AXS-One Announces Profitable Fourth Quarter and Year End Financial Results for 2002.Business Editors RUTHERFORD Rutherford (rŭth`ərfərd), borough (1990 pop. 17,790), Bergen co., NE N.J., a residential suburb of the New York City–N New Jersey metropolitan area; inc. 1881. Several pre-Revolutionary houses remain there. , N.J.--(BUSINESS WIRE)--Jan. 30, 2003 AXS-One Inc. (AMEX AMEX See: American Stock Exchange : AXO AXO Asianxo (website) AXO Alpha Chi Omega (sorority) AXO Ach So AXO Access Extension Object ) - 6TH CONSECUTIVE QUARTER OF PROFITABILITY - QUARTERLY EARNINGS PER DILUTED SHARE OF $.03 - $1.9 MILLION IN NET INCOME FOR 2002 AND ANNUAL DILUTED EPS OF $.08 AXS-One Inc. (AMEX: AXO), a provider of e-business solutions, today announced its financial results for the fourth quarter and year ended December 31, 2002. Financial Results Revenues for the fourth quarter ended December 31, 2002 were $9.6 million versus $9.6 million for the corresponding prior year period. Net income for the three months totaled $761,000, or $.03 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, in comparison to $891,000, or $0.04 per share for the fourth quarter of 2001, marking the Company's sixth consecutive quarter of profitability. Operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. increased to $924,000 from $826,000 in the comparable prior year quarter, due to maintaining revenue levels while reducing costs. Revenues for the year ended December 31, 2002 were $37.4 million compared to $41.2 million for 2001, a decline of 9%. However, included in revenues in 2001 was $1.4 million relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the Central and Eastern Europe The term "Central and Eastern Europe" came into wide spread use, replacing "Eastern bloc", to describe former Communist countries in Europe, after the collapse of the Iron Curtain in 1989/90. subsidiary sold in September 2001. Net income increased significantly to $1.9 million versus a loss of ($4.7) million for the prior year. Earnings per diluted share for 2002 increased to $.08 from a loss of ($.19) for the year ended December 31, 2001. Operating income increased to $2.8 million compared to an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of ($4.1) million for 2001. The improved operating income in 2002 reflects the benefits of the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). activities implemented in 2001. The Company's balance sheet reflected $2.7 million in cash on December 31, 2002. The Company ended the year with $2.3 million in total debt. Other Operational Accomplishments During the year, the Company's sales and marketing teams signed on 14 licensing deals with new customers and 50 deals with its existing customers. Seventy Seven percent of the license revenue from these contracts were signed with customers inside the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , while 23% were signed internationally. New customers included clients in the property management, legal and travel industries for the AXSPoint(R) Solutions and AXS-One(R) Enterprise sales to governments in Southern Africa
v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. these innovations quickly and cost-effectively. The solutions are process-centric, highly scalable and robust, and are able to handle the high levels of transaction volumes and availability demanded by today's e-commerce requirements. The first transaction fee based license revenue from the Company's alliance with ComStrata was also recognized during the period. Continued prudent spending on research and development has helped to maintain the Company's competitive position at a time when some of our competitors have been struggling. During the year, AXS-One launched the AXS-One Web Services (1) Loosely, any online service delivered over the Web. Such usage appears in articles from non-technical sources, but not in IT-oriented publications, because definition #2 below describes the correct use of the term. solutions, the result of several years of investment in upgrading its technology to a web services compliant architecture. The Company spent $7.5 million including $0.8 million of capitalized software development costs during 2002, or 20% of its total revenues on development costs in 2002. Approximately 75% of 2002 license revenue was derived from products introduced during the past two years, evidence that AXS-One continues to meet the needs of approximately 25% of the global 2000 companies. "We are very pleased to announce this sixth consecutive quarter of profitability as we feel it demonstrates that we have established a successful revenue model by focusing on our recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues and pursuing profitable business relationships," stated John Rade John Rade, (born August 31, 1960, in Ceres, California) was a linebacker in the NFL from 1983 to 1991. , AXS-One Chief Executive Officer. "While revenues have decreased slightly, our improved operations enabled us to significantly increase both our income and cash positions. We are encouraged by the progress our overseas sales and marketing staff has made and believe they will close several new software licensing deals this year." The Company successfully launched several new products during the year and closed significant customer wins. We were awarded the 2002 "Best of AIIM (Association for Information and Image Management International, Silver Spring, MD, www.aiim.org) A membership organization founded in 1943 devoted to creating industry standards and disseminating information about the document management industry. " award for Best Practices in Enterprise Content Management for AXS-One's AXSPoint Travel Industry Solution implemented at Brittany Ferries Brittany Ferries is a French ferry company that runs ships between France, the UK, Ireland and Spain. History 1970s and 1980s The company was founded in January 1973 by Alexis Gourvennec, and began sailings between Roscoff in Brittany and Plymouth in the South , one of our clients. In addition, the Sarbanes-Oxley Act See SOX. of 2002 is presenting us with new business opportunities, including in the arena of email compliance and archiving, which we are actively pursuing. Eighty eight percent of AXO's revenue is related to service and maintenance fees, which historically have been a more predictable revenue stream. We are extremely encouraged by our continued ability to maintain a strong presence in these uncertain economic conditions and look forward to what we hope will be a year of growth in 2003," Mr. Rade went on to say. 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 The ability for one system to communicate or work with another. See interoperability. , scalable and secure business solutions for global 2000 organizations. Its Web Services based technology has been critically acclaimed ac·claim v. ac·claimed, ac·claim·ing, ac·claims v.tr. 1. To praise enthusiastically and often publicly; applaud. See Synonyms at praise. 2. as best of class. AXS-One has approximately 250 employees in offices worldwide, including Australia, Canada, Singapore, United Kingdom, United States, and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. . AXS-One was founded in 1978, and is based in Rutherford, New Jersey Rutherford is a borough in Bergen County, New Jersey, United States. As of the United States 2000 Census, the borough population was 18,110. Rutherford was formed as a borough by an Act of the New Jersey Legislature on September 21, 1881, from portions of Union Township, , U.S.A. For further information, visit the AXS-One web site at http://www.AXS-One.com. AXS-One, the AXS-One logo, "Access Tomorrow Today," AXSPoint and TransAXS are registered trademarks of, and e-Cellerator, AXS AXS Access AXS Anomalous X-Ray Scattering AXS Alpha Chi Sigma AXS Alpha X-Ray Spectrometer AXS Activex Script Desk, "AXS-One Collaboration FrameWorks," SMART and Tivity are trademarks of, AXS-One Inc., in the U.S. All other company and product names are trademarks or registered trademarks of their respective companies. Special Note Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : A number of statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include, but are not limited to: potential vulnerability to technological obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. ; the risks that its current and future products may contain errors or defects that would be difficult and costly to detect and correct; potential difficulties in managing growth; dependence on key personnel; the possible impact of competitive products and pricing; and other risks described in more detail in AXS-One's Securities and Exchange Commission filings.
AXS-One Inc.
Consolidated Statements of Operations
(In thousands, except per share data)
(unaudited)
Three Months Year
Ended Ended
December 31, December 31,
----------------- --------------------
2001 2002 2001 2002
-------- -------- --------- ---------
Revenues:
License fees $ 1,407 $ 963 $ 5,421 $ 3,917
Services 8,103 8,488 35,272 33,030
Fee revenues from joint
ventures 126 115 542 405
-------- -------- --------- ---------
Total revenues 9,636 9,566 41,235 37,352
-------- -------- --------- ---------
Operating expenses:
Cost of license fees 298 387 1,355 1,482
Cost of services 3,773 3,946 18,393 15,479
Sales and marketing 1,741 1,549 9,504 6,364
Research and development 1,691 1,581 7,029 6,704
General and administrative 1,447 1,179 8,303 4,559
Restructuring costs (140) - 797 -
-------- -------- --------- ---------
Total operating
expenses 8,810 8,642 45,381 34,588
-------- -------- --------- ---------
Operating income (loss) 826 924 (4,146) 2,764
-------- -------- --------- ---------
Other income (expense):
Interest income 10 7 109 38
Interest expense (103) (89) (456) (364)
Gain on sale of subidiary - - - 219
Equity in earnings
(losses) in joint
ventures 55 (49) (121) (525)
Other expense (79) (92) (223) (268)
-------- -------- --------- ---------
Other expense, net (117) (223) (691) (900)
-------- -------- --------- ---------
Income (loss) before
income tax benefit, net 709 701 (4,837) 1,864
Income tax benefit, net 182 60 182 60
-------- -------- --------- ---------
Net income (loss) $ 891 $ 761 $ (4,655) $ 1,924
======== ======== ========= =========
Basic and diluted net
income (loss) per common
share $ 0.04 $ 0.03 $ (0.19) $ 0.08
======== ======== ========= =========
Weighted average basic
common shares
outstanding 24,785 24,849 24,785 24,818
======== ======== ========= =========
Weighted average diluted
common shares
outstanding 24,817 25,345 24,785 25,511
======== ======== ========= =========
The unaudited financial information included in this document is
intended only as 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.
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.
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