Astea Reports Full Year 2013 and Fourth Quarter Results

           Astea Reports Full Year 2013 and Fourth Quarter Results

Significant Progress Being Achieved with New Cloud-Based Solution

PR Newswire

HORSHAM, Pa., March 31, 2014

HORSHAM, Pa., March 31, 2014 /PRNewswire/ --Astea International Inc. (NASDAQ:
ATEA), a global provider of service management and mobile workforce solutions,
today released its fourth quarter and year-end financial results for fiscal
2013.

For the quarter ended December 31, 2013, Astea reported revenues of $5.0
million compared to revenues of $6.5 million for the same period in 2012. Net
loss to shareholders for the quarter was ($1.0 million) or ($0.28) per share,
compared to net income available to shareholders of $0.6 million or $0.16 per
share for the same period in 2012. Software license revenues were $0.6
million in the fourth quarter of 2013 compared to $1.8 million in the same
period in 2012. Service and maintenance revenues were $4.4 million compared
to $4.7 million for the same period in 2012, which reflects the deferred
subscription-based implementation revenues in 2013 that may not be recognized
until customers go live.

For the 2013 fiscal year, the Company reported revenues of $20.3 million
compared to revenues of $26.4 million for the same period in 2012. The net
loss available to shareholders was ($3.3 million) or ($0.92) per share in
2013, compared to a net loss to shareholders of ($0.5 million) or ($0.15) per
share for the same period in 2012. Software license revenues in fiscal 2013
were $2.8 million compared to $4.8 million in 2012. Service and maintenance
revenues were $17.5 million compared to $21.6 million for the same period in
2012.

"We are pleased with the enthusiastic reception our new cloud-based offering
is receiving in the market," stated Zack Bergreen, CEO of Astea
International. "Over the past year, an increasing proportion of our new
customer engagements have been for cloud-based solutions. From a strategic
perspective, to succeed in the service lifecycle management market, the
industry must respond to customer demand for a comprehensive range of hosted
and on-premise solutions that align with customer business and IT strategies.
For Astea, the success of our cloud-based solution means we are now uniquely
qualified to offer a broad range of solutions that meet the mission-critical
service transformation challenges and requirements of global organizations.
Our differentiated solution suite, domain expertise, and ongoing commitment to
innovation will enable us to extend the competitive advantages built-up over
the years, while driving our future market success."

For the year, software license revenue reflects the shift towards more
cloud-based implementations, where, in contrast to the upfront revenue
recognized at the time of the sale of a traditional on-premise solution, all
revenue, for both SaaS usage and associated services is recognized ratably
over the life of the contract commencing at the time the implementation is
complete. At the same time, the company must absorb all costs incurred during
the implementation period. Consequently, while new cloud-based
implementations have the same initial economic value as an on-premise
implementation, cloud-based revenue is significantly less than comparable
on-premise revenue for over a year. However, over the long-term, cloud-based
engagements build greater value in the business as they continually add new
layers of more predictable recurring revenues.

Mr. Bergreen continued, "During the year we added a number of large enterprise
customers, from every part of the world, demonstrating expansion in our
geographic footprint, the breadth of our product and reinforcing the strength
of our professional services organization. In addition, our professional
services backlog is very healthy and we are actively deploying resources
throughout the world as many of our implementations are global in nature. We
are strongly positioned to capitalize on our growing pipeline, and we remain
confident about the large market opportunity that lies in front of us and the
leading role that we play. We will maintain our laser-focus on expanding and
strengthening our global partner ecosystem, which we believe will be a
contributor to ongoing revenue growth."

Conference Call Information
Astea will host a conference call that will be broadcast live over the
Internet on Monday, March 31, 2014 at 4:30pm ET to discuss the Company's
fourth quarter and full year 2013 financial results. Investors may 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 1-800-894-5910. For
calls from outside North America, please dial 1-785-424-1052. For those who
cannot listen to the live broadcast, a replay will be available shortly after
the call.

About Astea International
Astea International 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.

© 2014 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.

SOURCE Astea International Inc.

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