Conference Call Transcript (2007)Full Document 

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Conference Call Transcript

 

SCIL - Q2 2007 Scientific Learning Earnings Conference Call

 

Event Date/Time: Jul. 25. 2007 / 2:00PM PT

 

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© 2007 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial.

 



FINAL TRANSCRIPT

Jul. 25. 2007 / 2:00PM PT, SCIL - Q2 2007 Scientific Learning Earnings Conference Call


 

CORPORATE PARTICIPANTS

Jane Freeman

Scientific Learning - SVP, CFO

Bob Bowen

Scientific Learning - Chairman, CEO

 

CONFERENCE CALL PARTICIPANTS

Nate Swanson

ThinkEquity - Analyst

Ryan Mahoney

ThinkEquity - Analyst

Jeff Silber

BMO Capital Markets - Analyst

Trace Urdan

Signal Hill - Analyst

 

PRESENTATION

 

Operator

 

Good day, ladies and gentlemen, and welcome to the Second Quarter 2007 Scientific Learning Earnings Conference Call.

 

(OPERATOR INSTRUCTIONS)

 

I would now like to turn the presentation over to your host for today's conference, Ms. Jane Freeman, Senior Vice President and Chief Financial Officer. Please proceed.

 

Jane Freeman - Scientific Learning - SVP, CFO

 

Thank you. Before we proceed, I'd like to inform you that during the course of this conference call we'll make projections and other forward-looking statements that are subject to the Safe Harbor created by the Federal Securities Laws.

 

They include statements related to projected levels of revenue, book sales, margins, expenses, profit or loss, cash flow, tax rate and the other financial results and drivers behind them, including trends in the K-12 education market, available funding and results that may be achieved by the use of our products, expected staffing levels and new product introductions.

 

Such statements are subject to risks and uncertainties and the results may differ materially from our projections. Our filings with the Securities and Exchange Commission include additional information about factors that could cause future results to differ from those discussed on this call. We will file a transcript of this conference call with our press release in an 8-K later this week or early next week.

 

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© 2007 Thomson Financial. Republished with permission. No part of this publication may be reproduced or transmitted in any form or by any means without the prior written consent of Thomson Financial.

 



FINAL TRANSCRIPT

Jul. 25. 2007 / 2:00PM PT, SCIL - Q2 2007 Scientific Learning Earnings Conference Call


During the call we will be discussing book sales, which is a non-GAAP financial measure. We believe book sales are a better measure of current business activity than revenue. A reconciliation of book sales, revenue and deferred revenue is included as supplemental information with the press release and in the investor information section of our website at www.scientificlearning.com.

 

Commercial reproduction and distribution of this conference call may be made only after written permission. A replay will be available on our website.

 

And now I'd like to turn the call over to Bob Bowen, our Chairman and CEO.

 

Bob Bowen - Scientific Learning - Chairman, CEO

 

Thanks, Jane. K-12 booked sales increased 30% over the second quarter of 2006 and accounted for 93% of the total sales. This strong growth was above our annual and long term growth target of 20% to 25%. Total booked sales for the quarter were up 28% compared to last year's Q2. Year-to-date booked sales are up 15% compared to last year. Despite those results being below our annual growth target, we remain confident about the year for two reasons: First, we had more than $2 million in transactions that shifted into Q3 at the end of the quarter. Second, despite the strong sales growth in Q2 and closing the second largest transaction in our history, our 2007 sales pipeline remains at record levels, up 71% over the end of last year's second quarter. Historical close rates would indicate that we have more than an adequate pipeline to achieve our annual growth target.

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