Salary.com Announces CEO Transition…from Salary.com

February 23, 2010

 

HRchitect featured Salary.com in our 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems and top HRIS vendors that businesses should consider. If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation.

Salary.com, Inc. (NASDAQ: SLRY), a leading provider of on-demand talent management, payroll, and compensation solutions, today announced that Kent Plunkett has announced his resignation as chief executive officer, effective immediately. Mr. Plunkett will continue to serve as chairman of the board. Salary.com also announced that its board of directors has appointed Paul R. Daoust as interim chief executive officer while it conducts a formal search for a permanent chief executive officer.

Kent Plunkett stated, “I am incredibly proud of what the people who built Salary.com have achieved since we founded the company over 10 years ago. Salary.com is recognized as the global leader in compensation management data and software, and our emerging suite of SaaS-based human capital management solutions is in a strong competitive position. We have recorded 35 consecutive quarters of revenue growth and I remain optimistic about the company’s long term growth potential.” Plunkett added, “It is time for me to step aside and provide the opportunity for fresh leadership to serve Salary.com’s amazing customers and employees. I am highly confident in Paul’s leadership of the company’s executive transition plan and believe that Salary.com has a very strong foundation for our next chief executive to grow the company to the next level.”

Paul Daoust is a recognized leader in the human resources industry with over forty years of operating experience, and he has been a member of the Salary.com board of directors since 2006. Daoust previously spent 28 years with Watson Wyatt Worldwide, one of the world’s largest human resource consulting firms. For five of those years, Daoust served as chief operating officer and contributed to the doubling of Watson Wyatt’s revenue and a tripling of its profits. After his career at Watson Wyatt, Daoust served as chief executive officer of HighRoads, Inc., a privately-held, technology-enabled solutions company providing benefits lifecycle management. After four years as chief executive officer, Daoust transitioned to non-executive chairman in 2005 and he continues to serve HighRoads in that role. Daoust also currently serves on various boards in the human capital industry.

Robert Trevisani, Salary.com’s lead director, stated, “The board of directors would like to thank Kent for his lifetime worth of contributions to Salary.com. His passion and dedication have helped the company evolve into a market leader in on-demand Human Resource solutions. The Board is confident that with Paul joining as interim chief executive officer, Salary.com has the leadership in place that will enable the company to continue prospering while it searches for its next permanent chief executive officer.”

For more information on Salary.com, please visit www.salary.com
Matt Lafata, HRchitect

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Salary.com Announces Second Quarter 2010 Financial Results…from Salary.com

November 6, 2009

 

Reports 34th Consecutive Quarter of Revenue Growth; Achieves Positive Operating Cash Flow for Second Quarter in a Row

HRchitect featured Salary.com in our 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems and top HRIS vendors that businesses should consider. If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation.

Salary.com, Inc. (NASDAQ: SLRY), a leading provider of on-demand talent management, payroll, and compensation solutions, recently announced financial results for its second quarter of fiscal 2010, which ended September 30, 2009.

Revenue in the second quarter of 2010 was $11.6 million, an increase of 10% over the second quarter of fiscal 2009. Bookings were $12.2 million, an increase of 9% over the second quarter of fiscal 2009. Non-GAAP operating cash flow, which excludes cash payments for severance, was positive with a cash inflow of $0.5 million in the second quarter of 2010. GAAP operating cash flow was an inflow of $0.4 million in the second quarter of 2010.

Kent Plunkett, founder and chief executive officer, stated, “We are pleased to have completed our 34th consecutive quarter of revenue growth and achieved positive operating cash flow from operations for the second quarter in a row. Our broad strategy of offering an array of integrated, best-in-breed human capital management tools and data again contributed to larger overall transaction sizes in the second quarter, with 14 transactions over $100,000 in the quarter and six of those larger than $250,000. We believe Salary.com’s strong execution is reflected in continued bookings and cash flow growth as we continue to gain momentum as a human capital management leader.”

Second Quarter 2010 Financial Summary

–  Second quarter revenue was $11.6 million, an increase of 10% over the second quarter of fiscal 2009.

–  On a GAAP basis, for the second quarter of fiscal 2010, Salary.com reported a net loss of $4.7 million, or ($0.29) per diluted share, compared to a net loss of $6.3 million, or ($0.39) per diluted share, in the second quarter of fiscal 2009.

–  On a non-GAAP basis, excluding stock-based compensation, amortization of intangibles and restructuring expenses, Salary.com reported a net loss of $1.9 million, or ($0.12) per diluted share, for the second quarter of fiscal 2010, compared to a net loss of $3.0 million, or ($0.18) per diluted share, in the second quarter of fiscal 2009.

–  Cash and cash equivalents as of September 30, 2009 were $16.1 million, compared to $17.0 million as of June 30, 2009.

–  Current deferred revenue was $27.3 million as of September 30, 2009, compared to $27.4 million as of June 30, 2009.  Total deferred revenue grew to $29.9 million as of September 30, 2009, from $29.3 million as of June 30, 2009.

–  Excluding non-recurring cash payments for severance, non-GAAP cash flow from operations was a net inflow of $0.5 million in the second quarter of fiscal 2010. Including the non-recurring payments for severance, GAAP cash flow from operations was a net inflow of $0.4 million, a $1.4 million improvement compared to the same period a year ago.

Additional Second Quarter Business Highlights

–  During the second quarter, Salary.com added approximately 100 customers, and ended the quarter with approximately 3,600 enterprise customers.

–  New customer additions in the second quarter of fiscal 2010 included: Boston Medical Center, Caraco Pharmaceutical Laboratories, Ltd., Casio America, Inc., The Cooper Health System, Emergint Technologies Inc., and Washington Mills Management, Inc.

–  During the second quarter, Salary.com held user conferences in Boston, Chicago, New York, San Francisco, and Singapore, with over 500 customers attending.  The user groups offered four separate tracks for different human resources disciplines and featured industry experts from Gartner, IDC, and Bersin & Associates as speakers.

–  At the HR Technology Conference in October, Salary.com won the Talent Management Shootout in a vote by hundreds of human resources professionals.  TalentManager won the contest against three competitors after a demonstration of its easy-to-learn and easy-to-use features and the seamless integration of TalentManager’s data-driven content with Salary.com’s performance, competency, goal management, compensation planning, succession planning, career planning, and employee development software and data solutions. Bersin and Associates published the reasons they believe Salary.com won the Shootout in a blog post.

–  During the second quarter, Salary.com repurchased approximately 179,000 shares at an average purchase price of $3.01 per share.  To date, the Company has repurchased approximately 1.3 million shares at an average price of $2.03 per share.

Bryce Chicoyne, Salary.com’s chief financial officer said, “Our effective execution in the second quarter resulted in an increase in bookings, revenue, and operating cash flow on both a year-over-year and sequential basis, and I am proud of that accomplishment. We remain committed to long-term revenue growth and cash flow generation and are managing the company with that in mind. Larger deal trends and a continued strong customer retention rate are fueling our optimism for long-term growth.”

Business Outlook

For the third quarter of fiscal 2010, Salary.com expects total revenue in the range of $11.4 million to $11.9 million. Non-GAAP net loss is expected to be in the range of $1.7 million to $2.2 million. Non-GAAP net loss excludes non-cash stock-based compensation expenses in the range of $1.7 million to $2.0 million, amortization of intangibles in the range of $1.2 million to $1.3 million, and restructuring charges of approximately $100,000. GAAP net loss for the third quarter of fiscal 2010 is expected to be in the range of $4.7 million to $5.8 million. Weighted average diluted shares for the quarter are estimated to be approximately 16.2 million shares.

For the full year fiscal 2010, we expect revenue to be in the range of $46.5 million to $50.5 million. Non-GAAP net loss is expected to be in the range of $4.8 million to $8.8 million. Non-GAAP net loss excludes non-cash impact of stock-based compensation in the range of $8.0million to $10.0 million, amortization of intangibles in the range of $4.8 million to $5.1 million, and restructuring charges of approximately $200,000. On a GAAP basis, net loss for fiscal 2010 is expected to be in the range of $19.3 million to $23.3 million. Non-GAAP cash flow from operations, which excludes $500,000 in severance, is expected to be in the range of $1.2 million to $2.2 million in fiscal 2010. Weighted average diluted shares for the year are estimated to be approximately 16.3 million shares.

For more information on Salary.com, please visit www.salary.com

 

Matt Lafata, HRchitect

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Salary.com Announces First Quarter 2010 Financial Results…from Salary.com

August 11, 2009

 

Reports 33rd Consecutive Quarter of Revenue Growth; Achieves Positive Operating Cash Flow

HRchitect featured Salary.com in our 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems and top HRIS vendors that businesses should consider. If you are looking for a new Talent Management System, or any HR system, talk to HRchitect first. We have unparalleled knowledge of the HR and Talent Management vendor community and can save you time and money in selection and implementation.

Salary.com, Inc. (NASDAQ: SLRY), a leading provider of on-demand HRMS/payroll, compensation and talent management solutions, today announced financial results for its first quarter of fiscal 2010, which ended June 30, 2009.

Revenue in the first quarter of 2010 was $11.4 million, an increase of 18% over the first quarter of fiscal 2009. Bookings were $12.4 million, an increase of 14% over the first quarter of fiscal 2009. Non-GAAP operating cash flow, which excludes cash payments for severance, was positive with a cash inflow of $0.4 million in the first quarter of 2010. GAAP operating cash flow was an inflow of $0.1 million in the first quarter of 2010.

Kent Plunkett, founder and chief executive officer, stated, “We are pleased to have completed our 33rd consecutive quarter of revenue growth. We delivered solid bookings growth and returned Salary.com to a cash flow generating position in the first quarter of 2010. Our customers continue to see value in our suite of integrated software and data solutions for human resources professionals. Our vision of this broad on-demand TotalHR offering is continuing to resonate with buyers, and reinforces our position as a human capital management leader.”

First Quarter 2010 Financial Summary

–  First quarter revenue was $11.4 million, an increase of 18% over the first quarter of fiscal 2009.

–  On a GAAP basis, for the first quarter of fiscal 2010, Salary.com reported a net loss of $5.1 million, or ($0.32) per diluted share, compared to a net loss of $6.2 million, or ($0.39) per diluted share, in the first quarter of fiscal 2009.

–  On a non-GAAP basis, excluding stock-based compensation expense and amortization of intangibles, Salary.com reported a net loss of $2.5 million, or ($0.16) per diluted share, for the first quarter of fiscal 2010, compared to a net loss of $3.4 million, or ($0.22) per diluted share,  in the first quarter of fiscal 2009.

–  Cash and cash equivalents as of June 30, 2009 were $17.0 million, compared to $21.1 million as of March 31, 2009.

–  Current deferred revenue grew to $27.4 million as of June 30, 2009, an increase from $26.5 million as of March 31, 2009.  Total deferred revenue was $29.3 million as of June 30, 2009, an increase from $28.3 million as of March 31, 2009.

–  Excluding non-recurring cash payments for severance, non-GAAP cash flow from operations was a net inflow of $0.4 million in the first quarter of fiscal 2010. Including the non-recurring payments, GAAP cash flow from operations was a net inflow of $0.1 million, a $2.2 million improvement compared to the same period a year ago.

Additional First Quarter Business Highlights

–  Salary.com ended the first quarter with approximately 3500 enterprise customers, an increase of over 20% from the first quarter of fiscal 2009.

–  New customer additions in the first quarter of fiscal 2010 included Avery Dennison, CVS Pharmacy, Inc., Eaton Corporation, Kent State University, In-n-Out Burger, and Great Lakes Synergy Corporation.

–  During the first quarter, Salary.com repurchased approximately 862,000 shares at an average purchase price of $1.79 per share.  To date, the Company has repurchased approximately 1.2 million shares at an average price of $1.92 per share.

Bryce Chicoyne, Salary.com’s chief financial officer, said, “I am pleased with the company’s execution in the first quarter, which resulted in our return to positive operating cash flow. We remain committed to generating positive cash flow on a full-year basis. Additionally, we had a successful quarter in our share repurchase program. We are encouraged by the trends we are seeing in our sales pipeline and believe customers are recognizing the value of our on-demand compensation management, payroll/HRIS and talent management products.”

Business Outlook

For the second quarter of fiscal 2010, Salary.com expects total revenue in the range of $11.4 million to $11.9 million. Non-GAAP net loss, which excludes non-cash stock-based compensation expenses of approximately $1.7 million, and amortization of intangibles of approximately $1.2 million, is expected to be in the range of $1.9 million to $2.4 million. GAAP net loss for the second quarter of fiscal 2010 is expected to be in the range of $4.8 million to $5.3 million. Weighted average diluted shares for the quarter are estimated to be approximately 16.3 million shares.

Salary.com is raising its prior guidance for fiscal 2010. We expect revenue to be in the range of $46.5 million to $50.5 million and cash flow from operations is expected to be a positive $1.2 million to $2.2 million. Non-GAAP net loss, which excludes non-cash impact of stock-based compensation expense of approximately $10.0 million, and amortization of intangibles of approximately $4.5 million, is expected to be in the range of $4.8 million to $8.8 million. On a GAAP basis, net loss for fiscal 2010 is expected to be in the range of $19.3 million to $23.3 million. Weighted average diluted shares for the year are estimated to be approximately 16.5 million shares.

For more information on Salary.com, please visit www.salary.com

 
Matt Lafata, HRchitect

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Salary.com Increases Authorization for Share Repurchase Program…from Salary.com

April 22, 2009

 

HRchitect includes Salary.com in our list of top Talent Management Systems and top HRIS vendors that businesses should consider.

 

Salary.com, Inc. (NASDAQ: SLRY), a leading provider of on-demand compensation, talent management and payroll solutions, today announced that on April 17, 2009, its Board of Directors increased the size of its share repurchase program from $2.5 million to $7.5 million. The share repurchase program was initially authorized on December 15, 2008 for a period of twelve months. Under the program, Salary.com may repurchase shares of Salary.com common stock from time to time at prevailing prices in the open market or in negotiated transactions off the market. The Company expects to use cash on hand and cash generated from future operations to fund repurchases of its common stock.

 

Kent Plunkett, Chief Executive Officer of Salary.com, said, “Our Board of Directors and senior management team have confidence in the ability of Salary.com to execute in a fiscally responsible manner in this environment. This increase in authorization reflects our commitment to maximizing shareholder value for all of our investors and our belief that our own shares are a compelling investment.”

 

To date, Salary.com has purchased approximately 853,000 shares of Salary.com common stock, at an average price of $1.59 per share from the current authorization. Salary.com management will determine the timing and amount of any repurchase based on its evaluation of market conditions, business considerations and other factors. The program does not require the Company to repurchase any specific number of shares and may be extended, modified, suspended or discontinued at any time, at the Company’s discretion.

 

For more information, please visit www.salary.com

Matt Lafata, HRchitect

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Salary.com Makes Deloitte’s Technology Fast 500 List…from Salary.com

April 11, 2009

 

Salary.com Makes Deloitte’s Technology Fast 500 List for Fourth Year in a Row as a Fastest Growing Company — Attributes Continued Revenue Growth to Scope of Best-in-Breed Solutions That Streamline and Empower HR to Attract, Reward, & Retain Talent

 

HRchitect featured Salary.com in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems vendors that businesses should consider. Salary.com HRMS & Payroll is also included in our list of top HRIS vendors that businesses should consider.

 

Salary.com, Inc. (NASDAQ: SLRY), a leading provider of on-demand compensation, talent management and payroll solutions, today announced that it ranked as number 293 on Deloitte’s 2008 Technology Fast 500, a ranking of the 500 fastest growing technology, media, telecommunications and life sciences companies in North America.

 

“Our fourth year on the Technology Fast 500 underscores Salary.com’s strength in identifying and exceeding customer needs for critical software that ensures HR professionals are attracting, developing, and retaining their talent to the best possible advantage,” commented Salary.com’s CEO Kent Plunkett. Plunkett credits Salary.com’s consistent performance and revenue growth to the company’s commitment to providing customers with a span of on-demand solutions that are best-in-breed — from compensation benchmarking and pay analytics tools, to software that eases the management of employee performance review processes and succession planning, streamlines compensation planning, and strategically links employee pay to performance, most notably with the newest offering of HRMS & Payroll.

 

“Deloitte’s Technology Fast 500 recognizes companies who have achieved extraordinary growth in North America’s most innovative and competitive market sectors,” said Phil Asmundson, Deloitte LLP vice chairman and national managing partner for Technology, Media and Telecommunications. “We congratulate Salary.com on this significant accomplishment.”

 

For more information on Salary.com, please visit www.salary.com

 

Matt Lafata, HRchitect

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Salary.com Announces Third Quarter Financial Results…from Salary.com

February 6, 2009

 

Reports 31st Consecutive Quarter of Revenue Growth

 

HRchitect featured Salary.com in our May 2008 release of The Suite Life of Integrated Talent Management and also includes them in our list of top Talent Management Systems and top HRIS vendors that businesses should consider. Salary.com also participated in the HRchitect Beauty Pageant on Talent Management Systems on November 21, 2008, and will compete in the Beauty Pageants on Performance Management Systems on February 6, 2009 and HRIS on February 20, 2009.

 

Salary.com, Inc. (NASDAQ: SLRY), a leading provider of on-demand HRMS/payroll, compensation and talent management solutions, today announced financial results for its third quarter of fiscal 2009, which ended December 31, 2008. Revenue in the third quarter was $11.0 million, an increase of 20% over the third quarter of fiscal 2008. Bookings were $14.4 million, an increase of 21% over the third quarter of fiscal 2008.

 

Kent Plunkett, founder and chief executive officer stated, “Salary.com’s third quarter results were highlighted by our 31st quarter of consecutive revenue growth. During the quarter we made a significant strategic investment and broadened our product footprint with the acquisition of Genesys Software Systems, positioning us uniquely in the marketplace.” Plunkett continued, “Our recent cost reduction program demonstrates that we remain committed to achieving positive operating cash flow in fiscal 2010. We will continue to manage expenses aggressively against the difficult economic backdrop. We believe this discipline, combined with our solid financial position, recurring revenue model, and our best-in-breed transactional and strategic talent management solutions, enhances Salary.com’s long-term position as a leader in the on-demand HCM space.”

 

Third Quarter of Fiscal 2009 Financial Summary

  • Third quarter fiscal 2009 revenue was $11.0 million.
  • On a GAAP basis, for the third quarter of fiscal 2009, Salary.com reported a net loss of $5.2 million, or ($0.33) per diluted share, compared to a net loss of $3.1 million, or ($0.22) per diluted share, in the third quarter of fiscal 2008.
  • On a non-GAAP basis, excluding the impact of stock-based compensation expense and amortization of intangibles, for the third quarter of fiscal 2009, Salary.com reported a net loss of $2.6 million, or ($0.16) per diluted share, compared to a net loss of $848,000, or ($0.06) per diluted share, in the third quarter of fiscal 2008.
  • Cash and cash equivalents at the end of the third quarter of fiscal 2009 were $23.5 million, compared to $28.0 million at September 30, 2008.
  • Current deferred revenue grew to $25.3 million at the end of the third quarter of fiscal 2009, an increase from $22.2 million at the end of the second quarter. Total deferred revenue was $27.3 million at the end of the third quarter, an increase from $24.0 million at September 30, 2008 and $23.3 million at June 30, 2008.
  • Cash flow from operations was a net outflow of $3.7 million in the third quarter of fiscal 2009.

 

Business Highlights

  • Salary.com added over 250 new enterprise customers in the third quarter of fiscal 2009, bringing enterprise customer count to over 3,500 (including 29% of the Fortune 500).
  • New customer additions in the third quarter of fiscal 2009 included Burlington Coat Factory Warehouse Corporation, Live Nation, Inc., OfficeMax, Inc., PerkinElmer, Inc., and Xerox Corporation.
  • Lisa Rowan, Program Director of HR Learning & Talent Strategies at IDC highlighted Salary.com in her most recent IDC MarketScape: Worldwide Integrated Talent Management 2008 Vendor Analysis, saying “Salary.com’s strengths include deep compensation data and functionality, a strong competency framework and available libraries, affordability for partners and a broad partner base. Salary.com has the opportunity to present itself as an affordable alternative and will benefit from breadth of capability as it continues to fill out its suite.”
  • In December, Salary.com’s board of directors authorized a $2.5 million share repurchase program. During the third quarter, Salary.com repurchased approximately 25,000 shares at an average purchase price of $2.10. The company remains active in repurchasing shares.
  • In December, Salary.com acquired Genesys Software Systems, a leading provider of on-demand human resource management systems (HRMS), benefits and payroll services. The acquisition broadens Salary.com’s product suite to add transactional talent management solutions to the company’s strategic talent management products and services.

 

Business Outlook

Bryce Chicoyne, Salary.com’s chief financial officer said, “We are pleased with the company’s solid revenue growth in the third quarter and believe the steps we took to lower our cost structure will allow Salary.com to achieve positive operating cash flow in fiscal 2010. Salary.com’s growing leadership position in talent management and compensation management, broadening product lines, acquisition of Genesys, and prudent cost management provide us confidence that Salary.com will successfully execute through this difficult economic environment and emerge well positioned for long-term success.”

 

For the fourth quarter of fiscal 2009, Salary.com expects total revenue in the range of $11.0 million to $11.8 million. Non-GAAP net loss, which excludes non-cash stock-based compensation expenses of approximately $3.3 million, amortization of intangibles of approximately $1.2 million and severance charges of approximately $1.0 million, is expected to be in the range of $3.2 million to $4.0 million. GAAP net loss for the fourth quarter of fiscal 2009 is expected to be in the range of $8.7 million to $9.5 million. Weighted average diluted shares for the quarter are estimated to be approximately 16.1 million shares.

 

Salary.com expects full year revenue in fiscal 2009 to be in the range of $42.2 million to $43.0 million. Non-GAAP net loss, which excludes non-cash impact of stock-based compensation expense of approximately $9.4 million, amortization of intangibles of approximately $3.7 million and severance charges of approximately $1.0 million, is expected to be in the range of $12.2 million to $13.0 million. On a GAAP basis, net loss for fiscal 2009 is expected to be in the range of $26.3 million to $27.1 million. Weighted average diluted shares for the year are estimated to be approximately 15.5 million shares.

 

For more information on Salary.com, please visit www.salary.com

Matt Lafata, HRchitect

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