Spescom Software Announces Fourth Quarter and Year End Results
Revenue Increases 75% for the Quarter, 2nd Consecutive Quarter of
Profitability SAN DIEGO, Nov. 18 /PRNewswire-FirstCall/ -- Spescom
Software Inc. (OTC:SPCO) (BULLETIN BOARD: SPCO) , a leading
provider of enterprise content and configuration management (ECM)
solutions, today reported results of operations for its fiscal
fourth quarter and year ended September 30, 2004. Total revenue for
the fourth quarter of 2004 was $2.4 million, an increase of 75%
versus revenue of $1.4 million in the year earlier quarter. Net
income for the fourth quarter of 2004 was $167,000, or $0.00 per
diluted share, compared with a net loss of $2.2 million, or ($0.07)
per share, for the three months ended September 30, 2003. After the
effect of cumulative dividends of $73,000 to preferred shareholders
in the fourth quarter of 2004, the net income available to common
shareholders was $94,000 or $0.00 per share. For the year ended
September 30, 2004, total revenue was $9.0 million, an increase of
22% versus $7.4 million in the prior year's comparable period. Net
income was $48,000, or $0.00 per share for the year ended September
30, 2004 compared to a net loss of $3.0 million, or ($0.10) per
share, for the year ended September 30, 2003. After the effect of
cumulative dividends of $271,000 to preferred shareholders for the
year ended September 30, 2004, the net loss to common shareholders
was $223,000 or ($0.01) per share. "We are extremely pleased with
the achievements during fiscal year 2004," said Carl Mostert,
Spescom Software's CEO. "The operating plan that we have
implemented is beginning to show results as evidenced by the
Company generating $186,000 in income from operations in fiscal
year 2004. The improving results have enabled the Company to
complete the recently announced financing transaction that will
provide additional capital to further expand our sales and
marketing efforts. Our goal for 2005 is to continue the momentum
that has been created and expand market awareness of the proven
solutions the Company provides." About Spescom Software Inc.
Spescom Software (OTC:SPCO) (BULLETIN BOARD: SPCO) delivers
information management solutions that capture, manage and control
all enterprise content in large-scale computing and networked
systems in a broad range of businesses and industries. Spescom's
solutions provide uniquely clear information to users, delivered in
context to the various assets, products and processes that the
information relates to, resulting in improved customer
satisfaction, higher productivity and increased levels of safety
and data security. Spescom achieves this through its tightly
integrated suite of document, configuration and records management
technologies, combined with a powerful workflow capability. Its
solutions enable the identification of all critical enterprise
information, the effective management of information change and
other business processes, as well as the maintenance of records to
ensure regulatory compliance. 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. For more information, visit
http://www.spescomsoftware.com/. 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. For further information, please contact Carl
Mostert, CEO, or John Low, CFO, both of Spescom Software Inc.,
+1-858-625-3000. SPESCOM SOFTWARE INC. Consolidated Statements of
Operations For the three months For the year ended September 30,
ended September 30, 2004 2003 2004 2003 Revenues: Licenses $860,000
$280,000 $3,897,000 $2,053,000 Services and other 1,516,000
1,076,000 5,105,000 5,309,000 Total revenues 2,376,000 1,356,000
9,002,000 7,362,000 Cost of revenues: Licenses 82,000 101,000
260,000 690,000 Services and other 556,000 613,000 2,249,000
2,334,000 Total cost of revenues 638,000 714,000 2,509,000
3,024,000 Gross profit 1,738,000 642,000 6,493,000 4,338,000
Operating expenses: Research and development 385,000 365,000
1,393,000 1,494,000 Marketing and sales 748,000 534,000 2,949,000
2,452,000 General and administrative 391,000 320,000 1,965,000
1,410,000 1,524,000 1,219,000 6,307,000 5,356,000 Income (loss)
from operations 214,000 (577,000) 186,000 (1,018,000) Interest and
other income 8,000 -- 13,000 4,000 Interest and other expense
(55,000) (98,000) (151,000) (491,000) Inducement expense on debt
conversion -- (1,499,000) -- (1,499,000) Net income (loss) 167,000
(2,174,000) 48,000 (3,004,000) Cumulative preferred dividends
(73,000) -- (271,000) -- Net income (loss) to common shareholders
$94,000 $(2,174,000) $(223,000) $(3,004,000) Basic net income
(loss) per common share $0.00 $(0.07) $(0.01) $(0.10) Diluted net
income (loss) per common share $0.00 $(0.07) $(0.01) $(0.10) Shares
used in computing basic net income (loss) per common share
34,089,000 31,814,000 34,016,000 31,100,000 Shares used in
computing diluted net income (loss) per common share 35,513,000
31,814,000 34,016,000 31,100,000 SPESCOM SOFTWARE INC. Consolidated
Balance Sheets September 30, September 30, 2004 2003 (Unaudited)
ASSETS Current assets: Cash and cash equivalents $109,000 $333,000
Receivables, net 954,000 423,000 Other current assets 209,000
169,000 Total current assets 1,272,000 925,000 Property and
equipment, net 116,000 213,000 Computer software, net 15,000 63,000
Other assets 27,000 29,000 Total assets $1,430,000 $1,230,000
LIABILITIES AND SHAREHOLDERS' DEFICIT Current liabilities: Accounts
payable $440,000 $405,000 Payable to Spescom Ltd. 90,000 46,000
Preferred stock dividend payable to Spescom Ltd. 271,000 -- Accrued
liabilities 1,226,000 1,080,000 Lease obligation - current portion
19,000 23,000 Deferred revenue 1,919,000 2,018,000 Fair value of
equity instruments redeemable for common stock -- 1,233,000 Total
current liabilities 3,965,000 4,805,000 Notes payable and accrued
interest to Spescom Ltd. 557,000 504,000 Lease obligation 44,000
62,000 Total liabilities 4,566,000 5,371,000 Total shareholders'
deficit (3,136,000) (4,141,000) Total liabilities and shareholders'
deficit $1,430,000 $1,230,000 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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