APROPOS/Q2 2005 RESULTS
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[APROPOS LOGO]
TUESDAY, JULY 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
SECOND QUARTER RESULTS
OAKBROOK TERRACE, IL - JULY 26, 2005 -- Apropos Technology (Nasdaq: APRS), a
leading provider of real time multi-channel interaction management solutions,
today reported revenues of $4.5 million for the second quarter ended June 30,
2005 compared to $5.0 million for the second quarter ended June 30, 2004.
Revenues for the six months ended June 30, 2005 were $8.7 million compared to
$10.1 million for the six months ended June 30, 2004.
Net loss for the three months ended June 30, 2005, was $229,000, or loss of
$0.01 per share, which includes a restructuring credit of $187,000, or $0.01 per
share. This restructuring credit is due to the successful sublet of vacated
space at the corporate headquarters. Net income for the comparable three months
ended June 30, 2004, was $109,000, or income of $0.01 per share, which includes
restructuring and other charges of $88,000.or $0.00 per share. Net loss for the
six months ended June 30, 2005, was $740,000, or a loss of $0.04 per share,
which includes a restructuring credit of $187,000, or $0.01 per share. Net
income for the comparable six months ended June 30, 2004, was $124,000, or
income of $0.01 per share, which includes restructuring and other charges of
$456,000, or $0.03 per share.
"This was a challenging quarter for the Company despite gaining traction with
new customers," stated Ken Barwick, Board member and acting CEO. "We believe the
Company has a very solid product offering that is competitive in the
marketplace. In addition, the Company continues to maintain a very strong
balance sheet and referencable customer base. My focus will be on driving
process improvements, continuing to meet product deadlines, and maintaining our
high level of customer satisfaction."
"The Company continues to closely monitor its operating activities, using cash
from operations during the second quarter of approximately $220,000. The
Company's cash and investment balances decreased from the prior quarter by
$167,000 to $41.1 million at June 30, 2005. With the current quarter results,
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APROPOS/Q2 2005 RESULTS
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the Company has reported quarterly increases in their cash and investment
balances six of the last seven quarters. "
During the second quarter, the Company received new and add-on customer orders
from BMC Company, British Plaster Board, eBay Inc., Jacobs Engineering, and
Wolseley. In addition, the Company entered into six new alliance partner
agreements during the quarter.
A conference call will be conducted by the Company at 5:00 p.m. Eastern Time
(ET) on Tuesday, July 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.earnings.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, www.earnings.com or by dialing 888-203-1112 or
719-457-0820 (international) and providing access code 5408323. The replay will
be available by phone through August 2, 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.
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APROPOS/Q2 2005 RESULTS
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APROPOS TECHNOLOGY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
2005 2004 2005 2004
REVENUE (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Software licenses $ 1,358 $ 1,638 $ 2,458 $ 3,625
Services and other 3,095 3,330 6,210 6,503
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TOTAL REVENUE 4,453 4,968 8,668 10,128
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COST OF GOODS AND SERVICES
Cost of software 61 116 96 287
Cost of services and other 995 1,020 2,072 1,871
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TOTAL COST OF GOODS AND SERVICES 1,056 1,136 2,168 2,158
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GROSS MARGIN 3,397 3,832 6,500 7,970
OPERATING EXPENSES
Sales and marketing 1,755 1,760 3,493 3,433
Research and development 1,160 1,032 2,256 2,084
General and administrative 1,176 946 2,183 2,043
Restructuring and other charges
(credit) (187) 88 (187) 456
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TOTAL OPERATING EXPENSES 3,904 3,826 7,745 8,016
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INCOME (LOSS) FROM OPERATIONS (507) 6 (1,245) (46)
OTHER INCOME (EXPENSE)
Interest income 287 107 527 203
Other income (expense), net (9) (4) (22) (33)
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TOTAL OTHER INCOME 278 103 505 170
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NET INCOME (LOSS) $ (229) $ 109 $ (740) $ 124
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NET INCOME (LOSS) PER SHARE
Basic $ (0.01) $ 0.01 $ (0.04) $ 0.01
Diluted * $ 0.01 * $ 0.01
WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING
Basic 17,878 17,273 17,834 17,188
Diluted * 18,614 * 18,575
* Diluted weighted-average number of shares outstanding for 2005 are not shown as the effect
would be anti-dilutive.
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APROPOS/Q2 2005 RESULTS
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APROPOS TECHNOLOGY, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
JUNE 30 DECEMBER 31
2005 2004
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ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $ 24,045 $ 12,291
Short-term investments 17,027 28,867
Accounts receivable, net 2,637 3,155
Inventory 43 34
Prepaid expenses and other current assets 407 355
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TOTAL CURRENT ASSETS 44,159 44,702
Equipment, net 533 565
Other assets 28 21
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TOTAL ASSETS $ 44,720 $ 45,288
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 444 $ 155
Accrued expenses 1,421 1,854
Deferred revenues 3,592 3,403
Other current liabilities 809 856
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TOTAL CURRENT LIABILITIES 6,266 6,268
ACCRUED RESTRUCTURING, LESS CURRENT PORTION __ 245
SHAREHOLDERS' EQUITY
Common shares 179 176
Additional paid-in capital 103,571 103,155
Accumulated deficit (65,296) (64,556)
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TOTAL SHAREHOLDERS' EQUITY 38,454 38,775
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 44,720 $ 45,288
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