SEEC Comments on Third Quarter Performance
PITTSBURGH, Jan. 4 /PRNewswire/ -- SEEC, Inc. (Nasdaq: SEEC - news) today announced that revenues and earnings for the third quarter ended December 31, 1998 will be below expectations. Based on preliminary results, the Company estimates that revenues will be in the range of $2.4 million to $2.6 million, with per share results ranging from break-even to two cents. Actual results for the quarter will be announced on January 26, 1999, at approximately 8 a.m. Eastern time.
The Company cited a broad market slowdown in Year 2000 activity in general, and less-than-expected sales in the U.K. and Asia in particular, as the primary causes of the revenue and earnings shortfall. The capture or delay of even one or two average-size deals within a given quarter can have a significant impact on results, due to the relative magnitude of the Company's total revenues. Separately, the Company stated that demand for its Independent Verification (''IV'') Solution, and sales activity in the Federal, Latin America and German markets, is vigorous and encouraging. Also, the Company's financial footing is solid, as evidenced by a balance sheet that includes approximately $30 million in cash and investments, or the equivalent of $5.00 per outstanding share of SEEC stock.
Ravi Koka, SEEC, Inc. President and CEO commented, ''SEEC's revenue opportunities for Year 2000 remediation and testing may be declining, but we are seeing increased interest in our Independent Verification and Reengineering Solutions. We expect these solutions to drive our revenues over the coming quarters, as we continue our transition to become a leading provider of solutions for Web enablement of legacy systems and for other legacy systems reengineering projects. SEEC's flexible core technology enables us to be well-positioned to capture our share of this multi-billion dollar market and to continue to grow the Company.''
The Company's planned Web enablement solutions are designed to provide companies cost savings and reduced risk in integrating their legacy systems with the Internet for E-commerce applications. SEEC's Reengineering Solutions and planned application components will address customers' needs to leverage their legacy systems investments, by allowing customers to more quickly and economically build and adapt their IT systems for ever-changing business requirements. GartnerGroup predicts that the componentware portion alone of these markets, including software and services, will grow to $7.1 billion in 2002 (6 April 1998).
Richard Goldbach, SEEC, Inc. Treasurer and CFO, added, ''The Company is positioned to capitalize on potential, resurgent Y2K demand in calendar 1999, but we are not counting on so-called Y2K panic to drive revenue growth. While we expect SEEC to be profitable and to generate positive cash flow from operating activities over the next twelve months, as we continue to implement our transition plan, the possibility of significant fluctuations in quarterly operating results cannot be overlooked. Meanwhile, we have the cash resources to pursue strategic acquisitions and other initiatives.''
About SEEC, Inc.
SEEC, Inc. (Nasdaq: SEEC - news) provides integrated and comprehensive enterprise solutions that maximize the value of legacy computer assets by adapting mainframe systems to changing business needs. SEEC's solutions combine a suite of proven software products with well-defined repeatable methodologies that improve the quality, productivity and effectiveness of the reengineering process. Manufacturers, telecommunications providers, financial services companies, public agencies and IT service providers are using SEEC's tools and processes to address reengineering challenges like the Year 2000 problem and the transition to the unified European currency (the euro); to improve software quality through independent verification and validation (IV&V); and to integrate new technologies like the World Wide Web and data warehousing. SEEC has direct sales and support offices in North America, Europe and Asia, plus sales and services alliances with leading global IT service providers. Visit SEEC's Web site at seec.com.
SEEC product and service names are trademarks, service marks or registered trademarks or service marks of SEEC, Inc.
The statements made in this press release that are not historical facts contain forward-looking information, such as expectations concerning future financial performance, that involves risks and uncertainties that may cause actual results to differ. Such risks include, but are not necessarily limited to, those detailed in the Company's Securities and Exchange Commission filings.
SOURCE: SEEC, Inc. |
