Spescom Software Announces Second Quarter Results SAN DIEGO, May 16
/PRNewswire-FirstCall/ -- Spescom Software Inc. (OTC Bulletin
Board: SPCO), a leading provider of enterprise content and
configuration management solutions, today reported results of
operations for its fiscal second quarter ended March 31, 2005.
Total revenue for the second quarter of 2005 was $1.7 million, an
increase of 4% versus revenue of $1.6 million in the year earlier
quarter. Net loss before deemed and cumulative dividends for the
second quarter of 2005 was ($508,000), or ($0.02) per share,
compared with net loss before deemed and cumulative dividends of
($573,000), or ($0.02) per share, for the three months ended March
31, 2004. After the effect of the cumulative dividends totalling
$86,000 to preferred shareholders in the second quarter of 2005,
the net loss available to common shareholders was ($594,000) or
($0.02) per share. In the same period of the prior year after the
cumulative dividends totalling $66,000 the net loss available to
common shareholders in the second quarter was ($639,000) or ($0.02)
per share. For the six months ended March 31, 2005, total revenues
were $3.3 million versus $3.7 million in the same period of the
prior year. Net loss before deemed and cumulative dividends for the
2005 six month period was ($1,112,000), or ($0.03) per share,
compared with net loss before deemed and cumulative dividends of
($562,000), or ($0.02) per share, for the six-months ended March
31, 2004. After the effect of the deemed dividend $2,200,000 and
cumulative dividends of $169,000 to the preferred shareholders for
the first six months of 2005, the net loss available to common
shareholders was ($3,481,000) or ($0.10) per share. In the same
period of the prior year after the cumulative dividends totalling
$132,000 to preferred shareholders, the net loss available to
common shareholders was ($694,000), or ($0.02) per share. "In the
second quarter we continued to expand our marketing and sales
efforts and direct the Company's focus as outlined in the recently
announced strategic plan. The market opportunities for our
solutions remains strong and our expectation is that we will begin
to see the results of focus in the second half of this year,"
commented Carl Mostert, CEO, Spescom Software. About Spescom
Software Spescom Software is a developer and marketer of
leading-edge content and configuration management software and
solutions for complex applications in energy, homeland security,
defense and other sectors that provide the unique ability to manage
disparate types of content and other data on a single platform. The
Company's proprietary eB platform provides extensive enterprise
content management (ECM) functionality, together with best-of-breed
configuration management capabilities. These capabilities enable
the secure capture and storage of both structured and unstructured
information, in addition to the ability to organize, control and
manage this information. Spescom's eB software solution
revolutionizes data management through an innovative new paradigm
of data management that re-invents how organizations store, track,
access, and use their enterprise's data to maximize efficiency and
guarantee accuracy and integrity of the data. Key customers include
Constellation Energy, Continental Express, AmerenUE, Cities of Las
Vegas and Dayton, Lloyds Register, United Space Alliance, Entergy,
Northeast Utilities, London Underground, Network Rail, and many
others. The Company is headquartered in San Diego, Calif., with an
international sales and support center in London. Cautionary
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,
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. For a discussion of
additional risk factors relating to Spescom's business, see
Spescom's annual report on Form 10-K for the fiscal year ended
September 30, 2004 and quarterly reports on Form 10-Q for the
quarter ended December 31, 2004, including the discussion in
Management's Discussion and Analysis of Financial Condition and
Results of Operations contained therein. SPESCOM SOFTWARE INC.
Consolidated Statements of Operations (Unaudited) For the three
months For the six months Ended March 31, ended March 31, 2005 2004
2005 2004 Revenues: Licenses $86,000 $359,000 $354,000 $1,478,000
Services and other 1,587,000 1,242,000 2,972,000 2,248,000 Total
revenues 1,673,000 1,601,000 3,326,000 3,726,000 Cost of revenues:
Licenses 64,000 53,000 108,000 141,000 Services and other 620,000
541,000 1,234,000 1,107,000 Total cost of revenues 684,000 594,000
1,342,000 1,248,000 Gross profit 989,000 1,007,000 1,984,000
2,478,000 Operating expenses: Research and development 174,000
336,000 520,000 668,000 Marketing and sales 914,000 726,000
1,738,000 1,331,000 General and administrative 373,000 482,000
772,000 989,000 1,461,000 1,544,000 3,030,000 2,988,000 Loss from
operations (472,000) (537,000) (1,046,000) (510,000) Interest and
other income 2,000 1,000 2,000 6,000 Interest and other expense
(38,000) (37,000) (68,000) (58,000) Net income (loss) (508,000)
(573,000) (1,112,000) (562,000) Deemed preferred dividend - -
(2,200,000) - Net income (loss) available after deemed preferred
dividend (508,000) (573,000) (3,312,000) (562,000) Cumulative
preferred dividends (86,000) (66,000) (169,000) (132,000) Net loss
available to common shareholders $(594,000) $(639,000) $(3,481,000)
$(694,000) Basic and diluted net (loss) per common share $(0.02)
$(0.02) $(0.10) $(0.02) Shares used in computing basic and diluted
net (loss) per common share 34,215,000 33,979,000 34,187,000
30,954,000 SPESCOM SOFTWARE INC. Consolidated Balance Sheets March
31, September 30, 2005 2004 (Unaudited) ASSETS Current assets: Cash
and cash equivalents $1,031,000 $109,000 Receivables, net 914,000
954,000 Other current assets 176,000 209,000 Total current assets
2,121,000 1,272,000 Property and equipment, net 102,000 116,000
Computer software, net 249,000 15,000 Other assets 28,000 27,000
Total assets $2,500,000 $1,430,000 LIABILITIES AND SHAREHOLDERS'
DEFICIT Current liabilities: Accounts payable $442,000 $440,000
Payable to Spescom Ltd. 51,000 90,000 Preferred stock dividend
payable to Spescom Ltd. 417,000 271,000 Accrued liabilities
1,326,000 1,226,000 Notes and accrued interest Payable to Spescom
Ltd. 588,000 - Lease obligation - current portion 17,000 19,000
Deferred revenue 2,232,000 1,919,000 Total current liabilities
5,073,000 3,965,000 Notes payable and accrued interest to Spescom
Ltd. - 557,000 Lease obligation 35,000 44,000 Total liabilities
5,108,000 4,566,000 Total shareholders' deficit (2,608,000)
(3,136,000) Total liabilities and shareholders' deficit $2,500,000
$1,430,000 DATASOURCE: Spescom Software Inc. CONTACT: Carl Mostert
or John Low, +1-858-625-3000, Spescom Software Inc. Web site:
http://www.spescomsoftware.com/
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