Selectica Announces Second Quarter Financial Results

Highlights:

• Six new contract lifecycle management customers, including three Fortune 500 companies and a top 20 commercial bank.
• $3.7 million in total revenue, representing 19% year-over-year growth; contract management revenue of $2.3 million, representing 64% year-over-year growth.
• 21% reduction in year-over-year operating expenses; fourth consecutive quarter of reduced operating expenses.
• Released Selectica Contract Lifecycle Management 4.0, which delivers industry-leading capabilities for managing contract amendments and a new user interface framework that improves productivity.
• Appointed Todd Spartz chief financial officer. Mr. Spartz brings more than 15 years’ experience to the company.

“I am pleased with our performance in acquiring new customers while improving our cost structure," said Brenda Zawatski, chairman of Selectica. "We continued to grow our pipeline, and our relationship with EMC has already resulted in our first joint customer. Our strategy is delivering solid results and I believe we are well positioned for growth.”

Revenue for the second quarter of fiscal 2010 was $3.7 million, compared to $3.2 million for the first quarter of fiscal 2010 and $3.1 million for the second quarter of fiscal 2009. Net loss for the second quarter of fiscal 2010 was $1.1 million, or $(0.02) per share, compared to a net loss of $3.0 million, or $(0.05) per share, in the first quarter of fiscal 2010 and a net loss of $3.0 million, or $(0.10) per share, in the second quarter of fiscal 2009. Cash, cash equivalents, and short-term investments were $18.3 million as of September 30, 2009.

Contract lifecycle management revenue for the second quarter of fiscal 2010 was $2.3 million, or 62% of total revenues, compared with $1.4 million, or 45% of total revenue, for the second quarter of fiscal 2009. Sales configuration revenue for the second quarter of fiscal 2010 was $1.4 million, or 38% of total revenues, compared with $1.7 million, or 55% of total revenue, for the second quarter of fiscal 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) 762-8973. 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

Selectica, Inc.
Allen Pogorzelski, 408-545-2531 (Media)
pr@selectica.com
Scott Wilson, 415-785-7945 (Investors)
ir@selectica.com