Welcome!

News Feed Item

Mattersight Announces First Quarter 2014 Results

CHICAGO, IL -- (Marketwired) -- 05/07/14 -- Mattersight Corporation (NASDAQ: MATR), a leading provider of enterprise analytics, today announced financial results for the first quarter ended March 31, 2014.

Mattersight's total services revenue was $7.0 million, including $5.9 million of subscription revenue. The Company realized an "Adjusted Earnings(1)" loss of $1.6 million for the first quarter of 2014. Adjusted Earnings is a non-GAAP measure. For a reconciliation of operating loss to Adjusted Earnings, see the accompanying schedule. Mattersight's net loss was $4.0 million in the first quarter of 2014.

Q1 Highlights

  • Q1 performance in line with forecast, which reflected the previously announced loss of a contract
  • Booked contracts with incremental ACV of $3.4 million
  • Increased rolling four quarter incremental ACV bookings by 98%
  • Achieved a 9% sequential increase in our book of business
  • Converted three pilots to subscription contracts
  • Added a record 29 new pilots, including 22 routing pilots; 18 of these pilots are with new logo customers
  • Ended the quarter with a record 66 pilots having a record follow-on ACV of ~$34 million
  • Signed a paid pilot with a Fortune 50 company for our performance management application, with large follow-on potential
  • Closed significant add-on orders at several existing large customers

Conference Call Information

Mattersight management will host a conference call at 5:00 p.m. ET on Wednesday, May 7, 2014. The conference call and slide presentation will be available at the Investment Community section of Mattersight's website at http://www.mattersight.com/investment/. To listen to the conference call via telephone, please call 800.952.4789 (domestic) or 404.665.9579 (international), conference ID: 33606370.

For those who cannot access the live broadcast, a replay of the conference call will be available beginning approximately two hours after the live call is completed until June 7, 2014, by dialing 855.859.2056 (domestic) or 404.537.3406 (international), conference ID: 33606370.

Safe Harbor for Forward-Looking Statements

Statements in this press release that are not historical facts are "forward-looking statements" that are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements, which may be identified by use of words such as "plan," "may," "might," "believe," "expect," "intend," "could," "would," "should," and other words and terms of similar meaning, involve risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. In addition to other factors and matters contained or incorporated in this document, important factors that could cause actual results or events to differ materially from those indicated by such forward-looking statements include, among other things, the risks detailed from time to time in Mattersight's SEC filings. You can locate these filings on the Investor Relations page of Mattersight's website, www.mattersight.com. Statements included or incorporated by reference into this press release are based upon information known to Mattersight as of the date of this press release, and the company assumes no obligation to publicly revise or update any forward-looking statement for any reason.

About Mattersight

Mattersight is a leader in enterprise analytics focused on customer and employee interactions and behaviors. Mattersight® Behavioral Analytics captures and analyzes customer and employee interactions, employee desktop data, and other contextual information to optimally route customers to the best available employee, improve operational performance, and predict future customer and employee outcomes. Mattersight's analytics are based on millions of proprietary algorithms and the application of unique behavioral models. The company's SaaS+ delivery model combines analytics in the cloud with deep customer partnerships to drive significant business value. Mattersight's solutions are used by leading companies in Healthcare, Insurance, Financial Services, Telecommunications, Cable, Utilities, Education, Hospitality, and Government. See What Matters™ by visiting www.Mattersight.com.

(1) Mattersight presents Adjusted Earnings, a non-GAAP measure that
    represents cash earnings performance, excluding the impact of non-cash
    expenses and expense reduction activities, because management believes
    that Adjusted Earnings provide investors with a better understanding of
    the results of Mattersight's operations. Management believes that
    Adjusted Earnings reflect Mattersight's resources available to invest in
    its business and strengthen its balance sheet. In addition, expense
    reduction activities can vary significantly between periods on the basis
    of factors that management does not believe reflect current-period
    operating performance. Although similar adjustments for expense
    reduction activities may be recorded in future periods, the size and
    frequency of these adjustments cannot be predicted. The Adjusted
    Earnings measure should be considered in addition to, not as a
    substitute for or superior to, operating income, cash flows or other
    measures of financial performance prepared in accordance with GAAP.


                          MATTERSIGHT CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
            (Unaudited and in thousands, except per share data)

                                                 For the Three Months Ended
                                                 --------------------------
                                                   March 31,     March 31,
                                                     2014          2013
                                                 ------------  ------------
Revenue:
  Behavioral Analytics revenue                   $      6,749  $      8,194
  Other revenue                                           232           322
                                                 ------------  ------------
    Total services revenue                              6,981         8,516
  Reimbursed expenses                                      32            82
                                                 ------------  ------------
Total revenue                                           7,013         8,598
Operating expenses:
  Cost of Behavioral Analytics revenue                  2,098         2,723
  Cost of Other revenue                                   103           156
                                                 ------------  ------------
    Cost of services                                    2,201         2,879
  Reimbursed expenses                                      32            82
                                                 ------------  ------------
Total cost of revenue, exclusive of depreciation
 and amortization shown below:                          2,233         2,961
  Sales, marketing and development                      5,221         6,230
  General and administrative                            2,250         2,271
  Depreciation and amortization                           743           966
                                                 ------------  ------------
Total operating expenses                               10,447        12,428
                                                 ------------  ------------

Operating loss                                         (3,434)       (3,830)
Interest and other expense, net                          (150)          (91)
Change in fair value of warrant liability                (370)           --
                                                 ------------  ------------
Loss before income taxes                               (3,954)       (3,921)
Income tax (provision) benefit                             (9)          248
                                                 ------------  ------------
Net loss                                               (3,963)       (3,673)
Dividends related to Series B Stock                      (147)         (147)
                                                 ------------  ------------
Net loss available to Common Stock holders       $     (4,110) $     (3,820)
                                                 ============  ============

Per share of Common Stock:
Basic net loss available to Common Stock holders $      (0.22) $      (0.23)
                                                 ============  ============
Diluted net loss available to Common Stock
 holders                                         $      (0.22) $      (0.23)
                                                 ============  ============

Shares used to calculate basic net loss per
 share                                                 18,503        16,320
                                                 ============  ============
Shares used to calculate diluted net loss per
 share                                                 18,503        16,320
                                                 ============  ============

Stock-based compensation, primarily restricted
 stock, is included in individual line items
 above:
  Cost of Behavioral Analytics revenue           $         56  $          4
  Sales, marketing and development                        590           849
  General and administrative                              442           518



                          MATTERSIGHT CORPORATION
          CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
                        (Unaudited and in thousands)

                                                 For the Three Months Ended
                                                 --------------------------
                                                   March 31,     March 31,
                                                     2014          2013
                                                 ------------  ------------
Net loss                                         $     (3,963) $     (3,673)
Other comprehensive loss:
Effect of currency translation                              5            (8)
                                                 ------------  ------------
Comprehensive net loss                           $     (3,958) $     (3,681)
                                                 ============  ============



                          MATTERSIGHT CORPORATION
                   CONDENSED CONSOLIDATED BALANCE SHEETS
       (Unaudited and in thousands, except share and per share data)

                                                   March 31,   December 31,
                                                     2014          2013
                                                 ------------  ------------
                     ASSETS:
Current Assets:
  Cash and cash equivalents                      $      8,101  $     13,392
  Receivables (net of allowances of $12 as of
   March 31, 2014 and $12 as of December 31,
   2013)                                                2,435         2,384
  Prepaid expenses                                      4,309         3,576
  Other current assets                                    362           427
                                                 ------------  ------------
    Total current assets                               15,207        19,779
Equipment and leasehold improvements, net               4,922         5,158
Goodwill                                                  972           972
Intangibles, net                                          453           409
Other long-term assets                                  4,328         4,431
                                                 ------------  ------------
    Total assets                                 $     25,882  $     30,749
                                                 ============  ============

      LIABILITIES AND STOCKHOLDERS' EQUITY:
 Current Liabilities:
  Accounts payable                               $        779  $        752
  Accrued compensation and related costs                1,424         1,844
  Unearned revenue                                      5,390         7,215
  Other current liabilities                             4,694         4,098
                                                 ------------  ------------
    Total current liabilities                          12,287        13,909
Long-term unearned revenue                              3,210         2,866
Other long-term liabilities                             1,584         1,607
                                                 ------------  ------------
    Total liabilities                                  17,081        18,382
                                                 ------------  ------------

Series B Stock, $0.01 par value; 5,000,000
 shares authorized and designated; 1,649,122
 shares issued and outstanding at March 31, 2014
 and December 31, 2013, with a liquidation
 preference of $9,441 and $9,294 at March 31,
 2014 and December 31, 2013, respectively               8,411         8,411

Stockholders' Equity:
  Preferred stock, $0.01 par value; 35,000,000
   shares authorized; none issued and
   outstanding                                             --            --
  Common Stock, $0.01 par value; 50,000,000
   shares authorized; 20,750,724 and 20,465,984
   shares issued at March 31, 2014, and December
   31, 2013, respectively; and 19,074,434 and
   18,886,966 outstanding at March 31, 2014 and
   December 31, 2013, respectively                        208           205
  Additional paid-in capital                          228,976       228,038
  Accumulated deficit                                (216,135)     (212,172)
  Treasury stock, at cost, 1,676,290 and
   1,579,018 shares at March 31, 2014 and
   December 31, 2013, respectively                     (8,631)       (8,082)
  Accumulated other comprehensive loss                 (4,028)       (4,033)
                                                 ------------  ------------
    Total stockholders' equity                            390         3,956
                                                 ------------  ------------
    Total liabilities and stockholders' equity   $     25,882  $     30,749
                                                 ============  ============



                          MATTERSIGHT CORPORATION
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                        (Unaudited and in thousands)

                                                 For the Three Months Ended
                                                 --------------------------
                                                   March 31,     March 31,
                                                     2014          2013
                                                 ------------  ------------
Cash Flows from Operating Activities:
  Net loss                                       $     (3,963) $     (3,673)
  Adjustments to reconcile net loss to net cash
   used in operating activities:
    Depreciation and amortization                         743           966
    Stock-based compensation                            1,088         1,371
    Change in fair value of warrant liability             370            --
  Changes in assets and liabilities:
    Receivables                                           (51)         (614)
    Prepaid expenses                                     (664)           30
    Other assets                                           66           (38)
    Accounts payable                                       27           489
    Accrued compensation and related costs               (420)         (147)
    Unearned revenue                                   (1,481)          964
    Other liabilities                                      62          (215)
                                                 ------------  ------------
      Total adjustments                                  (260)        2,806
                                                 ------------  ------------
        Net cash used in operating activities          (4,223)         (867)
                                                 ------------  ------------
Cash Flows from Investing Activities:
  Capital expenditures and other                          (66)         (219)
  Patents and trademarks                                  (65)          (53)
                                                 ------------  ------------
        Net cash used in investing activities            (131)         (272)
                                                 ------------  ------------
Cash Flows from Financing Activities:
  Principal payments under capital lease
   obligations                                           (422)         (629)
  Acquisition of treasury stock                          (549)         (195)
  Proceeds from stock compensation and employee
   stock purchase plans, net                               36            36
  Fees from issuance of Common Stock                       (2)           --
                                                 ------------  ------------
        Net cash used in financing activities            (937)         (788)
                                                 ------------  ------------
Effect of exchange rate changes on cash and cash
 equivalents                                               --           (12)
                                                 ------------  ------------
Decrease in cash and cash equivalents                  (5,291)       (1,939)
Cash and cash equivalents, beginning of period         13,392        14,419
                                                 ------------  ------------
Cash and cash equivalents, end of period         $      8,101  $     12,480
                                                 ============  ============

Non-Cash Investing and Financing Transactions:
  Capital lease obligations incurred             $        420  $        785
  Capital equipment purchased on credit                   420           785
  Fair value of warrants classified as liability        1,155            --
Supplemental Disclosures of Cash Flow
 Information:
Interest paid                                    $         76  $         71



                          MATTERSIGHT CORPORATION
                  CALCULATION OF ADJUSTED EARNINGS MEASURE
                        (Unaudited and in thousands)

                                                 For the Three Months Ended
                                                 --------------------------
                                                   March 31,     March 31,
                                                     2014          2013
                                                 ------------  ------------
GAAP -- Operating loss                           $     (3,434) $     (3,830)

Add back (reduce) the effect of:
Stock-based compensation                                1,088         1,371
Depreciation and amortization                             743           966
                                                 ------------  ------------
Adjusted earnings measure -- loss                $     (1,603) $     (1,493)
                                                 ============  ============

Contact

Mark Iserloth
Vice President and Chief Financial Officer
312.454.3613
ir@mattersight.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"We host and fully manage cloud data services, whether we store, the data, move the data, or run analytics on the data," stated Kamal Shannak, Senior Development Manager, Cloud Data Services, IBM, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
As cloud adoption continues to transform business, today's global enterprises are challenged with managing a growing amount of information living outside of the data center. The rapid adoption of IoT and increasingly mobile workforce are exacerbating the problem. Ensuring secure data sharing and efficient backup poses capacity and bandwidth considerations as well as policy and regulatory compliance issues.
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, discussed how a cloud designed for production operations not only helps accelerate developer inno...
Almost two-thirds of companies either have or soon will have IoT as the backbone of their business. Though, IoT is far more complex than most firms expected with a majority of IoT projects having failed. How can you not get trapped in the pitfalls? In his session at @ThingsExpo, Tony Shan, Chief IoTologist at Wipro, will introduce a holistic method of IoTification, which is the process of IoTifying the existing technology portfolios and business models to adopt and leverage IoT. He will delve in...
SYS-CON Events announced today that Conference Guru has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. A valuable conference experience generates new contacts, sales leads, potential strategic partners and potential investors; helps gather competitive intelligence and even provides inspiration for new products and services. Conference Guru works with conference organizers to pass great dea...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.
"When you think about the data center today, there's constant evolution, The evolution of the data center and the needs of the consumer of technology change, and they change constantly," stated Matt Kalmenson, VP of Sales, Service and Cloud Providers at Veeam Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.
Zerto exhibited at SYS-CON's 18th International Cloud Expo®, which took place at the Javits Center in New York City, NY, in June 2016. Zerto is committed to keeping enterprise and cloud IT running 24/7 by providing innovative, simple, reliable and scalable business continuity software solutions. Through the Zerto Cloud Continuity Platform™, organizations can seamlessly move and protect virtualized workloads between public, private and hybrid clouds. The company’s flagship product, Zerto Virtual...
WebRTC defines no default signaling protocol, causing fragmentation between WebRTC silos. SIP and XMPP provide possibilities, but come with considerable complexity and are not designed for use in a web environment. In his session at @ThingsExpo, Matthew Hodgson, technical co-founder of the Matrix.org, discussed how Matrix is a new non-profit Open Source Project that defines both a new HTTP-based standard for VoIP & IM signaling and provides reference implementations.
The Internet of Things is clearly many things: data collection and analytics, wearables, Smart Grids and Smart Cities, the Industrial Internet, and more. Cool platforms like Arduino, Raspberry Pi, Intel's Galileo and Edison, and a diverse world of sensors are making the IoT a great toy box for developers in all these areas. In this Power Panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists discussed what things are the most important, which will have the most profound e...
We all know that data growth is exploding and storage budgets are shrinking. Instead of showing you charts on about how much data there is, in his General Session at 17th Cloud Expo, Scott Cleland, Senior Director of Product Marketing at HGST, showed how to capture all of your data in one place. After you have your data under control, you can then analyze it in one place, saving time and resources.
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
SYS-CON Events announced today that Linux Academy, the foremost online Linux and cloud training platform and community, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Linux Academy was founded on the belief that providing high-quality, in-depth training should be available at an affordable price. Industry leaders in quality training, provided services, and student certification passes, its goal is to c...
910Telecom exhibited at the 19th International Cloud Expo, which took place at the Santa Clara Convention Center in Santa Clara, CA, in November 2016. Housed in the classic Denver Gas & Electric Building, 910 15th St., 910Telecom is a carrier-neutral telecom hotel located in the heart of Denver. Adjacent to CenturyLink, AT&T, and Denver Main, 910Telecom offers connectivity to all major carriers, Internet service providers, Internet backbones and exchanges.