APROPOS/Q1 2005 RESULTS
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[APROPOS LOGO]
TUESDAY, APRIL 26, 2005
APROPOS CONTACT APROPOS INVESTORS RELATIONS CONTACT
Frank Leonard Leslie Loyet
Apropos Technology Financial Relations Board
Phone: (630) 472-9600 ext. 7724 Phone: (312) 640-6672
E-mail: frank.leonard@apropos.com E-mail: lloyet@financialrelationsboard.com
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APROPOS TECHNOLOGY REPORTS
FIRST QUARTER RESULTS
OAKBROOK TERRACE, IL - APRIL 26, 2005 -- Apropos Technology (Nasdaq: APRS), a
leading provider of real time multi-channel interaction management solutions,
today reported revenues decreased 18% to $4.2 million for the first quarter
ended March 31, 2005 from $5.2 million for the first quarter ended March 31,
2004.
Net loss for the three months ended March 31, 2005, was $511,000, or a loss of
$0.03 per share. Net income for the comparable three months ended March 31,
2004, was $15,000, or income of $0.00 per share, which includes restructuring
and other charges of $0.4 million, or $0.03 per share. During the first quarter,
the company's cash, cash equivalents, and short term investments increased by
$81,000 to $41.2 million.
"This was a difficult quarter for us," stated David McCrabb, interim chief
executive officer and president. "It is taking longer for our marketing programs
and lead generation efforts to reach fruition than earlier anticipated.
"We were able to expand our distribution channels during the first quarter. We
signed a reseller agreement with SBC, a provider of communication services and
products, that allows SBC to resell our entire product suite. SBC has already
provided us with their first order in the first quarter. We also completed a
restructured agreement with Mitel Networks Ltd. that allows their resellers and
partners to resell Apropos. Under the previous agreement, this was not possible.
Mitel channel partners provided us with two orders in the first quarter."
During the first quarter, the Company received new and add-on customer orders
from Fujitsu Limited (UK); MCAP; Nokia, Inc.; Peregrine Systems, Inc. and
VinCiti AQ.
-more-
APROPOS/Q1 2005 RESULTS
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A conference call will be conducted by the Company at 5:00 p.m. Eastern Time
(ET) on Tuesday, April 26. The conference call will be available to all
interested parties over the Internet. To listen to the call on the Internet, go
to www.apropos.com or www.fulldisclosure.com at least fifteen minutes early to
register, download, and install any necessary audio software. For those who
cannot listen to the live broadcast, a replay will be available shortly after
the call at www.apropos.com/investor, www.fulldisclosure.com or by dialing
877-519-4471 or 973-341-3080 (international) and providing access code 5994082.
The replay will be available by phone through May 3, and over the Internet for
30 days.
ABOUT APROPOS TECHNOLOGY
Apropos Technology, Inc. (Nasdaq: APRS) develops communications management
solutions for contact center operations and customer experience management.
Apropos solutions are largely used in customer service and support applications
for technical products and credit union member contact centers. Apropos
solutions integrate with existing systems to provide multi-channel interaction
management and a single, universal queuing system. Organizations rely on Apropos
to differentiate, prioritize and intelligently route customers to the right
agent across voice, voicemail, e-mail, web chat, VoIP, and fax communications.
Founded in 1989, the company serves over 300 clients worldwide from its
corporate headquarters in Oakbrook Terrace, Ill., and from its European
headquarters in the United Kingdom. Additional information about Apropos and its
solutions can be found at www.apropos.com.
Apropos Technology statements contained in this press release that are not
purely historical are forward-looking statements within the meaning of Section
21E of the Securities and Exchange Act of 1934, including statements regarding
Apropos Technology's expectations, anticipations, goals, beliefs, targets,
hopes, intentions or strategies regarding the future. Forward-looking statements
include statements regarding business model, product introduction and
acceptance, future sales, sales growth and sales channels, profitability and
results of operations, gross margins, operating expenses and financial
stability. These forward-looking statements are subject to various risks and
uncertainties as more fully set forth under the caption "Risk Factors Associated
with Apropos' Business and Future Operating Results" in Apropos Technology's
Annual Report on Form 10-K for the year ended December 31, 2004, as filed with
the Securities and Exchange Commission. Apropos Technology's actual results and
the timing of certain events may differ significantly from the results discussed
in the forward-looking statements; Apropos Technology makes no commitment to
disclose any revisions to forward-looking statements, or any facts, events or
circumstances after the date hereof that may bear upon forward-looking
statements.
-tables to follow-
APROPOS/Q1 2005 RESULTS
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APROPOS TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED
MARCH 31
2005 2004
REVENUE (Unaudited) (Unaudited)
Software licenses $ 1,099 $ 1,987
Services and other 3,116 3,173
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TOTAL REVENUE 4,215 5,160
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COST OF GOODS AND SERVICES
Cost of software 36 170
Cost of services and other 1,076 852
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TOTAL COST OF GOODS AND SERVICES 1,112 1,022
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GROSS MARGIN 3,103 4,138
OPERATING EXPENSES
Sales and marketing 1,738 1,674
Research and development 1,096 1,052
General and administrative 1,007 1,096
Restructuring and other charges -- 368
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TOTAL OPERATING EXPENSES 3,841 4,190
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INCOME (LOSS) FROM OPERATIONS (738) (52)
OTHER INCOME (EXPENSE)
Interest income 239 95
Other income (expense), net (12) (28)
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TOTAL OTHER INCOME
227 67
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NET INCOME (LOSS) $ (511) $ 15
===========================
NET INCOME (LOSS) PER SHARE
Basic $ (0.03) $ 0.00
Diluted $ (0.03) $ 0.00
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
Basic 17,789 17,104
Diluted * 18,537
*Diluted weighted-average number of shares outstanding for 2005 is not shown as
the effect would be anti-dilutive.
-more-
APROPOS/Q1 2005 RESULTS
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APROPOS TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
MARCH 31 DECEMBER 31
2005 2004
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ASSETS (unaudited)
Current assets:
Cash and cash equivalents $29,662 $12,291
Short-term investments 11,577 28,867
Accounts receivable, net 2,332 3,155
Inventory 51 34
Prepaid expenses and other current assets 583 355
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TOTAL CURRENT ASSETS 44,205 44,702
Equipment, net 540 565
Other assets 28 21
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TOTAL ASSETS $ 44,773 $ 45,288
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 173 $ 155
Accrued expenses 1,709 1,854
Deferred revenues 3,547 3,403
Other current liabilities 695 856
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TOTAL CURRENT LIABILITIES 6,124 6,268
ACCRUED RESTRUCTURING, LESS CURRENT PORTION 98 245
SHAREHOLDERS' EQUITY
Common shares 178 176
Additional paid-in capital 103,440 103,155
Treasury stock -- --
Accumulated deficit (65,067) (64,556)
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TOTAL SHAREHOLDERS' EQUITY 38,551 38,775
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 44,773 $ 45,288
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