Sate International Inc. develops markets and supports front-office solutions for the Customer Relationship Management software market. The company\'s client/server and host-based applications are designed specifically for organizations for which field service and customer support are considered mission critical aspects of business operations. The Company\'s solutions have demonstrated quantifiable cost efficiency and service improvements in large enterprise environments that require sophisticated management of inventory and customer support resources. Astea International Inc. has a market cap of $9.7 million; its shares were traded at around $2.74 with and P/S ratio of 0.4.
Highlight of Business Operations:For the three months ended June 30, 2009 and 2008, the Company recognized $4,931,000 and $5,471,000, respectively, of revenue related to software license fees and service and maintenance. For the six months ended June 30, 2009 and 2008, the Company recognized $9,715,000 and $12,497,000 respectively, of revenue related to software license fees and service and maintenance.
The accounts of the international subsidiaries and branch operations are translated in accordance with SFAS No. 52, “Foreign Currency Translation,” which requires that assets and liabilities of international operations be translated using the exchange rate in effect at the balance sheet date. The results of operations are translated at average exchange rates during the year. The effects of exchange rate fluctuations in translating assets and liabilities of international operations into U.S. dollars are accumulated and reflected as a currency translation adjustment in the accompanying consolidated statements of stockholders equity. Transaction gains and losses are included in net (loss). General and administrative expenses include exchange gains (losses) of ($30,000) and $80,000 for the six months ended June, 2009 and 2008, respectively.
On September 24, 2008 the Company issued 826,446 shares of Series-A Convertible Preferred Stock (“preferred stock”) to its Chief Executive Officer at a price of $3.63 per share for a total of $3,000,000. Dividends accrue daily on the preferred stock at an initial rate of 6% and is payable only when, as and if declared by the Company s Board of Directors, quarterly in arrears.
Revenues decreased $540,000 or 10%, to $4,931,000 for the three months ended June 30, 2009 from $5,471,000 for the three months ended June 30, 2008. Software license fee revenues decreased $322,000, or 76%, from the same period last year. Services and maintenance fees for the three months ended June 30, 2009 amounted to $4,831,000, a 4% decrease from the same quarter in 2008.
Software license fee revenues decreased 76% to $100,000 in the second quarter of 2009 from $422,000 in the second quarter of 2008. Astea Alliance license revenues decreased $294,000 or 75%, to $100,000 in the second quarter of 2009 from $394,000 in the second quarter of 2008. The overall decrease in license revenue is attributable primarily to lower than expected sales in the United States and Europe during the second quarter due to extended sales cycles resulting from the overall economic slowdown. The Company did not sell any software licenses from its FieldCentrix subsidiary in the second quarter of 2009 compared to sales of $28,000 in the same quarter of 2008. Additionally, the company did not sell any DISPATCH-1 licenses during the three months ended June 30, 2009 and 2008.
Services and maintenance revenues were $4,831,000 in the second quarter of 2009 compared to $5,049,000 in the second quarter of 2008, a decrease of 4%. Astea Alliance service and maintenance revenues decreased by $111,000 or 3% compared to the second quarter of 2008. The decrease resulted from reduced demand from European customers. Service and maintenance revenues from our FieldCentrix subsidiary decreased by $137,000 or 11% during the same period in 2008. The decrease is the result of decreased license sales. DISPATCH-1 service and maintenance revenues increased $30,000 to $114,000 from $84,000 in th
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