JSE-listed Spescom Limited today announced the first quarter results for the 2003 fiscal year, for its US operation, Spescom Software Inc, formerly Altris Software Inc, covering the period ending 31 December 2002.
Spescom Software is a leading provider of integrated document, configuration and records management (iDCR) solutions.
Total revenue for the fiscal first quarter 2003 increased 33% to $2.3 million from $1.7 million in the same prior-year quarter. Licence revenue climbed 190% to $921 000 versus $318 000 in the prior-year first quarter. First quarter services revenue remained relatively flat year-over-year at approximately $1.4 million. Net loss narrowed to ($62 000), or ($0.00) per share for the quarter, compared with a net loss of ($1.9) million, or ($0.06) per share, for the same quarter of fiscal 2002.
Earnings before interest, taxes, depreciation and amortization (EBITDA) for the quarter ended 31 December 2002 improved to $186 000, or $0.01 per share, compared with a net loss of ($1.6) million, or ($0.05) per share, for the same quarter of fiscal 2002. Depreciation and amortisation, including amortisation expenses related to capitalised software costs, totalled $123 000 for the three months ended 31 December 2002, compared with $251 000 for the three months ended 31 December 2001.
According to Spescom Software, CEO, Carl Mostert, this positive trend marks the third consecutive quarter of improved operating results since the company's restructure in early 2002.
"Especially rewarding is our achieving EBITDA of $186 000, which enabled the company to generate $340 000 in cash from operating activities," says Mostert.
"Our financial achievements are a direct result of the success in growing our licence revenue, which jumped 190% year-over-year and 30% sequentially over the fourth quarter of 2002. Licence revenue growth is key to growing the profitability of the business. Our gross profit margin increased to 63% from 28% in the comparable quarter a year ago and 48% sequentially.
"Moreover, each additional licence sold generates future revenues from ongoing annual maintenance contracts. Also, each additional licence sale can create new references in a customer account, which can lead to new opportunities to expand into different divisions of a customer's business and increase the deployment of eB. For example, our initial success at Network Rail (formerly called Railtrack) has led to the adoption of eB throughout Network Rail's West Coast Route Modernisation Program. It has also led to Network Rail's alliance partners adopting eB, including Transmitton and the Watford and Bletchley Alliance, a consortium formed by Balfour Beatty Rail Projects Ltd, Westinghouse Rail Systems Ltd and Network Rail.
"Given the success to date with our turnaround and the momentum we created with major customers, such as Network Rail, Sempra Energy, Lloyd's Register of Shipping and Bechtel, we are confident that we will meet our 2003 target of between $9 million and $10 million in revenue and EBITDA of between $800 000 and $1 million, or $.03 per share on an EBITDA basis," Mostert concludes.
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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 e-mail 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, EAM, SCM 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, Eastern Municipal Water District, Entergy, Northeast Utilities, London Underground, Railtrack, and many others.
For further information, visit us at www.spescomsoftware.com.
Spescom Limited
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.