Selectica Announces First Quarter 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 quarter for the period ending June 30, 2010.

Highlights:

• 14 contract lifecycle management transactions, including both new customers and existing customers making additional commitments.
• $3.2 million total revenue, with half of new customers choosing a SaaS offering.
• Executed a restructuring in June that will align future costs with future revenues.

"We made progress this quarter in executing to our plan by adding new customers and continuing to improve our cost structure,” said Brenda Zawatski, co-chair of Selectica. "With over 50% of the reductions occurring in SG&A, we expect our quarterly operating expenses to decrease to approximately $3 million by the end of the year. We entered the current quarter with a strong pipeline, and we have begun to see the benefits of the recent restructuring.”

Revenue for the first quarter of fiscal 2010 was $3.2 million, compared to $5.4 million for the fourth quarter of fiscal 2009 and $3.8 million for the first quarter of fiscal 2009. Net loss for the first quarter of fiscal 2010 was $3.0 million, or $(0.07) per share, compared to a net loss of $1.5 million, or $(0.03) per share, in the fourth quarter of fiscal 2009 and a net loss of $2.2 million, or $(0.08) per share, in the first quarter of fiscal 2009. Cash, cash equivalents, and short-term investments were $20.0 million as of June 30, 2009.

Contract lifecycle management solutions revenue for the first quarter of 2010 was $1.8 million, or 57% of total revenues, compared with $1.8 million, or 48% of total revenue, for the first quarter of fiscal 2009. Sales configuration revenue for the first fiscal quarter of 2010 was $1.4 million, or 43% of total revenues, compared with $1.9 million, or 52% of total revenue, for the first fiscal quarter of 2009.

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) 762-8795. 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 (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 Global 2000 companies with solutions that automate complex contract management and sales configuration processes. Selectica's enterprise solutions streamline critical business functions including sales, procurement, and corporate governance, and enable companies to eliminate risk, increase revenue, and cut costs. Selectica customers represent leaders in manufacturing, technology, retail, healthcare, and telecommunications, including Bell Canada, Cisco, Covad Communications, Fujitsu, Hitachi, International Paper, ManTech, Levi Strauss & Co., Qwest Communications, and Rockwell Automation. For more information, visit 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 the on-going global recession; fluctuations in demand for Selectica's products and services; 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.