IoT) applications, today announced financial results for the second quarter of fiscal 2017, which ended September 30, 2016.

“During the second quarter, we delivered total revenue of $17.2 million, which included $14.6 million in subscription revenue. Our margins remain strong and we finished the quarter with nearly $35 million in cash, which was ahead of our expectations. We remain focused on driving subscription revenue sales growth, particularly within our core automotive vertical, while aggressively managing our cash position through strong expense management. We are raising our Fiscal Year End 2017 cash guidance to $33 million and expect to be cash flow break-even for Fiscal Year 2018,” said Covisint CEO, Sam Inman.

Second Quarter Fiscal 2017 Financial Highlights

Revenue

    Total revenue was $17.2 million, a decrease of 7% compared to $18.4 million in the prior year period.

    Subscription revenue was $14.6 million, a decrease of 4% compared to $15.3 million in the prior year period.

    Services revenue was $2.6 million, a decrease of 18% compared to the prior year period.

Profitability

    GAAP gross margin was 48%, compared to 53% in the prior fiscal quarter and 54% in the prior year period.

    Non-GAAP gross margin was 55%, compared to 58% in the prior fiscal quarter and 59% in the prior year period.

    GAAP net loss was $4.9 million or ($0.12) per diluted share, compared to net loss of $4.1 million or ($0.10) per diluted share in the prior year.

    Non-GAAP net loss was $4.1 million or ($0.10) per diluted share, compared to net loss of $3.7 million or ($0.09) per diluted share in the prior year.

Balance Sheet

    The Company had $34.8 million in cash and cash equivalents at September 30, 2016, compared with $41.8 million at June 30, 2016.

Second Quarter Fiscal 2017 Business Highlights

    Enhanced relationships by renewing contracts with two global automotive OEMs to deliver their Supplier Portal, with new 5-year and 3-year agreements. We also renewed contracts with several Tier I automotive suppliers.

    Showcased the Covisint Platform at the 2016 Cisco Live! Conference in Las Vegas, July 2016.

    Featured in 451 Research, The Internet of Things Market Map 2016, published August 2016.

    Exhibited and presented at the 2016 Gartner Catalyst Conference in San Diego, August 2016, where Covisint Chief Security Officer, David Miller presented on “Orchestrating Identities Across People, Systems and Things.”

    Featured in Gartner Research, Critical Capabilities for Identity and Access Management as a Service, Worldwide, published September 2016.

    Showcased the Covisint Platform at the 2016 World Mobility Leadership Forum in Detroit, September 2016.

    Featured in ABI Research, Vehicle Prognostics Pave the Way for Advanced Driver Assistance Systems Progression, published September 2016.

Use of Non-GAAP Financial Measures

In addition to reporting financial results in accordance with generally accepted accounting principles (“GAAP”), Covisint monitors non-GAAP measures, including non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share. Each of these financial measures excludes the impact of certain items (the impact of stock award compensation expense, the amortization and impairment of intangible assets and amounts incurred for capitalized internal software costs) and, therefore, has not been calculated in accordance with GAAP.

Covisint monitors these non-GAAP measures to evaluate its ongoing operational performance and enhance an overall understanding of its past financial performance. Covisint believes that these non-GAAP metrics help illustrate underlying trends in its business that could otherwise be masked by the effect of the expenses that are excluded in non-GAAP gross profit, non-GAAP gross margin, non-GAAP net income (loss), non-GAAP net income (loss) per diluted share. Furthermore, Covisint uses these measures to establish budgets and operational goals for managing its business and evaluating its performance. Covisint also believes that these non-GAAP measures provide additional tools for investors to use in comparing its recurring core business operating results over multiple periods against other companies in its industry.

The presentation of this non-GAAP financial information is not intended to be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of the non-GAAP financial measures discussed in this press release to the most directly comparable GAAP financial measures is included with the financial statements contained in this press release. Management uses both GAAP and non-GAAP information in evaluating and operating its business internally and as such has determined that it is important to provide this information to investors.

Conference Call and Webcast Information

Covisint management will hold a conference call at 5:00 p.m. (Eastern time) today to discuss these results. The U.S. toll free dial-in for the conference call is 1-877-407-4018, and the international dial-in number is 1-201-689-8471. No passcode is required. A live webcast of the conference call will also be available on the company’s website at investors.covisint.com.

For those unable to participate in the conference call, a replay will be available after the conclusion of the earnings call on November 3, 2016, through November 10, 2016. The U.S. toll-free replay dial-in number is 1-844-512-2921 and the international replay dial-in number is 1-412-317-6671. The replay passcode is 13647593.

About Covisint Corporation

Covisint is the leading Cloud Platform for building Identity and Internet of Things (IoT) applications. Our Cloud Platform technology facilitates the rapid development of identification, authorization and connection of complex networks of people, processes, systems and things.

The Covisint Cloud Platform supports customers in their endeavors to securely identify, authenticate and connect users, devices, applications and information. It supports 2,000 organizations who connect more than 212,000 business partners and customers that support $4 billion in ecommerce transactions annually. Learn more at http://www.covisint.com/.

Original Source

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Covisint, Corp. (NASDAQ:COVS) shares have moved -9.09% on the news thus far today and have traded in the range of $2.00 – 2.15 during the current session. In order to take a look at where the stock might be headed longer term, investors often look to research firms that cover the stock. Sell-side research firms currently have a consensus one-year price target of $1.75 on the stock.  This is according to brokerage analysts polled by Thomson Reuters First Call.  The sell-side analysts are projecting earnings per share of $0.00 for the next fiscal quarter.  For the current year, analysts are predicting earnings of $-0.29 per share according to First Call.

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In looking at where the stock is trading on a technical level, the stock is trading -7.60% away from its 50-day moving average of $2.16.  Based on the most recent available data, the equity is -24.81% off of its 52-week high of $2.66 and +33.33% away from its 52-week low which is $1.50.

Today, the stock opened at $2.10 and the last bid at the time of writing stood at $2.00.  During the session thus far, the equity dipped down to $2.00 and touched $2.15 as the high point.  Covisint, Corp. (NASDAQ:COVS) has a market cap of $81.15M and has seen an average daily volume of 38,232 over the past three months.

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