Sonic Foundry Reports First Quarter Fiscal 2013 Results

Non-GAAP Consolidated Statements of Operations (in thousands, except for per share data)

	Fiscal Quarter Ended December 31, 2012								Fiscal Quarter Ended December 31, 2011
	GAAP			Adj(1)			Non-GAAP		GAAP			Adj(1)			Non-GAAP

Revenues	$	6,552		$	323		$ 6,875		$	6,185		$	(473	)	$	5,712
Cost of revenue		1,685			—		1,685			1,678			—			1,678
Total operating expenses		4,998			(441	)	4,557			4,579			(433	)		4,146
Income (loss) from operations		(131	)		764		633			(72	)		(40	)		(112	)
Equity investment in earnings from Mediasite KK		78			—		78			—			—			—
Other expense, net		(26	)		—		(26	)		(52	)		—			(52	)
Provision for income taxes		(60	)		60		—			(60	)		60			—
Net income (loss)	$	(139	)	$	824		$ 685		$	(184	)	$	20		$	(164	)
Basic net income (loss) per common share	$	(0.04	)	$	0.21		$ 0.18		$	(0.05	)	$	0.01		$	(0.04	)
(1)Adjustments consist of the following:

Billings				$	323							$	(473	)
Depreciation and amortization					258								201
Non-cash tax provision					60								60
Stock-based compensation(2)					183								232

Total non-GAAP adjustments				$	824							$	20

(2) Stock-based compensation is included in the following GAAP operating expenses:

Selling and marketing				$	118							$	157
General and administrative					10								14
Product development					55								61

Total stock-based compensation				$	183							$	232