From the Wires
Saba Provides Status of its Restatement and Business Update
By: Business Wire
Nov. 5, 2012 04:12 PM
Saba (NASDAQ:SABA), the premier provider of people-centric enterprise solutions, today provided an update on the status of its restatement of historical financial results as well as a limited business update.
As previously reported, on August 2, 2012 Company management, in consultation with the Audit Committee, concluded that the Company’s annual financial results for fiscal years 2011 and 2010, and the quarterly results for the periods within such fiscal years and for the first and second quarters of fiscal year 2012, should be restated. On October 4, 2012, the Company announced that the scope of the restatement would be expanded to cover substantially all of the Company’s consulting projects.
The Company has also been reviewing whether any adjustments will also be required with respect to the Company’s financial statements for fiscal years 2009 and 2008. On November 5, 2012, Company management, in consultation with the Audit Committee, determined that the Company’s annual financial results for these time periods would also need to be restated.
Company management is working to finalize the Company’s restated financial results as quickly as possible. However, restating the revenue and cost recognition derived from substantially all of the Company’s consulting projects, as well as license and support revenues included in multi-element arrangements with such consulting projects, is a time consuming and laborious process.
The Company is not in a position to report its financial results for fiscal year 2012 ended May 31, 2012 and the first quarter of fiscal year 2013 ended August 31, 2012. However, with respect to certain metrics not expected to be impacted by the restatement, the Company is providing the following guidance:
The Company continues to innovate and introduce to the market new products and new versions of existing products. The Company’s recent product innovations include:
The Company notes the following additional information relating to the restatement and delayed SEC filings:
On November 2, 2012, Elaine Kitagawa, Chief Financial Officer of the Company, informed the Company of her decision to resign her position with the Company in order to relocate outside of the San Francisco Bay Area. Ms. Kitagawa will remain with the Company until December 7, 2012. The Company has commenced a search for a new chief financial officer.
Saba will host a conference call and live webcast on Monday, November 5, 2012 commencing at 2:00 p.m. Pacific Time to discuss the status of the restatement. To join the call, please dial +1.800.288.8967 or +1.612.332.0226. The access code for the conference call is 267196. To listen to the live webcast, please go to the Investor Relations page of the Saba web site at http://investor.saba.com and click on the Live Webcast icon.
A replay of the conference call will be available shortly after its conclusion. The replay dial-in number is +1.800.475.6701 or +1.320.365.3844. The access code for the conference call replay is 267196. The replay can also be accessed from the Investor Relations page of the Saba web site at http://investor.saba.com and will be available through December 5, 2012.
Saba (NASDAQ: SABA) enables organizations to build a transformative workplace that leverages the advent of social networking in business and the ubiquity of mobile to empower an organization’s most mission-critical assets – its people. The company provides a set of people-centric enterprise solutions to various businesses and industries worldwide. Saba delivers cloud-based learning management, talent management, and social enterprise solutions to transform the way people work.
Saba's premier customer base includes major global organizations and industry leaders in financial services, life sciences and healthcare, high tech, automotive and manufacturing, retail, energy and utilities, packaged goods, and public sector organizations. Headquartered in Redwood Shores, California, Saba has offices on five continents. For more information, please visit www.saba.com or call +1-877-SABA-101 or +1-650-779-2791. SABA, the Saba logo, and the marks relating to Saba products and services referenced herein are either trademarks or registered trademarks of Saba Software, Inc. or its affiliates. All other trademarks are the property of their respective owners.
This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation: statements relating to guidance on cloud billings in fiscal year 2012, statements relating to the amount of cash and debt at the end of the first quarter of fiscal year 2013 and statements relating to fiscal year 2013 cash flow from operations. The actual timing or outcome of these matters could differ materially from those expressed in any forward-looking statements due to, among other things, the results of the completion of the Company’s pending restatement. In addition, Saba faces other risks and uncertainties that could affect its ability to complete the filing of its Form 10-Q and to regain compliance with the NASDAQ listing requirements. Readers should refer to the section entitled "Risk Factors" in the Form 10-K for the fiscal year ended May 31, 2011, and similar disclosures in subsequent reports filed with the SEC. The forward-looking statements and risks stated in this press release are based on information available to Saba today. Saba assumes no obligation to update them.
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