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RUTHERFORD, N.J., February 9, 2006 /
PRNewswire-FirstCall / -- AXS-One Inc. (AMEX: AXO),
a leading provider of high performance Records Compliance
Management (RCM) software solutions today announced its
financial results for the fourth quarter and fiscal year
ended December 31, 2005.
Total
license revenues for the fourth quarter decreased 27 percent
to $1.5 million from $2.0 million in the fourth quarter of
2004, and 41 percent sequentially when compared with the
$2.5 million for the third quarter of 2005. Records
Compliance Management (RCM) license revenues recognized in
the quarter were $1.3 million, an increase of 58 percent
compared to the fourth quarter of 2004. Total operating
expenses for the quarter were $9.4 million, a decrease of 15
percent compared to the fourth quarter of 2004. The Company
reported a net loss of $1.6 million for the fourth quarter,
or $(0.05) per diluted share compared to a net loss of $1.7
million in the fourth quarter of last year, or $(0.06) per
diluted share. In December 2005 the Company received an RCM
order from a major US health care provider for approximately
$750,000. The order was not recognized as license revenue
during the fourth quarter but payment was received during
the first week of January 2006. This sale will be recorded
as deferred revenue until all contract terms have been
satisfied.
Revenues for fiscal 2005 were $32.8
million, a decrease of 15 percent from the $38.4 million
reported in the prior year. License revenues for the year
decreased 18 percent to $5.5 million from $6.8 million in
2004. RCM license revenue represented 74 percent of total
license revenue in 2005, compared to 64 percent in 2004. RCM
service revenues increased 25 percent for the same period.
Operating expenses decreased 6 percent to $41.4 million
compared to $44.0 million reported for fiscal 2004. The
company reported a net loss of $9.0 million or ($0.28) per
diluted share, compared to a net loss of $5.2 million, or
$(0.19) per diluted share in 2004.
The Company
had $3.6 million in cash and equivalents at December 31,
2005 compared to the $4.8 million reported at December 31,
2004. Currently the Company has approximately $8.7 million
in cash, which increased from year end due to the prepayment
of maintenance fees, specifically by one large customer, and
the payment associated with the aforementioned license deal.
The prepayment of maintenance fees by the one large customer
will be recorded over a three year time period starting in
the first quarter of 2006. As of the end of the fourth
quarter the Company had $4.0 million available under its
existing bank line of credit.
Highlights
from the Fourth Quarter include:
·
Five
new customer wins for the AXS-One Compliance Platform™ on
three continents, four closed with partners representing key
wins against competitors. Key wins include contracts with a
major government agency in South Africa, a large
international supermarket chain in Hong Kong, an
international consumer goods manufacturing company, a major
international wine producer and one of Australia’s largest
electric utilities.
· First
major wins in South Africa and Hong Kong for the RCM
platform.
· Virgin
Travel becomes AXS-One’s 50th contracted customer
for AXS-One’s e-Delivery Service for Tour Operators
· General
Availability of AXS-Link for Desktop, a major enhancement to
the AXS-One Compliance Platform delivering a comprehensive
desktop archiving solution.
· Continued
expansion of the company’s reseller channel, with new
partnerships announced throughout Asia, including China,
Hong Kong, India, Malaysia, the Philippines and Thailand
Highlights
from the 2005 Year include:
· Technology
Development and License Agreement signed with Sun
Microsystems. AXS-One joins Sun to deliver an integrated
solution for compliance, governance and operational
management and announces first sales worldwide.
· Secured
more than 30 Resellers in twenty countries, forming a
meaningful foundation for 2006 business.
· Channel
shows early signs of success with joint wins announced
worldwide.
· Major
new release of AXS-One Compliance Platform announced.
Version 3.5 introduces patent-pending search technology,
setting new standard for performance in the archiving
market.
The Company announced the appointment
of Rob Milks as Senior Vice President Sales, AXS-One North
America. Mr. Milks replaced Matt Suffoletto who has left the
company to pursue other interests. Mr. Milks has over twenty
years of software sales experience including executive
positions at Selectica Inc. and Blue Roads Corporation.
Commenting on the change, Bill Lyons, chairman and CEO of
AXS-One stated, “Under Rob’s lead the North American sales
team is well positioned and I am confident in their ability
to capture new sales within the growing RCM marketplace.”
Commenting on the Company’s financial
results, Bill Lyons continued, “During 2005 we made further
progress in growing our RCM business by continuing to convey
the tangible benefit of deploying AXS-One solutions to
potential customers. Increasing consumer interest
translated into important wins for our RCM solutions during
the third and fourth quarters. To further drive license
sales we are expanding our channel strategy and now have
more than 30 resellers in place and are experiencing early
indications that our new partners are beginning to
meaningfully contribute to our revenues. In particular, our
relationship with Sun continues to strengthen, with our
first joint sales closed as a result of this partnership in
Europe, Australia and North America during 2005. While last
year has been challenging in terms of our ability to provide
consistent and predictable growth, we enter 2006 with a
stable balance sheet, robust pipeline, expanding services
backlog and a significantly stronger reseller channel. We
continue to have confidence in our ability to further
leverage the initial product momentum gained during 2005 by
transitioning our initial successes into tangible
operational improvements throughout 2006.”
Conference call information
Management will conduct a conference
call to discuss these results at 5:00 p.m. Eastern time on
February 9, 2006. Interested parties can participate in the
call by dialing
706-645-0399 or can access the webcast at
www.axsone.com.
The webcast will be archived for 30 days following the call.
Interested parties may submit questions during the
conference call by e-mail to
IR@axsone.com.
Interested parties may listen to the call via a live webcast
that will be available via the company website
www.axsone.com.
Interested parties should access the webcast approximately
10-15 minutes before the scheduled start time.
About AXS-One Inc.
AXS-One (AMEX: AXO) is a leading
provider of high performance Records Compliance Management
solutions. The AXS-One Compliance Platform enables
organizations to implement secure, scalable and enforceable
policies that address records management for corporate
governance, legal discovery and industry regulations such as
SEC17a-4, NASD 3010, Sarbanes-Oxley, HIPAA, The Patriot Act
and Gramm-Leach Bliley. AXS-One’s award-winning technology
has been critically acclaimed as best of class and delivers
digital archiving, business process management, electronic
document delivery and integrated records disposition and
discovery for e-mail, instant messaging, images, SAP and
other corporate records. Founded in 1979, and headquartered
in Rutherford, NJ, AXS-One has offices worldwide including
in the United States, Australia, Singapore, United Kingdom
and South Africa. For further information, visit the AXS-One
website at
http://www.axsone.com.
AXS-One, the AXS-One logo, "Access
Tomorrow Today," AXSPoint, and TransAXS are registered
trademarks of, and AXS-One Compliance Platform, AXS-One
Retention Manager, AXS-One Rapid-AXS, AXS-Link for Desktop,
“The Records Compliance Management Company”, e-Cellerator,
AXS Desk, "AXS-One Collaboration FrameWorks," SMART, AXS-Link
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: our ability
to improve financial and sales performance; 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 most current Form 10-K and other
Securities and Exchange Commission filings.
Company Contact::
Joseph Dwyer
AXS-One Inc.
(201) 935-3400
jdwyer@axsone.com
IR Contact::
Matthew Hayden
Hayden Communications
858.704.5065
matt@haydenir.com
AXS-One, the AXS-One logo, "Access Tomorrow Today," AXSPoint, and TransAXS are registered trademarks of, and AXS-One Compliance Platform, AXS-One Retention Manager, AXS-One Rapid-AXS, AXS-Link for Desktop, "The Records Compliance Management Company," e-Cellerator, AXS Desk, "AXS-One Collaboration FrameWorks," SMART, AXS-Link 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.
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