Aspect Development Announces Q1 1999 Results
Company Results in line with Pre-announcement
Company Signs 13 New and Expansion Orders; Demand for Aspect CSM Solutions
Remains Strong
MOUNTAIN VIEW, Calif., April 20 /PRNewswire/ -- Aspect Development, Inc.
(Nasdaq: ASDV) today announced its final results for the first quarter ended
March 31, 1999. For the quarter ended March 31, 1999, the Company reported
revenues of $14,376,000; and net income of $325,000, including a one-time
pretax gain of $3 million from the sale of a partial interest in a joint
venture. This contrasts with first quarter results from 1998 of $17,676,000
in revenue and net income of $2,289,000. Diluted earnings per share for the
first quarter of 1999 totaled $0.01, including $0.07 from the one-time gain,
contrasted with $0.07 for the same quarter a year ago.
Thirteen Orders in Q1 Spanning all Major Industry Verticals
The company signed thirteen license contracts in the quarter, including
six new customers and seven expansion orders. Important new customers
included Matsushita Electric, Trane, Ascom AG, Century Telephone and Pitney
Bowes. Two of the new orders came from the company's strategic reseller
relationship with SAP. Orders spanned all major industry verticals. Thirteen
percent of total revenue came from international sales, an improvement from
the last quarter.
"In spite of the lower than expected first quarter revenues, CSM remains a
strong, healthy, and growing market," said Aspect Chairman Romesh Wadhwani.
"Manufacturers have recognized the enormous value of CSM in its ability to
increase their profitability by streamlining their inbound supply chains.
While we are certainly disappointed in this quarter's results, we see this
only as a temporary slippage caused primarily by unexpected delays in the
signing of certain major contracts. In fact, the largest of these was just
signed a few days ago, reflecting the continuing importance and high value
proposition of Aspect CSM solutions and confirming that the delay was not
related to Y2K factors. I remain optimistic about the overall health of the
CSM market and our continuing business and technology leadership."
Revenues and profits are expected to grow throughout the remainder of the
year and the Company expects to be profitable for the full year.
Company Continues to Buy Back Shares in Board-Authorized Plan
As previously announced, Aspect Development's Board of Directors
authorized a buy-back plan to purchase up to $25 million of Aspect's Common
stock. The Company has begun to acquire shares of Company stock. If share
prices stay at their current levels, the Company expects to buy as much as 10%
of the outstanding shares.
Aspect Announces New President
In a separate release, Aspect announced that it had successfully completed
its search for a new President and Chief Operating Officer. Robert Evans,
former managing partner of industry programs and marketing for Andersen
Consulting's $1.4 billion global Supply Chain Practice, has now joined the
company. "As Aspect has grown, we recognized the need to bring in additional
executive talent to help us manage the company's growth." said Aspect Chairman
and CEO Romesh Wadhwani. "We were looking for a President and COO who would
strengthen our leadership and infuse new ideas. Someone who had deep
knowledge of Supply Chain Management and enterprise solutions. Bob has that
background and experience, and I am very pleased to announce his decision to
join Aspect." (See associated press release, dated April 20, 1999.) |
