Salary.com (SLRY)

Business Outlook

For the third quarter of fiscal 2010, Salary.com expects total revenue in the range of $11.4 million to $11.9 million. Non-GAAP net loss is expected to be in the range of $1.7 million to $2.2 million. Non-GAAP net loss excludes non-cash stock-based compensation expenses in the range of $1.7 million to $2.0 million, amortization of intangibles in the range of $1.2 million to $1.3 million, and restructuring charges of approximately $100,000. GAAP net loss for the third quarter of fiscal 2010 is expected to be in the range of $4.7 million to $5.8 million. Weighted average diluted shares for the quarter are estimated to be approximately 16.2 million shares.

For the full year fiscal 2010, we expect revenue to be in the range of $46.5 million to $50.5 million. Non-GAAP net loss is expected to be in the range of $4.8 million to $8.8 million. Non-GAAP net loss excludes non-cash impact of stock-based compensation in the range of $8.0 million to $10.0 million, amortization of intangibles in the range of $4.8 million to $5.1 million, and restructuring charges of approximately $200,000. On a GAAP basis, net loss for fiscal 2010 is expected to be in the range of $19.3 million to $23.3 million. Non-GAAP cash flow from operations, which excludes $500,000 in severance, is expected to be in the range of $1.2 million to $2.2 million in fiscal 2010. Weighted average diluted shares for the year are estimated to be approximately 16.3 million shares.

Business Outlook

For the second quarter of fiscal 2010, Salary.com expects total revenue in the range of $11.4 million to $11.9 million. Non-GAAP net loss, which excludes non-cash stock-based compensation expenses of approximately $1.7 million, and amortization of intangibles of approximately $1.2 million, is expected to be in the range of $1.9 million to $2.4 million. GAAP net loss for the second quarter of fiscal 2010 is expected to be in the range of $4.8 million to $5.3 million. Weighted average diluted shares for the quarter are estimated to be approximately 16.3 million shares.

Salary.com is raising its prior guidance for fiscal 2010. We expect revenue to be in the range of $46.5 million to $50.5 million and cash flow from operations is expected to be a positive $1.2 million to $2.2 million. Non-GAAP net loss, which excludes non-cash impact of stock-based compensation expense of approximately $10.0 million, and amortization of intangibles of approximately $4.5 million, is expected to be in the range of $4.8 million to $8.8 million. On a GAAP basis, net loss for fiscal 2010 is expected to be in the range of $19.3 million to $23.3 million. Weighted average diluted shares for the year are estimated to be approximately 16.5 million shares.

Business Outlook

Bryce Chicoyne, Salary.com’s chief financial officer said, “We are pleased to show continued revenue growth despite the macro environment. At the same time, the cost reductions we recently implemented are having a positive impact on our bottom line results. We anticipate that the combination of our growing sales pipeline, our recent success in bundling payroll, compensation management, and talent management products and continued diligence with respect to expense management will result in positive operating cash flow for the company in fiscal 2010.”

For the first quarter of fiscal 2010, Salary.com expects total revenue in the range of $11.0 million to $11.5 million. Non-GAAP net loss, which excludes non-cash stock-based compensation expenses of approximately $1.7 million, and amortization of intangibles of approximately $1.1 million, is expected to be in the range of $2.5 million to $3.0 million. GAAP net loss for the first quarter of fiscal 2010 is expected to be in the range of $5.4 million to $5.9 million. Weighted average diluted shares for the quarter are estimated to be approximately 16.3 million shares.

Salary.com expects fiscal 2010 revenue to be in the range of $46.0 million to $50.0 million and cash flow from operations is expected to be a positive $1.0 million to $2.0 million. Non-GAAP net loss, which excludes non-cash impact of stock-based compensation expense of approximately $10.0 million, and amortization of intangibles of approximately $4.5 million, is expected to be in the range of $5.0 million to $9.0 million. On a GAAP basis, net loss for fiscal 2010 is expected to be in the range of $19.5 million to $23.5 million. Weighted average diluted shares for the year are estimated to be approximately 16.5 million shares.

Business Outlook

Bryce Chicoyne, Salary.com’s chief financial officer said, “We are pleased with the company’s solid revenue growth in the third quarter and believe the steps we took to lower our cost structure will allow Salary.com to achieve positive operating cash flow in fiscal 2010. Salary.com’s growing leadership position in talent management and compensation management, broadening product lines, acquisition of Genesys, and prudent cost management provide us confidence that Salary.com will successfully execute through this difficult economic environment and emerge well positioned for long-term success.”

For the fourth quarter of fiscal 2009, Salary.com expects total revenue in the range of $11.0 million to $11.8 million. Non-GAAP net loss, which excludes non-cash stock-based compensation expenses of approximately $3.3 million, amortization of intangibles of approximately $1.2 million and severance charges of approximately $1.0 million, is expected to be in the range of $3.2 million to $4.0 million. GAAP net loss for the fourth quarter of fiscal 2009 is expected to be in the range of $8.7 million to $9.5 million. Weighted average diluted shares for the quarter are estimated to be approximately 16.1 million shares.

Salary.com expects full year revenue in fiscal 2009 to be in the range of $42.2 million to $43.0 million. Non-GAAP net loss, which excludes non-cash impact of stock-based compensation expense of approximately $9.4 million, amortization of intangibles of approximately $3.7 million and severance charges of approximately $1.0 million, is expected to be in the range of $12.2 million to $13.0 million. On a GAAP basis, net loss for fiscal 2009 is expected to be in the range of $26.3 million to $27.1 million. Weighted average diluted shares for the year are estimated to be approximately 15.5 million shares.

Business Outlook

Bryce Chicoyne, Salary.com’s chief financial officer said, “Based on recent progress with our sales and marketing initiatives and the recognition of the company and its products as market leaders, we remain confident in the near- and long-term prospects for Salary.com. While we are seeing positive signs in our business despite an increasingly difficult economic environment, we are carefully balancing investments in our sales and marketing initiatives with expense management. Our management team remains committed to exiting the year with positive operating cash flow.”

For the third quarter of fiscal 2009, Salary.com expects total revenue in the range of $11.0 million to $11.5 million. Non-GAAP net loss, which excludes non-cash stock-based compensation expenses of approximately $2.2 million and amortization of intangibles of approximately $0.8 million, is expected to be in the range of $3.0 million to $3.5 million. GAAP net loss for the third quarter of fiscal 2009 is expected to be in the range of $6.0 to $6.5 million. Weighted average diluted shares for the quarter are estimated to be approximately 15.6 million shares.

Salary.com expects our full year revenue in fiscal 2009 to be in the range of $43.0 to $46.0 million, and cash flow from operations is expected to be a net outflow in the range of $2.0 million to $5.0 million, taking into consideration that the company has already experienced a cash outflow of $3.0 million in the first half of the year. Non-GAAP net loss, which excludes non-cash impact of stock-based compensation expense of approximately $9.0 million and amortization of intangibles of approximately $3.3 million, is expected to be in the range of $11.3 to $14.3 million. On a GAAP basis, net loss for fiscal 2009 is expected to be in the range of $23.3 to $26.3 million. Weighted average diluted shares for the year are estimated to be approximately 15.1 million shares.

Business Outlook

For the second quarter of fiscal 2009, Salary.com expects total revenue in the range of $10.2 to $10.7 million. Non-GAAP net loss, which excludes non-cash stock-based compensation expenses of approximately $2.2 million and amortization of intangibles of approximately $0.8 million, is expected to be in the range of $3.2 to $3.7 million. GAAP net loss for the second quarter of fiscal 2009 is expected to be in the range of $6.2 to $6.7 million. Weighted average diluted shares for the quarter are estimated to be approximately 15.0 million shares.

Salary.com continues to expect total revenue in fiscal 2009 to be in the range of $45.0 to $49.0 million, and cash flow from operations is expected to be in the range of $0 to $1.0 million. Non-GAAP net loss, which excludes non-cash impact of stock-based compensation expense of approximately $9.0 million and amortization of intangibles of approximately $3.0 million, is expected to be in the range of $10.0 to $13.0 million. On a GAAP basis, net loss for fiscal 2009 is expected to be in the range of $22.0 to $25.0 million. Weighted average diluted shares for the year are estimated to be approximately 15.1 million shares.

Business Outlook

Kent Plunkett, founder and chief executive officer commented, “In fiscal 2009 we plan to significantly increase our investment in sales and marketing to pursue the large market opportunity we see for our expanded product line in an underpenetrated market. While these investments will have a near-term impact on

operating cash flow and net income, we believe they will accelerate the pace at which we will be able to realize our longer-term growth objectives. We expect these investments to allow Salary.com to grow our annual revenue to between $65 and $72 million and increase our annual operating cash flow to between $10 and $12 million by the end of fiscal 2010. Additionally, we anticipate that these investments will position us to achieve non-GAAP profitability in fiscal 2011.”

For the first quarter of fiscal 2009, Salary.com expects total revenue in the range of $9.3 to $9.7 million. Non-GAAP net loss, which excludes non-cash stock-based compensation expenses of approximately $2.2 million and amortization of intangibles of approximately $0.8 million, is expected to be in the range of $3.5 to $3.9 million. GAAP loss for the first quarter of fiscal 2009 is expected to be in the range of $6.5 to $6.9 million. Weighted average shares for the quarter are estimated to be approximately 14.6 million shares.

Salary.com expects total revenue in fiscal 2009 to be in the range of $45.0 to $49.0 million. Due to the increased investment in sales and marketing mentioned above, cash flow from operations is expected to be in the range of $0 to $1.0 million for the full fiscal year. Non-GAAP net loss, which excludes non-cash impact of stock-based compensation expense of approximately $9.0 million and amortization of intangibles of approximately $3.0 million, is expected to be in the range of $10.0 to $13.0 million. On a GAAP basis, net loss for fiscal 2009 is expected to be in the range of $22.0 to $25.0 million. Weighted average basic shares for the year are estimated to be approximately 15.1 million shares.

Business Outlook

For the fourth quarter of fiscal 2008, Salary.com expects total revenue in the range of $9.6 to $10.1 million. Non-GAAP net loss, which excludes non-cash stock-based compensation expenses of approximately $1.6 million and amortization of intangibles of approximately $0.8 million, is expected to be in the range of $1.1 to $1.3 million. GAAP loss for the fourth quarter of fiscal 2008 is expected to be in the range of $3.4 to $3.6 million. Weighted average shares for the quarter are estimated to be approximately 14.2 million shares.

Salary.com expects total revenue in fiscal 2008 to be in the range of $34.8 to $35.3 million, a slight increase compared to the company’s prior outlook. Cash flow from operations is expected to be in the range of $7.8 to $8.2 million for the full fiscal year, consistent with the company’s prior outlook. Non-GAAP net loss, which excludes non-cash impact of stock-based compensation expense of approximately $5.0 million and amortization of intangibles of approximately $1.8 million, is expected to be in the range of $3.6 to $3.8 million. On a GAAP basis, net loss for fiscal 2008 is expected to be in the range of $10.4 to $10.6 million. Weighted average basic shares for the year are estimated to be approximately 13.8 million shares.

Business Outlook

For the third quarter of fiscal 2008, Salary.com expects total revenue in the range of $8.8 million to $9.2 million. Non-GAAP net loss, which excludes the non-cash impact of stock-based compensation expense and amortization of intangibles, is expected to be in the range of $1.5 million to $1.7 million. GAAP loss for the second quarter of fiscal 2008 is expected to be in the range of $3.2 million to $3.4 million. Weighted average shares for the quarter are estimated to be approximately 13.8 million shares.

Salary.com expects total revenue in fiscal 2008 to be in the range of $34.6 million to $35.4 million, an increase from prior guidance. Cash flow from operations is expected to be in the range of $7.8 million to $8.2 million for the full fiscal year. Non-GAAP net loss, which excludes the non-cash impact of stock-

based compensation expense and amortization of intangibles, is expected to be in the range of $4.5 million to $4.9 million. On a GAAP basis, net loss for fiscal 2008 is expected to be in the range of $10.3 million to $10.7 million. Weighted average basic shares for the year are estimated to be approximately 13.7 million shares.

Business Outlook

Salary.com expects total revenue in fiscal 2008 to be in the range of $33.7 million to $34.9 million, an increase from prior guidance. Cash flow from operations is expected to be in the range of $7.8 million to $8.2 million for the full fiscal year, also an increase from prior guidance. Non-GAAP loss, which excludes the non-cash impact of stock-based compensation expense and amortization of intangibles, is expected to be in the range of $5.0 million to $5.4 million. On a GAAP basis, net loss for fiscal 2008 is expected to be in the range of $8.8 to $9.2 million. Weighted average basic shares for the year are estimated to be approximately 13.7 million shares.

For the second quarter of fiscal 2008, Salary.com expects total revenue in the range of $7.7 million to $8.1 million. Non-GAAP loss, which excludes the non-cash impact of stock-based compensation expense and amortization of intangibles, is expected to be in the range of $1.3 million to $1.7 million. GAAP loss for the second quarter of fiscal 2008, is expected to be in the range of $2.3 million to $2.7 million. Weighted average shares for the quarter are estimated to be approximately 13.6 million shares.

Business Outlook

For the full year fiscal 2008, Salary.com expects total revenue in the range of $32.5 million to $33.7 million. Cash flow from operations is expected to be in the range of $7.6 million to $8.0 million for the full fiscal year. Non-GAAP loss, which excludes the non-cash impact of stock-based compensation expense and amortization of intangibles, is expected to be in the range of $5.4 million to $5.8 million. On a GAAP basis, net loss for

fiscal 2008 is expected to be in the range of $9.5 to $9.9 million. Weighted average shares for the year are expected to be approximately 13.7 million shares.

For the first quarter of fiscal 2008, Salary.com expects total revenue in the range of $6.7 million to $7.1 million. Non-GAAP loss, which excludes the non-cash impact of stock-based compensation expense and amortization of intangibles, is expected to be in the range of $1.5 million to $1.7 million. GAAP loss for the first quarter of fiscal 2008, is expected to be in the range of $2.5 million to $2.7 million. Weighted average shares for the quarter are expected to be approximately 13.4 million shares.