Saba Reports Flat Revenue In 1Q - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Saba Reports Flat Revenue In 1Q

Saba Software CEO Bobby Yazdani blames a slowdown in corporate spending for the company's flat first quarter.

Saba Software Inc. reported flat first-quarter revenue Tuesday, indicating that the slowing demand for enterprise software has finally reached the online learning market. The supplier of learning-management systems also reported that Sebastian Grady, president and chief operating officer, would resign immediately for personal reasons.

During a conference call, CEO and founder Bobby Yazdani said that although Saba added 16 new customers in the first quarter of fiscal year 2002, sluggish corporate spending resulted in flat revenue. "We've seen a significant delay on spending decisions," he said of potential customers, noting that three multimillion-dollar deals were put on hold in the first quarter.

For the quarter ended Aug. 31, Saba reported a net loss of $11.2 million, or 25 cents a share, on revenue of $14.5 million. That compares with a net loss of $19.1 million, or 46 cents per share, on revenue of $10 million for the same period last year. In June, Saba reported a net loss of $10.4 million, or 24 cents a share, on revenue of $15.5 million for the fourth quarter of fiscal year 2001.

Ed Bierdeman, senior VP of analyst firm Moors & Cabot, sees some good news for Saba despite the flat quarter and thinks the overall outlook for the company is positive. As an example, he noted that during the quarter, Saba expanded its relationships with existing customers such as biotechnology developer Allos Therapeutics, General Motors, and Best Buy.

Bierdeman says, "Grady's departure is disconcerting, given that he was highly touted as a major player to management, but I'm confident they could continue successfully with their existing strong team."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of Cloud Computing - Fall 2020
The State of Cloud Computing - Fall 2020
Download this report to compare how cloud usage and spending patterns have changed in 2020, and how respondents think they'll evolve over the next two years.
News
Top 10 Data and Analytics Trends for 2021
Jessica Davis, Senior Editor, Enterprise Apps,  11/13/2020
Commentary
Where Cloud Spending Might Grow in 2021 and Post-Pandemic
Joao-Pierre S. Ruth, Senior Writer,  11/19/2020
Slideshows
The Ever-Expanding List of C-Level Technology Positions
Cynthia Harvey, Freelance Journalist, InformationWeek,  11/10/2020
Register for InformationWeek Newsletters
Video
Current Issue
Why Chatbots Are So Popular Right Now
In this IT Trend Report, you will learn more about why chatbots are gaining traction within businesses, particularly while a pandemic is impacting the world.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll