Spescom Limited, the JSE-listed multi-national technology group, today announced the fourth quarter and year-end results for its US operation, Spescom Software Inc.
Total revenue for the fourth quarter, ending 30 September 2002 was $1.9 million compared with $1.8 million for the same period of 2001. Net loss was $1.3 million, or ($0.04) per share for the quarter, compared with a net loss of $1.3 million, or ($0.04) per share, for the same period of 2001. The loss in 2002 included a write-down totalling $865 000 of certain of the company's older capitalised software costs to net realisable value.
Total revenue for the year ended 30 September 2002 was $7 million compared with $11.2 million for the year ended 30 September 2001. Net loss was $5.8 million, or $(0.19) per share for the year ended 30 September 2002, compared with a net loss of $1.3 million, or ($0.04) per share, for the year ended 30 September 2001.
For the three months ended 30 September 2002, earnings before interest, taxes, depreciation and amortisation (EBITDA) was $9 000, or $0.00 per share, compared with a loss of $907 000, or ($0.03) per share, for the comparable prior year period. EBITDA for the three months ended 30 September 2002 was also before the $865 000 write-down of capitalised software. Amortisation expense for the three months ended 30 September 2002 and 2001 relating to capitalised software was $242 000 and $291 000, respectively.
EBITDA for the year ended 30 September 2002 was a loss of $3 479 000, or ($0.11) per share, compared with the prior year's loss of $237 000, or ($0.01) per share. Amortisation expense for the year ended 30 September 2002 and 2001 was $943 000 and $1 045 000, respectively.
Carl Mostert, Chief Executive Officer, stated: "We are very pleased to have achieved our goal of breakeven on an EBITDA basis for the fourth quarter and are entering into our new year with substantial momentum. We ended the year with the recently announced order from Railtrack of over $1 million and since year-end have received further orders from Railtrack and other customers totalling approximately $1 million. Since completing our restructuring in March, we have focused heavily on marketing our integrated document, configuration and records management (iDCR) solutions. These solutions are providing us with significant differentiation in the marketplace and have allowed us to further penetrate several of our key markets, including utilities, transportation and local government. We are particularly excited that Seabrook selected eB to manage all of its nuclear documents, and Sempra chose eB for both its San Diego Gas & Electric and Southern California Gas facilities.
The successes achieved to date give us optimism that we can continue our turnaround in FY 2003. Although the current high level of economic uncertainty makes it difficult for the company to predict with accuracy its future results, the company estimates that for FY 2003, it can achieve FY 2003 revenue growth of approximately 30% to 45% over FY 2002 revenues to a range of $9 million to $10 million. If these revenue targets are achieved, we anticipate that a gross profit percentage of over 65% for FY 2003 can be reached, plus or minus three points, up from 37% in FY 2002. This anticipated improvement is primarily due to an increase in software revenues, a decrease in amortisation of capitalised software costs, and continued cost savings from the company's restructuring implemented in March 2002. In addition, we anticipate EBITDA in the range of $800 000 to $1 million, or $.03 per share, compared to EBITDA loss of $(3 479 000) for FY 2002, or $(0.11) per share. The company expects that the achievement of these revenue and gross profit levels would allow the company to begin generating profits during the second half of FY 2003 and reach breakeven for the year on a net income basis."
John Low, Chief Financial Officer, noted: "The order from Railtrack received at the end of the year increased the company's receivable balance to $1.5 million. Since year-end, the company has subsequently collected 100% of the outstanding receivable balance." He added: "In fiscal year 2003, the company will look at methods to strengthen its balance sheet, including the possibility of raising additional equity."
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Spescom is a multi-national technology innovator with direct operations in the US, UK and SA.
The group is publicly listed on the JSE Securities Exchange SA (Spescom Ltd), and on the NASDAQ OTCBB: ALTS.OB (Spescom Software Inc).
Spescom addresses the information and communications technology market providing both products and solutions to connect to the network economy, as well as enterprise software to manage information and knowledge.
Specifically, Spescom provides solutions in the areas of access network; enterprise information management; multimedia transaction recording; broadcast; customer contact centres; and test and measurement.
Spescom markets its products worldwide through appointed partners and distributors under the eB brand for its enterprise software, and the DataVoice brand for its multimedia transaction recording solutions.
Spescom's global customer base consists of multi-national organisations including leading enterprises in the utilities, telecommunications, transportation, financial, banking and insurance sectors.
Worldwide, customers include Siemens, British Telecoms, Network Rail (formerly Railtrack), Lloyds of London, Barclays Bank, Abbey National Bank, WH Smith, Caterpillar, Bechtel, AmerenUE, Entergy, Bombardier, Ocean Energy, Sempra Energy, Telkom, SABC, Old Mutual, Eskom, Transnet, First National Bank.
For more information on Spescom, please visit www.spescomsoftware.com and www.spescom.com.
Spescom eB
eB is a registered trademark of Spescom Software Inc. eB comprises an extensive set of software components that together form the foundation for an extremely flexible and powerful information management platform. eB's components include: document management; requirements management; records management; item management; change management; configuration management and workflow components. These components are tightly integrated with CAD, GIS, office and email applications to capture and view information. The full functionality of eB is available via a set of APIs that enable the rapid definition and deployment of customer specific solutions and integration with other line-of-business applications including ERP, CRM, SCM, maintenance management and project management products.
Spescom Software Inc
Spescom Software (OTCBB: ALTS) delivers enterprise e-business solutions that provide rapid access to accurate information in context to assets, products and processes, resulting in improved customer satisfaction, productivity and safety. It achieves this through a tightly integrated suite of document, configuration and records management technologies that not only allows it to capture and securely store information, but also organises and structures this information to place it in context.
Key customers include Ocean Energy, Continental Express, AmerenUE, City of Winston-Salem, Sempra Energy, Bombardier, Entergy, Northeast Utilities, London Underground, Railtrack, and many others.
For further information, visit us at www.spescomsoftware.com.
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