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Strategies & Market Trends : YEEHAW CANDIDATES -- Ignore unavailable to you. Want to Upgrade?

To: Ken W who wrote (2378)	6/25/2003 3:32:38 PM
From: Ditchdigger	Respond to of 23958

going to move some cash back in to the jfunds at the close. Maybe the manipulatiors will try and defend dow 9000 and ndx 1600..Have to make those quarterly statements look good..Will be running for cover in july<g>

To: Ken W who wrote (2378)	6/25/2003 3:46:11 PM
From: arnold silver	Read Replies (1) \| Respond to of 23958

Ken, I got this from my barber and it looks good. ENGLEWOOD, Colo., Apr 30, 2003 /PRNewswire-FirstCall via COMTEX/ -- Evolving Systems, Inc. (EVOL), a provider of innovative software solutions for operations, enhanced services and systems integration to many of the largest communications companies in the U.S., today reported results for its first quarter ended March 31, 2003. First Quarter Results Evolving Systems reported its third consecutive profitable quarter with net income of $3.1 million, or $0.23 per basic share and $0.21 per diluted share, in the quarter ended March 31, 2003, compared with a net loss of $6.9 million, or $0.52 per basic and diluted share, in the same quarter a year ago. The Company's strong bottom line performance was attributable to sharply higher revenue, including $1.6 million from a large LNP product license sale, combined with a significantly lower expense base. It was also the third consecutive quarter in which Evolving Systems increased its cash position. The Company's cash balance at March 31, 2003 increased to $16.9 million from $8.6 million at year-end, primarily as a result of the collection in the first quarter of 2003 annual maintenance. Revenue in the first quarter increased 95% to $8.6 million from $4.4 million in the first quarter last year. That growth included a 159% increase in license fees and services revenue to $5.0 million and a 45% increase in customer support revenue to $3.6 million. On a sequential basis, first quarter revenue increased 17% over fourth-quarter revenue of $7.3 million. It was the Company's sixth consecutive quarter of increased revenue. Total costs of revenue and operating expenses were reduced by 51% to $5.5 million in the first quarter compared with $11.3 million in the same quarter in 2002. Sequentially, total costs of revenue and operating expenses declined by approximately $100,000 from the fourth quarter, reflecting the Company's ongoing commitment to aggressively managing its costs. The Company's backlog at March 31, 2003 was approximately $14.1 million -- a figure that includes $3.9 million in license fees and services and $10.2 million in customer support. The Company booked more than $3.0 million in new business in the first quarter. These bookings include new software licenses, enhanced features sales and service agreements primarily involving the Company's NumeriTrack(TM) solution, which facilitates compliance with FCC-mandated number conservation and pooling requirements. The bookings also include annual maintenance renewals for 2003. CEO Comments "Given the ongoing challenges in the telecommunications industry, our first quarter was one of the strongest in the Company's history," said George Hallenbeck, chairman and CEO. "We have done a good job managing our costs. We are focused on selling new product and services opportunities by leading with our ServiceXpress(TM) offerings. We believe we are building a foundation that can support sustained profitability and growth well into the future. "While we continue to leverage our deep domain knowledge to offer superior products and services to our customers, which include many of the largest telecommunications companies in the United States, we are rebuilding Evolving Systems into a different and much improved company," Hallenbeck added. "We are a more efficient organization with a high-performance staff and an offshore development capability. This team provides customers with solutions that meet their needs exactly while affording the critical cost and time benefits that result from our low-cost offshore development and round-the-clock work day. This is made possible by our ServiceXpress methodology. While working to expand our business with existing customers, we are also executing a sales strategy directed at a focused prospect list to expand our overall customer base in the United States. In our first quarter conference call I will describe the rebuilding phase of our new strategy in more detail." Outlook Based on its $14.1 million backlog and strong first quarter profitability, Evolving Systems reaffirms expectations for profitability and cash flow positive operations in 2003. The Company continues to expect an ongoing operating expense base of $22.0 to $23.0 million for the year with total revenue ranging from $25.5 to $26.5 million. The Company reiterated that the first quarter is likely to be the highest revenue quarter of the year due to significant one-time revenue from a large contract in the period. The Company expects to be profitable in the second quarter on revenue in the range of $5.5 to $6.5 million. The low end of that range is based on booked business currently scheduled for delivery during the quarter. The high end of the range contemplates additional business that has a reasonable chance of closure and delivery during the period. The Company's cash position is expected to decline over the next three quarters, although the Company projects its cash at year-end will be at a higher level than at 2002 year-end. Evolving Systems believes its 2003 business plan is fully funded, with no additional capital required.