HORSHAM, Pa., March 31, 2015 /PRNewswire/ -- Astea
International Inc. (OTCQB: ATEA), a global provider of service
management and mobile workforce solutions, today released its
fourth quarter and year-end financial results for fiscal 2014.
"2014 was marked by greatly improved financial results on a
non-GAAP basis, market expansion, product innovations and larger
deals. All regions contributed to our growth, with particular
success in Europe. We signed
some very significant customers, including many of the largest,
most recognized companies in the world. These deals consisted of
large user counts with multi-country deployments. Being the
chosen vendor for these Fortune 1000 companies speaks volumes about
our ability to demonstrate our value proposition from having the
most complete and feature-rich solution," stated Zack Bergreen, CEO of Astea International.
"As stated throughout the past year, our focus is on building
a strong cloud business to complement our traditional on-premise
business; because this provides substantial benefits to prospects,
existing customers and shareholders. We are aggressively
pursuing new cloud-based customer opportunities in order to drive
our transition to becoming the dominant cloud company in our
industry. Our professional services backlog continues to grow
significantly. We are actively hiring and deploying resources
throughout the world. In addition to our growing list of new
customers, Astea's existing install base continues to expand our
solution footprint with additional users and further expansion to
new geographies. Our customers are globally leveraging our solution
in more than 25 countries."
For the quarter ended December 31,
2014, Astea reported revenues of $5.5
million compared to revenues of $5.0
million for the same period in 2013. Net loss to
shareholders for the quarter was ($0.8
million) or ($0.21) per share,
compared to net loss to shareholders of ($1.0 million) or ($0.28) per share for the same period in
2013. For the 2014 fiscal year, the Company reported revenues
of $20.7 million compared to revenues
of $20.3 million for the same period
in 2013. The net loss available to shareholders was
($3.8 million) or ($1.07) per share in 2014, compared to a net loss
to shareholders of ($3.3 million) or
($0.92) per share for the same period
in 2013.
Rick Etskovitz, CFO of Astea
International stated, "Although our GAAP-reported results appear
disappointing, our operations actually improved significantly in
2014 as our adjusted EBITDA showed substantial gains over last
year. In the financial table below, we reconcile reported
earnings to EBITDA plus the change in deferred professional
services revenue from cloud services for the comparable periods
reported in the 10Q. We believe that this earnings metric, which we
refer to as "Adjusted EBITDA", is a more meaningful measure of our
operating results that eliminates the differences in earnings,
constrained by generally accepted accounting principles, that
differentiate revenue recognition on perpetual license sales and
related implementation service revenues from revenue recognition on
subscription license sales and its related professional services on
implementations. It is also a useful measure for planning
purposes, as we feel it better reflects operating activities.
As seen below, our adjusted EBITDA improved by $.7 million for the quarter ended December 31, 2014 compared to the same quarter
last year. For the year ending December 31,
2014, our adjusted EBITDA is $.2
million compared to a loss of ($3.0
million), an improvement of $3.2
million for 2014."
Mr. Etskovitz also stated, "Furthermore, since December 2013, our accelerated shift to the cloud
has resulted in increasing our monthly contracted recurring
revenues by 237% and increasing our monthly recurring users by
239%. Deferred revenue related to cloud customers, consisting
of subscription fees and implementation services which we are not
yet reporting as revenue due to restrictions in the GAAP accounting
rules related to revenue recognition of hosting revenues, increased
by $322,000 in the fourth quarter.
For 2014, deferred revenues related directly to cloud
services quadrupled from $.7 million
at the end of 2013 to $2.8 million at
the end of 2014."
Outlook
Mr. Bergreen concluded, "Our transfer to the
OTCQB market has gone very smoothly and we are experiencing
increased interest in the Company, which is evidenced by our
increased trading volume. We feel this market is a more appropriate
place for a company of our size to be trading. In terms of
our transition to the cloud, we are extremely pleased with our
progress through 2014 as we are seeing consistent, substantial
increases in our subscriber base and expect that momentum to
continue throughout 2015. Our partner ecosystem expansion strategy
has contributed to our overall success. We have already
signed some very impressive customers in conjunction with our
partners, and we anticipate even more momentum and stronger growth
from our partner community moving forward. Our product solution
suite remains the most comprehensive on the market today, and we
are committed to continue innovating in order to drive compelling
benefits and value for our customers and prospects."
Conference Call Information
Astea will host a
conference call that will be broadcast live over the Internet on
Tuesday, March 31, 2015 at
4:30pm ET to discuss the Company's
fourth quarter and full year 2014 financial results. Investors may
access the call from the Company's Web site at
http://www.astea.com/en/about-us/investors/page.aspx. 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 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.
© 2015 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.
Use of Non-GAAP Financial Results
In addition to
disclosing financial results calculated in accordance with U.S.
generally accepted accounting principles (GAAP), the Company's
earnings release contains Non-GAAP financial measures. The
Company's management believes the Non-GAAP financial information
provided in this release is useful to investors' understanding and
assessment of the Company's on-going core operations and prospects
for the future. Management also uses both GAAP and Non-GAAP
information in evaluating and operating business internally and as
such deemed it important to provide all this information to
investors. The Non-GAAP financial measures disclosed by the
Company should not be considered in isolation or as a substitute
for, or superior to, financial measures calculated in accordance
with GAAP, and the financial results calculated in accordance with
GAAP and reconciliations to those financial statements should be
carefully evaluated. Reconciliations between GAAP measures
and Non-GAAP measures are provided later in this press release.
Financial Tables Follow
Astea
International Inc.
|
Reconciliation of
Reported Net (Loss) to EBITDA plus Change in Deferred Hosting
Professional Services, Less Capitalized Software Development
Costs
|
($ in
'000's)
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
Ending
|
|
Year
Ending
|
|
|
|
12/31/2014
|
12/31/2013
|
|
12/31/2014
|
12/31/2013
|
Net loss, as reported
|
(639)
|
(942)
|
|
(3,447)
|
(2,996)
|
|
|
|
|
|
|
|
|
Add back:
|
|
|
|
|
|
|
Interest
expense
|
25
|
35
|
|
124
|
67
|
|
Income
taxes
|
3
|
23
|
|
61
|
83
|
|
Depreciation and
amortization
|
1,019
|
697
|
|
3,836
|
2,185
|
|
|
|
|
|
|
|
|
|
|
Earnings before
Interest, Taxes, Depreciation and Amortization (EBITDA)
|
408
|
(187)
|
|
574
|
(661)
|
|
|
|
|
|
|
|
|
Increase (decrease)
in deferred hosting
|
211
|
(55)
|
|
723
|
194
|
Increase (decrease)
in deferred professional services - hosting
|
110
|
152
|
|
1,386
|
532
|
Capitalized software
development costs
|
(637)
|
(500)
|
|
(2,532)
|
(3,021)
|
|
|
|
|
|
|
|
|
EBITDA plus change in
deferred hosting services less capitalized software development
costs
|
92
|
(590)
|
|
151
|
(2,956)
|
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visit:http://www.prnewswire.com/news-releases/astea-reports-full-year-2014-and-fourth-quarter-results-300058729.html
SOURCE Astea International Inc.