Astea Reports Third Quarter 2013 Results
HORSHAM, Pa., Nov. 14, 2013
HORSHAM, Pa., Nov. 14, 2013 /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, 2013.
For the quarter ended September 30, 2013, Astea revenues increased slightly to
$5.34 million compared to $5.28 million for the quarter ended September 30,
2012. Net loss available to common stockholders for the third quarter of 2013
was $.16 million, or ($0.04) per share. This compares to net loss of $1.3
million, or ($0.36) per share in the third quarter of 2012. Software license
revenues increased 107% to $818,000 compared to $395,000 for the same period
in 2012. Service and maintenance revenues were $4.5 million compared to $4.9
million for same period in 2012.
Revenues for the nine months ended September 30, 2013 decreased 23% to $15.3
million from $19.8 million in the same nine month period in 2012. Software
license revenues decreased 26% to $2.2 million compared to $3.0 million for
the same period in 2012. Service and maintenance revenues were $13.1 million,
a 22% decrease compared to revenues of $16.9 million for the same nine month
period in 2012. Operating loss was $2.0 million compared to an operating loss
of $853,000 in the same nine month period last year. Year to date net loss
available to stockholders was $2.3 million, or ($0.63) per share compared to a
net loss available to common stockholders of $1.1 million or ($0.31) per share
in the same period last year.
"The significant shift in new customer demand from a perpetual, on-premise
license model to software-as-a-service (SaaS), cloud model has negatively
impacted 2013 revenue for two reasons. First, instead of recognizing all of
the license revenue from a sale once an agreement is reached and all other
appropriate accounting requirements are met, revenue from a SaaS modelis
recognized in smaller increments over the life of the agreement. Second, SaaS
revenue and related implementation services may not be recognized until the
deployment goes live. Accordingly, our revenue becomes negatively impacted in
two ways," stated Rick Etskovitz, CFO of Astea International. "In the long
run, we expect that a growing stream of predictable, recurring revenue will
result in growing our overall revenue and ongoing sustainable profitability."
"We are experiencing a significant trend, with each passing quarter, as more
and more large enterprise companies are looking to purchase our cloud-based
solutions instead of on-premise. While this is a very promising sign, it does
have a short-term, negative impact on our revenues. Professional services
activity is strong and we have a backlog of deferred revenues, for cloud-based
implementations, which we expect to recognize in subsequent quarters," stated
Zack Bergreen, CEO of Astea International. "We are also witnessing a shift in
our current pipeline, with cloud-based opportunities now comprising over half
of our total pipeline. Our pipeline is very attractive with many name brand
companies that have large field forces. They are looking for very
comprehensive service management and mobility solutions, which is our sweet
spot. We remain optimistic in our ability to execute and win."
"During the third quarter, we were very excited to unveil Astea Alliance 11.0,
our latest release that offers the market an abundance of new features and
enhancements. Astea Alliance 11.0 has achieved a new standard for delivering a
powerful, feature-rich, forward-thinking solution that offers greater ease of
use, unmatched configurability, and unique ways to deliver knowledge
throughout the organization to ensure user adoption that ultimately ends with
elated customers," stated Zack Bergreen, CEO of Astea International.
Mr. Bergreen further stated, "We are pleased with the many customers who went
live, this quarter, with deployments around the world, which continues to
demonstrate the global nature of our solution suite and our geographic
diversity. Additionally, we are proud that, for the fifth year in a row, we
were again recognized as a Visionary in Gartner's 2013 Field Service
Management Magic Quadrant which demonstrates our experience and commitment to
meeting the dynamic needs of service organizations around the world."
Mr. Bergreen concluded, "We remain steadfast in our sales execution, while
continuing to offer innovative solutions that provide compelling value
propositions to grow our customer base around the world. We are excited to see
the increase in both cloud-based and on-premise opportunities. We are more
than prepared to capitalize on this paradigm shift and look forward to the
positive gains that will accrue as we recognize the revenue from these
cloud-based deployments. Our competition is unable to match the depth of our
solution capabilities and our ability to offer complete coverage of the entire
service management workflow."
Astea will host a conference call that will be broadcast live over the
Internet on November 14, 2013 at 4:30pm 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 1-800-895-0198. For calls from outside
North America, please dial 1-785-424-1053. 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
www.astea.com. Service Smart. Enterprise Proven.
© 2013 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.
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.
SOURCE Astea International Inc.
Contact: Investor Relations, Rick Etskovitz, Chief Financial Officer, Astea
International Inc., 215-682-2500, email@example.com
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