MADISON, Wis., May 3 /PRNewswire-FirstCall/ — Sonic Foundry(R) Inc. (NASDAQ:SOFO) , a leader in automated rich media communications technology, issued further information on its forward-looking business prospects and the company’s position on issuing future financial guidance.
An expansion in deal size has caused the length of the sales and deployment cycle of Sonic Foundry products to increase, resulting in a variation of the company’s most recent quarter’s operating results relative to previously issued guidance. However, the company continues to see strong demand building in the rich media marketplace and has not witnessed any decrease in demand from the various vertical markets it serves, but rather has observed the pipeline to increase as expected. An increase in project and service opportunities also has been observed. The company intends to assess the usefulness of issuing financial guidance and rather, issue forward-looking information relative to future business prospects such as sales pipeline detail and other sales data.
“Larger deals, which involve longer selling cycles, have grown dramatically in our sales pipeline recently and impacted the immediate quarter’s results,” said Rimas Buinevicius, chairman and CEO of Sonic Foundry. “In the last year, we’ve seen the pipeline nearly double to $50,000,000 and the number of opportunities worth more than $50,000 grow over three-fold to at least $10,000,000 of the total pipeline, which is a significant indicator of sales efficiency and future sales growth. We intend to provide our investors with such data in the future to assess the company’s prospects.”
About Sonic Foundry(R), Inc.
Founded in 1991, Sonic Foundry (NASDAQ:SOFO) is a technology leader in the emerging rich media communications marketplace, providing enterprise solutions and services that link an information-driven world. Sonic Foundry is changing the way organizations communicate via the web and how people around the globe receive vital information needed for work, professional advancement, safety and education. The company’s integrated webcasting and web presentation solutions are trusted by Fortune 500 companies, education institutions and government agencies for a variety of critical communication needs. Sonic Foundry is based in Madison, Wis. For more information about Sonic Foundry, visit www.sonicfoundry.com.
Wolfe, Axelrod, Weinberger & Assoc., LLC
Certain statements contained in this news release regarding matters that are not historical facts may be forward-looking statements. Because such forward-looking statements include risks and uncertainties, actual results may differ materially from those expressed in or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but are not limited to, uncertainties pertaining to continued market acceptance for Sonic Foundry’s products, its ability to succeed in capturing significant revenues from media services and/or systems, the effect of new competitors in its market, integration of acquired business and other risk factors identified from time to time in its filings with the Securities and Exchange Commission.
Source: Sonic Foundry, Inc.