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RUTHERFORD, N.J., Jul 31, 2002 (BUSINESS WIRE) -- AXS-One Inc. (AMEX: AXO), a leading provider of e-business solutions, today announced total revenues of $9.4 million and $18.5 million for the three and six months ended June 30, 2002 compared to $9.9 million and $21.8 million for the corresponding periods last year.
The Company reported operating income, net income and diluted net income per share for the quarter ended June 30, 2002 of $0.5 million, $0.2 million, and $0.01 per share respectively, compared to an operating loss, net loss and diluted net loss per share of $(4.7) million, $(4.9) million, and $(0.20) per share respectively for the same period in 2001. In addition, for the six months ended June 30, 2002, the Company reported operating income, net income and diluted net income per share of $1.1 million, $0.6 million and $0.02 per share respectively, compared to an operating loss, net loss and diluted net loss per share of $(5.7) million, $(6.0) million, and $(0.24) per share respectively, for the same period in 2001. Included in losses for the three and six months of 2001 are restructuring and other costs of $1.1 million.
Revenues of the Central and Eastern Europe subsidiary sold in September 2001 which have been included in the Company's operating results through the date of sale were $0.6 million and $1.1 million for the three and six months ended June 30, 2001. Net losses for the sold subsidiaries were $(90) thousand and $(111) thousand for the three and six months ended June 30, 2001.
The second quarter results represented AXS-One's fourth consecutive quarter of profitability, which began with the third quarter of 2001 after the re-alignment of its business model in the second quarter of that year. The receptive response to the product upgrades and new product offerings helped drive revenue opportunities for this quarter.
"The fact that we can generate a profit in spite of the delay of several contract signings is a validation of our business model," commented AXS-One Chief Executive Officer John Rade. "I am especially pleased that beginning in the second quarter of 2002 consulting revenue is picking up compared to recent quarters, as more and more customers install our version 7.0 and license our new AXS-One Collaboration FrameWorks(TM) software. Equally, it is gratifying to see that we can, after considering the subsidiary sold, maintain total revenues versus same quarter last year and even show some first quarter to second quarter growth this year."
During the second quarter, AXS-One's clients continued to upgrade to the latest e-financial and business solutions, AXS-One(TM) Enterprise version 7.0. Additionally, a number of new products were launched, including AXSExcel, TransAXS(R) Financial Reporting and AXS Analytics. These new products provide clients with enhanced management information and control through information sharing and collaboration.
Rade added, "While economic conditions are tough and prospective buyers are very selective about what they do, our new AXS-One Collaboration FrameWorks solutions seem to resonate very well with customers' needs to manage their value/supply chains, preserve investment in existing technology and produce high ROI in days and weeks versus the months and years often experienced with our competitors."
About AXS-One Inc.
AXS-One (AMEX: AXO) is a provider of supply chain management solutions for service industries that extend the finance function and allow organizations to work collaboratively with their partners, suppliers, employees, and customers while preserving investments in existing systems. AXS-One has implemented high-volume, interoperable, scalable and secure business solutions for global 2000 organizations. Its Web Services based technology has been critically acclaimed as best of class. AXS-One has over 250 employees in offices worldwide, including Australia, Canada, Singapore, United Kingdom, United States, and South Africa. AXS-One was founded in 1978, and is based in Rutherford, New Jersey, U.S.A. For further information, visit the AXS-One web site at http://www.AXS-One.com.
This press release contains forward-looking statements. Such statements are only predictions and actual events or results may differ materially. All forward-looking statements involve risks and uncertainties, including, without limitation, the risks detailed in the company's documents and reports filed from time to time with the Securities and Exchange Commission.
AXS-One, e-Cellerator, AXS Desk, "AXS-One Collaboration FrameWorks," SMART and Tivity are trademarks of, and "Access Tomorrow Today," AXSPoint and TransAXS are registered trademarks of, AXS-One Inc., in the U.S. All other company and product names are trademarks or registered trademarks of their respective companies.
AXS-One Inc.
Consolidated Statements Of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
-----------------------------------------
June 30, June 30, June 30, June 30,
2001 2002 2001 2002
-------- -------- -------- --------
Revenues:
License fees $ 918 $ 740 $ 3,241 $ 1,924
Services 8,748 8,522 18,294 16,346
Other - related parties 212 101 242 189
-------- -------- -------- --------
Total revenues 9,878 9,363 21,777 18,459
-------- -------- -------- --------
Operating expenses:
Cost of license fees 406 337 741 702
Cost of services 5,130 3,888 10,560 7,695
Sales and marketing 3,097 1,920 6,261 3,436
Research and development 1,832 1,710 3,731 3,426
General and administrative 3,018 1,056 5,067 2,121
Restructuring and other costs 1,103 - 1,103 -
-------- -------- -------- --------
Total operating expenses 14,586 8,911 27,463 17,380
-------- -------- -------- --------
Operating income (loss) (4,708) 452 (5,686) 1,079
-------- -------- -------- --------
Other income (expense):
Interest income 74 10 95 23
Interest expense (98) (88) (202) (175)
Gain on sale of subsidiary - 51 - 70
Equity in losses of joint
ventures (34) (200) (74) (297)
Other expense, net (95) (46) (166) (124)
-------- -------- -------- --------
Other expense, net (153) (273) (347) (503)
-------- -------- -------- --------
Net income (loss) $ (4,861) $ 179 $ (6,033) $ 576
======== ======== ======== ========
Basic net income (loss)
per common share $ (0.20) $ 0.01 $ (0.24) $ 0.02
======== ======== ======== ========
Weighted average basic
common shares outstanding 24,785 24,804 24,785 24,798
======== ======== ======== ========
Diluted net income (loss)
per common share $ (0.20) $ 0.01 $ (0.24) $ 0.02
======== ======== ======== ========
Weighted average diluted
common shares outstanding 24,785 25,709 24,785 25,781
======== ======== ======== ========
* The unaudited consolidated financial information included in this
document is intended only as a summary provided for your
convenience, and should be read in conjunction with the complete
consolidated financial statements of the Company (including the
Notes thereto, which set forth important information) contained in
its Reports on Form 10-K and 10-Q filed by the Company with the
U.S. Securities and Exchange Commission (SEC). Such reports are
available on the public EDGAR electronic filing system maintained
by the SEC.
CONTACT:
AXS-One Inc.
William Levering, 201/935-3400
wlevering@axsone.com
or
Springboard Communications
Domenick Cilea, 732/863-1900 x102
dcilea@springboardpr.com
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