Spescom Software Announces Fourth Quarter and Year-end Results SAN
DIEGO, Dec. 26 /PRNewswire-FirstCall/ -- Spescom Software Inc.,
formerly Altris Software, Inc. (BULLETIN BOARD: ALTS) , a leading
provider of integrated document, configuration and records
management (iDCR) solutions, today reported results of operations
for its fourth quarter and year ended September 30, 2003. Revenue
for the fourth quarter ended September 30 2003 was $1.4 million
compared with $1.9 million for the same period of 2002. The net
loss was $2.2 million or ($0.07) per share for the quarter,
compared with a net loss of $1.3 million, or ($0.04) per share, for
the same period of 2002. The loss in 2003 included a one-time
non-cash charge of approximately $1.5 million relating to a
nonrecurring loss on the conversion of debt to preferred stock. The
charge is calculated based on the difference between the fair value
of the preferred stock less the value of the debt. The preferred
stock was valued at $6.8 million, using contemporary trading prices
and a Black-Scholes model. The loss in 2002 included in the cost of
license revenue a write-down totaling $865,000 of certain of the
Company's older capitalized software costs to net realizable value.
Total revenue for the year ended September 30, 2003 was $7.4
million compared with $7.0 million for the year ended September 30,
2002. The net loss was $3.0 million, or $(0.10) per share, compared
to $5.8 million, or $(0.19) per share for the year ended September
30, 2002. "We ended our fiscal year 2003 completing two significant
transactions to strengthen the Company's balance sheet and to
accelerate marketing initiatives," said Carl Mostert, Chief
Executive Officer. "The first transaction was a private placement
for $605,000, which brought new investors into the Company and
resulted in an increase in trading volume in our stock. The second
transaction was the conversion of $5.3 million of debt into
preferred stock. The conversion of the debt, which was owed to our
majority shareholder, not only eliminates the uncertainty
surrounding its maturity in October 2004 but confirms our majority
shareholder's confidence in the future prospects of the Company."
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 key technical, 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 For the year ended September 30, September 30, 2003
2002 2003 2002 (Unaudited) (Unaudited) Revenues: Licenses $ 280,000
$ 710,000 $2,053,000 $1,958,000 Services and other 1,076,000
1,144,000 5,309,000 5,012,000 Total revenues 1,356,000 1,854,000
7,362,000 6,970,000 Cost of revenues: Licenses 101,000 1,142,000
690,000 2,041,000 Services and other 613,000 692,000 2,334,000
3,218,000 Total cost of revenues 714,000 1,834,000 3,024,000
5,259,000 Gross profit 642,000 20,000 4,338,000 1,711,000 Operating
expenses: Research and development 365,000 293,000 1,494,000
1,828,000 Marketing and sales 534,000 568,000 2,452,000 3,479,000
General and administrative 320,000 286,000 1,410,000 1,809,000
1,219,000 1,147,000 5,356,000 7,116,000 Loss from operations
(577,000) (1,127,000) (1,018,000) (5,405,000) Interest and other
income -- 1,000 4,000 7,000 Interest and other expense (98,000)
(125,000) (491,000) (371,000) Inducement expense on debt conversion
(1,499,000) -- (1,499,000) -- Net loss $(2,174,000) $(1,251,000)
$(3,004,000) $(5,769,000) Basic and diluted net loss per common
share $(0.07) $(0.04) $(0.10) $(0.19) Shares used in computing
basic and diluted net loss per common share 31,814,000 30,842,000
31,100,000 30,842,000 SPESCOM SOFTWARE INC. Consolidated Summary
Balance Sheets September September 30, 30, 2003 2002 ASSETS Current
assets: Cash and cash equivalents $ 333,000 $ 87,000 Receivables,
net 423,000 1,459,000 Other current assets 169,000 244,000 Total
current assets 925,000 1,790,000 Property and equipment, net
213,000 215,000 Computer software, net 63,000 420,000 Other assets
29,000 83,000 Total assets $1,230,000 $2,508,000 LIABILITIES AND
SHAREHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts
payable 405,000 802,000 Payable to Spescom Limited 46,000 495,000
Accrued liabilities 1,080,000 1,288,000 Lease obligations - current
portion 23,000 6,000 Deferred revenue 2,018,000 2,171,000 Fair
value of equity instruments redeemable for common stock 1,233,000
-- Total current liabilities 4,805,000 4,762,000 Long term
liability - related party 504,000 4,881,000 Lease Obligations
62,000 10,000 Total liabilities 5,371,000 9,653,000 Convertible
preferred stock, $1,000 state value per share, 1,000,000 shares
authorized; 5,291 shares issued and outstanding 6,790,000 -- Total
Shareholders' Equity (Deficit) (10,931,000) (7,145,000) Total
liabilities and shareholders' equity $1,230,000 $2,508,000
DATASOURCE: Spescom Software Inc. CONTACT: 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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