Boston, MA 04/01/2014 (wallstreetpr) – Providing cloud-based solutions is the business activity of Astea International Inc. (NASDAQ:ATEA). While the company is still struggling with losses as reported in the most recent quarter, the management noted that there was an interesting reception for their new cloud-based solutions in the market. But just how promising can the business be and can the company rely on it for achieving top line improvement going forward? We probe this by looking into what the CEO Zack Bergreen said about the business at the recent financial results call.
According to the CEO, ATEA has over the past year witnessed most of its sales being driven by new customer engagements. The reason for this is that the company has positioned itself to respond to the very demands of the customers. Thus, the company provides a range of on-premise and hosted solutions, just to ensure that its customers get the perfect match for their IT strategies. Moreover, the CEO believes that being a uniquely qualified provider of cloud solutions, there products have been of significant support to organizations in critical-mission.
Thus, Mr. Bergreen is of the view that as Astea International Inc. (NASDAQ:ATEA) pursues a path that is increasingly differentiating it as a leading provider of unrivaled cloud solutions, their expertise should be able to build up advantages over the years and driving acquisition of future markets and success.
While the saying is good, results differed
Astea International Inc. (NASDAQ:ATEA) reported its fourth quarter and fiscal 2013 results Monday. The results were soaked in losses and underperforming revenue figures. The company generated revenue of $5 million, failing to match the $6.5 million revenue which was realized in 2012. As for the loss, the company suffered net loss of $1 million or loss per share of 28 cents. That was a far cry from the positive net income of $0.6 million or 16 cents per share.
Full-year 2013 financial results
For the full-year 2013, Astea International Inc. (NASDAQ:ATEA) reported revenue in the tune of $20.3 million, that was below the $26.4 million revenue realized in the full-year 2012. Besides the fall in revenue year-over-year, the company entered loss of $3.3 million or 92 cents per share in fiscal 2013. That contrasted with net loss of just $0.5 million or 15 cents per share in 2012.
Explaining the loss
Revenue from software licensing and service maintenance was generally down in both the fourth quarter and the full-year. This happened as the company dedicated a lot of focus and even resources to improve its product portfolio and solidify path to future markets. For that reason, the future results of Astea International Inc. (NASDAQ:ATEA) should be better than what has been seen the most recent quarters.