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Astea Reports Third Quarter ProfitSoftware Licensing Revenues Surge Following Introduction of Astea AllianceEnterprise Version 6.0 Web-based Architecture Company Remains On Track for Strong Second HalfHORSHAM, Pa.--(BUSINESS WIRE)--Nov. 12, 2002-- Astea International Inc. (Nasdaq:ATEA - News), a global provider of Service Smart, Enterprise Proven CRM solutions, today announced financial results for its third fiscal quarter of 2002. For the third quarter ended September 30, 2002, Astea reported total revenues of $4.8 million compared to revenues of $3.5 million for the third quarter ended September 30, 2001, an increase of 37%. The Company reported net income for the quarter of $229,000 or $0.02 per fully diluted share compared to a net loss of $560,000 or ($0.04) per fully diluted share for the same period in 2001. For the nine months ended September 30, 2002, Astea reported revenues of $12.1 million compared to revenues of $12.8 million for the nine months ended September 30, 2001. The Company reported a net loss of $1.6 million or ($0.11) per fully diluted share for the first nine months of 2002 versus a net loss of $587,000 or (0.04) per fully diluted share for the same period in 2001. "Introduction of Astea's new Web-based architecture with AllianceEnterprise Version 6.0 in August helped sales performance in September," said Zack Bergreen, president and CEO of Astea International. "Astea finished the quarter with building momentum which is consistent with our earlier forecasts for improved operating results beginning in the second half of 2002." Astea increased software-licensing revenues by 238% to $2.4 million in the third quarter compared to $710,000 last quarter. Compared to the third quarter of 2001, when licensing revenues were $777,000, the increase was 207%. For the nine months ended September 30, 2002, software-licensing revenues were slightly ahead of revenues for the same period in the prior year. Coinciding with the introduction of AllianceEnterprise Version 6.0 and the upturn in sales, investments in sales and marketing and other expenditures for software license fees, professional services and administrative fees increased slightly in the third quarter of 2002 to approximately $4.6 million versus $4.1 million for the third quarter of 2001. For the nine months ended September 30, 2002, total costs and expenses remained relatively flat at $13.6 million compared to $13.7 million for the same period in 2001 due to ongoing cost containment. The soaring software licensing revenues offset slight declines in professional services and software maintenance revenues to approximately $2.5 million for the third quarter of 2002 from approximately $2.7 million for the third quarter in 2001. For the nine months ended September 30, 2002, professional services and software maintenance revenues were approximately $7.5 million compared to $8.3 million for the same period in 2001. Astea attributes the net loss for the first nine months of 2002 to worldwide market conditions that have severely depressed demand for enterprise software. The Company believes that the introduction of its AllianceEnterprise Version 6.0 products is well timed to maximize opportunities in a slow market recovery. The Company remains on track to increase revenues and expects operating results to continue to improve in the fourth quarter of 2002. Third Quarter Highlights Astea announced the general availability of AllianceEnterprise Version 6.0, which debuted the Company's next generation Web-based architecture for integrated Web and mobile CRM applications. AllianceEnterprise enables equipment manufacturers, distributors and pure service providers to improve operating costs, profit margins and market share by integrating and optimizing business processes for marketing, sales, product service and customer support. Circuit City Stores, Inc. (NYSE: CC - News) led the list of new customer additions. Circuit City selected Astea AllianceEnterprise for its new Installation Scheduling System to streamline business processes between in-store point of sale and in-home installation of consumer electronics such as home theatre systems. Astea and Telcordia Technologies, one of the world's largest providers of operational support systems to the telecommunications industry, jointly announced a VAR agreement whereby Astea Alliance PocketPC, an AllianceEnterprise Suite application, will be utilized to provide mobile PDA access to the Telcordia Force workforce management product. New Astea AllianceEnterprise Suite capabilities stimulated sales within the Company's existing customer base. National IT services provider QualxServ was among customers electing to migrate from their Astea Dispatch-1 legacy system to an Astea AllianceEnterprise Web and wireless solution. Verizon Connected was among customers electing to expand their existing AllianceEnterprise configuration. Following the appointments earlier this year of new executives to lead sales, marketing and customer service, and in anticipation of the August introduction of AllianceEnterprise V6.0, the Company began to increase its investments in the future. Astea's direct sales force was expanded and realigned to capitalize on current opportunities in targeted vertical markets. The Company also refined its marketing direction and laid the groundwork to leverage Astea's historical thought leadership in equipment service, sales and enterprise systems integration technologies for the emerging market of "Service Lifecycle Management" (SLM). Astea-engineered SLM solutions will increase integration and collective customer focus of front- and back-office business processes, which will empower Astea users with strategic advantages to grow profit and market share. Astea deployments will offer businesses an even greater value proposition than they do today, and far greater return on investment than tactical solutions such as ERP and CRM where benefits are confined to controlling operating costs of specific business processes. Astea will host a conference call that will be broadcast live over the Internet at 10:00 am on Tuesday, November 12, 2002, to discuss the Company's third quarter financial results. Investors can access the call from the Company's Web site at http://www.astea.com by clicking on "Investors" located on the home page, far left column, and then "Overview." To listen to the live call, please go to the web site at least fifteen minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, a replay will be available shortly after the call. About Astea International Astea International Inc. (www.astea.com) is a global supplier of integrated Customer Relationship Management (CRM) solutions that provide service-centric companies with a rapid return on their technology investment. Astea's flagship product, AllianceEnterprise CRM Suite, integrates, automates and streamlines sales and service business processes, thereby increasing productivity, competitive advantage, customer focus, top-line revenue growth and profitability. The full module set includes Sales & Marketing, Contact Center, Field Service, Professional Services and Mobile CRM solutions. Extending relationship from the field to the front office, the Company offers over twenty years of domain expertise, linking disparate business organizations and collapsing the time from contract to cash. Astea AllianceEnterprise manages the entire customer lifecycle from generating leads, to closing sales to providing world-class support that drives business. (c)2002 Astea International Inc. Astea is a registered trademark and AllianceEnterprise Suite is a trademark of Astea International Inc. All other company and product names contained herein are trademarks of the respective holders. This press release contains forward-looking statements that are made under the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties that could materially affect future results. Among these risk factors are possibilities that the companies mentioned in this press release may not purchase licenses for AllianceEnterprise, the continuing acceptance of Astea's products, general competitive pressures in the marketplace, and continued overall growth in the customer relationship management solutions industry. Further information regarding these as well as other key risk factors and meaningful cautionary statements that could affect the Company's financial results are included at length in the Company's Form 10-K for the fiscal year ended December 31, 2001, filed with the Securities and Exchange Commission. All forward-looking statements included in this document are based upon information available to Astea International Inc. as of the date hereof, and Astea International Inc. assumes no obligation to update any such forward-looking statements. Editorial Contact: Joe Mitchell Gregory FCA 610 642 8253 joe@gregoryfca.com top of page |
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