Selectica Announces Third 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 third quarter of fiscal 2009 ending December 31, 2008.

Revenue for the third quarter of fiscal 2009 was $4.2 million compared to $3.1 million for the second quarter of fiscal 2009 and $4.7 million for the third quarter of fiscal 2008. Net loss for the third quarter of fiscal 2009 was $1.8 million, or $(0.06) per share, compared to a net loss of $3.0 million, or $(0.10) per share, in the second quarter of fiscal 2009 and a net loss of $1.2 million, or $(0.04) per share, in the third quarter of fiscal 2008. Non-GAAP net loss for the third quarter of fiscal 2009 was $1.7 million, or $(0.06) per share compared to a non-GAAP net loss of $2.7 million, or $(0.09) per share for the second quarter of fiscal 2009 and a non-GAAP net loss of $0.3 million, or $(0.01) per share for the third quarter of fiscal 2008. Non-GAAP results exclude restructuring charges, patent litigation settlement expense and stock option investigation expense of $50,000 for the third quarter of fiscal 2009, $300,000 for the second quarter of fiscal 2009 and $1.0 million for the third quarter of fiscal 2008. Cash, cash equivalents and short-term investments were $27.4 million at December 31, 2008.

"I am pleased with the progress we have made in moving our business forward over the past six months as shown by our top line results, the reduction in our operating expenses and the signing of new customers,” said Brenda Zawatski, co-chair of Selectica. "Our overall performance in the most recent quarter reflects that we are headed in the right direction from a product, customer and strategic perspective, and justifies cautious optimism for our business despite a very harsh economic climate.”

Recent Highlights

• Contract management solutions delivered record revenues and represented 66% of total revenues in the third quarter of fiscal 2009. Sales configuration revenues represented 34% of total revenues.
• Selectica signed contracts to provide its Contract Performance Management solution with four new customers across a variety of industries, including a Fortune 500 leader in healthcare services and a regional gas and electric utility.
• Non-GAAP operating expenses declined 14% for the third quarter of fiscal 2009 compared with the same period in the previous year.
• Selectica released new versions of its contract management and sales configuration solutions that included major upgrades and new features and functionality.

Conference Call

Selectica will host a conference call to discuss its financial results today at 5:00 p.m. EST (2:00 p.m. PST). To access the conference call by phone, dial (800) 405-2236. 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 enterprise contract management and sales configuration 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 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-KSB, and other reports filed by the Company with the Securities and Exchange Commission.