For the quarter ended June 30, the company reported a net loss or $6.3 million, or 26 cents a share, compared with a net loss of $3.4 million, or 15 cents a share for the same period last year. Revenue for the quarter was $9.8 million, a 95% increase from the $5 million reported for the same period last year.
While the company reported 79 new customer wins for the quarter--including Heineken, Deutsche Telecom, Cingular Wireless, and Marriott International--CEO and chairman Leon Navickas said during a conference call that several potential customers postponed E-learning purchases until the next quarter. Dalton L. Chandler, equity analyst with Needham & Co. Inc., says this is the first time he's heard of deals being pushed back. "It indicates there might be a softening of the market," he says. But business seems to be fine for now. "Seventy-nine is a good number, and consistent with what they have been doing, and compared to the rest of the software sector, they are doing extremely well.
The E-learning market, by offering a rapid return on investment and significant cost savings, appears to have dodged the IT spending slowdown. But that might be changing. Earlier this month, learning-management-system provider Saba Software Inc. reported strong fourth-quarter and year-to-year revenue growth, but warned of flat revenue growth for the next year.