August 14, 2012 at 16:10 PM EDT
Astea Reports Profitable Second Quarter 2012 Results
Quarterly Revenues Increase 32.9% to $8.1 Million from Year-Ago Quarter

HORSHAM, Pa., Aug. 14, 2012 /PRNewswire/ -- Astea International Inc. (NASDAQ: ATEA), a global provider of service lifecycle management and mobility solutions, today announced financial results for the three and six months ended June 30, 2012.

For the quarter ended June 30, 2012, Astea revenues increased by 32.9% to $8.1 million compared to $6.1 million for the quarter ended June 30, 2011and increased by 25% sequentially compared to first quarter revenues of $6.5 million. Net income available to common stockholders for the second quarter of 2012 was $885,000, or $0.25 per basic and $0.22 per diluted share. This compares to a net loss of $839,000, or ($0.24) per basic and diluted share in the second quarter of 2011 and compares sequentially to a loss of $708,000 or ($0.20) per share for the first quarter of 2012. Software license revenues increased 130% to $2.4 million compared to $1.0 million for the same period in 2011 and increased 1,135% from $193,000 in the first quarter of 2012.  Service and maintenance revenues were $5.7 million, a 13% increase compared to revenues of $5.1 million for the same period in 2011 but were down 9% from $6.3 million in the first quarter of 2012. 

"I am pleased to announce a solid increase in licensing revenues which were generated from a diverse customer base," stated Zack Bergreen, CEO of Astea International. "The strong licensing revenues generated this quarter will add to the existing backlog for professional services and is expected to continue to drive high levels of professional services throughout this year and beyond. Initiatives we've taken to develop leads and strengthen our success rates have thus far been successful and our sales pipeline continues to expand. In addition, more and more customers are seeking mobility solutions, so much so that mobility is now almost de facto in every sale. Every customer that has signed an agreement with Astea, since the introduction of our new HTML5 mobility solution over a year ago, has purchased this capability. Because our mobility solution is seamlessly integrated with Astea Alliance, we have a distinct competitive advantage over the competition."

Mr. Bergreen further stated, "Multiple organizations throughout the world selected Astea software as its field service solution during the second quarter including 1) an energy and utilities company in France, 2) a major global office equipment manufacturer, 3) a leading specialty construction and life safety company, 4) a major global HVAC manufacturer, and, 5) a leading IT services and print solutions company. We also had seven customers who went live in the second quarter of 2012, including four in the U.S. and one each in Japan, Australia and Europe, which clearly demonstrates the global nature of our solution suite and our geographic diversity. The market recognizes the value of our Astea Alliance solution and is demanding it, and with every customer win, our products continue to prove themselves in the marketplace."

Revenues for the six months ended June 30, 2012 increased 11.6% to $14.6 million compared to $13.1 million in the same six-month period in 2011. Software license revenues decreased 22.4% to $2.6 million compared to $3.3 million for the same period in 2011. Service and maintenance revenues were $12.0 million, a 23.2% increase compared to revenues of $9.7 million for the same six-month period in 2011. Operating income was $354,000 compared to an operating loss of $122,000 in the same six-month period last year. Year-to-date net income available to stockholders is $177,000, or $0.05 per basic and diluted share compared to a net loss available to common stockholders of $281,000 or ($0.08) loss per basic and diluted share in the same period last year.

Outlook
Mr. Bergreen concluded, "We continue to expect profitability for 2012. Our strong results and successful 'go lives' for the quarter give us the confidence and added visibility to maintain our guidance for growth and profitability in 2012."

Astea will host a conference call that will be broadcast live over the Internet on August 14, 2012 at 4:30pm ET to discuss the Company's second quarter financial results. Investors can access the call from the Company's Web site at  http://www.astea.com/about_investors.asp. To listen to the live call via the telephone, please call 1-800-862-9098.  For calls from outside North America, please dial 1-785-424-1051.  For those who cannot listen to the live broadcast, a replay will be available shortly after the call.

About Astea International
Astea International (NASDAQ: ATEA) is a global provider of software solutions that offer all the cornerstones of service lifecycle management, including customer management, service management, asset management, forward and reverse logistics management and mobile workforce management and optimization. Astea's solutions link processes, people, parts, and data to empower companies and provide the agility they need to achieve sustainable value in less time, and successfully compete in a global economy. Since 1979, Astea has been helping more than 600 companies drive even higher levels of customer satisfaction with faster response times and proactive communication, creating a seamless, consistent and highly personalized experience at every customer relationship touch point.

www.astea.com.   Service Smart.  Enterprise Proven.

© 2012 ASTEA INTERNATIONAL INC. ASTEA AND ASTEA ALLIANCE ARE TRADEMARKS OF ASTEA INTERNATIONAL INC.  ALL OTHER COMPANY AND PRODUCT NAMES CONTAINED HEREIN ARE TRADEMARKS OF THE RESPECTIVE HOLDERS.

Forward-looking Statements
Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks which may cause the Company's actual results in future periods to differ materially from expected results. Those risks include, among others, risks associated with increased competition, customer decisions, the successful completion of continuing development of new products, the successful negotiations, execution and implementation of anticipated new software contracts, the successful addition of personnel in technical areas, our ability to complete development and sell and license our products at prices which result in sufficient revenues to realize profits and other business factors beyond the Company's control. These and other risks are described in the Company's filings with the Securities and Exchange Commission (SEC), including but not limited to the Company's Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q.

Financial Tables Follow

 

ASTEA INTERNATIONAL INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

($ in thousands)





(Unaudited)





Three Months Ended

June 30,

Six months Ended

June 30,





2012

2011

2012

2011

REVENUES






Software license fees

$             2,384

1,036

2,577

3,322


Services and maintenance

5,717

5,059

11,988

9,732










Total Revenues

8,101

6,095

14,565

13,054








COSTS OF REVENUES






Cost of software license fees

377

535

769

975


Cost of services and maintenance

3,592

3,507

7,525

6,520











Total Costs of Revenues

3,969

4,042

8,294

7,495









GROSS PROFIT

4,132

2,053

6,271

5,559









OPERATING EXPENSES






Product development

687

1,083

1,258

1,569


Sales and marketing

1,424

969

2,527

2,278


General and administrative

1,046

760

2,132

1,834











Total Operating Costs

3,157

2,812

5,917

5,681









Income (loss) from  operations 

975

(759)

354

(122)










Interest income

4

6

9

11









Income (loss) before income taxes

979

(753)

363

(111)

Income tax expense


19

11

36

20









Net income (loss)

$                960

$               (764)

$                327

$               (131)










Preferred dividend

75

75

150

150











Net income (loss) available to common stockholders

885

(839)

177

(281)









Basic and diluted earnings (loss) per share:






Net income (loss) per share

$               0.25

$              (0.24)

$               0.05

$              (0.08)









Shares used in computing basic earnings per share:

3,568

3,560

3,568

3,557










Diluted income (loss) per share

$               0.22

$              (0.24)

$               0.05

$              (0.08)









Shares used in computing basic earnings per share:

4,411

3,560

3,568

3,557

ASTEA INTERNATIONAL INC.

CONSOLIDATED BALANCE SHEETS

($ in thousands)




June 30, 2012

December 31, 2011

ASSETS


(Unaudited)

(Audited)

Current Assets:




Cash and cash equivalents

$                1,301

$           2,146


Investments available for sale

326

626


Receivables, net of reserves

7,371

7,592


Prepaid expenses and other

343

503







Total current assets

9,341

10,867







Property and equipment, net

554

507


Intangibles, net

436

504


Capitalized software, net

3,541

3,064


Goodwill 

1,538

1,538


Other long term restricted cash

175

109


Other assets

127

139







Total assets

$             15,712

$         16,728






LIABILITIES AND STOCKHOLDERS' EQUITY



Current Liabilities:




Accounts payable and accrued expenses

$                4,014

$           4,423


Deferred revenues

5,723

6,601







Total current liabilities

9,737

11,024






Long Term Liabilities:




Deferred tax liabilities

265

244






Stockholders' Equity:




Convertible preferred stock

8

8


Common stock

36

36


Additional paid-in-capital

31,022

31,048


Accumulated deficit

(25,148)

(25,424)


Treasury stock

(208)

(208)







Total stockholders' equity

5,710

5,460







Total liabilities and stockholders' equity

$             15,712

$         16,728






ASTEA INTERNATIONAL INC.

STATEMENTS OF CASH FLOWS

For the Six Months Ended June 30 , 

($ in thousands)




(Unaudited)




2012

2011

Cash flows from operating activities:




Net income (loss)

$                    327

$                  (131)


Adj to reconcile net income (loss)




    to cash provided by operating activities:




Depreciation and amortization

877

1,073


Decrease in allowance for doubtful accounts

(6)

(16)


Stock Based Compensation 

113

110


Changes in operating assets and liabilities:




Deferred income tax

21

20


Receivables

109

563


Prepaid expenses and other

154

37


Accounts payable and accrued expenses

(362)

362


Deferred revenues

(901)

(219)


Other assets

12

(13)







    Net cash provided by operating activities

344

1,786






Cash flows from investing activities:




Capitalized software development costs

(1,152)

(1,079)


Purchases of property and equipment

(181)

(154)


Sale  of short term investments

308

491


Purchase of short term investments

-

(920)


Change in restricted cash

(66)

(32)







   Net cash used in investing activities

(1,091)

(1,694)






Cash flows from financing activities:




Proceeds from exercise of stock options

11

41


Dividends paid on preferred stock

(150)

(150)







Net cash used in financing activities

(139)

(109)






Effect of exchange rate changes on cash and cash equivalents

41

(98)






Net decrease in cash and cash equivalents

(845)

(115)

Cash, beginning of period

2,146

2,404






Cash, end of period

$                1,301

$                2,289






SOURCE Astea International Inc.

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