Ascential Software has reported record revenues of $45.9 million for its third quarter ended 30 September. This is up 52% from $30.2 million in the third quarter of last year, and up 15% from $39.9 million in this year`s second quarter.
Licence revenue was $22.4 million in the third quarter, up 50% from $14.9 million in the third quarter of 2002; net loss was $1.7 million, or $0.03 per share, for the third quarter, compared to a net loss of $16.3 million, or $0.27 per share, in the third quarter of 2002.
Results for the third quarter include 18 days of Mercator Software results since the 12 September completion of Ascential`s acquisition of that company, as well as related charges and transition expenses.
"This marks Ascential`s sixth consecutive quarter of sequential revenue growth," says Julian Field, MD of local Ascential distributor CenterField Software, "and this is before the contribution of the Mercator acquisition."
Ascential reports that activity levels and sales pipeline remain robust, as its expanded customer base and the market in general responds to the company`s increased market presence. It is now the largest software vendor focused exclusively on enterprise data integration with more than 3 000 customers and 900 employees worldwide.
At 30 September, the company had $524.7 million in cash, cash equivalents and short-term investments. The major items affecting cash in the quarter were the payment of $98 million for 32.7 million of Mercator shares, and a tax payment of $8.1 million. Excluding these items, the company was cash flow-positive. During the fourth quarter the company plans to pay the remaining balance of $11.3 million for the remaining Mercator shares not submitted in the original tender.
During the third quarter of 2003, Ascential signed 44 new customers including China Unicom, Cooper Industries, Gibraltar Insurance, Kellwood Company, Microstrategy, National Life Finance, Office Depot, Perot Systems, Polk Australia, Saint-Gobain, Toshiba Industrial Products, the University of Missouri, The University of Texas and Yokohama Bank. It also expanded business with 189 existing customers. Ascential is anticipating fourth-quarter revenue in the range of $61-64 million, with GAAP profitability in the quarter on a net income basis toward the higher end of that revenue range.
"Ascential`s continuing financial and market share gain is increasing the visibility of the company at a time when companies are reassessing their internal integration infrastructures," adds Field, "which provides the company with increased size, scale and market reach. It now has the critical mass to begin dominating its markets."
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