Cistera Networks Reports Fourth Quarter and FY2007 Financial Results.Q4 FY2007 Revenues Increased 86% Over Q4 FY2006 FY2007 Revenues Up 29% Over FY 2006 DALLAS -- Cistera Networks Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CNWT), the leading provider of Enterprise application platforms and engines for the IP Communications A general term for networks that use the IP protocol for voice (VoIP) and video traffic. See IP telephony. market, reported financial results for the fourth quarter and fiscal year ended March 31, 2007. Q4 Fiscal 2007 Financial Results As compared to the previous quarter and same period a year ago: * Revenues for the quarter totaled $516,000, a decrease of 19% from $635,000 in the previous quarter and up 86% from $277,000 a year ago. The anticipated sequential quarterly decrease in revenue is attributable to the seasonality of the sales cycles for the company's channel reseller partners. Also, beginning in the third quarter of fiscal 2007, the company implemented a new accounting policy that limits the recognition of revenue to software, hardware and services that has been fully installed and implemented during the period. Under the previous accounting policy, the company recognized revenue on the basis of all orders received and shipped during the period. For comparison purposes, the company now records the gross value of all orders received and shipped during the period, including those not yet installed or fully implemented, as "bookings," and is presented below under the section, "Non-GAAP Financial Results." * Net Loss for the quarter was $500,000, an increase of 26% from a loss of $164,000 in the previous quarter and a decrease of more than 471% from a loss of $2.9 million a year ago. Full Year Fiscal 2007 Financial Results * Revenues for fiscal 2007 totaled a record $2.1 million, an increase of 29% from $1.6 million in fiscal 2006. * Net Loss was $1.2 million, a decrease of nearly 400% from a net loss of $4.6 million in fiscal 2006. * Basic and fully diluted loss per common share totaled a loss of $0.14, compared to a loss of $0.72 in fiscal 2006. * Gross margin was 85%, as compared to 79% for fiscal 2006. Non-GAAP Financial Results Management believes certain non-GAAP financial results may present a useful picture of the company's progress. This includes "booked" revenues, which represents the gross value of all orders received and shipped during the period, including those not yet installed or fully implemented. For the fourth quarter of fiscal 2007, bookings totaled $640,000, a decrease of 24% from $844,000 in the previous quarter and up 131% from bookings of $278,000 for the same quarter a year ago. For the fiscal year 2007, total bookings totaled a record $2.2 million, an increase of 37% from bookings of $1.6 million in fiscal 2006. Cistera's product sales also generate a recurring revenue stream from support and maintenance contracts. The gross value of support service contracts by the end of the fourth quarter fiscal 2007 totaled $313,000, a decrease of 2% from $319,000 in the previous quarter, and an increase of 37% from $229,000 in the same year-ago quarter. This contributed recognized revenue of $99,000 in the fourth quarter FY2007, which represented an increase of 26% from $78,000 in the previous quarter, and an increase of 51% from $66,000 in the same quarter in fiscal 2006. "FY 2007 was an important year for Cistera as it prepared us for the market nearing a major inflection point Inflection Point An event that changes the way we think and act. -Andy Grove, Founder of Intel. Notes: For example, the fall of the Berlin Wall was an inflection point in global politics and the commercialization of the Internet was an inflection point in technology. in terms of a significantly wider adoption and acceptance of IP communications," said Derek P. Downs, Cistera's president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "This has been highlighted by a number of industry analyst reports, like Atlantic-ACM's, which predicts the IP Telephony The two-way transmission of voice over a packet-switched IP network, which is part of the TCP/IP protocol suite. The terms "IP telephony" and "voice over IP" (VoIP) are synonymous. sector alone will almost triple from $6.4 billion in 2006 to more than $15 billion by 2012." Continued Downs, "The final quarter of fiscal 2007 was solid for us, especially considering the expected seasonality in the sales of IP Communications solutions, which have been typically lower from January through March for the majority of our resellers. Subsequent to the end of the quarter, we realized a number of important milestones that have put us on a solid course in FY 2008. This included industry recognition with two awards; the 2007 IP Contact Center Technology Pioneer Award and the TMC TMC Technology Marketing Corporation (Norwalk, Connecticut) TMC Texas Medical Center (Houston, TX) TMC Traffic Message Channel TMC The Movie Channel TMC Traffic Management Center 2006 Product of the Year Award -- both for our newly enhanced Cistera ConvergenceServer[TM] line. We also achieved substantial progress in expanding our offerings beyond the Cisco IP platform, as demonstrated with our announcement of the first-ever integration of software-based Land Mobile Radio for Nortel IP Telephony as well as the Polycom handsets. All together, Cistera could not be in a better position to take advantage of the tremendous opportunities ahead." Other Q4 and FY 2007 Highlights * Average deal size doubled over the past year to approximately $50,000 per initial deal, as compared to about $22,000 in the previous year. The company is seeing customers engaging in much larger deployments for the initial purchase, and then purchasing additional solutions as they deploy their IP communications environments. * North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Spine Society selected Cistera's Event Alerting and Notification solution for installation along with its implementation of Cisco Unified Communications The real time redirection of a voice, text or e-mail message to the device closest to the intended recipient at any given time. For example, voice calls to desk phones could be routed to the user's cellphone when required. . * AirMed International, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control added new features and functionality to its Cisco IP Communications deployment with the addition of Cistera's Quality Assurance and Compliance Solution. This system enhancement supports AirMed's commitment to continuously improve customer care and responsiveness. * Released new version of the Cistera Application Platform that delivers an "industry first" by enabling organizations to experience seamless interoperability across real-time event notification Event notification is a term used in conjunction with communications software for linking applications that generate small messages (the "events") to applications that monitor the associated conditions and may take actions triggered by events. and compliance solutions for the full spectrum of devices -- IP phones, analog phones The original telephone technology, which converts air vibrations into an analogous electrical frequency. Unless a key telephone system, digital PBX or voice over IP (VoIP) is used, most homes and small offices still use analog phones, and the local loop is mostly analog. , overhead paging systems, two-way radios A voice network that provides an always-on connection enabling the user to just "push the button and talk." Also called "dispatch radio," two-way radio has traditionally been used by police, fire, taxi and other mobile fleets. , mobile phones and personal computers. Cistera has delivered the first and most comprehensive multimodal Two or more modes of operation. The term is used to refer to a myriad of functions and conditions in which two or more different methods, processes or forms of delivery are used. On the Web, it refers to asking for something one way and receiving the answer another; for example requesting event alerting and notification solution available today. * Released new version of LMRConnect[TM], Cistera's premier Land Mobile Radio (LMR LMR Land Mobile Radio LMR Labor-Management Relations LMR Last Minute Resistance LMR Living Marine Resources LMR Longmoor Military Railway (UK) LMR Liquid-Metal Reactor LMR Laser Magnetic Resonance ) to IP Telephony integration engine. Cistera LMRConnect now includes the ability to integrate cellular and analog phones into radio talk groups, support for Cistera's Text-to-Speech (TTS (1) See text-to-speech. (2) (Transaction Tracking System) Software that monitors a transaction until completion. In the event of a hardware or software failure, it ensures that the database is brought back to its former state before the attempt to ) engine and improved recording and archiving capabilities. * Introduced the Cistera ConvergenceServer 5500, designed to support large-scale deployments up to 50,000 directory users and 250 concurrent recordings. FY 2008 Guidance Management maintains its currently issued forecasts for revenue in 2008 to exceed $5 million, with expectation for the company to achieve profitability. About Cistera Networks Cistera Networks makes Application Driven Telephony a reality by setting the new standard in advanced IP phone application platforms and engines for the Enterprise VoIP Telephony environment. The Cistera ConvergenceServer[TM] uses the industry-leading Cistera Enterprise Platform for IPT IPT - IP Telephony to provide Unified Application Administration as well as Fault and Performance Management for enterprise IPT Application deployments. Cistera provides next-generation solutions for numerous vertical markets including education, finance, healthcare and government. Cistera Networks maximizes IP phone capabilities -- taking the communications platform to an entirely new level. Regarding Forward Looking Statements This release may be deemed to contain 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. that are subject to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events and the future financial performance of Cistera Networks that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. Readers are referred to the documents filed by Cistera Networks with the SEC, specifically the most recent reports on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and 10-Q, each as it may be amended from time to time, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements. Financial Tables [TABLE OMITTED] [TABLE OMITTED] |
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