Spescom Software Announces First Quarter Results SAN DIEGO, Feb. 15
/PRNewswire-FirstCall/ -- Spescom Software Inc. (OTC:SPCO)
(BULLETIN BOARD: SPCO) , a leading provider of enterprise content
and configuration management solutions, today reported results of
operations for its fiscal first quarter ended December 31, 2004.
Total revenue for the first quarter of 2005 was $1.7 million, a
decrease of 19% versus revenue of $2.1 million in the year earlier
quarter. Net loss before deemed and cumulative dividends for the
first quarter of 2005 was ($604,000), or ($0.02) per share,
compared with net income before deemed and cumulative dividends of
$11,000, or $0.00 per share, for the three months ended December
31, 2003. After the effect of the deemed dividend and cumulative
dividends totaling $2,274,000 to preferred shareholders in the
first quarter of 2005, the net loss available to common
shareholders was ($2,878,000) or ($0.08) per share. In the prior
year the net loss available to common shareholders in the first
quarter was ($55,000) or ($0.00) per share. "The results of the
first quarter reflect the unpredictability of our revenues in which
the successful conclusion or lack thereof of only one or two
additional contracts per quarter, has a significant impact on our
revenues. We are continuing to pursue some major opportunities. We
believe our pipeline of potential sales opportunities remains
strong, providing a source for potential future growth," commented
Carl Mostert, CEO, Spescom Software. "In our first quarter the
Company was able to successfully close a private placement for $2.2
million. The funding has enabled us to accelerate our marketing and
sales efforts while also providing liquidity to the Company," added
Carl Mostert. About Spescom Software Inc. Spescom Software (OTC BB:
SPCO) 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 Constellation Energy,
Continental Express, AmerenUE, Cities of Las Vegas and Dayton,
Lloyds Register of Shipping, United Space Alliance, Entergy,
Northeast Utilities, London Underground, Network Rail, and many
others. 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,
including such factors, among others, as market acceptance, market
demand, pricing, changing regulatory environment, the effect of the
company's accounting policies, potential seasonality and other risk
factors detailed in the Company's SEC filings. COMPANY CONTACTS:
Carl Mostert, CEO John Low, CFO (858) 625-3000 SPESCOM SOFTWARE
INC. Consolidated Statements of Operations For the three months
ended December 31, 2004 2003 Revenues: Licenses $268,000 $1,119,000
Services and other 1,385,000 1,006,000 Total revenues 1,653,000
2,125,000 Cost of revenues: Licenses 44,000 101,000 Services and
other 614,000 553,000 Total cost of revenues 658,000 654,000 Gross
profit 995,000 1,471,000 Operating expenses: Research and
development 346,000 334,000 Marketing and sales 824,000 605,000
General and administrative 399,000 503,000 1,569,000 1,442,000
Income (loss) from operations (574,000) 29,000 Interest and other
expense (30,000) (23,000) Gain on derivative valuation -- 5,000 Net
income (loss) (604,000) 11,000 Deemed preferred dividend
(2,200,000) -- Net income (loss) after deemed preferred dividend
(2,804,000) 11,000 Cumulative preferred dividends (74,000) (66,000)
Net income (loss) available to common shareholders $ (2,878,000)
$(55,000) Basic and diluted net income (loss) per common share
$(0.08) $(0.00) Shares used in computing basic and diluted net
income (loss) per common share 34,159,000 33,929,000 SPESCOM
SOFTWARE INC. Consolidated Balance Sheets December 31, September
30, 2004 2004 (Unaudited) ASSETS Current assets: Cash and cash
equivalents $812,000 $109,000 Receivables, net 855,000 954,000
Other current assets 179,000 209,000 Total current assets 1,846,000
1,272,000 Property and equipment, net 98,000 116,000 Computer
software, net 40,000 15,000 Other assets 27,000 27,000 Total assets
$2,011,000 $ 1,430,000 LIABILITIES AND SHAREHOLDERS' DEFICIT
Current liabilities: Accounts payable $415,000 $440,000 Payable to
Spescom Ltd. 53,000 90,000 Preferred stock dividend payable to
Spescom Ltd. 348,000 271,000 Accrued liabilities 997,000 1,226,000
Notes and accrued interest payable to Spescom Ltd. 574,000 -- Lease
obligation -- current portion 17,000 19,000 Deferred revenue
1,616,000 1,919,000 Total current liabilities 4,020,000 3,965,000
Notes payable and accrued interest to Spescom Ltd. -- 557,000 Lease
obligation 40,000 44,000 Total liabilities 4,060,000 4,566,000
Total shareholders' deficit (2,049,000) (3,136,000) Total
liabilities and shareholders' deficit $2,011,000 $ 1,430,000
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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