Major revenue increases in Q2 were fueled by AI, the E-Connect acquisition, and professional services, which are all part of Sonasoft’s strategic business expansion initiatives.
(As published on Nasdaq GlobeNewswire)
September 3, 2019 - San Jose, California, Sonasoft Corp. (OTCQB: SSFT), a leader in innovative artificial intelligence (AI) and data management solutions, today reports its financial results for its second quarter (Q2) in fiscal year 2019.
Sonasoft Corp. Q2, 2019 unaudited revenue was $4,329,164, an increase of $2,375,422, or above 100 percent over the previous quarter, which exceeded guidance by 30 percent. The company’s operating loss was $880,212, versus $605,377 in the previous calendar quarter and $117,573 for Q2 2018. The increase is due in part to significant acquisition, integration, and legal expenses from its four acquisitions over the previous eight months, where the acquisition costs in Q2 for Hotify, Inc. alone came to $453,429.
The Q2 revenue from the Company's SonaVault enterprise information archiving and SonaSQL business continuity software division was $116,142. This amount was flat versus Q2 2018 and decreased by 14.4 percent from the previous calendar quarter because of the Company’s redirection to emphasize data engineering and AI services.
Revenue from the Company's professional services engagements that involved data engineering and data migrations was significant at $881,330 for Q2 2019. This marked a nearly 100 percent increase from the previous calendar quarter, due to the acquisition of E-Connect Software.
Revenue from the Company's artificial intelligence (AI) professional services for Q2 was $419,160. This revenue is attributed to the Company's recent acquisition of E-Connect Software, Inc. where demand for these services is strong. The Company anticipates a significant portion of its revenue in the upcoming quarters to be attributed to its AI business.
The Company also expects that the business generated from its aforementioned AI professional services will lead to future sales of its artificial intelligence (AI) platform, NuGene. NuGene revenue in Q2 was negligible, as it was primarily undergoing integration into Sonasoft following the closure of its acquisition. The Company has established several NuGene customer trials since the acquisition that are expected to result in new bookings in 2019.
“We have some forward-moving developments with our artificial intelligence products,” said Frank Velasquez, CEO of Sonasoft. “In Q4 of this year, we have targeted significant product enhancements and product releases that our customers have requested. We will soon offer an open API to our artificial intelligence platform, NuGene, that will empower nearly every application to be AI-enabled. Our aim is to AI-enable every business.”
“Our primary sales strategy for our AI platform is through OEM partnerships and independent software vendors (ISV’s), and we will also have a direct sales model where our specific AI products are available for key verticals,” continued Velasquez. “We offer our partners a simple way for their applications to be AI-enabled by plugging our AI into their applications and solutions. We believe that this will be a fast route to seed the market with Sonasoft’s AI technology and obtain significant revenue.”
Sonasoft’s major accomplishments during Q2 2019 include:
The Company also announces that it expects its Q3 2019 revenues to be approximately $4.3 million and has revised its previous fiscal year 2019 revenue guidance of $13 million upward to be between $13 million and $15 million.
“We rolled up four companies in the last eight months and are gaining momentum,” said Frank Velasquez, CEO of Sonasoft. “Our synergies as a team began to drive optimal performance as soon as we consolidated our management into one office. At our core, we have quality people who know how to win, and we are already seeing our expansion strategy paying off.”
Sonasoft’s full Q2, 2019 Quarterly Report is available here:
Based in Silicon Valley since 2003 Sonasoft is a public company (SSFT) providing solutions that create significant competitive advantages from data, the most valuable corporate asset in the digital economy. Our artificial intelligence platform and software capabilities harness data to enable businesses to accelerate and improve decision making, increase operational efficiency, and automate critical processes.
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This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company’s financing plans; (ii) trends affecting the Company’s financial condition or results of operations; (iii) the Company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.