ENCINO, Calif., Nov. 5, 2014 /PRNewswire/ -- Research Solutions, Inc. (OTCQB:RSSS), a pioneer in facilitating the flow of information from publishers of scientific, technical and medical (STM) content to life science enterprises, academic institutions and other research-intensive organizations, reported financial results for its fiscal first quarter ended September 30, 2014.
Fiscal First Quarter 2015 Financial Highlights vs. Year-Ago Quarter
- Article Galaxy revenue increased 17% to $5.2 million
- Article Galaxy transactions increased 17% to 140,821
- Article Galaxy gross profit up 27% to $1.3 million, with gross profit as a percentage of revenue up 200 basis points to 24.9%
- Active Article Galaxy customer accounts increased 33% to 752
- Diluted income per share from continuing operations of $0.00, compared to a loss per share of $0.01
- Adjusted EBITDA increased 272% to $192,000
Fiscal First Quarter 2015 Financial Results
Total revenue in the fiscal first quarter of 2015 increased 14% to $7.5 million, compared to $6.6 million in the same year-ago quarter. The increase is primarily attributable to the company's migration from its legacy print business to Article Galaxy, its digital, cloud-based, SaaS solution. Article Galaxy revenue increased 17% in the fiscal first quarter of 2015 to $5.2 million, compared to $4.4 million in the same year-ago quarter.
The increase in Article Galaxy revenue was driven by an increase in transactions, which was up 17% to 140,821 in the fiscal first quarter versus 120,760 in the same year ago quarter. The number of active customer accounts conducting transactions increased by 33% to 752 in the fiscal first quarter, versus 564 in the same year-ago quarter (see the definition of transactions and active customer accounts in the section, "Transactionsand Active Customer Accounts," below).
Total gross profit in the fiscal first quarter increased 25% to $1.5 million compared to $1.2 million in the same year-ago quarter. Article Galaxy gross profit increased 27% to $1.3 million versus $1.0 million in the year-ago quarter. Article Galaxy gross margin increased 200 basis points to a record 24.9% in the fiscal first quarter, versus gross margin of 22.9% in the same year-ago quarter.
Net income from continuing operations in the fiscal first quarter improved to a net loss of $7,000 or $0.00 per diluted share from a net loss of $97,000 or ($0.01) per diluted share in the same year-ago quarter.
Adjusted EBITDA increased 272% to $192,000 compared to $51,000 in the same year-ago quarter (see definition and further discussion about the presentation of adjusted EBITDA, a non-GAAP term, below).
Cash at September 30, 2014 totaled $1.5 million compared to $1.9 million at June 30, 2014. The decrease in cash is primarily due to cash used in discontinued operations.
As of September 30, 2014, there were no outstanding borrowings under the company's revolving line of credit with Silicon Valley Bank, which is the lesser of $4,000,000 or 80% of eligible accounts receivable. This amount equaled approximately $1,725,000 of available credit at September 30, 2014.
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