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Astea Reports Third Quarter 2012 Results



                   Astea Reports Third Quarter 2012 Results

PR Newswire

HORSHAM, Pa., Nov. 14, 2012

HORSHAM, Pa., Nov. 14, 2012 /PRNewswire/ -- Astea International Inc.
(NASDAQ:ATEA), a global provider of service lifecycle management and mobility
solutions, today announced financial results for the three and nine months
ended September 30, 2012.

For the quarter ended September 30, 2012, Astea revenues decreased by 20% to
$5.3 million compared to $6.6 million for the quarter ended September 30, 2011
and decreased by 35% sequentially compared to second quarter revenues of $8.1
million. Net loss available to common stockholders for the third quarter of
2012 was $1.2 million, or ($0.36) per basic and diluted share. This compares
to net income of $249,000, or $0.05 per basic and $0.04 per diluted share in
the third quarter of 2011 and compares sequentially to income of $960,000 or
$0.25 per basic share and $0.22 per diluted share for the second quarter of
2012. Software license revenues decreased 77% to $395,000 compared to $1.7
million for the same period in 2011 and decreased 83% from $2.4 million in the
second quarter of 2012.  Service and maintenance revenues were $4.9 million,
unchanged from the same period in 2011 but were down 14% from $5.7 million in
the second quarter of 2012. 

Revenues for the nine months ended September 30, 2012 increased 1.0% to $19.8
million compared to $19.6 million in the same nine-month period in 2011.
Software license revenues decreased 40% to $3.0 million compared to $5.0
million for the same period in 2011. Service and maintenance revenues were
$16.9 million, a 16% increase compared to revenues of $14.6 million for the
same nine-month period in 2011. Operating loss was $853,000 compared to
operating income of $127,000 in the same nine-month period last year.
Year-to-date net loss available to stockholders is ($1.1 million), or ($0.31)
per basic and diluted share compared to a net loss available to common
stockholders of ($107,000) or ($0.03) loss per basic and diluted share in the
same period last year.

"Overall revenues increased compared to the same nine month period last year,
including a solid increase in service and maintenance revenues. We continue to
focus on execution with sales activity remaining strong, but the extended
sales cycles resulted in disappointing licensing sales during the third
quarter. During the third quarter, we were very excited to announce our new
cloud offering, ServiceVision™, which was extremely well received by the
market. We immediately experienced a very strong interest for this new
offering, and are already actively engaged in many new sales opportunities. We
are confident that this new offering will be a strong contributor to our
future success. We remain diligent in our efforts to expand our partner
ecosystem and we have already entered into new agreements with very large
systems integrators to broaden our footprint. We feel we can dramatically
increase our capability to both sell and deliver enterprise field service
solutions through the right strategic relationships."

Mr. Bergreen further stated, "During the third quarter we had several
customers who went live with major deployments around the world, which
continues to demonstrate the global nature of our solution suite and our
geographic diversity. Additionally, we are very proud that, for the fourth
year in a row, we were again recognized as a Visionary in Gartner's 2012 Field
Service Management Magic Quadrant which demonstrates our experience and
commitment to meeting the dynamic needs of service organizations around the
world. We continue to be the only leading vendor that can offer the most
complete and robust service management solution with unmatched functionality."

Outlook

Mr. Bergreen concluded, "We remain steadfast in our sales execution, while
continuing to offer solutions that provide compelling value propositions to
keep attracting new customers around the world. Today's competitive
environment puts greater pressure on our customers to increase their service
revenues while maintaining customer satisfaction. Our solution is the
underlying tool that is enabling them to achieve best-in-class service and we
look forward to helping them continue their ongoing success."

Astea will host a conference call that will be broadcast live over the
Internet on November 14, 2012 at 5:00pm ET to discuss the Company's third
quarter financial results. Investors can access the call from the Company's
Web site at  http://www.astea.com/about_investors.asp. To listen to the live
call via the telephone, please call 1-800-862-9098.  For calls from outside
North America, please dial 1-785-424-1051.  For those who cannot listen to the
live broadcast, a replay will be available shortly after the call.

About Astea International  
Astea International (NASDAQ: ATEA) is a global provider of software solutions
that offer all the cornerstones of service lifecycle management, including
customer management, service management, asset management, forward and reverse
logistics management and mobile workforce management and optimization. Astea's
solutions link processes, people, parts, and data to empower companies and
provide the agility they need to achieve sustainable value in less time, and
successfully compete in a global economy. Since 1979, Astea has been helping
more than 600 companies drive even higher levels of customer satisfaction with
faster response times and proactive communication, creating a seamless,
consistent and highly personalized experience at every customer relationship
touch point.

www.astea.com.   Service Smart.  Enterprise Proven.

© 2012 ASTEA INTERNATIONAL INC. ASTEA AND ASTEA ALLIANCE ARE TRADEMARKS OF
ASTEA INTERNATIONAL INC.  ALL OTHER COMPANY AND PRODUCT NAMES CONTAINED HEREIN
ARE TRADEMARKS OF THE RESPECTIVE HOLDERS.

Forward-looking Statements   
Statements in this press release, other than statements of historical
information, are forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks which may cause the
Company's actual results in future periods to differ materially from expected
results. Those risks include, among others, risks associated with increased
competition, customer decisions, the successful completion of continuing
development of new products, the successful negotiations, execution and
implementation of anticipated new software contracts, the successful addition
of personnel in technical areas, our ability to complete development and sell
and license our products at prices which result in sufficient revenues to
realize profits and other business factors beyond the Company's control. These
and other risks are described in the Company's filings with the Securities and
Exchange Commission (SEC), including but not limited to the Company's Annual
Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q.

Financial Tables Follow

 

ASTEA INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
($ in thousands)
                                  (Unaudited)
                                  Three Months Ended     Nine months Ended
                                  September 30,          September 30,
                                  2012         2011      2012        2011
REVENUES
  Software license fees       $   395          1,707     2,972       5,030
  Services and maintenance        4,883        4,887     16,871      14,619
       Total Revenues             5,278        6,594     19,843      19,649
COSTS OF REVENUES
  Cost of software license fees   382          396       1,151       1,371
  Cost of services and            3,388        3,252     10,913      9,773
  maintenance
       Total Costs of Revenues    3,770        3,648     12,064      11,144
GROSS PROFIT                      1,508        2,946     7,779       8,505
OPERATING EXPENSES
  Product development             466          850       1,724       2,419
  Sales and marketing             1,199        1,093     3,726       3,371
  General and administrative      1,049        754       3,182       2,588
       Total Operating Costs      2,714        2,697     8,632       8,378
(Loss) income from  operations    (1,206)      249       (853)       127
  Interest income                 2            10        11          21
(Loss) income before income taxes (1,204)      259       (842)       148
Income tax expense                18           10        54          30
                                  $            $         $           $        
Net (loss) income                     (1,222)                                 
                                                249       (896)       118
  Preferred dividend              75           75        225         225
       Net (loss) income
       available to common        (1,297)      174       (1,121)     (107)
       stockholders
Basic (loss) earnings per share:
                                  $            $         $           $        
  Net (loss) income per share           (0.36)                              
                                               0.05      (0.31)      (0.03)
Shares used in computing basic    3,575        3,567     3,570       3,561
(loss)earnings per share:
                                  $            $         $           $        
  Diluted (loss) income per share       (0.36)                              
                                               0.04      (0.31)      (0.03)
Shares used in computing diluted  3,575        4,402     3,570       3,651
(loss) earnings per share:

 

ASTEA INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
($ in thousands)
                                     September 30, 2012       December 31,
                                                              2011
ASSETS                               (Unaudited)              (Audited)
Current Assets:
     Cash and cash equivalents       $                        $          
                                        1,073                 2,146
     Investments available for sale  159                      626
     Receivables, net of reserves    5,851                    7,592
     Prepaid expenses and other      623                      503
     Total current assets            7,706                    10,867
     Property and equipment, net     539                      507
     Intangibles, net                402                      504
     Capitalized software, net       3,946                    3,064
     Goodwill                        1,538                    1,538
     Other long term restricted cash 131                      109
     Other assets                    126                      139
     Total assets                    $                        $         16,728
                                      14,388
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
     Accounts payable and accrued    $                        $          
     expenses                           3,531                 4,423
     Deferred revenues               6,070                    6,601
     Total current liabilities       9,601                    11,024
Long Term Liabilities:
     Deferred tax liabilities        275                      244
Stockholders' Equity:
     Convertible preferred stock     8                        8
     Common stock                    36                       36
     Additional paid-in-capital      31,047                   31,048
     Accumulated deficit             (26,371)                 (25,424)
     Treasury stock                  (208)                    (208)
     Total stockholders' equity      4,512                    5,460
     Total liabilities and           $                        $         16,728
     stockholders' equity             14,388


ASTEA INTERNATIONAL INC.
STATEMENTS OF CASH FLOWS
For the Nine Months Ended September 30 , 
($ in thousands)
                                           (Unaudited)
                                           2012              2011
Cash flows from operating activities:
  Net (loss) income                        $                 $                
                                            (896)               118
  Adj to reconcile net (loss) income
      to cash provided by operating
  activities:
  Depreciation and amortization            1,304             1,467
  Decrease (increase) in allowance for     54                (16)
  doubtful accounts
  Stock Based Compensation                 173               169
  Changes in operating assets and
  liabilities:
  Deferred income tax                      31                30
  Receivables                              1,685             66
  Prepaid expenses and other               (90)              (207)
  Accounts payable and accrued expenses    (1,013)           502
  Deferred revenues                        (524)             (1,148)
  Other assets                             13                (18)
      Net cash provided by operating       737               963
  activities
Cash flows from investing activities:
  Capitalized software development costs   (1,886)           (1,510)
  Purchases of property and equipment      (229)             (197)
  Sale  of short term investments          475               675
  Purchase of short term investments       -                 (920)
  Change in restricted cash                (23)              (30)
     Net cash used in investing activities (1,663)           (1,982)
Cash flows from financing activities:
  Proceeds from exercise of stock options  51                41
  Dividends paid on preferred stock        (225)             (225)
  Net cash used in financing activities    (174)             (184)
Effect of exchange rate changes on cash    27                (112)
and cash equivalents
Net decrease in cash and cash equivalents  (1,073)           (1,315)
Cash, beginning of period                  2,146             2,404
Cash, end of period                        $                 $              
                                            1,073             1,089

 

SOURCE Astea International Inc.

Website: http://www.astea.com
Contact: Investor Relations: Rick Etskovitz, Chief Financial Officer, Astea
International Inc., +1-215-682-2500, retskovitz@astea.com
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