Press Releases
Press Release
| AXS-One Announces Profitable Fourth Quarter and Year End Financial Results for 2002 |
|
RUTHERFORD, N.J.--(BUSINESS WIRE)--Jan. 30, 2003--AXS-One Inc. (AMEX: AXO)
AXS-One Inc. (AMEX: AXO), a provider of e-business solutions, today announced its financial results for the fourth quarter and year ended December 31, 2002. Financial Results Revenues for the fourth quarter ended December 31, 2002 were $9.6 million versus $9.6 million for the corresponding prior year period. Net income for the three months totaled $761,000, or $.03 per diluted share, in comparison to $891,000, or $0.04 per share for the fourth quarter of 2001, marking the Company's sixth consecutive quarter of profitability. Operating income increased to $924,000 from $826,000 in the comparable prior year quarter, due to maintaining revenue levels while reducing costs. Revenues for the year ended December 31, 2002 were $37.4 million compared to $41.2 million for 2001, a decline of 9%. However, included in revenues in 2001 was $1.4 million relating to the Central and Eastern Europe subsidiary sold in September 2001. Net income increased significantly to $1.9 million versus a loss of ($4.7) million for the prior year. Earnings per diluted share for 2002 increased to $.08 from a loss of ($.19) for the year ended December 31, 2001. Operating income increased to $2.8 million compared to an operating loss of ($4.1) million for 2001. The improved operating income in 2002 reflects the benefits of the restructuring activities implemented in 2001. The Company's balance sheet reflected $2.7 million in cash on December 31, 2002. The Company ended the year with $2.3 million in total debt. Other Operational Accomplishments During the year, the Company's sales and marketing teams signed on 14 licensing deals with new customers and 50 deals with its existing customers. Seventy Seven percent of the license revenue from these contracts were signed with customers inside the United States, while 23% were signed internationally. New customers included clients in the property management, legal and travel industries for the AXSPoint(R) Solutions and AXS-One(R) Enterprise sales to governments in Southern Africa and Australia. The Company's penetration of the Finance industry continued with major wins in Poland and Malaysia. The Company's three software platforms, AXS-One Enterprise Solutions, AXSPoint(R) Solutions and Tivity(TM) Solutions are all driven by the Company's e-Cellerator(TM) e-commerce technology. These next generation e-Cellerator technology-based products utilize an open, Internet-ready, n-tier web-services architecture designed to adapt to technological innovation and enable the Company's clients to capitalize on these innovations quickly and cost-effectively. The solutions are process-centric, highly scalable and robust, and are able to handle the high levels of transaction volumes and availability demanded by today's e-commerce requirements. The first transaction fee based license revenue from the Company's alliance with ComStrata was also recognized during the period. Continued prudent spending on research and development has helped to maintain the Company's competitive position at a time when some of our competitors have been struggling. During the year, AXS-One launched the AXS-One Web Services solutions, the result of several years of investment in upgrading its technology to a web services compliant architecture. The Company spent $7.5 million including $0.8 million of capitalized software development costs during 2002, or 20% of its total revenues on development costs in 2002. Approximately 75% of 2002 license revenue was derived from products introduced during the past two years, evidence that AXS-One continues to meet the needs of approximately 25% of the global 2000 companies. "We are very pleased to announce this sixth consecutive quarter of profitability as we feel it demonstrates that we have established a successful revenue model by focusing on our recurring revenues and pursuing profitable business relationships," stated John Rade, AXS-One Chief Executive Officer. "While revenues have decreased slightly, our improved operations enabled us to significantly increase both our income and cash positions. We are encouraged by the progress our overseas sales and marketing staff has made and believe they will close several new software licensing deals this year." The Company successfully launched several new products during the year and closed significant customer wins. We were awarded the 2002 "Best of AIIM" award for Best Practices in Enterprise Content Management for AXS-One's AXSPoint Travel Industry Solution implemented at Brittany Ferries, one of our clients. In addition, the Sarbanes-Oxley Act of 2002 is presenting us with new business opportunities, including in the arena of email compliance and archiving, which we are actively pursuing. Eighty eight percent of AXO's revenue is related to service and maintenance fees, which historically have been a more predictable revenue stream. We are extremely encouraged by our continued ability to maintain a strong presence in these uncertain economic conditions and look forward to what we hope will be a year of growth in 2003," Mr. Rade went on to say. 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, 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. 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 AXS-One's Securities and Exchange Commission filings.
AXS-One Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Year
Ended Ended
December 31, December 31,
----------------- --------------------
2001 2002 2001 2002
-------- -------- --------- ---------
Revenues:
License fees $ 1,407 $ 963 $ 5,421 $ 3,917
Services 8,103 8,488 35,272 33,030
Fee revenues from joint
ventures 126 115 542 405
-------- -------- --------- ---------
Total revenues 9,636 9,566 41,235 37,352
-------- -------- --------- ---------
Operating expenses:
Cost of license fees 298 387 1,355 1,482
Cost of services 3,773 3,946 18,393 15,479
Sales and marketing 1,741 1,549 9,504 6,364
Research and development 1,691 1,581 7,029 6,704
General and administrative 1,447 1,179 8,303 4,559
Restructuring costs (140) - 797 -
-------- -------- --------- ---------
Total operating
expenses 8,810 8,642 45,381 34,588
-------- -------- --------- ---------
Operating income (loss) 826 924 (4,146) 2,764
-------- -------- --------- ---------
Other income (expense):
Interest income 10 7 109 38
Interest expense (103) (89) (456) (364)
Gain on sale of subidiary - - - 219
Equity in earnings
(losses) in joint
ventures 55 (49) (121) (525)
Other expense (79) (92) (223) (268)
-------- -------- --------- ---------
Other expense, net (117) (223) (691) (900)
-------- -------- --------- ---------
Income (loss) before
income tax benefit, net 709 701 (4,837) 1,864
Income tax benefit, net 182 60 182 60
-------- -------- --------- ---------
Net income (loss) $ 891 $ 761 $ (4,655) $ 1,924
======== ======== ========= =========
Basic and diluted net
income (loss) per common
share $ 0.04 $ 0.03 $ (0.19) $ 0.08
======== ======== ========= =========
Weighted average basic
common shares
outstanding 24,785 24,849 24,785 24,818
======== ======== ========= =========
Weighted average diluted
common shares
outstanding 24,817 25,345 24,785 25,511
======== ======== ========= =========
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.
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.
CONTACT: |
 |
| "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding AXS-One Inc's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year. |