Exhibit 99.1
ASTEA REPORTS FIRST QUARTER 2005 RESULTS
HORSHAM, Pa., May 11 /PRNewswire-FirstCall/ -- Astea International Inc.
(Nasdaq: ATEA), a global provider of service management solutions, today
released financial results for the first quarter of 2005.
For the first quarter ended March 31, 2005, Astea reported revenues of $3.8
million compared to revenues of $5.9 million for the same period in 2004. Net
loss for the first quarter was $618,000 or $.21 per share, compared to a net
profit of $1.5 million or $.51 per share for the same period in 2004. License
revenues were $.6 million compared to $2.9 million in 2004. Total service and
maintenance revenue increased 6% to $3.2 million, resulting from increased
services and maintenance from the Company's Astea Alliance products.
International results were strong, with overall revenue of $2 million, a 35%
increase over the same period in 2004.
The overall decline that Astea experienced this quarter was mainly
attributed to a number of deals being delayed, which contributed to the softness
in license revenues. Additionally, Astea is engaged in a number of larger,
enterprise deals that traditionally have longer sales cycles, but which are
expected to ultimately account for greater overall revenues. While Astea feels
that this focus will have a positive financial impact on the overall year's
results, such focus may result in unevenness in quarterly license revenue.
Despite the overall revenue decline in the first quarter, Astea has had much
success in Japan, Australia, and Europe and remains a strong contender in the
service lifecycle management market.
"The enterprise deals that we are engaging in are inherently, by the nature
of their size, more variable and dynamic, therefore making it more difficult to
predict any one quarter's results. We remain confident in our ability to achieve
our revenue goals for 2005 based on our strong pipeline and the number of
companies we are currently tracking," stated Zack Bergreen, CEO and President of
Astea International. "We continue to see increased traction with Astea Alliance
because we incorporate best practices and solve our customers' business problems
with the best ROI, while simultaneously providing them with a competitive
advantage. We have a solid product and one that is recognized by leading
companies as having the breadth and depth necessary for them to compete in
today's global competitive environment."
FIRST QUARTER HIGHLIGHTS
-- Attained significant new customers, such as Corporate Express
Australia Ltd. (Australia), one of Australia & New Zealand's leading
suppliers of office products and services; and Contacta (Europe),
which designs, manufactures and supplies state-of-the-art products and
systems developed specifically for organizations dealing directly with
the public.
-- Existing Astea customers such as Optos (US); Standard Register (US);
GDC (New Zealand); Fuji (Japan); NSAT (Japan); TEC (Japan); Samsung
(Europe) continued to expand their configurations with additional
licensing for more users and functionality.
-- Delivered the first system with Dynamic Scheduling Engine (DSE)
integrated with GIS into Alliance suite. This system will provide
enhanced optimization capabilities for service engineers and much
improved financial saving to Astea customers.
Astea will host a conference call that will be broadcast live over the
Internet on May 11, 2005 at 11:00 AM EDT to discuss the Company's first quarter
financial results. Investors can access the call from the Company's Web site at
http://www.astea.com/ab_investors.asp. For those who cannot listen to the live
broadcast, a replay will be available shortly after the call.
About Astea International
Astea 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. The Astea Alliance suite supports the complete service
lifecycle, from lead generation and project quotation to service and billing
through asset retirement. It integrates and optimizes critical business
processes for Contact Center, Field Service, Depot Repair, Logistics,
Professional Services, and Sales & Marketing. Astea extends its application
suite with portal, analytics and mobile solutions. Since its inception in 1979,
Astea has licensed applications to companies in a wide range of sectors
including information technology, telecommunications, instruments & controls,
business systems, and medical devices.
http://www.astea.com. Service Smart. Enterprise Proven.
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, 2004, filed with the Securities and Exchange Commission.
SOURCE Astea International Inc.
-0- 05/11/2005
/CONTACT: Investor Relations: Rick Etskovitz, Chief Financial Officer,
Astea International, Inc., +1-215-682-2500, retskovitz@astea.com/
/Web site: http://www.astea.com
http://www.astea.com/ab_investors.asp /