SAN DIEGO, Aug. 15, 2005 (PRIMEZONE) -- Spescom Software Inc. (OTCBB:SPCO), a leading provider of enterprise content and configuration management solutions, today reported results of operations for its fiscal third quarter ended June 30, 2005.
Total revenue for the third quarter of 2005 was $1.3 million, a decrease of 55% versus revenue of $2.9 million in the year earlier quarter. Net loss before deemed and cumulative dividends for the third quarter of 2005 was ($868,000), or ($0.03) per share, compared with net income before deemed and cumulative dividends of $443,000, or $0.01 per share, for the three months ended June 30, 2004. After the effect of cumulative dividends totalling $66,000 to preferred shareholders in the third quarter of 2005, the net loss available to common shareholders was ($934,000) or ($0.03) per share. In the same period of the prior year, after cumulative dividends totalling $66,000, the net income available to common shareholders in the third quarter was $377,000 or $0.01 per share.
For the nine months ended June 30, 2005, total revenues were $4.6 million versus $6.6 million in the same period of the prior year. Net loss before deemed and cumulative dividends for the 2005 nine month period was ($1,980,000), or ($0.13) per share, compared with net loss before deemed and cumulative dividends of ($119,000), or ($0.00) per share, for the nine-months ended June 30, 2004. After the effect of the deemed dividend of $2,200,000 and cumulative dividends of $235,000 to the preferred shareholders for the first nine months of 2005, the net loss available to common shareholders was ($4,415,000) or ($0.13) per share. In the same period of the prior year after the cumulative dividends totalling $198,000 to preferred shareholders, the net loss available to common shareholders was ($317,000), or ($0.01) per share.
"Continued delays in our customers' purchasing decisions are reflected in our revenue figures," commented John Low, Chief Financial Officer. "These delays can be ascribed to unusually long internal approval procedures with our major customers, as well as general economic uncertainty, resulting in increased caution in placing orders. Although frustrating, we are optimistic that we can conclude certain long-delayed sales in the near future."
About Spescom Software Inc.
Spescom Software is a developer and marketer of leading-edge content and configuration management software solutions for complex applications in energy, homeland security, defense and other sectors that provide the unique ability to manage disparate types of content and other data on a single platform. The Company's proprietary eB platform provides extensive enterprise content management (ECM) functionality, together with best-of-breed configuration management capabilities. These capabilities enable the secure capture and storage of both structured and unstructured information, in addition to the ability to organize, control and manage this information. Spescom's eB software solution revolutionizes data management through an innovative new paradigm of data management that re-invents how organizations store, track, access, and use their enterprise's data to maximize efficiency and improve accuracy and integrity of the data. Key customers include Constellation Energy, Continental Express, AmerenUE, Cities of Las Vegas and Dayton, Lloyds Register, United Space Alliance, Entergy, Northeast Utilities, London Underground, Network Rail, and many others. The Company is headquartered in San Diego, Calif., with an international sales and support center in London, England.
Except for historical information contained herein, the matters set forth in this release include forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, substantial fluctuations in quarterly revenues, dependence on a few large customers, changing competitive and regulatory environments, the effect of the Company's accounting policies and other risk factors detailed in the Company's SEC filings. For a discussion of additional risk factors relating to Spescom's business, see Spescom's annual report on Form 10-K for the fiscal year ended September 30, 2004 and quarterly reports on Form 10-Q for the quarter ended June 30, 2005, including the discussion in Management's Discussion and Analysis of Financial Condition and Results of Operations contained therein.
SPESCOM SOFTWARE INC.
Consolidated Statement of Operations
For the three months For the nine months
ended June 30, ended June 30,
---------------------- -----------------------
2005 2004 2005 2004
---------- ---------- ----------- ----------
Revenues:
Licenses $ 149,000 $1,559,000 $ 503,000 $3,037,000
Services and other 1,148,000 1,341,000 4,120,000 3,589,000
---------- ---------- ----------- ----------
Total revenues 1,297,000 2,900,000 4,623,000 6,626,000
---------- ---------- ----------- ----------
Cost of revenues:
Licenses 62,000 37,000 170,000 178,000
Services and other 515,000 586,000 1,749,000 1,693,000
---------- ---------- ----------- ----------
Total cost of revenues 577,000 623,000 1,919,000 1,871,000
---------- ---------- ----------- ----------
Gross profit 720,000 2,277,000 2,704,000 4,755,000
---------- ---------- ----------- ----------
Operating expenses:
Research and
development 164,000 341,000 684,000 1,008,000
Marketing and sales 945,000 871,000 2,683,000 2,201,000
General and
administrative 441,000 585,000 1,213,000 1,574,000
---------- ---------- ----------- ----------
1,550,000 1,797,000 4,580,000 4,783,000
---------- ---------- ----------- ----------
Loss from operations (830,000) 480,000 (1,876,000) (28,000)
Interest and
other income -- -- 1,000 5,000
---------- ---------- ----------- ----------
Interest and
other expense (38,000) (37,000) (105,000) (96,000)
---------- ---------- ----------- ----------
Net income (loss) (868,000) 443,000 (1,980,000) (119,000)
Deemed preferred
dividend -- -- (2,200,000) --
---------- ---------- ----------- ----------
Net income (loss)
available after
deemed preferred
dividend (868,000) 443,000 (4,180,000) (119,000)
Cumulative preferred
dividends (66,000) (66,000) (235,000) (198,000)
---------- ---------- ----------- ----------
Net loss available to
common shareholders $ (934,000) $ 377,000 $(4,415,000) $ (317,000)
========== ========== =========== ==========
Basic net income
(loss) per common
share $ (0.03) $ 0.01 $ (0.13) $ (0.01)
========== ========== =========== ==========
Diluted net income
(loss) per common
share $ (0.03) $ 0.01 $ (0.13) $ (0.01)
========== ========== =========== ==========
Shares used in
computing basic net
income (loss)
per common share 35,021,956 34,068,000 34,465,144 33,992,000
========== ========== =========== ==========
Shares used in
computing diluted net
income (loss) per
common share 35,021,956 35,452,000 34,465,144 33,992,000
========== ========== =========== ==========
SPESCOM SOFTWARE INC.
Consolidated Balance Sheets
June 30, September
2004 2004
----------- -----------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 310,000 $ 109,000
Receivables, net 769,000 954,000
Other current assets 132,000 209,000
----------- -----------
Total current assets 1,211,000 1,272,000
Property and equipment, net 148,000 116,000
Computer software, net 423,000 15,000
Other assets 30,000 27,000
----------- -----------
Total assets $ 1,812,000 $ 1,430,000
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 333,000 $ 440,000
Payable to Spescom Limited 99,000 90,000
Preferred stock dividend payable
to Spescom 492,000 271,000
Accrued liabilities 1,271,000 1,226,000
Notes payable to Spescom 610,000 --
Current portion of capital
lease obligation 37,000 19,000
Deferred revenue 2,415,000 1,919,000
----------- -----------
Total current liabilities 5,257,000 3,965,000
Notes payable -- 557,000
Capital lease obligation 65,000 44,000
----------- -----------
Total liabilities 5,322,000 4,566,000
Total Shareholders Equity (Deficit) (3,510,000) (3,136,000)
----------- -----------
Total liabilities and
shareholders' equity $ 1,812,000 $ 1,430,000
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