PITTSBURGH, PA – July 31, 2003 – ServiceWare Technologies (Company
Profile, Past
Stories, Case
Studies) , Inc. (OTCBB: SVCW), a leading provider of Web-based knowledge management solutions for customer service and support, today announced
results for the second quarter ended June 30, 2003. The Company reported revenues of $3.1 million, up 45% from the first quarter 2003 results of $2.1 million, and up 4%
compared with the second quarter 2002 results of $2.9 million. The net loss for the quarter was down 56% to $369,000, or $0.02 per share, which compared to a net loss of
$842,000 or $0.04 per share reported in the second quarter of 2002. The Company reported income from operations of $78,000. The Company also reported EBITDA of
$363,000 for the quarter, in line with its previous forecast.
Second Quarter Highlights:
The Company reported revenues of $3.1 million
The Company grew revenues 45% quarter over quarter
The Company reported EBITDA of $363,000
The Company reported income from operations of $78,000
The Company ended the quarter with cash and short-term investments equaling $1.1 million, an increase of 3% over March 31, 2003
The Company signed contracts with 17 customers during the quarter, including: National Institutes of Health, Aventis Pharmaceuticals, Cingular Wireless, EDS Corporation,
Fifth Third Bancorp, Stratacom and C3i
The Company recognized 53% of its license revenue during the quarter from new customers and 47% from its existing client base
The Company signed a global channel outsourcing agreement with a Fortune 100 technology company who has selected ServiceWare as their exclusive Knowledge
Management provider
The Company announced its mid-market offering, ServiceWare Express™
The Company recently announced a validated integration with Remedy®, a BMC Software company
“We are pleased with the continued progress the Company made during the quarter as we achieved EBITDA positive results, operating income, and revenue growth,” said
Kent Heyman, president and chief executive officer of ServiceWare Technologies. “We were able to lower our operating expense by 18% over last year, while growing our top
line. I was also pleased with the revenue mix we saw during the quarter with our existing customers delivering 47% of our license revenues through expanded use of our
solutions throughout the enterprise as well as upgrades to our new version.”
Mr. Heyman continued, “looking ahead to the remainder of the year, we are cautiously optimistic about our core business as our pipeline remains strong. We are also
pleased to have signed a global outsourcing agreement with a Fortune 100 technology company as their designated Knowledge Management provider. We see this as a
tremendous opportunity moving forward.”
Balance Sheet
Income Statement
Reconciliation of Non-GAAP EBITDA calculation
ServiceWare will present the second quarter 2003 earnings in a teleconference today at 4:30 pm ET. The call can be accessed by dialing 1.800.374.0565 and giving the
company name, "ServiceWare" or over the Internet at www.serviceware.com in the Investor Relations area. Participants are asked to call the assigned number
approximately 10 minutes before the conference call begins. A replay of the conference call will be available two hours after the call for the following three business days by
dialing (800) 642-1687 and entering the following pass code: 1879133. Also, an instant replay of the conference call will be available on the ServiceWare Investor Relations
site or by going to www.mkr-group.com.
About ServiceWare
ServiceWare is a leading provider of Web-based knowledge management solutions for customer service and support. ServiceWare software empowers organizations to
deliver superior service while reducing support costs. Powered by ServiceWare’s Cognitive Processor®, a patented self-learning search technology, ServiceWare
Enterprise™ and ServiceWare Express™ enable businesses to develop and manage a repository of knowledge to effectively answer inquiries over the Web and in the call
center. Leading organizations have implemented ServiceWare software including EDS, H&R Block, AT&T Wireless, Cingular Wireless, Fifth Third Bancorp, Green
Mountain Energy, Reuters, and QUALCOMM. Learn more today by visiting www.serviceware.com or call 1.800.572.5748. . Outside North America, call our international
office at +(44)(0)1280.826345.
ServiceWare Enterprise, , ServiceWare Express, ServiceWare Self-Service, ServiceWare Professional, ServiceWare Architect, ServiceWare Administrator, ServiceWare
Knowledge Portal and Cognitive Processor are trademarks of ServiceWare Technologies, Inc. All other trademarks are properties of their respective owners.
Statements in this press release that are not historical facts, including those statements that refer to ServiceWare's plans, prospects, expectations, strategies, intentions,
hopes and beliefs, are forward-looking statements. These forward-looking statements are based on information available to ServiceWare today, and ServiceWare assumes
no obligation to update these statements as circumstances change. There are risks and uncertainties that could cause actual results to differ materially from the forward-
looking statements, including, without limitation, risks related to ServiceWare's software strategy, fluctuations in customer demand, use of the Web as a delivery vehicle for
customer support solutions, risks resulting from new product introductions, integration of acquired products with current offerings, and customer acceptance of new
products, rapid technological change, risks associated with competition, continued growth in the use of the Internet, ServiceWare's ability to retain and increase revenue
from existing customers and to execute agreements with new customers, ServiceWare's ability to attract and retain qualified personnel and to secure necessary financing
for its operations and business development. Risk factors are described in more detail in ServiceWare's filings with the Securities and Exchange Commission.
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