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SUPPORTSOFT ACHIEVES PROFITABILITY WITH BREAKTHROUGH RESULTS FOR THIRD QUARTER 2002Fifth Consecutive Quarter of Growth in Earnings, Revenues and Cash FlowRedwood City, Calif., October 16, 2002 – SupportSoft, Inc. (Nasdaq: SPRT), a leading provider of support automation software, today reported financial results for its third quarter ending September 30, 2002. Total revenues for the third quarter 2002 were $11.1 million, a 17% increase from $9.5 million for the previous quarter and a 57% increase from $7.1 million for the same period last year.Pro forma net income for the quarter, excluding non-cash charges related to amortization of purchased technology and deferred stock compensation, was approximately $422,000 or $0.01 per share, compared with net losses of $1.1 million or $0.03 per share for the previous quarter and $5.7 million or $0.18 per share for the third quarter 2001. Net income on a GAAP basis for the third quarter of 2002 was approximately $37,000 or $0.00 per share, compared with net losses of $1.8 million or $0.06 per share for the previous quarter and $7.2 million or $0.23 for the same period last year. The Company was cash flow positive for the third consecutive quarter, increasing its cash and cash equivalents by $1.8 million. For the year 2002 to date, SupportSoft has increased its cash and cash equivalents by approximately $2.2 million or 8%. Deferred revenues have grown by 40% since the beginning of the year and by 7% since June 30, 2002, ending the quarter at a record $18.8 million. “These results reflect the unprecedented financial performance and operational success that we have delivered in the most recent quarter and over the course of 2002,” said Radha Basu, Chairman and CEO of SupportSoft. “We exceeded our commitments for profitability and cash flow that we initially set in 2000 and achieved our fifth consecutive quarter of revenue growth. Our success with blue-chip customers, breadth of product offerings and proven ROI demonstrate our ability to execute in a difficult environment. We believe that SupportSoft has become the indispensable support automation solution in the marketplace today and that we are very well positioned across the enterprise and service provider markets.” Recent Highlights: Customers: o SupportSoft received more than 25 orders in the quarter, including 3 sales greater than $1 million. The Company received orders from 9 new customers and repeat business from 16 existing customers such as CSC, Cox Communications, Clorox, Dimension Data and Charter Communications, with 13 of the orders coming from Fortune 500 customers. This brings the total new customer count to 160. o Comcast, with 1.1 million high-speed Internet customers, deepened its relationship with SupportSoft by selecting the SmartAccess installation product to help provide end-to-end automation for their subscribers. o SupportSoft successfully added a new market segment to its focus, extending its support automation solutions to the public sector with an initial sale to a leading U.S. Government agency. Products: o SupportSoft extended its line of support automation products with the introduction of 9 new software solutions, including applications for knowledge automation, infrastructure automation and mobile support assistance. These new component products are designed to help enterprises cost effectively address immediate pain points, while providing a clear growth path to a complete support automation software suite. o SupportSoft expanded the capabilities of its Service Provider Resolution Suite by introducing SmartAccess, which automates the customer installation process and significantly reduces service providers’ costs. Broadband providers now have a fully integrated, automated customer support solution starting with installation and throughout the subscriber lifecycle. o SupportSoft was awarded another patent for its DNA Probeä, SupportSoft’s innovative self-healing technology for computing systems. This is the Company’s sixth technology patent; it has three additional patents pending. Guidance Based on the Company’s performance and the current market conditions, SupportSoft expects revenues of $11.6 to $12.0 million for the fourth quarter of 2002. Net earnings per share for the fourth quarter of 2002 is expected to be between $0.01 and $0.03. The Company’s guidance for full year 2002 revenues is in the range of $40.9 to $41.3 million representing approximately 35% growth over 2001. For 2003, the Company’s guidance is for revenues in the range of $48 to $53 million. For the full year 2003, net earnings per share is expected to be between $0.07 and $0.10. About SupportSoft SupportSoft (Nasdaq: SPRT) is a leading provider of support automation software. SupportSoft's patented software platform allows businesses to automate and personalize the support they provide to their customers, partners and employees, helping them reduce costs and drive user satisfaction. Global 2000 companies using SupportSoft's software include corporate enterprises like GE, Cisco Systems, Bank of America and Schlumberger, plus OEMs and service providers like IBM, Sony, CSC, Comcast and BellSouth. SupportSoft has offices worldwide. Editorial Contact: Joi Deaser SupportSoft 650.556-8930 joi@supportsoft.com top of page |
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