Ascential Software, the unquestioned enterprise integration leader, has continued its drive to profitability, reporting a 25% surge in revenue for its fourth quarter ended 31 December 2002.
On a GAAP basis, fourth-quarter 2002 revenue was $34.1 million, up 13% from $30.2 million in the third quarter of 2002, and up 25% from $27.2 million in the fourth quarter of last year. Licence revenue was $18.9 million in the fourth quarter, a 27% sequential increase over $14.9 million in the third quarter of 2002, and up 32% over $14.3 million in licence revenue reported in the prior year`s fourth quarter.
The company`s net loss was $10.2 million, or $0.04 per share, for the fourth quarter, compared to a net loss of $16.3 million, or $0.07 per share, in the third quarter and a net loss of $31.2 million, or $0.12 per share, in the fourth quarter of 2001.
"Ascential`s fourth-quarter results have capped a year of progress and achievement for the company," says Julian Field, MD of local Ascential distributor CenterField Software. "The company is benefiting from its position as the first and only vendor of an end-to-end enterprise data integration suite, with strong revenue growth from new customers and expanded business with existing accounts."
Ascential has now achieved three consecutive quarters of sequential revenue growth, more than 60% growth over its first quarter 2002 revenue, and it is gaining market share, as shown in its accelerated data integration licence revenue growth.
This, along with recent resizing and cost control actions, resulted in pro forma net profit of $1.4 million. The company aims to achieve GAAP profitability in 2003 during the course of this year.
For the fiscal year, on a GAAP basis total revenue was $113 million, including $59.6 million in licence revenue, compared with total revenue of $481.3 million, including $211.7 million in licence revenue, in the prior year. Total revenue for both 2002 and 2001 includes revenue from product lines that have been terminated, and total revenue for 2001 includes revenue from the Informix database assets sold to IBM.
Net loss for 2002 was $63.6 million, or $0.26 per fully diluted share, compared with net income of $624.9 million, or $2.20 per fully diluted share in the prior year. 2001 results also included an $865.7 million pre-tax gain on the sale of the Informix database assets to IBM.
At year-end, the company had $504.8 million in cash, cash equivalents and short-term investments.
During the fourth quarter, Ascential introduced its Enterprise Integration Suite; signed 72 new clients; expanded business with 152 existing customers; and expanded business with IBM, SAP and Siebel Systems. Ascential is positive about the future, based in part on the fact that clients have identified integration as a top priority. It expects revenue growth of 20%-25% for 2003, to achieve GAAP profitability in 2003, and to sustain pro forma profitability in each quarter of the year.
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