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, 2006. Total revenues for the second quarter were $8.0
million, an increase of 6.8 percent compared with revenues of $7.5
million for the second quarter of 2005 and up 6.5 percent
sequentially compared to the $7.5 million reported for the first
quarter. License revenues for the second quarter were $1.0 million,
up $.5 million from the $.5 million reported for the second quarter
last year and approximately unchanged from the first quarter. Total
expenses decreased 9.5 percent to $10.5 million compared to $11.6
million in the second quarter of 2005. For comparison purposes,
last year's second quarter results included $0.9 million in
restructuring and related expenses, absent from the 2006 second
quarter. The Company reported a net loss of $2.5 million for the
second quarter, or $(0.07) per diluted share (based on 34.4 million
fully diluted shares) compared to a net loss of $4.4 million, or
$(0.15) per diluted share (based on 30.0 million fully diluted
shares) in the second quarter of last year. For the first six
months of 2006, total revenues were $15.5 million compared with
total revenues of $15.5 million for the first six months of 2005.
License fees were $1.9 million, up 24.5 percent, or $.4 million,
from the $1.5 million in license fees recognized for the first six
months last year. Total operating expenses were $20.7 million, a
decrease of 8.7 percent from the $22.7 million last year, which
included the $0.9 million in restructuring expenses. The net loss
for the first six months of 2006 was $5.2 million, or $(0.15) per
fully diluted share (based on 34.3 million fully diluted shares)
compared to a net loss of $7.5 million, or $(0.26) per fully
diluted share (based on 29.3 million fully diluted shares) for the
comparable prior-year period. The Company completed the quarter
with $3.3 million in cash and cash equivalents. The Company's
accounts receivable were $4.3 million as of June 30, and the
Company completed the quarter with $1.7 million of borrowing
availability on its $4 million line of credit. "While we saw an
increase in deal closings during the second quarter, specifically
with our partner Sun Microsystems, our reported results are below
our expectations," commented Bill Lyons, chairman and CEO of
AXS-One. "We continue to experience lengthy sales cycles which
resulted in a number of deals that were anticipated to close being
pushed out into subsequent quarters. However, recently released
industry studies that highlight AXS-One's complete integrated
platform solution validate our belief that our software is
appropriately positioned within this growing and dynamic market.
These factors, combined with improved execution on our sales
pipeline, should allow us to grow revenues and continue our
progress toward a return to profitability." Conference call
information Management will conduct a conference call to discuss
these results at 5:00 p.m. Eastern on August 2, 2006. Interested
parties can participate in the call by dialing 706-645-0399 or can
access the webcast at http://www.axsone.com/. The webcast will be
archived for 30 days following the call. Interested parties may
submit questions that they would like answered during the
conference call by e-mail to . Interested parties may listen to the
call via a live CCBN webcast that will be available via the company
website http://www.axsone.com/. Interested parties should access
the webcast approximately 10-15 minutes before the scheduled start
time. About AXS-One Inc. AXS-One (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 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 1979, 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," AXSPoint, and
TransAXS are registered trademarks of, and AXS-One Compliance
Platform, 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, "The Records Compliance Management
Company," e-Cellerator, AXS Desk, "AXS-One Collaboration
FrameWorks," SMART, AXS-Link and Tivity 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 return to
profitability; our ability to grow license and service revenue;
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 recent Form 10-K and
other Securities and Exchange Commission filings. Company Contact:
IR Contact: Joseph Dwyer Matthew Hayden AXS-One Inc. Hayden
Communications (201) 935-3400 (858) 704-5065 AXS-ONE INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
June 30, December 31, 2006 2005 ASSETS (unaudited) Current assets:
Cash and cash equivalents $3,341 $3,613 Accounts receivable, net of
allowance for doubtful accounts 4,300 5,153 Prepaid expenses and
other current assets 958 775 Total current assets 8,599 9,541
Equipment and leasehold improvements, net of accumulated
depreciation 442 395 Capitalized software development costs, net of
accumulated amortization 661 1,038 Other assets 97 92 Total assets
$9,799 $11,066 LIABILITIES AND STOCKHOLDERS' DEFICIT Current
liabilities: Accounts payable and accrued expenses $5,171 $4,843
Due to joint venture 52 Deferred revenue 9,503 8,224 Total current
liabilities 14,674 13,119 Long-term deferred revenue 2,213 63
Stockholders' deficit (7,088) (2,116) Total liabilities and
stockholders' deficit $9,799 $11,066 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
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. This press release contains
forward-looking statements. Such statements are only predictions,
and actual events or results may differ materially. All
forward-looking statements involve risks and uncertainties,
including, without limitation, the risks detailed in the Company's
documents and reports filed from time to time with the Securities
and Exchange Commission. AXS-ONE INC. AND SUBSIDIARIES CONSOLIDATED
STATEMENTS OF OPERATIONS (In thousands, except per share data)
Three Months Ended Six Months Ended June 30, June 30, 2006 2005
2006 2005 Revenues: License fees $952 $518 $1,917 $1,540 Services
7,006 6,944 13,494 13,960 Other-related parties 25 17 64 37 Total
revenues 7,983 7,479 15,475 15,537 Operating expenses: Cost of
license fees 456 406 899 770 Cost of services 3,922 4,383 7,357
9,042 Sales and marketing 2,481 2,523 5,300 5,111 Research and
development 2,195 2,034 4,421 4,135 General and administrative
1,485 1,437 2,747 2,785 Restructuring costs and other costs -- 863
-- 863 Total operating expenses 10,539 11,646 20,724 22,706
Operating loss (2,556) (4,167) (5,249) (7,169) Other expense:
Interest income 55 28 139 58 Interest expense (29) (1) (56) (1)
Equity in losses of joint ventures (43) (3) (70) (27) Other
expense, net 85 (241) 2 (414) Total other expense, net 68 (217) 15
(384) Loss before income taxes (2,488) (4,384) (5,234) (7,553)
Income tax benefit -- 25 -- 25 Net loss $(2,488) $(4,359) $(5,234)
$(7,528) Basic & diluted net loss per share: $(0.07) $(0.15)
$(0.15) $(0.26) Weighted average basic & diluted common shares
outstanding 34,354 30,016 34,301 29,300 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
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. This press release contains
forward-looking statements. Such statements are only predictions,
and actual events or results may differ materially. All
forward-looking statements involve risks and uncertainties,
including, without limitation, the risks detailed in the Company's
documents and reports filed from time to time with the Securities
and Exchange Commission. DATASOURCE: AXS-One Inc. CONTACT: Joseph
Dwyer of AXS-One Inc., +1-201-935-3400, ; or Matthew Hayden of
Hayden Communications, +1-858-704-5065, , for AXS-One Inc. Web
site: http://www.axsone.com/
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