GAAP loss from continuing operations for the first quarter ended March 31, 2009 was $8.1 million, or $(0.55) per share, compared to a GAAP loss from continuing operations of $5.5 million, or $(0.37) per share, in the prior year’s first quarter. Including income from discontinued operations, GAAP net loss for the first quarter ended March 31, 2008 was $3.7 million, or $(0.25) per share. Because there is no income from discontinued operations after December 31, 2008, GAAP net loss for the quarter ended March 31, 2009 was the same as GAAP loss from continuing operations for the same period.
Highlights from Conference Call
- Cash, cash equivalents and marketable securities totaled $82.3 million at March 31, 2009.
- The company, which said in February it was exploring strategic alternatives, expects severance and related costs of about $500,000 in the second quarter.
- Management sees overall incremental savings of about $3.0 million during 2009 as a result of the job cuts announced April 14, in addition to the $5.0 million in savings it expects from a workforce reduction it announced in February. Since Feb 12, 2009 permanent headcount has been cut by about 10 percent and contractor workforce by about 75 percent.
Not much has changed since our March 9, 2009 post on SOAP, with the exception of nearly $8 million cash burn relative to the December 31, 2008 results. Because of this, net-cash value has been reduced to $5.33/share, a substantial difference compared to its current market price of $3.63/share. We added SOAP to our portfolio when it was trading at $2.86, for an unrealized gain of nearly 27%.