Spescom Software Reports Profitable First Quarter SAN DIEGO, Feb.
13 /PRNewswire-FirstCall/ -- Spescom Software Inc. (BULLETIN BOARD:
ALTS) , a leading provider of enterprise content and configuration
management solutions, today reported results ofoperations for its
first quarter ended December 31, 2003. Revenue for the first
quarter ended December 31, 2003 was $2.1 million compared with $2.3
million for the same period of 2002. Net income was $11,000 or
$0.00 per share for the quarter, compared with a net loss of
$62,000, or ($0.00) per share, for the same period of 2002. "We
were pleased with the results of the quarter, especially the 20%
increase in license revenues," said Mr. Mostert. "Our recently
announced contract win with a leading East Coast utility not only
had a positive effect on our quarterly results, but it provides
another significant reference account in the utility industry. One
of our goals is to be the leading supplier of enterprise content
and configuration managementsoftware to the utility industry. By
capturing 15% of the nuclear power plant market we have made
significant progress in achieving this goal. I believe the overall
market is continuing to slowly recover from the recent economic
downturn, and we have positioned Spescom to capitalize on future
opportunities." About Spescom eB eB is a registered trademark of
Spescom Software Inc. eB comprises an extensive set of software
components that together form the foundation for an extremely
flexible and powerful information management platform. eB's
components include: document management; requirements management;
records management; item management; change management;
configuration management and workflow components. These components
are tightly integrated with CAD, GIS, office and email applications
to capture and view information. The full functionality of eB is
available via a set of API's that enable the rapid definition and
deployment of customer specific solutions and integration with
other line-of-business applications including ERP, CRM, SCM,
maintenance management and project management products. About
Spescom Software Inc. Spescom Software (OTC:ALTS) (BULLETIN BOARD:
ALTS) delivers enterprise eBusiness solutions that provide rapid
access to accurate information in context to assets, products and
processes, resulting in improved customer satisfaction,
productivity and safety. It achieves this through a tightly
integrated suite of document, configuration and records management
technologies that not only allows it to capture and securely store
information, but also organizes and structures this information to
place it in context. Key customers include Ocean Energy,
Continental Express, AmerenUE, City of Winston-Salem, Sempra
Energy, Bombardier, Entergy, Northeast Utilities, London
Underground, Railtrack, and many others. For further information
visit us at http://www.spescomsoftware.com/ Safe Harbor Statement
Except for historical information contained herein, the matters set
forth in this release include forward-looking statements that are
dependent on certain risks and uncertainties, known and unknown,
including such factors, among others, as market acceptance, market
demand for the Company's technologies and services, pricing,
changing regulatory environment, the effect of the company's
accounting policies, potential seasonality, industry trends,
adequacy of the financial resources to execute its business plan,
the Company's ability to attract, retain and motivate keytechnical,
marketing and management personnel, possible disruption in
commercial activities occasioned by terrorist activity and armed
conflict, and other risk factors detailed in the Company's SEC
filings. Such risks and uncertainties may cause actual results,
performance or achievement to be materially different from any
future trends, results, performance or achievements expressed or
implied by these statements. The forward looking statements in this
press release are based upon management's current expectations and
belief, which management believes are reasonable. You are cautioned
not to place undue reliance on any forward- looking statements. The
financial information contained in this release should be read in
conjunction with the consolidated financial statements and notes
thereto included in the Company's most recent reports on Form 10-K
and Form 10-Q, each as it may be amended from time to time. SPESCOM
SOFTWARE, INC. Consolidated Statements of Operations For the three
months ended December 31, 2003 2002 Revenues: Licenses $ 1,119,000
$921,000 Services and other 1,006,000 1,368,000 Total revenues
2,125,000 2,289,000 Cost of revenues: Licenses 101,000 275,000
Services and other 553,000 566,000 Total cost of revenues 654,000
841,000 Gross profit 1,471,000 1,448,000 Operating expenses:
Research and development 334,000 351,000 Marketing and sales
605,000 626,000 General and administrative 503,000 408,000
1,442,000 1,385,000 Income (loss) from operations 29,000 63,000
Interest and other expense (23,000) (125,000) Gain on derivative
revaluation 5,000 -- Net income (loss) $11,000 $(62,000) Basic and
diluted net loss per common share $0.00 $(0.00) Shares used in
computing basic and diluted net loss per common share 33,929,000
30,842,000 SPESCOM SOFTWARE INC. Consolidated Summary Balance
Sheets December31, September 30, 2003 2003 ASSETS Current assets:
Cash and cash equivalents $73,000 $333,000 Receivables, net
1,548,000 423,000 Other current assets 119,000 169,000 Total
current assets 1,740,000 925,000 Property and equipment, net
180,000 213,000 Computer software, net 43,000 63,000 Other assets
29,000 29,000 Total assets $1,992,000 $1,230,000 LIABILITIES AND
SHAREHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts
payable $ 671,000 $ 405,000 Payable to Spescom Limited 146,000
46,000 Preferred stock dividend payable toSpescom 66,000 - Accrued
liabilities 1,186,000 1,080,000 Notes payable to Spescom 1,119,000
- Lease obligation - current portion22,000 23,000 Deferred revenue
1,830,000 2,018,000 Fair value of equity instruments redeemable for
common stock 1,160,000 1,233,000 Total current liabilities
6,200,000 4,805,000 Note Payable to Spescom - 504,000 Lease
Obligation 57,000 62,000 Total liabilities 6,257,000 5,371,000
Convertible preferred stock, $1,000 state value per share,
1,000,000 shares authorized; 5,291 shares issued and outstanding
6,790,000 6,790,000 Total Shareholders' Deficit (11,055,000)
(10,931,000) Total liabilities and shareholders' equity $1,992,000
$1,230,000 DATASOURCE: Spescom Software Inc. CONTACT: Ken Sgro of
CEOcast, Inc., +1-212-732-4300, for Spescom Software Inc.;or Carl
Mostert, CEO, or John Low, CFO, both of Spescom Software Inc.,
+1-858-625-3000 Web site: http://www.spescomsoftware.com/
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