AXO Axos Financial Inc

RUTHERFORD, N.J., Aug. 2 /PRNewswire-FirstCall/ -- AXS-One Inc. (AMEX:AXO), a leading provider of high performance Records Compliance Management (RCM) software solutions, today announced its financial results for the second quarter and six-month period ended June 30, 2007. For the first six months of 2007, total revenues were $6.2 million compared with total revenues of $5.5 million for the first six months of 2006. License fees were $2.3 million, up 82.6 percent, or $1.0 million, from the $1.3 million in license fees for the first six months last year. Total operating expenses were $12.6 million for the first six months of 2007, a decrease of 18.7 percent from $15.5 million in the prior year. The net loss from continuing operations was $6.3 million for the first six months of 2007, down from a loss of $9.9 million in the first six months of last year. The net loss after discontinued operations for the first six months of 2007 was $6.3 million, or $(0.18) per fully diluted share compared to a net loss after discontinued operations of $5.2 million, or $(0.15) per fully diluted share for the comparable prior-year period. Total revenues for the second quarter of 2007 were $2.5 million, a decrease of $0.7 million from the second quarter 2006 revenues of $3.2 million. License revenues for the second quarter decreased 40.9 percent to $0.5 million from $0.9 million in the second quarter of 2006. Total operating expenses for the quarter were $6.1 million, a decrease of 23.0 percent compared to the second quarter of 2006. The net loss from continuing operations was $3.7 million for the second quarter, down from a loss of $4.6 million in the second quarter of 2006. The Company reported a net loss after discontinued operations of $3.7 million for the second quarter of 2007, or $(0.10) per diluted share compared to a net loss after discontinued operations of $2.5 million in the second quarter of last year, or $(0.07) per diluted share. The Company had $6.1 million in cash and equivalents at June 30, 2007 compared to the $7.5 million reported at December 31, 2006. Bill Lyons, Chairman & CEO of AXS-One, commented "Since our last earnings release, we have improved our financial position by raising $5 million from the issuance of convertible debt and by revising our $2.5 million bank facility with Silicon Valley Bank. While license revenue was $0.5 million for the second quarter, we had more than $1 million of additional license revenue orders that were not recognizable in the second quarter but will be recognized during the next several quarters as revenue recognition criteria are met. Our sales order performance in the second quarter more appropriately recognizes the improvement in competitive sales wins and bodes well for continued performance improvements during the remainder of the year." Conference call information Management will conduct a conference call to discuss these results at 5 p.m. Eastern time on August 2, 2007. Interested parties can participate in the call by dialing 706-645-0399 with the conference ID #10913250 or can access the webcast at http://www.axsone.com/investors_events.shtml#upcoming. Interested parties should access the webcast approximately 10-15 minutes before the scheduled start time. The webcast will be archived for 30 days following the call. Interested parties may submit questions prior to the conference call by e-mail to . About AXS-One Inc. AXS-One Inc. (AMEX:AXO) is a leading provider of high performance Records Compliance Management solutions. The AXS-One Compliance Platform enables organizations to implement secure, scalable and enforceable policies that address records management for corporate governance, legal discovery and industry regulations such as SEC17a-4, NASD 3010, Sarbanes-Oxley, HIPAA, The Patriot Act and Gramm-Leach Bliley. AXS-One's award-winning technology has been critically acclaimed as best of class and delivers digital archiving, business process management, electronic document delivery and integrated records disposition and discovery for e-mail, instant messaging, images, SAP and other corporate records. Founded in 1978, and headquartered in Rutherford, NJ, AXS-One has offices worldwide including in the United States, Australia, Singapore, United Kingdom and South Africa. For further information, visit the AXS-One website at http://www.axsone.com/ AXS-One, the AXS-One logo, "Access Tomorrow Today," and AXSPoint are registered trademarks of, and AXS-One Compliance Platform, AXS-One Central, AXS-One Retention Manager, AXS-One Rapid-AXS, AXS-Link for Desktop, AXS-Link for SAP, AXS-Link for Lotus Notes, AXS-Link for Microsoft Exchange, AXS-One Data Archive Translator, AXS-Link for File System Archiving, AXS-Link for .PST Management, AXS-One Supervision, AXS-One Case Management, "The Records Compliance Management Company" and AXS-Link 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: A number of statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act 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: our ability to improve financial and sales performance; potential vulnerability to technological obsolescence; the risks that our 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 AXO's most current Form 10-K and other Securities and Exchange Commission filings. AXS-ONE INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, 2007 2006 2007 2006 Revenues: License fees $505 $855 $2,301 $1,260 Services 2,013 2,361 3,911 4,268 Total revenues 2,518 3,216 6,212 5,528 Operating expenses: Cost of license fees 124 367 245 635 Cost of services 1,460 2,287 2,831 4,141 Sales and marketing 1,937 2,358 4,059 4,969 Research and development 1,518 1,619 3,180 3,274 General and administrative 1,067 1,297 2,261 2,452 Total operating expenses 6,106 7,928 12,576 15,471 Operating loss (3,588) (4,712) (6,364) (9,943) Other income (expense): Interest income 45 55 114 139 Interest expense (89) (29) (120) (56) Other income (expense), net (25) 85 52 1 Total other income (expense), net (69) 111 46 84 Loss before income taxes (3,657) (4,601) (6,318) (9,859) Income tax benefit -- -- -- -- Loss from continuing operations (3,657) (4,601) (6,318) (9,859) Income from discontinued operations net of tax provision of $ - for all periods -- 2,113 -- 4,625 Net loss $(3,657) $(2,488) $(6,318) $(5,234) Basic & diluted net income (loss) per common share: Loss from continuing operations $(0.10) $(0.13) $(0.18) $(0.29) Income from discontinued operations -- 0.06 $-- $0.14 Net loss $(0.10) $(0.07) $(0.18) $(0.15) Weighted average basic & diluted common shares outstanding 34,874 34,354 34,805 34,301 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 and to be 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. AXS-ONE INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands) June 30, December 31, 2007 2006 ASSETS (unaudited) Current assets: Cash and cash equivalents $6,113 $7,492 Accounts receivable, net of allowance for doubtful accounts 1,811 2,258 Prepaid expenses and other current assets 930 1,262 Total current assets 8,854 11,012 Equipment and leasehold improvements, net of accumulated depreciation 409 419 Other assets 283 102 Total assets $9,546 $11,533 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable and accrued expenses $3,978 $4,503 Deferred revenue 2,972 2,594 Liabilities from discontinued operations -- 981 Total current liabilities 6,950 8,078 Long-term convertible debt, net of discount of $1,009 4,016 -- Long-term deferred revenue 32 44 Total long-term liabilities 4,048 44 Stockholders' equity (deficit) (1,452) 3,411 Total liabilities and stockholders' equity $9,546 $11,533 The 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 and to be 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. Company Contact: IR Contact: Joseph Dwyer Brett Maas or Matthew Hayden AXS-One Inc. Hayden Communications (201) 935-3400 (646) 536-7331 DATASOURCE: AXS-One Inc. CONTACT: Joseph Dwyer of AXS-One Inc., +1-201-935-3400, ; or Investor Relations, Brett Maas or Matthew Hayden of Hayden Communications, +1-646-536-7331, , for AXS-One Inc. Web site: http://www.axsone.com/

Copyright