Learning-management system vendor Saba Software Inc. (SABA-Nasdaq) last week reported lackluster results for its first quarter ended Aug. 31. Also, president and chief operating officer Sebastian Grady resigned for personal reasons.
The vendor recorded a net loss of $11.2 million on revenue of $14.5 million, compared with a net loss of $19.1 million on revenue of $10 million for the same period last year. The company ended its last fiscal year in May with revenue of $53.1 million but a net loss of $62.8 million.
CEO and founder Bobby Yazdani blames the first-quarter showing on "a significant delay [among customers] on spending decisions." Saba still expects to be profitable by next year, Yazdani says, noting that interest in online training seems to be rising following last month's tragedies.
Ed Bierdeman, a senior VP at financial analyst firm Moors & Cabot, says that a million-dollar contract Saba signed with the U.S. Army and expanded relationships with clients, including General Motors, point to a bright long-term outlook. "The company displayed evidence of increased interest from customers," he says, "and it's well-positioned with the government."