This cloud company recently announced a public common stock offering of 3,000,000 shares. The Company expects to use the net proceeds from the offering for working capital and other general corporate purposes.
SciQuest, Inc. (SQI)
from The Oberweis Report
SciQuest, Inc. (SQI) provides leading cloud-based business automation solutions for spend management. By simplifying and streamlining cumbersome, tedious, and often manual, processes, organizations can identify and capitalize on opportunities to reduce costs by gaining control over suppliers, contracts, purchases and payments.
The company’s spend management solutions provide a significant return on investment for its customers by facilitating the reduction of spending on goods and services, enhancing visibility and control over spending decisions and practices, as well as optimizing the efficiency of key business processes. As a result of these benefits, its customers have the tools to focus on strategic initiatives that result in even greater value to their organizations.
The company’s procurement solutions enable organizations to realize the benefits of spend management by identifying and establishing contracts with preferred suppliers, negotiating pricing discounts, driving spend to those preferred contracts and promoting process efficiencies through electronic transactions.
Its contract lifecycle management solution facilitates more effective contract negotiation and compliance that can result in better contract terms. SciQuest delivers its cloud-based solutions using a Software-as-a-Service, or SaaS, model, which enables the company to offer greater functionality, faster innovation, easier integration and improved reliability with less cost and risk to the organization than traditional on-premise solutions.
Customers pay subscription fees and implementation service fees for the use of SciQuest’s solutions under either multi-year contracts that are generally three to five years in length, or one-year contracts with annual renewal provisions. Customers currently include approximately 30% of the Forbes Global 100 companies and 25% of the Fortune 500.
In the company’s latest reported fourth quarter, sales increased approximately 31% to $25.8 million from $19.7 million in the fourth quarter of last year. SciQuest reported earnings per share of $.11 in the latest reported fourth quarter versus $.07 in the same quarter of last year.
Jim Oberweis, CFA, The Oberweis Report, www.oberweisreport.com, 800-323-6166, April 2014