Daleen Technologies, Inc. (fka DALN)

[2bStealthy]

Daleen Reports Second Quarter 2003 Operating Results
Thursday July 24, 1:47 pm ET

Revenues Increase on New Business Activity

BOCA RATON, Fla.--(BUSINESS WIRE)--July 24, 2003--Daleen Technologies, Inc. (OTCBB:DALN - News), a global provider of licensed and outsourced billing, customer care, event management, and revenue assurance solutions for traditional and next generation service providers, today reported revenues of $4.2 million for the second quarter of 2003, an increase over its first quarter reported revenues of $4.1 million. Net loss for the quarter was $1.4 million, or $0.03 per share, which was the same as the net loss of $1.4 million, or $0.03 per share, for the first quarter of 2003, and compared to a $2.3 million net loss, or $0.10 per share in the second quarter of 2002, prior to Daleen's acquisition of Abiliti Solutions.

The company experienced a significant increase in new business during the second quarter, including entering into a multi-year RevChain® license and services contract with Empresa de Telecomunicaciones de Bogota (ETB), one of Colombia's leading telecommunications providers. The contract, which has a total value of $10.5 million, is expected to generate more than $7.6 million (net of $2.9 million of Colombian taxes) in new revenues to Daleen over the next twenty-nine months. This includes a seventeen-month implementation and a one-year maintenance commitment.

Daleen also reported new milestones in the execution of its technology integration and market expansion strategies this quarter. The company successfully integrated its core RevChain billing software into the BillingCentral® ASP, and delivered the first outsourcing solution that combines RevChain with Asuriti(TM), Daleen's new event management and revenue assurance software. Launched in June, Asuriti combines the proven event management capabilities that were available in Simpliciti.net(TM) with additional configurations that are designed to allow service providers to establish an automated process for revenue capture and recovery.

"Our results reflect a consistently high level of activity throughout our business," said Gordon Quick, president and CEO of Daleen. "Across the organization - from the product development organization, to the sales, marketing and professional services teams - our employees are successfully executing in critical areas of our business that are helping to drive sustainable revenue growth."

Second Quarter Highlights:
Revenues increased for the third consecutive quarter as a result of license and service revenues from existing and new customers, including ETB and Pac-West Telecomm. Pac-West Telecomm signed a contract to implement Daleen's Asuriti for Event Management software as part of its migration from the BillPlex® platform to RevChain.
Daleen moved two new outsourcing clients into production in its BillingCentral ASP, and completed a multi-phase implementation of its licensed software for a third customer.
Total expenses were $5.7 million for the quarter, compared to $5.6 million for the first quarter of 2003. Quarterly expenses included approximately $145,000 in up-front costs related to stamp tax associated with the ETB contract and a write-off of $500,000 for a third-party investment.
The company's total cash and cash equivalents used in the quarter were $1.4 million, compared to $500,000 in the first quarter of 2003. Revenues and cash use were both affected by the bankruptcy of Allegiance Telecom, a significant customer of the company. As a critical vendor, subsequent to the end of the quarter Daleen received from Allegiance the balance of a mutually agreed amount for pre-petition services, pursuant to the terms of a bankruptcy court order. Allegiance is current on all post-petition payments and Daleen continues to provide services to Allegiance in accordance with the terms of its contract.



"Given the unusual challenges and opportunities we encountered this quarter, our ability to increase revenues, while still maintaining tight control on expenses, is evidence of our continued progress in managing the business," said Jeanne Prayther, chief financial officer for Daleen. "The ETB contract, on top of our other recent customer successes, provides excellent momentum as we move into the second half of the year."

About Daleen

Daleen Technologies, Inc. is a global provider of high performance billing, customer care, event management and revenue assurance software, with a comprehensive outsourcing solution for traditional and next generation service providers. Daleen's solutions utilize advanced technologies to enable providers to reach peak operational efficiency while driving maximum revenue from products and services. Core products include its RevChain® billing and customer management software, Simpliciti.net(TM) event management application, BillingCentral® ASP outsourcing services, and the new Asuriti(TM) event management and revenue assurance software. More information is available at http://www.daleen.com.

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