Lyris Inc (OTCMKTS:LYRI) reported that recurring revenue accounted 90% of its total revenue in 2Q2015. There was no change in recurring revenue as a percentage of total growth compared to the previous quarter. The revenue in 2Q jumped 2.5% to $7.3 million sequentially but declined 11.0% from $8.1 million in 2Q2014. The revenue from subscriptions contributed 78% to the total revenue.
The financial performance
Lyris Inc reported net loss of $0.42 per share compared with the net income of $0.04 per diluted share in 2Q2014. It included a charge of $4.3 million for impairment of goodwill in 2Q. There was no impact on gross margin, as it expanded to 66% compared to 64% in 2Q2014,
Lyris HQ revenue declined to $4.7 million from $4.9million, a year ago. The total subscription revenue also disappointed in the 2Q as it declined to $5.7million compared to $6.3 million, in the same quarter in FY2014. John Philpin, the CEO of Lyris, said that Lyris Inc (OTCMKTS:LYRI) continued its path of transitioning itself to growth. The average deal sizes, as well as the orders pipeline, are showing signs of growth. The company expects to perform well as the top-tier ‘Lighthouse’ clients are expanding their business with Lyris. It will be instrumental in the company’s efforts to develop unique and innovative applications on the industry-leading digital platform.
The liquidity details
Lyris Inc (OTCMKTS:LYRI) has started FY2015, with better stability compared to the recent quarters. Lyris said that it ended 2Q with $1.4 million in cash. It kept a reserve of $1.2 million for drawdown on its loan facility worth $5 million with Silicon Valley Bank. The adjusted EBITDA declined to $1.0 million from the adjusted EBITDA of $1.4 million in 2Q2014. The gross profit in the 2Q2015 declined to $4.8 million compared to $5.3 million, in the same period in FY2014.