Spescom Software Announces First Quarter 2007 Results
Feb 14, 2007 08:00:25 (ET)
SAN DIEGO, CA, Feb 14, 2007 (MARKET WIRE via COMTEX) --
Highlights:
Revenue up 9% vs. previous quarter
EBITDA up $260,000 vs. previous quarter
Backlog up 60% vs. previous quarter
Spescom Software Inc. (SPCO, Trade ), a leading provider of enterprise information management solutions, today reported results of operations for its first quarter of fiscal 2007 ended December 31, 2006.
Revenues for the first quarter of FY2007 were $1.73 million versus $1.58 million reported in the previous quarter and $1.83 million in the same period a year ago. Earnings before interest, taxes, depreciation and amortization excluding stock compensation ("EBITDA") for the first quarter of FY2007 were $100,000, or $0.00 per share, compared with a loss of ($160,000) or ($0.00) per share the previous quarter and a loss of ($48,000), or ($0.00) per share, for the same quarter a year ago.
Net loss available to common shareholders was ($117,000) or ($0.00) per share for the first quarter of FY 2007 after cumulative preferred dividends of $66,000 versus a net loss in the previous quarter of ($370,000) or ($ 0.01) per share after cumulative preferred dividends of $71,000. The net loss was ($767,000), or ($0.02) per share in the prior year after deemed and cumulative preferred dividends of $588,000.
Deferred revenue increased to $5.1 million at December 31, 2006 from $2.8 million at the end of FY 2006. In addition, the company's contract backlog, which includes deferred revenue, was $6.7 million at December 31, 2006 versus $4.2 million at September 30, 2006. The significant increase was primarily due to the $2.0 million license contract announced last October.
"Achieving positive EBITDA is a significant accomplishment and confirms that we are on the proper track," stated Alan Kiraly, Chief Executive Officer. "In addition, the balance sheet was significantly strengthened by the $2.0 million license contract signed during the quarter. That sale enabled us to reduce our debt and close the quarter with $1.3 million in cash."
"Operationally we continue to capitalize on our success in the Nuclear Energy market as demonstrated by the recently announced contract with Nuclear Fuel Services. We continue to expand our product footprint in long term customer accounts such as Network Rail, which owns and operates the rail infrastructure in the UK and JEA, the eighth-largest community-owned utility in the US. From a marketing and sales perspective, our efforts remain focused on the nuclear and city/county government markets where meeting compliance requirements is critical. Finally, we anticipate a broader industry awareness of the eB product suite as we participate in the Microsoft Vista product launch and leverage our Gold Partner status."
About Spescom Software
Spescom Software (SPCO, Trade ) is a leading provider of enterprise information management solutions that enable organizations to reduce the cost of meeting compliance requirements, minimize business risk and optimize process efficiency. Spescom's advanced software product, eB, ensures the integrity of the controlled information by uniquely managing the connectivity to all relevant information such as documents, records, assets, people, processes and projects - creating an ecosystem for the rapid access of accurate information in context. eB vastly improves the integrity, visibility and access to all relevant information at the time it is needed.
Key customers include Entergy, NuStart Energy, Constellation Energy, Florida Power & Light, Continental Express, Ameren UE, City of Dayton, Lloyds Register of Shipping, Northeast Utilities, Network Rail, Aker Kvaerner, City of Las Vegas, City of Winston Salem, Fayetteville Public Works Commission and many others. www.spescomsoftware.com
Except for historical information contained herein, the matters set forth in this release include forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, changing regulatory environment, the effect of the company's accounting policies, potential seasonality and other risk factors detailed in the Company's SEC filings.
SPESCOM SOFTWARE INC.
Consolidated Statements of Operations
For the three months
ended December 31,
----------------------
2006 2005
---------- ----------
(Unaudited)
Revenues:
Licenses $ 390,000 $ 564,000
Services and other 1,337,000 1,268,000
---------- ----------
Total revenues 1,727,000 1,832,000
---------- ----------
Cost of revenues:
Licenses 38,000 122,000
Services and other 591,000 540,000
---------- ----------
Total cost of revenues 629,000 662,000
---------- ----------
Gross profit 1,098,000 1,170,000
---------- ----------
Operating expenses:
Research and development 258,000 203,000
Marketing and sales 460,000 653,000
General and administrative 368,000 441,000
---------- ----------
Total operating expenses 1,086,000 1,297,000
---------- ----------
Income (loss) from operations 12,000 (127,000)
Interest and other expense (63,000) (52,000)
---------- ----------
Net loss (51,000) (179,000)
Deemed preferred dividend - (500,000)
---------- ----------
Net loss available after deemed preferred dividend (51,000) (679,000)
Cumulative preferred dividends (66,000) (88,000)
---------- ----------
Net loss available to common shareholders $ (117,000) $ (767,000)
========== ==========
Basic and diluted net loss per common share $ (0.00) $ (0.02)
========== ==========
Shares used in computing basic and diluted net loss
per common share 37,144,000 36,819,000
SPESCOM SOFTWARE INC.
Consolidated Balance Sheets
December 31, September 30,
2006 2006
------------ --------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,304,000 $ 95,000
Receivables, net 964,000 854,000
Other current assets 154,000 190,000
------------ --------------
Total current assets 2,422,000 1,139,000
Property and equipment, net 119,000 131,000
Computer software, net 399,000 425,000
Other assets 31,000 28,000
------------ --------------
Total assets $ 2,971,000 $ 1,723,000
============ ==============
LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities:
Accounts payable $ 347,000 $ 792,000
Payable to Spescom Ltd. 190,000 550,000
Notes and accrued interest payable to
Spescom Ltd. 683,000 -
Preferred stock dividend payable to
Spescom Ltd. 971,000 887,000
Accrued liabilities 1,239,000 1,446,000
Lease obligation - current portion 40,000 44,000
Deferred revenue 5,054,000 2,752,000
Series I redeemable preferred stock 2,450,000 2,450,000
------------ --------------
Total current liabilities 10,974,000 8,921,000
Notes and accrued interest payable to
Spescom Ltd. - 664,000
Lease obligation 10,000 16,000
------------ --------------
Total liabilities 10,984,000 9,601,000
------------ --------------
Total shareholders' deficit (8,013,000) (7,878,000)
------------ --------------
Total liabilities and shareholders'
deficit $ 2,971,000 $ 1,723,000
============ ==============
EBITDA Calculation
(unaudited)
For the three months
ended December 31,
----------------------
2006 2005
----------- ----------
Income (loss) from Operations $ 12,000 $ (127,000)
Add back:
Depreciation and amortization 46,000 25,000
FAS 123R share-based compensation expense 42,000 54,000
----------- ----------
EBITDA excluding FAS 123R share-based compensation
expense $ 100,000 $ (48,000)
=========== ==========
EBITDA per common share $ 0.00 $ (0.00)
=========== ==========
Shares used in computing
EBITDA per common share 37,144,000 36,819,000
COMPANY CONTACT:
Alan Kiraly
CEO
John Low
CFO
(858) 625-3000
SOURCE: Spescom Software Inc.
