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[whyme2005]

ARTG $0.96 REPORTS STRONG REVENUE GROWTH POSTS PROFIT

ARTG Announces Third-Quarter 2005 Financial Results
Tuesday October 25, 7:30 am ET

Company Grows Revenue by 12% Over Prior Quarter and 30% Over Prior Year While Increasing Profitability


CAMBRIDGE, Mass.--(BUSINESS WIRE)--Oct. 25, 2005--ATG (Art Technology Group, Inc., NASDAQ: ARTG), the software provider behind the most consistent and relevant on-line marketing, commerce, and customer service experiences, today reported its financial results for the third quarter ended September 30, 2005.

Total revenues for the third quarter of 2005 were $22.7 million, a 30 percent increase from $17.5 million in the third quarter of 2004 and a 12 percent increase from $20.3 million in the second quarter of 2005.

Net income in accordance with accounting principles generally accepted in the United States (GAAP) for the third quarter of 2005 was $1.5 million, or $0.01 per diluted share. This compares with net income of $0.1 million, or $0.00 per diluted share, in the third quarter of 2004 and a net loss of $0.3 million, or a loss of $0.00 per share, for the second quarter of 2005.

The company generated non-GAAP net income, which excludes amortization of intangible assets and the net effect of restructuring charges, of $2.0 million, or $0.02 per diluted share, in the third quarter of 2005. These results compare with non-GAAP net income of $0.1 million, or $0.00 per diluted share, in the third quarter of 2004 and non-GAAP net income of $0.9 million, or $0.01 per diluted share, in the second quarter of 2005. See "Use of Non-GAAP Financial Measures" below for definitions and a reconciliation of non-GAAP to GAAP financial measures.

Cash, cash equivalents, and marketable securities as of September 30, 2005 increased $1.2 million to $29.9 million from $28.7 million as of June 30, 2005.

Bob Burke, ATG's president and chief executive officer, said, "Our financial performance was built on a solid mix of commerce and service solutions. While the majority of our product revenues were driven by license sales, our ATG On-Demand(TM) offerings gained further traction during the third quarter, contributing a growing stream of recurring revenues that will benefit our business in the quarters and years ahead."

"In addition to these financial achievements, we introduced our highly anticipated Wisdom-enabled ATG Service Suite(TM). Offered as traditional on-premise licenses or hosted on-demand and as individual applications or an integrated suite, these seven offerings provide what we believe are the most advanced customer service and support capabilities on the market. We believe this offering will be an important contributor to our future results."

Business Outlook

"Looking ahead, we are optimistic about our prospects for growth," Burke said. "We believe our third-quarter results are a clear indication of the momentum we are establishing through a combination of product and services growth. In the months to come, we will focus on capitalizing on the roll out of our Wisdom-enabled ATG Service Suite. We also will build out our On-Demand business by launching additional offerings and establishing a dedicated sales effort for these hosted solutions. Based on our recent success, trends within our industry, and initiatives now underway, we believe ATG is positioned well for future growth."


ARTG has a strong balance sheet with about $30M incash and short-term investments....and just as important...no long-term debt!!


http://finance.yahoo.com/q/bs?s=ARTG

Also note the heavy insider buying!!

http://finance.yahoo.com/q/it?s=ARTG


About ATG

ARTG is a growing financial software company with a who-is-who list of custoimers like A&E Networks, Airbus, American Airlines, American Eagle Outfitters, Best Buy, Boeing, Cingular Wireless, DirecTV, France Telecom, Friends Provident, Hewlett-Packard, Hotels.com, Hyatt Hotels, HSBC, InterContinental Hotels Group, Kingfisher, Louis Vuitton, Merrill Lynch, Neiman Marcus, Philips, Procter & Gamble, Symantec, T-Mobile, Target, USAA, US Army, US Navy, Warner Music, and Wells Fargo. The company is headquartered in Cambridge, Massachusetts, with additional locations throughout North America, Europe, and Asia.