RUTHERFORD, N.J., Apr 30, 2002 (BUSINESS WIRE) -- AXS-One Inc. (AMEX: AXO), a leading provider of e-business solutions, today announced its results for the first quarter ending March 31, 2002.

The Company reported first quarter revenues of $9.1 million, operating income of $0.6 million, net income of $0.4 million and diluted net income per share of $0.02; compared to revenues totaling $11.9 million, operating loss of $ (1.0) million, net loss of $ (1.2) million and diluted net loss per share of $ (0.05) for the comparable period in 2001.

Revenues and operating results of the Central and Eastern Europe subsidiary sold in September 2001 which have been included in the Company's operating results through the date of sale were as follows (in thousands):

                Results of Subsidiary Sold During 2001
                                           Three Months Ended
                                                March 31,
                                                --------
                                            2001          2002
                                            ----          ----
         License fees                    $    102      $    -
         Services                             459           -
                                          -------       -------
         Total revenues                       561           -
         Operating expenses                   565           -
                                          -------       -------
         Operating loss                  $     (4)     $    -
                                          =======       =======

The first quarter results represented AXS-One's third consecutive quarter of profitability, which began with the third quarter of 2001 after the restructuring in the second quarter. The company continues to drive revenue opportunities by launching new products, maintaining its sales and marketing head count and controlling costs during a soft economic climate.

"With three consecutive quarters of profit, we continue to build momentum - even in this challenging economy - and believe our new, award-winning technology solutions will open new revenue opportunities to help cost-conscious organizations streamline business processes and improve efficiencies," commented AXS-One Chief Executive Officer John Rade. "AXS-One has achieved earnings in the past nine months, and is well-positioned to increase our business as the economy improves."

In the last quarter, AXS-One introduced several new products, including AXS-One Web Services and AXS-One Collaboration FrameWorks(TM) solutions. Both provide flexible, Internet-based solutions that can be rapidly deployed to streamline business processes and operations. Additionally, AXS-One won the "Best of AIIM 2002" award from Transform Magazine for its AXS-One Web Services solution, and received AIIM's Enterprise Content Management "Best Practice Award" for its technology implementation at Brittany Ferries, a major European passenger and freight carrier.

Mr. Rade added, "We are pleased to see that prestigious organizations like Aberdeen Group, AIIM and Transform Magazine, among others, continue to recognize the quality and innovativeness of our technology and solutions."

About AXS-One Inc.

AXS-One (AMEX: AXO) is a provider of supply chain management solutions for service industries that extend the finance function and allow organizations to work collaboratively with their partners, suppliers, employees, and customers while preserving investments in existing systems. AXS-One has implemented high-volume, interoperable, scalable and secure business solutions for global 2000 organizations. Its Web Services based technology has been critically acclaimed as best of class. AXS-One has over 300 employees in offices worldwide, including Australia, Canada, Singapore, United Kingdom, United States and South Africa. AXS-One was founded in 1978, and is based in Rutherford, New Jersey, U.S.A. For further information, visit the AXS-One web site at http://www.AXS-One.com.

This press release contains forward-looking statements. Such statements are only predictions and actual events or results may differ materially. All forward-looking statements involve risks and uncertainties, including, without limitation, the risks detailed in the company's documents and reports filed from time to time with the Securities and Exchange Commission.

AXS-One, "Access Tomorrow Today," e-Cellerator, AXS Desk, "AXS-One Collaboration FrameWorks," SMART and Tivity are trademarks of, and AXSPoint and TransAXS are registered trademarks of, AXS-One Inc., in the U.S. All other company and product names are trademarks or registered trademarks of their respective companies.

                             AXS-One Inc.
                 Consolidated Statements Of Operations
                 (In thousands, except per share data)
                              (Unaudited)
                                    Three Months Ended March 31,
                                       2001               2002
                                    --------           --------
Revenues:
 License fees                        $ 2,323            $ 1,184
 Services                              9,546              7,824
 Other-related parties                    30                 88
                                    --------           --------
   Total revenues                     11,899              9,096
                                    --------           --------
Operating expenses:
 Cost of license fees                    335                365
 Cost of services                      5,430              3,807
 Sales and marketing                   3,164              1,516
 Research and development              1,899              1,716
 General and administrative            2,049              1,065
                                    --------           --------
   Total operating expenses           12,877              8,469
                                    --------           --------
Operating income (loss)                 (978)               627
                                    --------           --------
Other income (expense):
 Interest income                          21                 13
 Interest expense                       (104)               (87)
 Gain on sale of subsidiary                -                 19
 Equity in losses in joint ventures      (40)               (97)
 Other income (expense), net             (71)               (78)
                                    --------           --------
   Other expense, net                   (194)              (230)
                                    --------           --------
Net income (loss)                   $ (1,172)             $ 397
                                    ========           ========
Basic and diluted net income (loss)
 per common share                    $ (0.05)            $ 0.02
                                    ========           ========
Weighted average basic
 common shares outstanding            24,785             24,793
                                    ========           ========
Weighted average diluted
 common shares outstanding            24,785             25,854
                                    ========           ========

 
 * The unaudited consolidated financial information included in this
    document is intended only as a summary provided for your
    convenience, and should be read in conjunction with the complete
    consolidated financial statements of the Company (including the
    Notes thereto, which set forth important information) contained in
    its Reports on Form 10-K and 10-Q filed by the Company with the
    U.S. Securities and Exchange Commission (SEC). Such reports are
    available on the public EDGAR electronic filing system maintained
    by the SEC.

CONTACT:
AXS-One Inc.
William Levering, 201/935-3400
wlevering@axsone.com
or
Springboard Communications
Domenick Cilea, 732/863-1900 x102
dcilea@springboardpr.com