| Mon 18 Nov 2002, 16:52 | | Spescom Limited`s Us Subsidiary Spescom Software A |
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Spescom Limited`s US Subsidiary Spescom Software Announces 4th Quarter and Year-
end Results
Spescom Limited`s US Subsidiary Spescom Software Announces
4th Quarter and Year-end Results
- Reaches breakeven on EBITDA basis -
SAN DIEGO, CA, November 18, 2002 - Spescom Software Inc., formerly Altris
Software, Inc. (OTCBB: ALTS), a leading provider of integrated document,
configuration and records management (iDCR) solutions, today reported results of
operations for its fourth quarter and year ended September 30, 2002.
Total revenue for the fourth quarter ended September 30 2002 was $1.9
million compared with $1.8 million for the same period of 2001. Net loss was
$1.3 million, or ($0.04) per share for the quarter, compared with a net loss of
$1.3 million, or ($0.04) per share, for the same period of 2001. The loss in
2002 included a write-down totaling $865,000 of certain of the Company`s older
capitalized software costs to net realizable value.
Total revenue for the year ended September 30, 2002 was $7.0 million
compared with $11.2 million for the year ended September 30, 2001. Net loss
was $5.8 million, or $(0.19) per share for the year ended September 30, 2002,
compared with a net loss of $1.3 million, or ($0.04) per share, for the year
ended September 30, 2001.
For the three months ended September 30, 2002, earnings before interest,
taxes, depreciation and amortization (EBITDA) was $9,000, or $0.00 per share,
compared with a loss of $907,000, or ($0.03) per share, for the comparable prior
year period. EBITDA for the three months ended September 30, 2002 was also
before the $865,000 write-down of capitalized software. Amortization expense
for the three months ended September 30, 2002 and 2001 relating to capitalized
software was $242,000 and $291,000, respectively.
EBITDA for the year ended September 30, 2002 was a loss of $3,479,000, or
($0.11) per share, compared with the prior year`s loss of $237,000, or ($0.01)
per share. Amortization expense for the year ended September 30, 2002 and 2001
was of $943,000 and $1,045,000, respectively.
Carl Mostert, Chief Executive Officer, stated, "We are very pleased to have
achieved our goal of breakeven on an EBITDA basis for the fourth quarter and are
entering into our new year with substantial momentum. We ended the year with
the recently announced order from Railtrack of over $1.0 million and since year-
end have received further orders from Railtrack and other customers totaling
approximately $1.0 million. Since completing our restructuring in March, we
have focused heavily on marketing our integrated document, configuration and
records management (iDCR) solutions. These solutions are providing us with
significant differentiation in the market place and have allowed us to further
penetrate several of our key markets, including utilities, transportation and
local government. We are particularly excited that Seabrook selected eB to
manage all of its nuclear documents, and Sempra chose eB for both its San Diego
Gas & Electric and Southern California Gas facilities.
The successes achieved to date give us optimism that we can continue our
turnaround in FY 2003. Although the current high level of economic uncertainty
makes it difficult for the Company to predict with accuracy its future results,
the Company estimates that for FY 2003, the Company can achieve FY 2003 revenue
growth of approximately 30 to 45% over FY 2002 revenues to a range of $9.0 to
$10.0 million. If these revenue targets are achieved, we anticipate that a
gross profit percentage of over 65% for FY 2003 can be reached, plus or minus 3
points, up from 37% in FY 2002. This anticipated improvement is primarily due
to an increase in software revenues, a decrease in amortization of capitalized
software costs, and continued cost savings from the Company`s restructuring
implemented in March 2002. In addition, we anticipate EBITDA in the range of
$800,000 to $1.0 million, or $.03 per share, compared to EBITDA loss of
$(3,479,000) for FY 2002, or $(0.11) per share. The Company expects that the
achievement of these revenue and gross profit levels would allow the Company to
begin generating profits during the second half of FY 2003 and reach breakeven
for the year on a net income basis."
John Low, Chief Financial Officer noted, "The order from Railtrack received
at the end of the year increased the Company`s receivable balance to $1.5
million. Since year-end the Company has subsequently collected 100% of the
outstanding receivable balance." He added: "In fiscal year 2003, the Company
will be looking at methods to strengthen its balance sheet, including the
possibility of raising additional equity."
About Spescom eB
eB is a registered trademark of Spescom Software Inc. eB comprises an
extensive set of software components that together form the foundation for an
extremely flexible and powerful information management platform. eB`s
components include: document management; requirements management; records
management; item management; change management; configuration management and
workflow components. These components are tightly integrated with CAD, GIS,
office and email applications to capture and view information. The full
functionality of eB is available via a set of API`s that enable the rapid
definition and deployment of customer specific solutions and integration with
other line-of-business applications including ERP, CRM, SCM, maintenance
management and project management products.
About Spescom Software Inc.
Spescom Software (OTCBB: ALTS) delivers enterprise eBusiness solutions that
provide rapid access to accurate information in context to assets, products and
processes, resulting in improved customer satisfaction, productivity and safety.
It achieves this through a tightly integrated suite of document, configuration
and records management technologies that not only allows it to capture and
securely store information, but also organizes and structures this information
to place it in context.
Key customers include Ocean Energy, Continental Express, AmerenUE, City of
Winston-Salem, Sempra Energy, Bombardier, Entergy, Northeast Utilities, London
Underground, Railtrack, and many others.
For further information visit us at www.spescomsoftware.com
Safe Harbor Statement
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, known and unknown, including such factors, among
others, as market acceptance, market demand for the Company`s technologies and
services, pricing, changing regulatory environment, the effect of the company`s
accounting policies, potential seasonality, industry trends, adequacy of the
financial resources to execute its business plan, the Company`s ability to
attract, retain and motivate key technical, marketing and management personnel,
possible disruption in commercial activities occasioned by terrorist activity
and armed conflict, and other risk factors detailed in the Company`s SEC
filings. Such risks and uncertainties may cause actual results, performance or
achievement to be materially different from any future trends, results,
performance or achievements expressed or implied by these statements. The
forward looking statements in this press release, such as revenue and earnings
guidance for FY 2003, are based upon management`s current expectations and
belief, which management believes are reasonable. You are cautioned not to
place undue reliance on any forward-looking statements. The financial
information contained in this release should be read in conjunction with the
consolidated financial statements and notes thereto included in the Company`s
most recent reports on Form 10-K and Form 10-Q, each as it may be amended from
time to time.
SPESCOM SOFTWARE, INC.
Consolidated Statements of Operations
For the three months For the year ended
ended
September 30, September 30,
2002 2001 2002 2001
Revenues:
Licenses $ $ $ $
710,000 189,000 1,958,000 4,806,000
Services and other
1,144,000 1,625,000 5,012,000 6,352,000
Total revenues
1,854,000 1,814,000 6,970,000 11,158,000
Cost of revenues:
Licenses
277,000 304,000 1,176,000 1,371,000
Services and other
692,000 965,000 3,218,000 3,914,000
Total cost of revenues
969,000 1,269,000 4,394,000 5,285,000
Gross profit
885,000 545,000 2,576,000 5,873,000
Operating expenses:
Research and
development 293,000 508,000 1,828,000 1,963,000
Marketing and sales
568,000 1,141,000 3,479,000 4,100,000
General and
administrative 286,000 139,000 1,809,000 1,276,000
Impairment of
capitalized software 865,000 - 865,000 -
2,012,000 1,788,000 7,981,000 7,339,000
Loss from operations
(1,127,000) (1,243,000) (5,405,000) (1,466,000)
Gain on sale of interest
in subsidiary - - - 125,000
Interest and other
income 1,000 3,000 7,000 57,000
Interest and other
expense (125,000) (16,000) (371,000) (28,000)
Net loss $ $ $ $
(1,251,000) (1,256,000) (5,769,000) (1,312,000)
Basic and diluted net $ $ $ $
loss per common share (0.04) (0.04) (0.19) (0.04)
Shares used in computing
basic and diluted
net loss per common
share 30,842,000 30,842,000 30,842,000 30,792,000
Calculation of EBITDA
Net loss $ $ $ $
(1,251,000) (1,256,000) (5,769,000) (1,312,000)
Add back the following:
Interest and
other, net 124,000 13,000 364,000 (154,000)
Depreciation and
amortization 271,000 336,000 1,061,000 1,229,000
Impairment of
capitalized software 865,000 - 865,000 -
EBITDA $ $ $ $
9,000 907,000) (3,479,000) (237,000)
EBITDA per common share $ $ $
0.00 (0.03) $ (0.11) (0.01)
Shares used in
computing EBITDA per 30,842,000 30,842,000 30,842,000 30,792,000
common share
SPESCOM SOFTWARE INC.
Consolidated Summary Balance Sheets
September September
30, 30,
2002 2001
ASSETS
Current assets:
Cash and cash equivalents $ $
87,000 144,000
Receivables, net
1,459,000 1,150,000
Other current assets
244,000 412,000
Total current assets
1,790,000 1,706,000
Property and equipment, net
215,000 313,000
Computer software, net
420,000 2,164,000
Other assets
83,000 73,000
Total assets $ $
2,508,000 4,256,000
LIABILITIES AND SHAREHOLDERS` EQUITY (DEFICIT)
Current liabilities:
Accounts payable $ $
802,000 779,000
Payable to Spescom Limited 495,000 179,000
Accrued liabilities
1,294,000 1,596,000
Deferred revenue
2,171,000 1,620,000
Total current liabilities 4,762,000 4,174,000
Long term liability - related party
4,891,000 1,377,000
Total liabilities
9,653,000 5,551,000
Total Shareholders` Equity (Deficit) (7,145,000) (1,295,000)
Total liabilities and shareholders` $ $
equity 2,508,000 4,256,000
FROM: Michael Porter, President
Sarah Torres, AVP-Editorial
Christian Pflaumer, VP-Media Relations
Porter, LeVay & Rose, Inc.
(212) 564-4700
COMPANY Carl Mostert, CEO
CONTACTS: John Low, CFO
(858) 625-3000
Date: 18/11/2002 04:07:00 PM Produced by the JSE SENS Department
