Stagnant SofTech Delists Stock

Small CAD and PLM developer SofTech filed this week for the delisting of its common stock. The company says the move will save it money by reducing reporting expenses.

CAD and PLM vendor SofTech Inc. has delisted its common stock. The company says it is doing so to reduce reporting expenses.

Most SofTech accounts use its products in legacy situations, including ProductCenter for Bill of Materials, and CADRA for 2D design and illustration. ??SofTech reported about $9.5 million in revenue in its fiscal year ended May 31, 2009. Its most recent quarterly filing, for the period ended Feb. 28, 2009, shows a drop in revenue to $1.9 million, down from $2.2 million in the same period a year earlier. As of the end of February, SofTech reported $665,000 in cash assets and $2 million in long-term debt.

The company plans to immediately cease reporting financials to the U.S. Securities and Exchange Commission and expects the de-registration to become effective in 90 days.

Long Slow Decline
A review of its recent quarters show a company in long slow decline, with little cash and a level of debt unknown by most product development software vendors.

For the public companies we cover, we calculate cash per share, a simple metric: Cash + Equivalents / Number of Shares. For most of the companies we cover, this figure ranges from $3.00 to $20 or more. SofTech’s cash per share is currently $0.05.

To compare SofTech to other companies we cover, we also created a metric we haven’t seen elsewhere, Debt Per Share: Long Term Debt / Number of Shares. For Autodesk and PTC, Debt Per Share is $0.00. For SofTech, Debt Per Share is $0.68. To SofTech’s credit, this figure is dropping; it was as high as $1.08 in 2007.

Revenue, Net Income, and Net Profit at SofTech are not following the same pattern as other companies we cover, who are showing new growth following the decline in 2008/2009.