Aspect Development Wins its Largest Deal of the Year in Q2 And Hits All Targets
Revenues Climb to $21 Million With Fifteen Orders Spanning
All Industry Sectors
MOUNTAIN VIEW, Calif., July 20 /PRNewswire/ -- Aspect Development, Inc.
(Nasdaq: ASDV) today announced results for the second quarter ended June 30,
1999, reporting revenues of $21,140,000 and net income of $326,000, an
increase of 47% over the $14,376,000 of revenue generated in the previous
quarter. This contrasts with revenues and net income of $20,407,000 and
$3,335,000 respectively recorded for the second quarter a year ago. Diluted
earnings per share for the second quarter of 1999 totaled $0.01, contrasted
with $0.10 for the second quarter a year ago. Operating income for the second
quarter of this year was $137,000. Other income of $281,000 reflects a loss
of $426,000, representing Aspect's joint-venture share in ChipCenter.com, the
Internet portal for e-commerce in electronic components. ChipCenter.com is
expected to be officially launched on July 27, 1999.
Fifteen Key Orders Signed
Aspect signed fifteen orders in the quarter, including orders from two of
the three major customers that had been expected to close in the first
quarter. The third such order, from Ford Motor Company, was closed shortly
after the end of the second quarter. The enterprise order from Motorola
represented the Company's largest order to-date this year. Other key
customers placing orders in the quarter include Marconi Electronic Systems,
Bayer Corporation, Alcatel, CenturyTel, John Crane, Arvin, Italtel, Seiko,
Enron, Air Force Research Laboratory, and Newbridge Networks. As is common
with multiple-phase deployments, revenue from some of the major orders will be
recognized over several quarters.
The Company sold products across all its major industry markets, including
High Tech, Automotive, Aerospace & Defense, Industrial, and Process. Twelve
percent of total revenue for the second quarter came from sales outside North
America, including three orders from Europe and one from Japan. Also in the
second quarter, two orders were booked through Aspect's SAP reseller
agreement, which had been extended for an additional two years during the
first quarter of this year. The Company's bookings spanned all three of its
solutions products: Strategic Sourcing Management, Strategic Product
Development, and Strategic Plant Management.
Largest Order of the Year in the Second Quarter
As reported last month, Aspect closed its largest deal of the year, an
enterprise order with Motorola, Inc. valued at over $10 million. This
multi-phase deployment will generate revenue for the Company over several
quarters. In addition, Marconi Electronics placed a significant expansion
order, extending Aspect's business with this leading defense electronics
manufacturer that is in the process of being acquired from GEC by British
Aerospace.
Growing Sales Force
During the second quarter, Aspect grew its commissioned sales force by 16%
with a headcount increase of 12 over the prior quarter and opened new sales
offices in key markets. Headcount added include account executives, solutions
consultants, and business consultants.
Expanded Executive Team
The Company added to its executive management in the second quarter.
Robert Evans joined the company as Aspect's new President and COO. Mr. Evans
had spent the past five years managing Andersen Consulting's global Supply
Chain Practice, where he helped grow that practice to more than $1.4 billion
in annual revenue. Three additional executive members joined the management
team, including Katsuhiko Takahashi, President of Aspect Japan, Scott
MacDonald, VP of Process Industry Business, and Vernon Niven, VP of Consulting
Services. Mr. Takahashi, former VP of Sales for SAP Japan, joined Aspect this
past quarter to head Aspect Japan. Mr. MacDonald joined Aspect from
Manugistics where he had been VP of Sales for the High Tech Business Unit.
Mr. Niven spent the last fourteen years with Andersen Consulting's Supply
Chain Practice as Associate Partner where he was responsible for creating and
leading their global eProcurement & Strategic Sourcing Practice. This
practice group, which did not exist until 1997, will generate nearly
$100 million in revenue this year.
"All companies have a personality that is shaped by their core values,"
said Robert Evans, Aspect's President and COO. "One of the core values we
believe in most strongly at Aspect is 'doing what we say we're going to do.'
Turning in quarterly performance that is in line with expectations, and
closing significant orders such as Motorola and Ford are an important part of
building confidence this year. We're pleased with our second quarter results
and look forward to building on that foundation."
Company Share Buy-Back Plan Reduces Shares Outstanding by Approximately 8%
Using the Board-granted authority during the quarter, the Company used
$20,636,000 of its cash to purchase 2,840,000 shares of Aspect Common stock at
an average share price of $7.27, reducing shares outstanding by approximately
8%. The Company's cash balance at the end of the second quarter, after the
share buy-back, was over $70 million.
Announcement of Internet Strategy Scheduled for August 2
The Company indicated it will be unveiling its Internet strategy and plans
in a series of announcements scheduled to begin on Monday, August 2, 1999. |
