Aspect Communications (ASPT) 8-K Aspect Communications Reports First Quarter 2003 Financial Results

Exhibit 99.1

ASPECT COMMUNICATIONS REPORTS FIRST QUARTER 2003 FINANCIAL RESULTS

Company Reports First Quarter EPS of $0.05 and Cash of $201 Million

SAN JOSE, Calif., April 17, 2003 —Aspect Communications Corporation (Nasdaq: ASPT), the leading provider of enterprise customer contact solutions, today reported financial results for the quarter ended March 31, 2003, consistent with previously released preliminary results.

FIRST QUARTER FINANCIAL RESULTS:

Revenues for the first quarter of 2003 totaled $84.4 million compared to $96.9 million for the fourth quarter of 2002 and $104.5 million for the first quarter last year. License revenues in the first quarter of 2003 were $14.9 million compared to $20.6 million for the fourth quarter of 2002 and $22.9 million for the first quarter last year. Hardware revenues totaled $9.2 million in the first quarter compared to $14.2 million for the fourth quarter and $17.7 million for the first quarter last year. Services revenues in the first quarter were $60.3 million compared to $62.2 million for the fourth quarter and $63.8 million for the first quarter last year.

Net income attributable to common shareholders for the first quarter of 2003 was $2.6 million or a profit of $0.05 per share on a basic and fully diluted basis. This compares with a net income of $6.7 million or a profit of $0.13 per share for the fourth quarter of 2002 and a net loss of $40.7 million or a loss of $0.78 per share for the same period last year.

“Despite the economic environment and the weakness in technology spending, we remained profitable, reduced our expenses and strengthened our balance sheet,” said Beatriz Infante, Aspect’s Chairman, President, and CEO. “Our results demonstrate that we have taken steps to right-size our business to ensure our long-term success.”

For the first quarter of 2003, gross margins were 53.0%. This compares to 55.0% for the fourth quarter of 2002 and 44.4% for the first quarter of 2002. Operating expenses were

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Aspect Communications Announces Financial Results for the Quarter ended March 31, 2003, page 2

$37.7 million for the first quarter of 2003 compared to $44.4 million in the fourth quarter of 2002 and $58.3 million for the same period last year.

Cash, cash equivalents, and short-term investments totaled $200.6 million as of March 31, 2003, including $43.7 million, net of expenses, from the closing of the company’s private placement financing in January 2003. This compares to $146.1 million as of December 31, 2002. During the quarter, the company generated $18.6 million in cash from operations and utilized approximately $5.6 million to repurchase subordinated convertible debentures. Accounts receivable at quarter-end totaled $41.8 million and days sales outstanding were 39 days compared to 45 days at December 31, 2002. Net inventories at March 31, 2003 totaled $9.9 million, an increase of $3.1 million from the prior quarter.

OPERATIONAL HIGHLIGHTS:

Aspect’s installed base continued to be an important source of recurring service revenues, as well as product revenues. In addition, the company added several new customers to its platinum customer base. The company received product revenues from these significant new and existing Aspect customers: HSBC, Washington Mutual, Agilent, Toll Collect GmBH, Royal Bank of Scotland, Startek, Healthnet, Comcast Cablevision, Intersections, DaimlerChrysler and Countrywide.

The company’s industry-leading product, Aspect eWorkforce Management, won Communications Solutions Magazine’s Product-of-the-Year Award.

The company will host a conference call and web-cast today at 1:45 pm Pacific Time to discuss first quarter 2003 results. A replay of the conference call will be available from April 17, 2003 at 5:00 pm Pacific Time through April 24, 2003 at 8:59 pm Pacific Time by calling 800-753-8546 or 402-220-0685. The web-cast and replay of the conference call may be accessed from the company’s home page at www.aspect.com.

About Aspect Communications
Aspect Communications Corporation is the leading provider of business communications solutions that help companies improve customer satisfaction, reduce operating costs, gather market intelligence and increase revenue. Aspect is a trusted mission-critical

Aspect Communications Announces Financial Results for the Quarter ended March 31, 2003, page 3

partner with more than two-thirds of the Fortune 50, daily managing more than 3 million customer sales and service professionals worldwide. Aspect is the only company that provides the mission-critical software platform, development environment and applications that seamlessly integrate voice-over-IP, traditional telephony, e-mail, voicemail, Web, fax and wireless business communications, while guaranteeing investment protection in a company’s front-office, back-office, Internet and telephony infrastructures. Aspect’s leadership in business communications solutions is based on more than 17 years of experience and more than 8,000 implementations deployed worldwide. The company is headquartered in San Jose, Calif., with offices around the world and an extensive global network of systems integrators, independent software vendors and distribution partners. For more information, visit Aspect’s Web site at http://www.aspect.com or call (877) 621-3692.

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Aspect, the Aspect logo and the phrases and marks relating to other Aspect products and services discussed in this press release constitute one or both of the following: (1) registered trademarks and/or service marks of Aspect Communications Corporation in the United States and/or other countries or (2) intellectual property subject to protection under common law principles. All other names and marks mentioned in this document are properties of their respective owners.

Carrie Kovac
Investor Relations
Aspect Communications
(408) 325-2437
carrie.kovac@aspect.com

ASPECT COMMUNICATIONS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts — unaudited)

			Three Months Ended
			March 31,			December 31,			March 31,
			2003			2002			2002
Net revenues:
		License	$	14,952		$	20,590		$	22,939
		Services		60,291			62,172			63,849
		Hardware		9,165			14,182			17,733
Total net revenues				84,408			96,944			104,521
Cost of revenues:
		Cost of license revenues		2,393			2,625			1,645
		Cost of services revenues		27,024			29,041			34,188
		Cost of hardware revenues		8,977			10,665			18,534
		Amortization of intangible assets		1,243			1,257			3,764
Total cost of revenues				39,637			43,588			58,131
Gross margin				44,771			53,356			46,390
Operating expenses:
		Research and development		12,888			12,640			15,418
		Sales and marketing		20,355			20,822			31,777
		General and administration		4,278			11,131			10,594
		Restructuring charges		—			(295	)		—
		Amortization of intangible assets and stock-based compensation		147			124			537
Total operating expenses				37,668			44,422			58,326
Income (loss) from operations				7,103			8,934			(11,936	)
		Interest and other income (expense), net		(1,766	)		(1,695	)		(235	)
Income (loss) before income taxes				5,337			7,239			(12,171	)
		Provision (benefit) for income taxes		1,247			573			(22,919	)
Net income (loss) before cumulative effect of change in accounting principle				4,090			6,666			10,748
	Cumulative effect of change in accounting principle			—			—			(51,431	)
Net income (loss)				4,090			6,666			(40,683	)
		Less Preferred Stock Dividend, Accretion, and Amort		(1,539	)		—			—
Net Income (loss) attributable to Common Shareholders			$	2,551		$	6,666			($40,683	)
Basic and diluted earnings (loss) per share			$	0.05		$	0.13			($0.78	)
Basic and diluted weighted average shares outstanding				53,315			52,932			52,065

ASPECT COMMUNICATIONS CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands — unaudited)

			March 31,		December 31,		March 31,
			2003		2002		2002
Assets
Current assets:
	Cash, cash equivalents and short-term investments		$	200,556	$	146,100	$	131,286
	Accounts receivable, net			41,845		51,145		84,042
	Inventories			9,907		6,839		7,373
	Other current assets			15,294		13,664		47,648
		Total current assets		267,602		217,748		270,349
Property and equipment, net				81,128		86,528		105,384
Intangible assets, net				11,225		12,497		59,771
Other assets				10,597		8,949		18,292
		Total assets	$	370,552	$	325,722	$	453,796
Liabilities and shareholders’ equity
Current liabilities:
	Short-term borrowings		$	7,020	$	7,186	$	17,833
	Accounts payable			5,907		6,798		13,016
	Accrued compensation and related benefits			15,707		16,051		20,748
	Other accrued liabilities			59,515		67,370		67,305
	Deferred revenues			41,631		30,220		31,415
	Convertible subordinated debentures			121,178		124,983		—
		Total current liabilities		250,958		252,608		150,317
Long term borrowings				39,500		41,243		27,047
Deferred taxes				—		—		4,166
Other long-term liabilities				9,945		10,174		11,573
Convertible subordinated debentures				—		—		174,145
		Total liabilities		300,403		304,025		367,248
Redeemable Convertible Preferred Stock				28,594		—		—
Shareholders’ equity				41,555		21,697		86,548
Total liabilities and shareholders’ equity			$	370,552	$	325,722	$	453,796

ASPECT COMMUNICATIONS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands — unaudited)

					Three months ended
					March 31, 2003			December 31, 2002			March 31, 2002
Cash flows from operating activities:
Net income (loss)					$	4,090		$	6,666		$	(40,683	)
Reconciliation of net income (loss) to cash provided by operating activities:
		Depreciation				6,394			7,178			9,399
		Amortization of intangible assets				1,272			1,271			4,167
		Amortization of stock-based compensation				118			110			134
		Loss on disposal of property				2			350			—
		Loss (Gain) on extinguishment of debt				17			—			(2,077	)
		Cumulative effect of change in accounting principle				—			—			51,431
		Non-cash interest expense on debentures				1,804			1,831			2,616
		Deferred taxes				14			67			278
Changes in operating assets and liabilities
Accounts receivable						9,734			11,422			(4,759	)
Inventories						(2,998	)		(1,939	)		4,648
Other current assets and other assets						(3,285	)		2,117			(23,898	)
Accounts payable						203			(4,666	)		6,783
Accrued compensation and related benefits						(377	)		(3,066	)		1,858
Other accrued liabilities						(9,835	)		(12,175	)		(4,434	)
Deferred revenues						11,406			(5,206	)		1,738
				Net cash provided by operating activities		18,559			3,960			7,201
Cash flows from investing activities:
Short-term investment purchases						(55,266	)		(50,874	)		(29,949	)
Short-term investment sales and maturities						47,468			49,930			22,337
Property and equipment purchases						(1,047	)		(1,231	)		(3,613	)
				Net cash used in investing activities		(8,845	)		(2,175	)		(11,225	)
Cash flows from financing activities:
Other common stock transactions, net						898			25			2,042
Proceeds from issuance of preferred stock, net						43,736			—			—
Payments on capital lease obligations						(179	)		(196	)		(185	)
Proceeds from borrowings						—			—			2,000
Payments on borrowings						(1,730	)		(1,685	)		(576	)
Payments on repurchase of convertible subordinated debentures						(5,612	)		—			(10,126	)
				Net cash provided by (used in) financing activities		37,113			(1,856	)		(6,845	)
		Effect of exchange rate changes on cash and cash equivalents				(132	)		155			108
Net increase (decrease) in cash and cash equivalents						46,695			84			(10,761	)
Cash and cash equivalents:
	Beginning of period					66,051			65,967			72,564
	End of period					112,746			66,051			61,803
Short-term investments at the end of period						87,810			80,049			69,483
Cash, cash equivalents and short-term investments					$	200,556		$	146,100		$	131,286
Supplemental disclosure of cash flow information:
		Cash paid for interest			$	764		$	711		$	723
		Cash paid for income taxes			$	235		$	—		$	—
Supplemental schedule of noncash investing and financing activities
			Accrued preferred stock dividend and amortization of redemption premium		$	1,274		$	—		$	—
			Amortization of beneficial conversion feature		$	265		$	—		$	—