Revenue increases fueled by acquisition and integration of Cornerstone Technologies, part of Sonasoft’s strategic business expansion initiative that also included artificial intelligence company acquisitions during the quarter.
(As published on Nasdaq GlobeNewswire)
July 1, 2019 – San Jose, California, Sonasoft Corp. (OTCQB: SSFT), a leader in innovative artificial intelligence (AI) and data management solutions, is pleased to report its financial results for its first quarter (Q1) in fiscal year 2019.
Sonasoft Corp. Q1, 2019 revenue was $1,955,286, an increase of $1,664,642, or 673 percent over the previous quarter and $1,735,769 or 891 percent over the Q1, 2018. The revenue increase is a result of the Company’s announced acquisition and integration of Cornerstone Technologies, Inc. as part of its strategic business expansion initiative. Cornerstone Technologies’ related revenue in Q1 was approximately $1,829,000. The Company also announced that it expects Q2, 2019 revenues to be approximately $3.3 million and issues its revenue guidance of $13 million for fiscal year 2019.
Sonasoft’s major accomplishments during Q1 2019 included:
- A letter of intent and definitive purchase agreement to acquire Hotify Inc., an artificial intelligence (AI) company; (This acquisition was completed in Q2 of this year)
- Letters of intent (LOI) to acquire AI companies, E-Connect Software, Inc. and OPtimAIze, Inc.; (The E-Connect Software, Inc. acquisition was completed in Q2 of this year)
- A leadership transition with Frank Velasquez, former CEO of Cornerstone Technologies, taking over as CEO of Sonasoft
- Strategic partnerships with Globanet (OEM) and Trusted Data Solutions
- Several large sales wins with six-digit contracts
- The groundwork was laid down to expand SonaVault to archive over 40 different data sources including social media, chat, file share applications, SharePoint, documents, etc. in addition to email
- Initial work started to update and re-introduce Sonasoft’s first product, SonaSQL, a Microsoft SQL Server backup, recovery, replication, and migration solution
“This is the first quarter that the revenues from both Sonasoft and Cornerstone Technologies are consolidated,” said Mike Khanna, President of Sonasoft. “The merger is complete, and we are on track to meet if not exceed our revenue guidance of $13 million for fiscal year 2019. Historically, revenue bookings for these businesses in the first quarter of the year are the smallest, with a steady ramp up over the course of the year to the fourth quarter, when revenue bookings are the largest. We also anticipate that our just acquired artificial intelligence assets will begin to contribute revenue in the coming quarters. Our expansion strategy and pivot to more strategic, higher value-added solutions are in their early stages and already delivering results. 2019 will be a year of growth for Sonasoft across many dimensions.”
Sonasoft’s full 1Q, 2019 quarterly report is available here:
Based in Silicon Valley since 2003 Sonasoft is a public company (SSFT) providing solutions that create significant competitive advantages from data, the most valuable corporate asset in the digital economy. Our artificial intelligence platform and software capabilities harness data to enable businesses to accelerate and improve decision making, increase operational efficiency, and automate critical processes.
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This release contains statements that constitute forward-looking statements. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of the Company, its directors or its officers with respect to, among other things: (i) the Company’s financing plans; (ii) trends affecting the Company’s financial condition or results of operations; (iii) the Company’s growth strategy and operating strategy; and (iv) the declaration and payment of dividends. The words “may,” “would,” “will,” “expect,” “estimate,” “anticipate,” “believe,” “intend,” and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond the Company’s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors.
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