CORRECTING and REPLACING Selectica Announces First Quarter Fiscal 2009 Financial Results

Please replace the release with the following corrected version due to multiple revisions. The corrected release reads: SELECTICA ANNOUNCES FIRST QUARTER FISCAL 2009 FINANCIAL RESULTS Selectica, Inc. (Nasdaq: SLTC), a leading provider of enterprise contract lifecycle management and sales configuration solutions, today announced financial results for its first fiscal quarter of 2009 ending June 30, 2008. Revenue for the first quarter of fiscal 2009 was $3.8 million compared to $4.3 million for the same period in the previous year. Net loss for the quarter was $2.6 million, or $(0.09) per share, compared to a net loss of $2.3 million, or $(0.08) per share, in the first quarter of fiscal 2008. Non-GAAP net loss for the first quarter of fiscal 2009 was $2.1 million, or $(0.07) per diluted share. Non-GAAP results for the first fiscal quarter of 2009 exclude restructuring charges, patent litigation settlement expense, and stock option investigation expense of $513,000. Cash and cash equivalents were $33.3 million at June 30, 2008. "The changes we announced in July included a significant restructuring and senior leadership changes at the company, including the departure of the CEO,” said Brenda Zawatski, co-chair of Selectica. "In our view, previous investments didn’t deliver returns or prospects that were significant enough to warrant continued investment. As a result, we have reduced our cost structure. The changes in strategy that we made were necessary and have been well received by our customers, partners and employees.” "We are planning to release an updated version of our sales configuration solution in September,” continued Zawatski. "And, our contract management solution has been recognized as an industry leading product and continues to attract leading global companies. In the first quarter we signed significant new contract management deals with two Fortune 500 companies -- the world’s leading online retailer and the leading developer of technologies for the global marketplace. One of these was an initial deployment of a CLM solution while the other was a competitive displacement. I believe that the selection of our solutions by these leading global companies validates the strength and leadership of our contract management offering.” Recent Highlights Selectica’s contract management business grew 32% in the first quarter of fiscal 2009. New customers for Selectica’s contract lifecycle management solution include a global leader in online retailing and a leading developer of technologies for the global marketplace, both Fortune 500 companies. Selectica Contract Performance Management was recognized by industry research firm Forrester Research as a leading /contract lifecycle management solution. Selectica added Steven Goldner as vice president of engineering in the sales configuration business and David Knowlton as vice president of global sales. Conference Call Selectica will host a conference call to discuss its financial results today at 5:00 p.m. EDT (2:00 p.m. PDT). To access the conference call by phone, dial (800) 240-2134. The conference call will also be webcast live via the Internet, and can be accessed on the investor relations section of the Company's website (http://www.selectica.com). An archive of the webcast will be available in the same location shortly after the completion of the call. About Selectica, Inc. Selectica (Nasdaq: SLTC) provides its customers with software solutions that automate the complexities of sales configuration and enterprise contract management lifecycles. The company's high-performance solutions underlie and unify critical business functions including sourcing, procurement, governance, sales and revenue recognition. Selectica has been providing innovative, enterprise-class solutions for the world's largest companies for over 10 years and has generated substantial savings for its customers. Selectica customers represent leaders in manufacturing, technology, retail, healthcare and telecommunications, including: ABB, Ace Hardware, Bell Canada, Cisco, Covad Communications, General Electric, Hitachi, Juniper Networks, Levi Strauss & Co., Rockwell Automation, Tellabs, and 7-Eleven. Selectica is headquartered in San Jose, CA. For more information, visit the company's Web site at www.selectica.com. Forward Looking Statements Certain statements in this release and elsewhere by Selectica are forward-looking statements within the meaning of the federal securities laws and the Private Securities Litigation Reform Act of 1995. Such information includes, without limitation, business outlook, assessment of market conditions, anticipated financial and operating results, strategies, future plans, contingencies and contemplated transactions of the Company. Such forward-looking statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors which may cause or contribute to actual results of Company operations, or the performance or achievements of the Company or industry results, to differ materially from those expressed, or implied by the forward-looking statements. In addition to any such risks, uncertainties and other factors discussed elsewhere herein, risks, uncertainties and other factors that could cause or contribute to actual results differing materially from those expressed or implied for the forward-looking statements include, but are not limited to fluctuations in demand for Selectica's products and services; changes to economic growth in the U.S. economy; government policies and regulations, including, but not limited to those affecting the Company's industry; and risks related to the Company's past stock granting policies and related restatement of financial statements. Selectica undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Additional risk factors concerning the Company can be found in the Company's most recent Form 10-K, and other reports filed by the Company with the Securities and Exchange Commission. SELECTICA, INC. Condensed Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited)         Three Months Ended June 30 June 30 2008 2007   Revenues: License $ 756 $ 1,711 Services   3,010     2,630   Total revenues   3,766     4,341     Cost of revenues: License 51 60 Services   1,187     1,023   Total cost of revenues   1,238     1,083     Gross profit   2,528     3,258     Operating expenses: Research and development 1,147 1,178 Sales and marketing 1,760 1,925 General and administrative 1,466 1,372 Litigation settlement 114 - Restructuring 380 90 Professional fees related to stock option investigation   19     1,851   Total operating expenses   4,886     6,416     Operating loss (2,358 ) (3,158 )   Interest and other income, net   (216 )   1,065     Loss before provision for income taxes (2,574 ) (2,093 ) Provision for income taxes   17     206   Net loss $ (2,591 ) $ (2,299 )   Basic and diluted net loss per share $ (0.09 ) $ (0.08 )   Weighted average shares outstanding for basic and diluted net loss per share   28,585     28,407   SELECTICA, INC. Non-GAAP Condensed Consolidated Statements of Operations Excluding restructuring costs, option investigation fees and litigation reserves and payments (In thousands, except per share amounts) (Unaudited)         Three Months Ended June 30 June 30 2008 2007   Revenues: License $ 756 $ 1,711 Services   3,010     2,630   Total revenues   3,766     4,341     Cost of revenues: License 51 60 Services   1,187     1,023   Total cost of revenues   1,238     1,083     Gross profit   2,528     3,258     Operating expenses: Research and development 1,147 1,178 Sales and marketing 1,760 1,925 General and administrative   1,466     1,372   Total operating expenses   4,373     4,475     Operating loss (1,845 ) (1,217 )   Interest and other income, net   (216 )   1,065     Loss before provision for income taxes (2,061 ) (152 ) Provision for income taxes   17     206   Non-GAAP net loss $ (2,078 ) $ (358 )   Basic and diluted non-GAAP net loss per share $ (0.07 ) $ (0.01 )   Weighted average shares outstanding for basic and diluted non-GAAP net loss per share   28,585     28,407     Use of Non-GAAP Financial Information To supplement our consolidated financial statements presented on a GAAP basis, Selectica uses non-GAAP measures of operating results, net loss and loss per share, which are adjusted to exclude certain costs, expenses, and losses we believe appropriate to enhance an overall understanding of our past financial performance and also our prospects for the future. The presentation of this additional information is not meant to be considered in isolation or as a substitute for net loss or net loss per share prepared in accordance with generally accepted accounting principles in the United States. SELECTICA, INC. Reconciliation of GAAP to Non-GAAP Net Loss (In thousands, except per share amounts) (Unaudited)         Three Months Ended June 30 June 30 2008 2007     GAAP net loss $ (2,591 ) $ (2,299 )   Non-GAAP adjustments: Litigation settlement 114 - Restructuring 380 90 Professional fees related to stock option investigation 19 1,851     Non-GAAP net loss $ (2,078 ) $ (358 )   Basic and diluted non-GAAP net loss per share $ (0.07 ) $ (0.01 )   Weighted average shares outstanding for basic and diluted non-GAAP net loss per share   28,585     28,407   SELECTICA, INC. Condensed Consolidated Balance Sheets (In thousands) (Unaudited)       June 30 June 30 2008 2007   ASSETS Current assets Cash and cash equivalents $ 24,665 $ 22,137 Short-term investments 8,656 13,076 Accounts receivable 2,041 1,330 Prepaid expenses and other current assets   840   919 Total current assets 36,202 37,462   Property and equipment, net 1,928 2,185 Other assets 737 593 Long-term investments   -   - Total assets $ 38,867 $ 40,240       LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Current portion of note payable to Versata $ 786 $ 786 Accounts payable 690 518 Current portion of accrual for restructuring liability 1,891 1,937 Accrued payroll and related liabilities 1,253 740 Other accrued liabilities 815 735 Deferred revenue   2,680   1,984 Total current liabilities   8,115   6,700 Accrual for restructuring liability, net of current portion 557 924 Note payable to Versata 4,984 5,113 Other long-term liabilities   186   245 Total liabilities   13,842   12,982   Stockholders' equity   25,025   27,258 Total liabilities and stockholders' equity $ 38,867 $ 40,240 SELECTICA, INC. Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited)       Three Months Ended June 30 June 30 2008 2007     Cash flows from operating activities: Net loss $ (2,591 ) $ (2,299 ) Adjustments: Depreciation 103 (6 ) Amortization 31 52 Loss on disposal of property and equipment 81 - Stock based compensation 362 178 Changes in assets and liabilities: Accounts receivables (711 ) (418 ) Prepaid expenses and other current assets 79 (527 ) Other assets (175 ) (747 ) Accounts payable 172 (1,519 ) Accrual for restructuring liability (413 ) - Accrued payroll and related liabilities 514 199 Other accrued liabilities and long-term liabilities 90 (1,485 ) Deferred revenue   696     382   Net cash used in operating activities   (1,762 )   (6,190 )   Cash flows from investing activities: Purchase of capital assets (6 ) 52 Proceeds from sale of fixed assets 9 5 Purchase of short-term investments (3,335 ) (17,235 ) Proceeds from maturities of short-term investments 7,723 19,331 Proceeds from maturities of long-term investments   -     980   Net cash provided by investing activities   4,391     3,133     Cash flows from financing activities: Principal payments on note payable to Versata   (200 )   -   Net cash used in financing activities   (200 )   -   Effect of exchange rate changes on cash 99 - Net increase (decrease) in cash and cash equivalents 2,528 (3,057 ) Cash and cash equivalents, beginning of period   22,137     30,165   Cash and cash equivalents, end of period $ 24,665   $ 27,108