RUTHERFORD, N.J., Aug. 13 /PRNewswire-FirstCall/ -- AXS-One Inc.
(OTC:AXSO) (BULLETIN BOARD: AXSO) , a leading provider of high
performance Records Compliance Management (RCM) software, today
announced its financial results for the second quarter and six
month period ended June 30, 2008. Total revenues for the second
quarter of 2008 were $3.4 million, an increase of $0.9 million or
35% from the second quarter 2007 revenues of $2.5 million. License
revenue for the second quarter was $1.1 million, an increase of
109% compared to $0.5 million in the second quarter of 2007.
Service revenue for the second quarter was $2.3 million, an
increase of $0.3 million or 16% from the second quarter of 2007.
Total operating expenses for the second quarter were $5.5 million,
a decrease of 10% percent compared to $6.1 million in the second
quarter of 2007. The operating loss for the second quarter of 2008
was $2.1 million, a $1.4 million or 41% improvement from the second
quarter 2007 operating loss of $3.6 million. The Company reported a
net loss of $2.5 million for the second quarter of 2008, or $(0.07)
per diluted share compared to a net loss of $3.7 million in the
second quarter of last year, or $(0.10) per diluted share.
Highlights for the second quarter include: -- Announcement of
AXS-One as a visionary in the 2008 Gartner Inc.'s report: "Magic
Quadrant for E-Mail Active Archiving". -- Wins and new sales
opportunities across disparate industries including public sector,
manufacturing, healthcare and pharmaceutical. This reflects the
position maintained by the Company that every organization will
need software assistance to manage their electronic records. -- A
major competitive replacement at an international medical device
provider, continuing the trend of competitive wins as organizations
reevaluate their archiving technology and vendor selection. --
Announcement of a patent-pending new product, Dynamic Data
Migrator(TM). The product leverages the Company's current archiving
and electronic records management technology to provide a unique
approach for organizations migrating their messaging platform from
Lotus Notes to Microsoft Exchange. -- Endorsement from Microsoft of
Dynamic Data Migrator and expansion of AXS-One's current
partnership with the company. Microsoft has identified their "Notes
Transition Program" as a strategic initiative for the current
fiscal year and, per their quote in the product announcement, is
excited by the product's ability to "have a dramatic effect on the
cost and time it takes customer to migrate." Bill Lyons, Chairman
& CEO of AXS-One, commented, "We are seeing steady progress in
our core business of electronic records archiving and are
particularly excited about the opportunity presented by Microsoft
to migrate millions of users that have already committed to convert
from Notes to Exchange, using our software products and
methodology. We are actively engaged with the Microsoft team, which
has validated and endorsed our technology and methodology and are
now introducing us into their client opportunities. We expect this
partnership to drive a significant improvement in our financial
results starting this year." For the first six months of 2008,
total revenues were $7.3 million, an increase of 17.4% compared
with total revenues of $6.2 million for the first six months of
2007. License fees were $2.5 million, up 10.5% from the $2.3
million in license fees for the first six months last year. Total
operating expenses were $11.2 million for the first six months of
2008, a decrease of 11.3% from $12.6 million in the prior year. The
operating loss narrowed to $3.9 million for the first six months of
2008, down from an operating loss of $6.4 million in the first six
months of last year. The net loss for the first six months of 2008
was $4.7 million, or $(0.12) per diluted share compared to a net
loss of $6.3 million, or $(0.18) per diluted share for the
comparable prior-year period. "Corporate leaders continue to
recognize the importance of implementing electronic records
management solutions as a key risk management tool," Mr. Lyons
continued. "The changes in the processes for litigation, including
the new Federal Rules of Civil Procedure (FRCP), remain a catalyst
for us as enterprises recognize the need to pro-actively manage
their electronically stored information (ESI). This trend
demonstrates that industry leaders recognize the growing trend in
this area, and increasingly see AXS-One as an emerging leader. As a
pioneer in providing archiving and electronic records management
for disparate record types for 15 years, AXS-One is uniquely
positioned to exploit this emerging and accelerating opportunity."
Conference call information Management will conduct a conference
call to discuss these results at 5 p.m. Eastern time on August 13,
2008. Interested parties can participate in the call by dialing
706-645-0399 with the conference ID #58135198 or can access the
webcast at http://www.axsone.com/investors_events.shtml. Interested
parties should access the webcast approximately 10-15 minutes
before the scheduled start time. The webcast will be archived for 7
days following the call. Interested parties may submit questions
prior to the conference call by e-mail to . About AXS-One Inc.
AXS-One Inc. (OTCBB: AXSO) is a leading provider of high
performance Records Compliance Management software. The AXS-One
Compliance Platform enables organizations to implement secure,
scalable and enforceable policies that address records management
for corporate governance, legal discovery and industry regulations
such as SEC17a-4, NASD 3010, Sarbanes-Oxley, HIPAA, The Patriot Act
and Gramm-Leach Bliley. AXS-One's award-winning technology has been
critically acclaimed as best of class and delivers digital
archiving, business process management, electronic document
delivery and integrated records disposition and discovery for
e-mail, instant messaging, images, SAP and other corporate records.
Founded in 1978, and headquartered in Rutherford, NJ, AXS-One has
offices worldwide including in the United States, Australia,
Singapore and the United Kingdom. For further information, visit
the AXS-One website at http://www.axsone.com/ AXS-One, the AXS-One
logo, "Access Tomorrow Today," and AXSPoint are registered
trademarks of, and AXS-One Compliance Platform, AXS-One Central,
AXS-One Retention Manager, AXS-One Rapid-AXS, AXS-Link for Desktop,
AXS-Link for SAP, AXS-Link for Lotus Notes, AXS-Link for Microsoft
Exchange, AXS-One Data Archive Translator, AXS-Link for File System
Archiving, AXS-Link for .PST Management, AXS-One Supervision,
AXS-One Case Management, "The Records Compliance Management
Company" and AXS-Link are trademarks of, AXS-One Inc., in the U.S.
All other company and product names are trademarks or registered
trademarks of their respective companies. Special Note Regarding
Forward-Looking Statements: A number of statements contained in
this release are forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 that involve
risks and uncertainties that could cause actual results to differ
materially from those expressed or implied in the applicable
statements. These risks and uncertainties include, but are not
limited to: our ability to improve financial and sales performance;
risks relating to liquidity; potential vulnerability to
technological obsolescence; the risks that our current and future
products may contain errors or defects that would be difficult and
costly to detect and correct; potential difficulties in managing
growth; dependence on key personnel; the possible impact of
competitive products and pricing; and other risks described in more
detail in AXS-One's most current Form 10-K and other subsequent
Securities and Exchange Commission filings. Company Contact: IR
Contact: Joseph Dwyer Brett Maas AXS-One Inc. Hayden Communications
(201) 935-3400 (646) 536-7331 -Tables Follow- AXS-ONE INC. AND
SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands)
June 30, December 31, 2008 2007 ASSETS (unaudited) Current assets:
Cash and cash equivalents $831 $3,362 Accounts receivable, net of
allowance for doubtful accounts 1,638 2,208 Prepaid expenses and
other current assets 624 838 Total current assets 3,093 6,408
Equipment and leasehold improvements, net of accumulated
depreciation 192 253 Other assets 276 283 Total assets $3,561
$6,944 LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities:
Bank debt $585 $ - Convertible debt, net of discount 7,922 -
Accounts payable and accrued expenses 4,190 4,934 Deferred revenue
3,397 3,233 Total current liabilities 16,094 8,167 Long-term
convertible debt, net of discount - 7,037 Long-term deferred
revenue 168 120 Other long-term liabilities 51 212 Total long-term
liabilities 219 7,369 Stockholders' deficit (12,752) (8,592) Total
liabilities and stockholders' deficit $3,561 $6,944 The financial
information included in this document is intended only as summary
provided for your convenience, and should be read in conjunction
with the complete consolidated financial statements of the Company
(including the Notes thereto, which set forth important
information) contained in its Reports on Form 10-K and 10-Q filed
and to be filed by the Company with the U.S. Securities and
Exchange Commission (SEC). Such reports are available on the public
EDGAR electronic filing system maintained by the SEC. AXS-ONE INC.
AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (In
thousands, except per share data) (Unaudited) Three Months Ended
Six Months Ended June 30, June 30, 2008 2007 2008 2007 Revenues:
License fees $1,058 $505 $2,543 $2,301 Services 2,343 2,013 4,752
3,911 Total revenues 3,401 2,518 7,295 6,212 Operating expenses:
Cost of license fees 76 124 186 245 Cost of services 1,120 1,460
2,359 2,831 Sales and marketing 1,798 1,937 3,480 4,059 Research
and development 1,442 1,518 2,932 3,180 General and administrative
1,072 1,067 2,197 2,261 Total operating expenses 5,508 6,106 11,154
12,576 Operating loss (2,107) (3,588) (3,859) (6,364) Other income
(expense): Interest income 3 45 20 114 Interest expense (502) (89)
(948) (120) Other income (expense), net 34 (25) 10 52 Total other
income (expense), net (465) (69) (918) 46 Loss before income taxes
(2,572) (3,657) (4,777) (6,318) Income tax provision (47) - (47) -
Net loss $(2,525) $(3,657) $(4,730) $(6,318) Basic & diluted
net loss per common share: $(0.07) $(0.10) $(0.12) $(0.18) Weighted
average basic & diluted common shares outstanding 37,923 34,874
37,874 34,805 The unaudited financial information included in this
document is intended only as summary provided for your convenience,
and should be read in conjunction with the complete consolidated
financial statements of the Company (including the Notes thereto,
which set forth important information) contained in its Reports on
Form 10-K and 10-Q filed and to be filed by the Company with the
U.S. Securities and Exchange Commission (SEC). Such reports are
available on the public EDGAR electronic filing system maintained
by the SEC. DATASOURCE: AXS-One Inc. CONTACT: Joseph Dwyer of
AXS-One Inc., +1-201-935-3400, ; or IR, Brett Maas of Hayden
Communications, +1-646-536-7331, for AXS-One Inc. Web site:
http://www.axsone.com/
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