SOURCE: Aspect Software

November 14, 2006 08:00 ET

Aspect Software Continues Positive Momentum in Third Quarter

Success Driven by New Partners, New Logo Wins and New Product Releases

WESTFORD, MA -- (MARKET WIRE) -- November 14, 2006 -- Aspect Software, Inc., the world's largest company solely focused on the contact center, announced today results for its third quarter, ending September 30, 2006.

Aspect Software continued its sequential quarterly revenue growth in 2006 as revenue for the third quarter was $154.1 million, an increase of $4.4 million from the second quarter. The growth in third quarter revenue was attributable to a 10 percent increase in product revenue, resulting in $55 million of total product revenue. The strong growth in product revenue also contributed to the company's continued profitability from operations. The Aspect Software balance sheet remained strong; cash and short-term investments totaled $89.0 million at the end of the quarter.

Also of note, demand in International regions continues to be solid. The Southern European region posted a record quarter due to particular interest in the company's voice self service and enterprise management products. India also continues to see growth in its region resulting from demand for the unified products.

"Aspect Software remains in a very good position. We have achieved profitability from operations every quarter since the merger in 2005 and the company continues to gain positive momentum, both financially and as a thought leader in the contact center industry," said Jim Foy, president and chief executive officer of Aspect Software. "This strength has allowed us to further our investments in R&D and support services to continue enhancing the value we bring to our customers.

"In addition, the fourth quarter has traditionally been our strongest quarter of the year," said Foy. "I again expect to see quarter-on-quarter growth as Aspect Software closes out the year."

Expanding the Customer Base

Aspect Software added 36 new logo companies to its global customer base in the third quarter. That list includes:

--  Jewelry Television, a Knoxville, Tenn. company, which has selected
    Aspect® eWorkforce Management™ from the Contact Center Performance
    Optimization product line for use in its customer service contact center.
    
--  Mode Tour, one of the largest travel agencies in Asia-Pacific, is
    implementing Aspect EnsemblePro to manage inbound and outbound customer
    service and sales interactions.
    
--  Metanet, a Korea-based outsourcer, which has chosen Aspect®
    EnsemblePro™ from the Unified IP product line to enhance its sales
    processes.
    
--  Nous Infosystems, a global software supplier, which has chosen Aspect
    EnsemblePro to facilitate its customer service and telemarketing processes.
    
Product Momentum

In the third quarter, Aspect Software also brought to market a number of new releases of its award-winning products, including:

--  Aspect eWorkforce Management 7.0, now supporting inbound, outbound and
    blended contact center environments in eight languages, as well as offering
    enhanced intuitive navigational functionality and data manipulation with a
    new user-friendly GUI interface -- resembling Microsoft® Outlook®.
    
--  Aspect Customer Self Service 7.2, a VoiceXML 2.1-enabled, software-
    only SIP or TDM solution with all the benefits of traditional interactive
    voice response (IVR) and state-of-the-art voice portals that can integrate
    easily with contact center products from Aspect and other vendors.
    
--  Aspect® Enterprise Contact Server™ 6.2 and Aspect® Contact
    Server™ 6.2 blend advanced routing and CTI capabilities from Aspect®
    Uniphi Suite™ while adding increased availability and security.
    
--  Aspect® Quality Management™ 2.5.1, a solution that simplifies the
    call recording and quality management process and offers tight integrations
    to Aspect Software Signature automatic call distributors (ACDs).
    
Partners and Patents

Aspect Software continued to build strategic relationships with distributors, signing nine new channel partners in the third quarter. The agreements with these companies, including a new business agreement signed with IBM Australia, are helping Aspect Software to extend its market reach and customer base. The company also continues its emphasis on innovation with a strategic focus on enhancing its product lines' capabilities. In the third quarter, Aspect Software continued to expand its patent portfolio with the award of a number of new patents, bringing its total to more than 600 global contact center patents.

Strong Industry Recognition

Aspect Software had significant industry and media recognition in the third quarter:

--  TMC Labs Innovation Award from the Technology Marketing Association
    for Aspect eWorkforce Management. This award recognizes the industry's
    truly unique and innovative products and services. Its sole purpose is to
    distinguish solutions that have unique features and that often help to
    carve out a new market niche or start a trend.
    
--  Growth Strategy Leadership Award from Frost & Sullivan for market
    presence and leadership in the Asia Pacific region. The award recognizes
    Aspect Software for its implementation of unique and innovative strategies
    to penetrate the market and acquire new customers in 2005.
    
--  IP Contact Center Technology Pioneer Award from Customer Interaction
    Solutions for the Asterisk Business Edition IP PBX. The IP Contact Center
    Pioneer Award recognizes companies that have created successful IP contact
    center products and services that are truly innovative.
    
About Aspect Software

Aspect Software, Inc. founded the contact center industry and is now the world's largest company solely focused on Internet Protocol (IP) and traditional voice-based products and services for customer service, collections, and sales and telemarketing business processes. Each day, Aspect Software powers more than 125 million customer-company interactions at thousands of in-house and outsourced contact centers around the globe. Its trusted Signature product line offers automatic call distributors (ACDs), dialers, voice portals and computer telephony integration (CTI). The company's leading Contact Center Performance Optimization product line provides workforce management, quality management, performance management and interaction optimization applications. And, its pioneering Unified IP Contact Center product line delivers a comprehensive, multichannel solution. Headquartered in Westford, Mass., Aspect Software has operations across the Americas, Europe, Africa, the Middle East and Asia Pacific. For more information, visit www.aspect.com.

Aspect, Aspect Software, eWorkforce Management, Customer Self Service, Enterprise Contact Server, Contact Server, Spectrum ACD, CallCenter ACD and Quality Management are either trademarks or registered trademarks of Aspect Software, Inc., in the United States and/or other countries. The names of other companies and products mentioned herein may be the trademarks of their respective owners.

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