RUTHERFORD, N.J.--(BUSINESS WIRE)--April 30, 2003--AXS-One
Inc. (AMEX: AXO)
-- Seventh Consecutive Quarter of Profitability
-- Total Quarterly Revenues Rose 4 % Over
Prior Year to $9.4 Million with EPS of
$.02 per Diluted Share
-- Licensing Agreements Totaling $1.2
Million Recognized Duringthe Quarter
AXS-One Inc. (AMEX: AXO), a leading provider of e-business
solutions, today announced its financial results for the first
quarter ended March 31, 2003.
Revenues for the quarter ended March 31, 2003 increased
approximately 4% to $9.4 million from $9.1 million in the
corresponding prior year period. Operating income was $520,000
compared to $627,000 in the first quarter of 2002. Net income
for the three months increased 8% to $427,000, or $.02 per
diluted share, in comparison to $397,000, or $.02 per diluted
share, for the first quarter of 2002, marking the Company's
seventh consecutive quarter of profitability.
The Company had $2.3 million in cash as of March 31, 2003.
Total debt has been reduced by $450 thousand to $1.897
million.
Earnings for the quarter can be attributed to the Company's
recognition of $1.2 million in licenses of its AXS-One(R)
Enterprise solution, CRM solution, and upgrades to its
AXSPoint(R) Central and Exchange solutions. Fifty-eight
percent of the license revenue recognized was with customers
inside the United States, while forty-two percent was
recognized internationally. Customers who licensed software in
the first quarter included major companies in the financial
services and local and federal government sectors.
During the quarter, the Company's sales and marketing teams
signed on three licensing deals with new customers and 17
deals with its existing customers. Notable contracts were
signed to implement a revenue management solution with a
global financial services firm, which is designed to speed up
cash flow and shorten collection cycles while at the same time
improving communications with customers and with a ministry of
a foreign government designed to automate financial management
globally within the ministry of foreign affairs.
"We are very pleased to announce our seventh consecutive
quarter of profitability as we feel it further demonstrates
that we have established a successful revenue model," stated
John Rade, AXS-One Chief Executive Officer." Clearly we are
maintaining our place in the market by continuing to offer
premium solutions to global 2000 clients, which provide a
solid recurring revenue stream, along with a meaningful base
of upgrade opportunities to complement their supply chain
needs. We have developed an excellent foundation for
profitability, from which AXS-One can continue to cross sell
and explore additional revenue opportunities."
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 approximately 250
employees in offices worldwide, including Australia, Canada,
Singapore, the United Kingdom, the 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.
AXS-One, the AXS-One logo, "Access Tomorrow Today,"
AXSPoint and TransAXS are registered trademarks of, and
e-Cellerator, AXS Desk, "AXS-One Collaboration FrameWorks,"
SMART and Tivity are trademarks of, AXS-One Inc. in the U.S.
All other company and product names are trademarks or
registered trademarks of their respective companies.
Special Note Regarding Forward-Looking Statements: A number
of statements contained in this release are forward-looking
statements within the meaning of the Private Securities
Litigation Reform Act of 1995 that involve risks and
uncertainties that could cause actual results to differ
materially from those expressed or implied in the applicable
statements. These risks and uncertainties include, but are not
limited to: potential vulnerability to technological
obsolescence; the risks that its current and future products
may contain errors or defects that would be difficult and
costly to detect and correct; potential difficulties in
managing growth; dependence on key personnel; the possible
impact of competitive products and pricing; and other risks
described in more detail in AXO's Securities and Exchange
Commission filings.
AXS-One Inc. and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended March 31,
--------------------------------
2002 2003
-------- --------
Revenues:
License fees $ 1,184 $ 1,241
Services 7,824 8,089
Other-related parties 88 115
-------- ---------
Total revenues 9,096 9,445
-------- ---------
Operating expenses:
Cost of license fees 365 341
Cost of services 3,807 3,964
Sales and marketing 1,516 1,631
Research and development 1,716 1,674
General and administrative 1,065 1,315
-------- ---------
Total operating expenses 8,469 8,925
-------- ---------
Operating income 627 520
-------- ---------
Other income (expense):
Interest income 13 12
Interest expense (87) (73)
Gain on sale of subsidiary 19 72
Equity in losses of joint ventures (97) (19)
Other income(expense), net (78) (85)
-------- ---------
Other expense, net (230) (93)
-------- ---------
Net income $ 397 $ 427
======== =========
Basic and diluted net income
per common share $ 0.02 $ 0.02
======== =========
Weighted average basic
common shares outstanding 24,793 24,865
======== =========
Weighted average diluted
common shares outstanding 25,854 25,581
======== ==========
The unaudited financial information included in this
document is intended only as summary provided for your
convenience, and should be read in conjunction with the
complete consolidated financialstatements 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 EDGARelectronic filing system maintained
by the SEC.
This press release contains forward-looking statements.
Suchstatements 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.
------
CONTACT:
AXS-One Inc. William Levering,
201/935-3400
wlevering@axsone.com
or
Hayden
Communications
Matthew Hayden,
760/487-1137
matt@haydenir.com
SOURCE: AXS-One Inc.
