Astea International announces record fourth quarter and 1995 results; Net income in 1995 climbs 235 percent on revenue increase of 110 percent.CHALFONT The name Chalfont could refer to:
in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : ATEA), a leading supplier of client/server An architecture in which the user's PC (the client) is the requesting machine and the server is the supplying machine, both of which are connected via a local area network (LAN) or wide area network (WAN). customer interaction software, today announced record financial results for the fourth quarter and full year of 1995. For the fourth quarter ended December December: see month. 31, 1995, Astea reported revenues of $14.0 million, a 134 percent increase over $6.0 million for the same period one year ago. Net income for the fourth quarter of 1995 grew 832 percent to $2.0 million, or $0.17 per share, from $0.2 million, or $0.03 per share, in last year's fourth quarter. Weighted average shares outstanding during the fourth quarter of 1995 were 11.8 million versus 8.0 million during the fourth quarter of 1994. For the year ended December 31, 1995, Astea's revenues increased 110 percent to $43.0 million from $20.4 million in 1994. Net income for 1995 was $5.1 million, or $0.52 per share, a 235 percent gain over net income of $1.5 million, or $0.19 per share, last year. Weighted average shares outstanding during 1995 were 10.0 million versus 8.0 million for 1994. Zack B. Bergreen, president and chief executive officer of Astea, stated, "We are excited about our performance in 1995, both in terms of our strategic accomplishments and financial results. As a result of the increased demand for our products, demonstrated by the record number of new customers in 1995, Astea has extended its leadership position in the market for proven, innovative, enterprise-wide customer interaction solutions. We are particularly pleased with the progress we made during the year to expand Astea's overseas sales, support and services network as our international revenues matched our target of 20 percent of total revenues. "Our investment in research and development in 1995 has resulted in the commercial availability of a number of new decision support and remote access modules for both PowerHelp and DISPATCH-1," stated Bergreen. "Commercial releases of PowerHelp Release 2.2, and DISPATCH-1 Release 7.0, are scheduled for the first quarter of 1996, following the successful completion of the pre-production test phase. We also are pleased with the strong interest in our new Astea Web Server, available with PowerHelp Release 2.2. With its robust Web connectivity, the Astea Web Server allows support organizations to simplify the support process and easily distribute critical information to end users, further streamlining the entire support process. Our efforts to broaden our product family include the release of PowerSales, Release 1.0, scheduled for later this year." Bergreen added, "During the year, and particularly in the fourth quarter, Astea continued to establish and strengthen its strategic relationships with industry leaders. In November, we joined Oracle's Cooperative Application Initiative (CAI (1) (Computer-Assisted Instruction) Same as CBT. (2) See CA. CAI - Computer-Aided Instruction ), which will enable Astea to seamlessly integrate its DISPATCH-1 product with Oracle's financial applications. Additionally, we are enhancing the search capabilities of PowerHelp through our recently announced partnership with Fulcrum fulcrum: see lever. Technologies." Bergreen concluded, "It is rewarding to see that more organizations worldwide are turning to Astea to help them become more responsive to their customers. Moving forward, our efforts are focused on developing and delivering the most comprehensive suite of integrated customer information applications available in the market. Building on the momentum we created in 1995, Astea is poised to capitalize on Cap´i`tal`ize on` 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>. an exciting range of business opportunities worldwide, including penetrating penetrating breaching the tissues of the body. new markets in Europe and Asia." Astea International develops, markets and supports client/server-based customer interaction software. Its products enable organizations of all sizes across a range of industries to automate To turn a set of manual steps into an operation that goes by itself. See automation. and streamline their customer support, field services and sales operations, while increasing profits and customer loyalty. With more than 325 employees worldwide, Astea markets its products through a direct sales and services network throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, the Middle East and Asia. The company's customer base of more than 375 companies and 25,000 end users includes such industry leaders as Allen-Bradley; NCR (NCR Corporation, Dayton, OH, www.ncr.com) A technology company specializing in financial terminal transactions, retail systems and data warehousing. Until the late 1990s, NCR was heavily invested in the hardware side of the industry, known worldwide as a major manufacturer of computers ; E.I. du Pont de Nemours Du Pont de Ne·mours , Pierre Samuel 1739-1817. French-born economist and politician who took part in negotiations after the American Revolution (1783) and in the acquisition of the Louisiana Territory (1803). & Co.; Moore Moore, city (1990 pop. 40,761), Cleveland co., central Okla., a suburb of Oklahoma City; inc. 1887. Its manufactures include lightning- and surge-protection equipment, packaging for foods, and auto parts. Products; Northern Telecom Inc.; Ricoh Corp.; and Savin savin a neurotoxic war gas similar to organophosphorus insecticides but considerably more toxic, as demonstrated in the Tokyo subway massacre in 1995. Corp. Astea can be reached at (617) 275-5440 or via e-mail at info@astea.com or via the World Wide Web @ www.astea.com. The statements of income and condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. balance sheets are attached.
ASTEA INTERNATIONAL INC.
Statements of Income
(In thousands, except per share amounts)
Three months ended Year ended
December 31, December 3
1995 1994 1995 1994
Revenues:
Software license fees $7,796 $2,908 $22,659 $10,760
Services and maintenance 6,167 3,060 20,357 9,683
Total revenues 13,963 5,968 43,016 20,443
Costs and expenses:
Cost of software
license fees 810 384 2,733 1,399
Cost of services and
maintenance 4,125 1,802 13,717 6,386
Product development 1,332 651 3,588 2,461
Sales and marketing 3,126 1,546 9,232 4,463
General and
administrative (b) 1,511 1,152 5,449 2,914
Total costs and
expenses 10,904 5,535 34,719 17,623
Income from operations 3,059 433 8,297 2,820 Net interest income (expense) 313 (81) 283 (324) Income before pro forma income taxes 3,372 352 8,580 2,496 Pro forma income taxes (a) 1,349 135 3,433 958 Pro forma net income $2,023 $217 $5,147 $1,538 Net income per common and common equivalent share $0.17 $0.03 $0.52 $0.19 Shares used in computing per share amounts 11,812 8,039 9,984 8,039
(a) Pro forma income taxes
The Company completed its initial public offering on July 27,
1995. From its inception through July 26, 1995, the Company had been
treated as an S Corporation for federal and state income tax
purposes. The pro forma income taxes reflected above were calculated
as if the Company were a C Corporation for the periods presented
using the criteria established under Statement of Financial
Accounting Standards No. 109, "Accounting for Income Taxes." The
actual income tax provision for the three months and year ended
December 31, 1995 is $1,349,000 and $1,883,000, respectively, and
actual earnings per share is $0.17 and $0.67, respectively.
(b) General and administrative
Three months and year ended December 31, 1994 includes $500,000
bonus to officer/sole stockholder.
ASTEA INTERNATIONAL INC. Condensed Balance Sheets (in thousands) Dec. 31, Dec. 31, 1995 1994 Assets Current Assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. : Cash and cash equivalents $3,864 $663 Investments available for sale 30,822 0 Receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed , net of reserves 17,939 11,428 Other 2,231 882 Total current assets 54,856 12,973 Property and equipment - net 4,756 3,975 Capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. software - net 1,560 1,118 Goodwill 2,321 0 Other 165 0 Total assets $63,658 $18,066 Liabilities and Stockholders' Equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. Current Liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. : Line of credit $0 $550 Current portion of obligations under capital leases 97 423 Accounts payable and accrued expenses Accrued Expense An accounting expense recognized in the books before it is paid for. It is a liability, usually current. These expenses are typically periodic and documented upon a company's balance sheet due to the high probability of collection. 8,339 2,128 Deferred revenues 5,763 6,914 Total current liabilities 14,199 10,015 Noncurrent portion of obligations under capital leases 2,532 2,913 Stockholders' equity 46,927 5,138 Total liabilities and stockholders' equity $63,658 $18,066 CONTACT: Investor Contact: Press Contacts: Keith Larson Sarah Sherman Astea International Neva Group (617) 275-5440 (617) 441-4000 x226 |
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