ENCINO, Calif., Feb. 7, 2014 /PRNewswire/ -- Research Solutions, Inc. (RSSS), a pioneer in facilitating the flow of information from the publishers of scientific, technical, and medical content to enterprise customers in Life Sciences and other research intensive organizations around the world, today reported financial and operating results for its second quarter fiscal year 2014 (quarter ended December 31, 2013).

Second Quarter Fiscal Year 2014 Highlights:

• $9.6 million in consolidated revenue, a 31% decrease over the same quarter last year; $7.4 million in revenue from North American operations, a 36% decrease over same quarter last year, and; $2.2 million in revenue from French subsidiary TAAG, a 8% decrease over same quarter last year
• Consolidated Adjusted EBITDA of negative $210,000; Adjusted EBITDA of negative $312,000 from North American operations, and Adjusted EBITDA of $102,000 from TAAG
• North American Revenue Detail: $4.2 million in revenue from Article Galaxy, an 11% increase over the same quarter last year, and; $3.1 million in revenue from Reprints and ePrints, a 59% decrease over same quarter last year
• North American Gross Profit Detail: $945,000 in gross profit from Article Galaxy, a 9% increase over the same quarter last year, and; $370,000 in gross profit from Reprints and ePrints, a 55% decrease over same quarter last year
• $2.2 million in consolidated gross profit, a 20% decrease over the same quarter last year; $1.3 million in gross profit from North American operations, a 22% decrease over the same quarter last year, and; $905,000 in gross profit from TAAG, a 15% decrease over the same quarter last year

Management Commentary

"Article Galaxy continues to grow and has consolidated its position as our newest and highest revenue & gross margin product.  Customers are adopting it very well all over the world.  We've had recent major client wins in North America, Europe and Asia, and are adding corporate customers at a rate of more than one per day, and growing.  In addition to the geographical spread of Article Galaxy, we have also made improvements to it that allows us to serve more verticals.  To support this, we have improved our operating infrastructure as well as boosted our Sales & Marketing efforts which include the addition of new sales staff in Europe.  We also have development projects underway for 2014 that will significantly enhance the capabilities and value that Article Galaxy brings to research-driven corporations, academic institutions and government agencies worldwide.  It is no surprise then that our main subsidiary, Reprints Desk which operates Article Galaxy, was selected as one of the Top 100 Companies that Matter Most in the Digital Content Industry by eContent magazine, along with companies like LinkedIn, Google, Bloomberg, Amazon, Twitter and Elsevier.  We think our future is bright and very much look forward to continue serving our rapidly growing customer base," said Research Solutions President and CEO Peter Derycz.

Alan Urban, Chief Financial Officer, added "While revenue from Article Galaxy saw 11% growth over the same quarter last year, we experienced decreases in revenue from Reprint and ePrints, and TAAG.  Reprint and ePrint revenue can experience large fluctuations, as seen in this quarter's 59% decrease over the same quarter last year.  The decrease was primarily due to unusually large one-time orders from our largest current customers during the same quarter last year, and the termination of a historically nonperforming publisher Reprint distribution agreement last year as well." Mr. Urban continued, "The same trend was true of gross margin dollars; Article Galaxy was up by 9%, while Reprint and ePrint, and TAAG gross margin dollars were both down."

Conference Call

Research Solutions management will host a live conference call on Friday, February 7, 2014 beginning at 4:15 p.m. Eastern Time (1:15 p.m. Pacific Time) to discuss these results and answer questions from investors. To participate in the call please dial +1 (866) 516-3002 for domestic callers or +1 (253) 237-1159 for international callers, and enter Conference ID: 59417630 when prompted.

The call will also be streamed from the Company's website at www.researchsolutions.com. Listening to the webcast requires Internet access and the Windows Media Player or other compatible streaming media player. A recorded replay will also be available at www.researchsolutions.com for 60 days following the conclusion of the call.

Results at a Glance

The following financial information should be read in conjunction with the unaudited financial statements and accompanying notes thereto filed by the Company with the Securities and Exchange Commission on February 7, 2014 in its Quarterly Report on Form 10-Q for the period ended December 31, 2013. The Quarterly Report can be viewed at www.sec.gov.

Use of Non-GAAP Measure – Adjusted EBITDA

Research Solutions management evaluates and makes operating decisions using various financial metrics. In addition to the Company's GAAP results, management also considers the non-GAAP measure of Adjusted EBITDA. Management believes that this non-GAAP measure provides useful information about the Company's operating results.  The attached tables provide a reconciliation of this non-GAAP financial measure with the most directly comparable GAAP financial measure.

Adjusted EBITDA is defined as net income from operations before interest, income taxes, depreciation and amortization expenses, excluding, when applicable, stock-based compensation, impairment of acquired intangibles and goodwill, loss on facility sublease, and (gain) loss on sale of fixed assets.

Reconciliation of Adjusted EBITDA to Income (Loss) from Operations

(Table amounts in 000's)

About Research Solutions®

Research Solutions, Inc. is a pioneer in facilitating the flow of information from the publishers of scientific, technical, and medical content to enterprise customers in life science and other research intensive organizations around the world. We develop products, services and systems to facilitate the re-use of published content in a manner that helps organizations achieve their research, marketing, and communication goals effectively and in compliance with copyright law and regulatory rules.  Our subsidiary companies include Reprints Desk, Inc., and Techniques Appliquees aux Arts Graphiques, S.p.A. (TAAG).  For more information, please visit www.researchsolutions.com.

Forward-Looking Statements

Certain matters discussed in this press release may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  Such matters involve risks and uncertainties that may cause actual results to differ materially, including the following: changes in economic conditions; general competitive factors; acceptance of the Company's products in the market; the Company's success in obtaining new customers; the Company's success in technology and product development; the Company's ability to execute its business model and strategic plans; the Company's success in integrating acquired entities and assets, and all the risks and related information described from time to time in the Company's filings with the Securities and Exchange Commission ("SEC"), including the financial statements and related information contained in the Company's Annual Report on Form 10-K and interim Quarterly Reports on Form 10-Q.  Examples of forward-looking statements in this release include statements related to new products, anticipated revenue and profitability.  The Company assumes no obligation to update the cautionary information in this release.

SOURCE Research Solutions, Inc.