Exhibit 99.1
[COMPANY LOGO]
For More Information Contact:
Investor Relations
Rick Etskovitz, Chief Financial Officer
Astea International, Inc.
215-682-2500
retskovitz@astea.com
FOR IMMEDIATE RELEASE:
Astea Reports Profitable Third Quarter 2007 Results
Strong and Focused Execution Drives Revenue Growth
Horsham, PA, November 15, 2007--Astea International Inc. (NASDAQ:ATEA), a global
provider of service lifecycle management solutions, today released financial
results for the third quarter of 2007.
For the third quarter ended September 30, 2007, Astea reported revenues of
$7,853,000, 24% greater than revenues of $6,349,000 for the same period in 2006.
Net profit for the third quarter was $892,000 or $.25 per share, compared to a
net profit of $45,000 or $.01 per share for the same period in 2006. License
revenue of $2,793,000 was 26% greater than $2,212,000 for the same period in
2006. Total service and maintenance revenues increased 22% to $5,060,000 from
$4,137,000 for the same period in 2006.
For the nine months ended September 30, 2007, total revenues of $21,956,000 are
50% greater than the revenues of $14,590,000 for the same period last year. Net
profit for the nine months was $1,254,000 or $.35 per share compared to a net
loss of $4,270,000 or ($1.20) for the same period in 2006. Year to-date license
revenue of $5,499,000 was 65% greater than $3,334,000 for the same period in
2006. Service and maintenance revenue of $16,457,000 was 46% greater than 2006.
Included in the results for the first nine months of 2007 is the recognition of
$1.6 million of revenue which had been deferred from a transaction with a
customer in the U.K. in the fourth quarter of 2004 and continued through 2006.
The revenue, recognized in the first quarter of 2007, is comprised of $384,000
of license revenue and $1.2 million in services and maintenance revenue. All
costs related to generating these revenues were expensed in the periods in which
they were incurred. The results from operations for the year-to-date results
include all of the revenues discussed, but no related costs. Therefore, gross
profit on revenue on a year-to-date basis for 2007 appears higher than similar
periods. Such operating results are not typical for the Company and are not
expected to recur.
"This quarter was marked with multiple significant large enterprise wins. We are
extremely pleased with our execution and success. The new customers we signed
represent larger-scale implementations. They will be leveraging our entire
solution suite to drive their customer service business," stated Zack Bergreen,
Chairman and CEO, Astea International. "We remain focused on addressing the
tremendous opportunities we see worldwide, adding new talent to our team and
building the infrastructure that will allow us to continue to provide superior
service lifecycle management solutions to our customers around the world."
THIRD QUARTER HIGHLIGHTS
o New Customers - Selected by 3 industry leading, enterprise companies
to implement and deploy the full Astea Alliance suite, including our
latest mobility and Dynamic Scheduling Engine solutions. Some of the
benefits that these companies are looking to achieve include:
creating a distinct competitive advantage in their respective
markets; optimizing technician utilization and spare parts
inventory; providing technicians with real-time access to
information; and ultimately driving increased profitability and
customer satisfaction.
o Existing Customers of both the Astea Alliance and FieldCentrix
solutions continued to expand their configurations with additional
licensing for more users as well as many customers upgrading to the
latest releases.
o One year after signing with Astea, Danka Business Systems PLC,
one of the largest independent providers of enterprise imaging
systems and services, completed the national deployment of Astea's
FieldCentrix Mobility solution, to more than 1,000 field
technicians, in order to support its' growing customer base. As a
result, Danka has been able to further refine the company's already
impressive technician-to-dispatcher ratio of 200 to 1; improve
real-time visibility to its parts inventory; increase the number of
work orders completed daily; deliver measurable cost savings;
improve customer retention; sign new customers and enhance Danka's
brand value and professional standing as an industry leader. Follow
this link to learn more about this impressive deployment:
http://www.astea.com/default.asp.
o One of Astea's customers, The Linc Group, was featured in a cover
story by Integrated Solutions magazine. In the article, they cited a
one-year payback from the FieldCentrix solution. The Linc Group uses
several components of the FieldCentrix solution, including FX
Mobile, which contains the wireless sending and receiving
capabilities as well as the user interface on mobile devices; FX
Service Center, which is the back end dispatching interface that
integrates with accounting software; and FX eService, which enables
customers to view current and future work orders through a
self-service Web portal. Follow this link to read more:
http://www.astea.com/lincgroup.asp.
Astea will host a conference call that will be broadcast live over the Internet
on November 15, 2007 at 11:00 AM EST to discuss the Company's third quarter
financial results. Investors can access the call from the Company's Web site at
http://www.astea.com/about_investors.asp. For those who cannot listen to the
live broadcast, a replay will be available shortly after the call.
About Astea International
Astea International (NASDAQ: ATEA) is a global provider of service management
software that addresses the unique needs of companies who manage capital
equipment, mission critical assets and human capital. With the acquisition of
FieldCentrix, Astea complements its existing portfolio with the industry's
leading mobile field service execution solutions. Astea is helping 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. Since its inception in
1979, Astea has licensed applications to companies, around the world, in a wide
range of sectors including information technology, telecommunications,
instruments and controls, business systems, HVAC, gaming/leisure, imaging,
industrial equipment, and medical devices.
www.astea.com. Service Smart. Enterprise Proven.
# # #
(C) 2007 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.
This press release contains forward-looking statements and expectations of
future results that are made under the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995 and involve a number of risks and
uncertainties that could materially affect future results. Among these risk
factors are possibilities that the companies mentioned in this press release may
not purchase licenses for Astea Alliance, the continuing acceptance of Astea's
products, general competitive pressures in the marketplace, and continued
overall growth in the customer relationship management solutions industry.
Further information regarding these as well as other key risk factors and
meaningful cautionary statements that could affect the Company's financial
results are included at length in the Company's Form 10-K for the fiscal year
ended December 31, 2006, as supplemented in the 10-Q for the Quarter ended
September 30, 2007 as filed with the Securities and Exchange Commission.