RUTHERFORD, N.J.--(BUSINESS WIRE)--July 30, 2003--AXS-One
Inc. (AMEX: AXO)
-- 8th Consecutive Quarter of Profitability
-- Quarterly Revenues Increased To $9,588,000
From $9,363,000 In 2002
-- Quarterly License Revenue Increased 83% To
$1,354,000 From $740,000 In 2002
-- 6 Month Period License Revenue Increased
35% To $2,595,000 From $1,924,000 In 2002
-- Reduced Debt by $900,000 During The First
Six Months of 2003
AXS-One Inc. (AMEX: AXO), a leading provider of e-business
solutions, today announced its financial results for the
second quarter and six month period ended June 30, 2003.
Revenues for the quarter ended June 30, 2003 increased to
$9,588,000 from $9,363,000 in the corresponding prior year
period. License revenues for the quarter increased 83 percent
to $1,354,000 from $740,000 in the second quarter of 2002.
Operating income was $157,000 compared to $452,000 in the
second quarter of 2002. Net income for the three months was
$155,000, or $.01 per diluted share, compared to $179,000, or
$.01 per diluted share for the second quarter of 2002, marking
the Company's eighth consecutive quarter of profitability.
For the six-month period ended June 30, 2003, revenues
increased to $19,033,000 from $18,459,000 in the corresponding
prior year period. License revenues for the six months
increased 35 percent to $2,595,000 from $1,924,000 in 2002.
Operating income totaled $677,000 compared to $1,079,000 in
2002. The decrease in operating income was primarily
attributable to an increase in expenses related to higher rent
and overhead costs, as well as organizational changes in the
Company's South Africa operations. Net income for the six
months increased slightly to $582,000, or $.02 per diluted
share, from $576,000, or $.02 per diluted share for the
corresponding six months in 2002.
During the quarter, 50 percent of license revenue was
derived from e-Cellerator(TM) solutions. Approximately 35
percent of license revenue came from domestic customers, and
the remaining 65 percent represented international customers.
Our services revenue, which is generally recurring or
partially-recurring in nature, represents 85% of total
revenue.
John Rade, AXS-One Chief Executive Officer stated, "We are
pleased to announce our eighth consecutive quarter of
profitability and have made progress on several fronts during
the quarter. AXS-One has invested in two dynamic growth areas
which are showing increasing demand in areas where there is
currently limited competition. The first area of compliance,
security and corporate governance saw its first sale this
quarter, an important milestone in a market that we believe
will continue to show strong growth opportunities. Fueled by
the Sarbanes-Oxley Act, SEC and NASD rules, along with the
Homeland Security Act, an increasing number of companies in
the financial industry are beginning to understand the
importance of documenting their email and in-house
communications to comply. On this front, we completed the
integration of our AXSPoint(R) product line with EMC
Corporation's Centera and Centera Compliance Edition content
addressed storage (CAS) systems during the second
quarter."
Mr. Rade continued, "The second area of growth is in
collaboration software, which virtually links companies with
their customers and suppliers. Finally, this quarter we
announced the availability of our AXS-One(R) Enterprise
version 8w, the Silver Anniversary edition of AXS-One's
financial management solutions."
Mr. Rade went on to say; "We are particularly encouraged by
improvements in our software licensing from the same period
last year as that in turn should begin to generate additional
consulting revenue and maintenance streams. It is important to
remember that some of the initiatives we have put into place
in the collaboration commerce and E-Mail compliance areas are
intended to build important recurring revenue streams. While
these service-based revenue streams do not produce the
dramatic impact of single up-front fee licenses, they can
provide longer term, more stable and predictable revenue
streams with the same or potentially even greater margins.
We have an installed base of stable customers generating
cash and we have no long term debt. Our total short term debt
balance is down to $1.44 million and we are contractually
decreasing $150,000 of this balance per month. While operating
income was lower for the first six months we were still able
to increase our net income, which resulted from lower interest
expenses and equity in income from our joint ventures. We are
encouraged by the level of activity in our affiliates from
around the world and believe that the opportunity for new
business opportunities has increased during the past
year."
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 Six Months
Ended Ended
-----------------------------------
June 30, June 30, June 30, June 30,
2002 2003 2002 2003
------- ------- ------- -------
Revenues:
License fees $740 $1,354 $1,924 $2,595
Services 8,522 8,160 16,346 16,249
Other - related parties 101 74 189 189
------- ------- ------- -------
Total revenues 9,363 9,588 18,459 19,033
------- ------- ------- -------
Operating expenses:
Cost of license fees 337 378 702 719
Cost of services 3,888 4,003 7,695 7,967
Sales and marketing 1,920 2,124 3,436 3,755
Research and development 1,710 1,578 3,426 3,252
General and administrative 1,056 1,348 2,121 2,663
------- ------- ------- -------
Total operating expenses 8,911 9,431 17,380 18,356
------- ------- ------- -------
Operating income 452 157 1,079 677
------- ------- ------- -------
Other income (expense):
Interest income 10 20 23 32
Interest expense (88) (46) (175) (119)
Gain on sale of subsidiary 51 - 70 71
Equity in income (losses) of joint
ventures (200) 134 (297) 115
Other expense, net (46) (82) (124) (166)
------- ------- ------- -------
Other expense, net (273) 26 (503) (67)
------- ------- ------- -------
Net income before income taxes 179 183 576 610
Income tax expense - (28) - (28)
------- ------- ------- -------
Net income $179 $155 $576 $582
======= ======= ======= =======
Basic net income per common $0.01 $0.01 $0.02 $0.02
share ======= ======= ======= =======
Weighted average basic
common shares outstanding 24,804 24,960 24,798 24,913
======= ======= ======= =======
Diluted net income
per common share $0.01 $0.01 $0.02 $0.02
======= ======= ======= =======
Weighted average diluted
common shares 25,673 25,462 25,764 25,773
outstanding ======= ======= ======= =======
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 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: Company Contact:
AXS-One Inc., William Levering, 201-935-3400;
wlevering@axsone.com
or
IR Contact:
Hayden Communications, Matthew Hayden,
760-487-1137;
matt@haydenir.com
SOURCE: AXS-One Inc.
