Sonasoft (SSFT) Reports Q3 2019 Revenue of $4.282 Million
SAN JOSE, CA, Dec 23, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE – Sonasoft Corp. (OTCQB: SSFT), a leader in innovative artificial intelligence (AI) and data management solutions, today reports its financial results for its third quarter (Q3) in fiscal year 2019.
Sonasoft Corp. generated unaudited Q3, 2019 revenue of $4,282,553, a decrease of $46,611, an adjustment of 1.08 percent over the previous quarter, bringing the first three quarter’s revenue total to 10.565M. The company’s operating loss was $641,617, versus $51,120 in the previous calendar quarter and $880,121 for Q2 2019. The increase is due in main to a significant acquisition, integration, and legal expenses from its four acquisitions over the previous eight months, with the acquisition costs in Q3 for OptimAIze, Inc. alone coming to approximately $15,500.
The Q3 revenue from the Company's SonaVault enterprise information archiving and SonaSQL business continuity software divisions was $139.6K. This amount was flat versus Q2 2019 and decreased by 44 percent from the previous calendar quarter because of the Company’s redirection to emphasize data engineering and AI services.
The Company's professional services engagements involving data engineering and data migrations generated significant revenue at $1,166K for Q3 2019. This is an increase of nearly 733 percent from the previous calendar quarter, due to the growth of E-Connect Software. This revenue is attributed to the Company's recent acquisition of E-Connect Software, Inc. where demand for these services is strong.
The Company also expects that the business generated from its aforementioned AI professional services will lead to future sales of its cognitive artificial intelligence (AI) platform, NuGene. NuGene revenue in Q3 was negligible, as it was undergoing integration into Sonasoft following acquisition of its parent company, Hotify. However, the Company has established several key NuGene customer trials since the acquisition that are expected to result in new bookings in 2019.
“2019 has seen us pivot to placing artificial intelligence at the heart of our company products,” said Mike Khanna, CEO of Sonasoft. “Our aim is to make it easy for our customers to adopt an AI-first strategy by offering a complete package from consultancy and support to a best-of-breed AI platform. In Q4 of this year, we have focused on significant product enhancements and releases to address customer feature requests. With the recent beta launch of NuGene PlaygroundTM, intelligent bots can rapidly be deployed and tested, enabling virtually any enterprise to leverage the power of AI.”
“The 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 Khanna. “We offer our partners a simple way for their applications to be AI-enabled by integrating NuGene into their applications and solutions. We believe that this strategy will quickly seed the market with Sonasoft’s AI technology and obtain significant revenue.”
Q3 represents the first quarter of consolidated financials, including all Sonasoft subsidiaries. Sonasoft’s major accomplishments the quarter include:
The Company also announces that it expects its Q4 2019 revenues to be approximately $3.7-$3.9 million and has revised its previous fiscal year 2019 revenue guidance of $13 million upward to between $13.6 million and $13.8 million.
“The last eight months have seen significant M&A activity resulting in us closing acquisition of four key companies,” said Mike Khanna, CEO of Sonasoft. “These acquisitions are powering our AI-first vision for Sonasoft, allowing us to put AI at the heart of what we do. Following a period of management consolidation, we are seeing the expansion strategy start to pay off.”
Sonasoft’s full Q3, 2019 Quarterly Report is available here: https://backend.otcmarkets.com/otcapi/company/financial-report/229739/content
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. Sonasoft enables companies to put artificial intelligence at the heart of their business. This allows them to harness their data, thus enabling them to accelerate and improve decision making, increase operational efficiency, and automate critical processes.
For more information about Sonasoft, please visit: https://sonasoft.com
For investor-specific information, please visit: https://sonasoft.com/investors/
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.
Mike Khanna, President
Phone: (408) 708-4000