In a sign of the growth of computer telephony, Artisoft (ASFT) had its first profitable quarter in some time, primarily due to its Teleadvantage computer telephony system (a server-dependent product, i.e., one that rises and falls with the server):
1/20/00 Bus. Wire 16:38:00
Business Wire
Copyright (c) 2000, Business Wire
Thursday, January 20, 2000
Artisoft, Inc. Announces First Profitable Quarter in Over Three Years; Artisoft
Finalizes Agreements with Intel, Toshiba and Teleco
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 20, 2000--Artisoft(R) Inc.
(NASDAQ:ASFT) today reported its financial results for the second quarter of
fiscal year 2000, ended December 31, 1999, which included the company's first
profitable quarter in three years and its sixth consecutive quarter of revenue
growth. Artisoft finalized strategic partnership agreements with both Toshiba
America Information Systems, Inc. (TAIS) and Intel Corp.(R), and announced an
OEM agreement with Teleco, Inc. TeleVantage(R) v 3.0 was announced and released
this quarter. The product has already started receiving awards for its enhanced
features and increased scalability.
For the second quarter of fiscal year 2000, Artisoft reported net sales of
$6.7 million, a 25 percent increase from the same quarter a year ago, and a net
income of $111,000 or $.01 per share. These results compare to net sales of
$6.4 million and a net loss of $482,000 or $.03, for the prior quarter ended
September 30, 1999. During the second quarter of fiscal year 1999, the company
reported net sales of $5.4 million and a net loss of $230,000 or $.02 per
share.
Artisoft's flagship product, TeleVantage has led the computer telephony (CT)
group revenues to $3.7 million, representing 54% of the total revenue. At $3.7
million, the CT group grew over 125% from second quarter last year. This was
the first quarter in the Company's history that the CT group revenue
represented the majority of total Company revenue. The Communication Software
group had revenue of $3.1 million.
"This quarter culminated in many significant milestones for Artisoft that
include three major partnership announcements with Intel, Toshiba and Teleco,
an award-winning product release, our sixth consecutive quarter of revenue
growth and finally, profitability for the first time since 1996," said T. Paul
Thomas, President and CEO of Artisoft. "We will continue to seek out strategic
partners, provide best-of-class products, service and support and increase our
marketing efforts in order to distance ourselves even farther ahead of our
competitors in the software-based PBX market."
Artisoft signed three major agreements this quarter with Intel, Teleco and
Toshiba. Under the terms of the agreement with Intel, Artisoft and Intel will
jointly develop TeleVantage for Intel's CT Media platform in an effort to help
accelerate the shift from proprietary phone systems to open, standards-based
systems. With CT Media, customers can easily integrate new and existing
standards-based applications on a single communications server.
Through this same agreement, Intel acquired the rights to Artisoft's widely
recognized Visual Voice(R) product line. The Visual Voice Family of products is
a complete solution for building enhanced telephony applications. Intel
purchased Artisoft's Visual Voice source code for $2.7 million. This revenue
will be recognized over three quarters for Artisoft, starting with the second
quarter of fiscal year 2000.
Toshiba and Teleco represent the first two major OEM agreements for
TeleVantage. The first OEM partnership with Toshiba couples the marketing and
development plans of Artisoft and Toshiba to allow both organizations to move
forward with server-based business telephone systems and value-added
applications. In the second agreement, Teleco, the nation's second largest
independent interconnect company and value-added reseller of telecommunications
solutions, will sell TeleVantage under the company's own private label to
small-to medium-sized businesses and corporate branch offices through the
company's vast channel of independent dealers nationwide.
In this past quarter, Artisoft announced, and began shipping TeleVantage v
3.0. This is the fourth release of TeleVantage since it introduction two years
ago. Version 3.0 scales up to 96 trunk lines and 264 extensions, and offers
enhanced features such as IP Telephony and Web browser capabilities, Call
Center Reporter(TM), increased scalability and ACD functionality. Since its
introduction in late October, TeleVantage 3.0 has won four Product-of-the-Year
awards from Call Center Solutions Magazine, Computer Telephony Magazine,
Communications Solutions Magazine and Internet Telephony Magazine. TeleVantage
3.0 has been recognized for its IP Telephony and Web browser capabilities, Call
Center Reporter(TM), increased scalability and ACD functionality. |
