Segue Software Announces Profitable First Quarter LEXINGTON, Mass.,
April 28 /PRNewswire-FirstCall/ -- Segue Software, Inc.
(Nasdaq-SCM: SEGU), the leaders in software quality optimization,
today announced financial results for the first quarter ended March
31, 2004. For the first quarter ended March 31, 2004, the Company
reported $8.0 million in revenue as compared to revenue of $7.5
million for the first quarter ended March 31, 2003. The revenue for
the first quarter of 2004 represents a six percent increase over
revenue for the fourth quarter of 2003. The Company reported net
income applicable to common shares for the first quarter ended
March 31, 2004, of $171,000, or $0.02 basic and fully diluted
income per share. This compares to a net loss applicable to common
shares of $125,000, or a $0.01 loss per share, for the same period
last year. The Company's cash balance at March 31, 2004 was $8.4
million, up from $7.5 million at December 31, 2003 and from $6.0
million at March 31, 2003. "During the first quarter, we focused on
our three strategic priorities: profitable revenue growth;
market-driven product innovations; and, a focus on selective
partnerships and alliances," stated Segue Software CEO Joseph
Krivickas. "We are seeing the early results from the Company's
alignment to and execution of these strategic priorities. We
achieved profitability while growing revenue. We advanced our Silk
products and technologies. And, we announced partnerships with
palmOne, PeopleSoft and Keynote." As previously announced, the
Company will hold a conference call today at 4:45 p.m. EDT to
discuss financial results. Investors, securities analysts and other
interested parties who would like to participate in the call should
dial 1-888-423-3275 (U.S. only). Investors from outside the United
States dial +1-651-291-0561. A replay of the call will be available
for two weeks following the call and can be accessed by dialing
1-800-475-6701 (domestic) or +1-320-365-3844 (international) and
enter access code 728279. A live webcast and replay of the webcast
will be available at the investor relations section at
http://www.segue.com/. The webcast replay will be available
following completion of the live call and for one year thereafter
on Segue's Web site. About Segue Software Segue Software, Inc.
(Nasdaq-SCM: SEGU) is a global expert in delivering solutions to
define, measure, manage and maintain software quality throughout
the entire software application lifecycle. Segue's Quality
Optimization solutions help companies reduce business risk, ensure
the deployment of high quality software and increase return on
investment. Leading businesses around the world, including many of
the Fortune 500, rely on Segue's innovative Silk family of products
to protect their business service levels, competitive edge and
brand reputation. Headquartered in Lexington, Mass., with offices
across North America and Europe, Segue can be reached at
+1-781-402-1000 or http://www.segue.com/. This press release may
contain forward-looking statements, such as our focus in 2004.
Forward looking statements are statements which contain predictions
or projections of future events or performance, and often contain
words such as "anticipates," "can," "estimates," "believe,"
"expects," "projects," "will," "might," or other words indicating a
statement about the future. The Company notes that any such
forward-looking statements are subject to change and are not
guarantees of future performance, and that actual results may
differ materially from any such predictions or projections, based
on various important factors and including, without limitation, the
ability of the Company to continue to achieve positive cash flow
and sustain profitability in this difficult economic and business
climate; the ability of the Company to close large enterprise
orders; the Company's transition to a new management team; the
timing and success of introductions of our new products; continued
growth in license revenue; new products and announcements from
other companies; the Company's continued access to capital; and
changes in technology and industry standards. Additional
information on the factors that could affect the Company's business
and financial results is included in the Company's periodic reports
filed with the Securities and Exchange Commission. Editorial
Contacts: Heidi Gilmore Erica McShane Segue Software, Inc. PAN
Communications +1.781.402.1000 +1.978.474.1900 Segue Software, Inc.
Consolidated Condensed Balance Sheets (In thousands, except per
share data) (Unaudited) March 31, December 31, 2004 2003 ASSETS
Current assets: Cash and cash equivalents $8,383 $7,495 Accounts
receivable, net of allowances of $244 and $268, respectively 5,053
5,607 Other current assets 884 1,021 Total current assets 14,320
14,123 Property and equipment, net 917 1,069 Goodwill, net 1,506
1,506 Other assets 946 939 Total assets $17,689 $17,637 LIABILITIES
AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $490
$1,004 Accrued compensation and benefits 1,499 1,931 Accrued lease
obligations on excess space 1,444 1,554 Accrued expenses 954 851
Deferred revenue 9,504 9,015 Total current liabilities 13,891
14,355 Stockholders' equity: Preferred stock, par value $.01 per
share; 9,000 shares authorized; 819 and 819 shares of Series B and
508 and 508 shares of Series C preferred stock issued and
outstanding, respectively 3,963 3,884 Common stock, par value $.01
per share; 30,000 shares authorized; 10,035 and 9,926 shares
issued, respectively 100 100 Additional paid-in capital 58,349
58,160 Cumulative translation adjustment 278 309 Unearned
Compensation (59) - Accumulated deficit (58,233) (58,571) 4,398
3,882 Less treasury stock, at cost, 145 shares (600) (600) Total
stockholders' equity 3,798 3,282 Total liabilities and
stockholders' equity $17,689 $17,637 Segue Software, Inc.
Consolidated Condensed Statements of Operations (In thousands,
except per share data) (Unaudited) Three Months Ended March 31,
2004 2003 Revenue: Software $3,575 $3,319 Services 4,471 4,184
Subtotal revenue 8,046 7,503 Less vendor consideration to a
customer (22) (37) Net revenue 8,024 7,466 Cost of revenue: Cost of
software 85 64 Cost of services 1,312 1,309 Total cost of revenue
1,397 1,373 Gross margin 6,627 6,093 Operating expenses: Sales and
marketing 3,472 3,559 Research and development 1,650 1,458 General
and administrative 1,182 1,063 Total operating expenses 6,304 6,080
Income (Loss) from operations 323 13 Other Income 20 - Interest
Income 21 13 Income (Loss) before provision for income taxes 364 26
Provision for income taxes 26 97 Net income (loss) 338 (71)
Dividends due on preferred stock (167) (54) Net income (loss)
applicable to common shares $171 $(125) Net income (loss) per share
- Basic $0.02 $(0.01) Net income (loss) per share - Diluted $0.02
$(0.01) Weighted average common shares outstanding - Basic 9,832
9,659 Weighted average common shares outstanding - Diluted* 10,571
9,659 *The assumed conversion of preferred shares into common
shares is not included because their inclusion would be
anti-dilutive. DATASOURCE: Segue Software, Inc. CONTACT: Heidi
Gilmore of Segue Software, Inc., +1-781-402-1000, ; or Erica
McShane of PAN Communications, +1-978-474-1900, Web site:
http://www.segue.com/
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