SOURCE: Enterprise Informatics Inc.

May 15, 2007 08:00 ET

Enterprise Informatics Announces Second Quarter 2007 Results

Highlights: Revenue Up 84% vs. 2006 Quarter; License Revenue Up 250% vs. 2006 Quarter; EBITDA Up $1.6 Million vs. 2006 Quarter

SAN DIEGO, CA -- (MARKET WIRE) -- May 15, 2007 -- Enterprise Informatics Inc. (OTCBB: SPCO), a leading provider of enterprise information management solutions, today reported results of operations for its second quarter of fiscal 2007 ended March 31, 2007.

Revenues for the second quarter of FY2007 were $3.78 million versus $1.73 million reported in the previous quarter and $2.06 million in the same period a year ago. Earnings before interest, taxes, depreciation, amortization and stock compensation expense ("EBITDA") for the second quarter of FY2007 were $1,605,000, or $0.04 and $0.02 per share on a basic and diluted basis, respectively. These results compare to EBITDA of $100,000 or $0.00 per share the previous quarter and $30,000, or $0.00 per share, for the same quarter a year ago.

Net income available to common shareholders for the second quarter was $1,386,000 or $0.04 and $0.02 per share on a basic and diluted basis, respectively versus a net loss in the previous quarter of ($117,000) or ($0.00) per share and a net loss of ($700,000), or ($0.02) per share in the prior year.

"A profitable quarter provides momentum as we focus the company on compliance solutions under its new corporate name Enterprise Informatics," stated Alan Kiraly, Chief Executive Officer. The quarter results included license revenue of $2 million from the technology licensing contract announced last October. "Providing technology to one of the world's foremost and fastest-growing lifecycle engineering IT and services company confirms our leadership and ability to provide superior solutions in the Enterprise Information Management (EIM) market," Kiraly added.

About Enterprise Informatics

Enterprise Informatics (formerly Spescom Software Inc.) is a leading provider of enterprise information management solutions that enable organizations to reduce the cost of meeting compliance requirements, minimize business risk and optimize process efficiency. Enterprise Informatics advanced software product, eB, ensures the integrity of the controlled information by uniquely managing the connectivity to all relevant information such as documents, records, assets, people, processes and projects -- creating an ecosystem for the rapid access of accurate information in context. eB vastly improves the integrity, visibility and access to all relevant information at the time it is needed.

Key customers include Entergy, NuStart Energy, Constellation Energy, Florida Power & Light, Continental Express, Ameren UE, City of Dayton, Lloyds Register of Shipping, Northeast Utilities, Network Rail, Aker Kvaerner, City of Las Vegas, City of Winston Salem, Fayetteville Public Works Commission and many others. www.enterpriseinformatics.com

Except for historical information contained herein, the matters set forth in this release include forward-looking statements that are dependent on certain risks and uncertainties, including such factors, among others, as market acceptance, market demand, pricing, changing regulatory environment, the effect of the company's accounting policies, potential seasonality and other risk factors detailed in the Company's SEC filings.


ENTERPRISE INFORMATICS INC.
Consolidated Statements of Operations
(Unaudited)


                         For the three months       For the six months
                           ended March 31,            ended March 31,
                       ------------------------   ------------------------
                           2007         2006          2007         2006
                       -----------  -----------   -----------  -----------
Revenues:
  Licenses             $ 2,282,000  $   652,000   $ 2,672,000  $ 1,216,000
  Services and other     1,499,000    1,408,000     2,836,000    2,676,000
                       -----------  -----------   -----------  -----------
Total revenues          3,781,0000    2,060,000     5,508,000    3,892,000
                       -----------  -----------   -----------  -----------

Cost of revenues:
  Licenses                  59,000       72,000        97,000      194,000
  Services and other       673,000      721,000     1,264,000    1,261,000
                       -----------  -----------   -----------  -----------
Total cost of revenues     732,000      793,000     1,361,000    1,455,000
                       -----------  -----------   -----------  -----------

Gross profit             3,049,000    1,267,000     4,147,000    2,437,000
                       -----------  -----------   -----------  -----------

Operating expenses:
  Research and
   development             305,000      282,000       563,000      485,000
  Marketing and sales      581,000      685,000     1,041,000    1,338,000
  General and
   administrative          624,000      353,000       992,000      794,000
                       -----------  -----------   -----------  -----------
Total operating
 expenses                1,510,000    1,320,000     2,596,000    2,617,000
                       -----------  -----------   -----------  -----------

Income (loss) from
 operations              1,539,000      (53,000)    1,551,000     (180,000)

Interest and other
 income                          -        4,000             -        4,000
Interest and other
 expense                   (62,000)     (53,000)     (125,000)    (105,000)
                       -----------  -----------   -----------  -----------
Net income (loss)        1,477,000     (102,000)    1,426,000     (281,000)

Provision for income
 taxes                     (25,000)           -       (25,000)           -
                       -----------  -----------   -----------  -----------

Net income (loss)        1,452,000     (102,000)    1,401,000     (281,000)

Deemed preferred
 dividend                        -     (500,000)            -   (1,000,000)
                       -----------  -----------   -----------  -----------
Net income (loss)
 available after
 deemed preferred
 dividend                1,452,000     (602,000)    1,401,000   (1,281,000)

Cumulative preferred
 dividends                 (66,000)     (98,000)     (132,000)    (186,000)
                       -----------  -----------   -----------  -----------
Net income (loss)
 available to common
 shareholders          $ 1,386,000  $  (700,000)  $ 1,269,000  $(1,467,000)
                       ===========  ===========   ===========  ===========

Earnings (loss) per
 share:
  Basic                $      0.04  $     (0.02)  $      0.03  $     (0.04)
                       ===========  ===========   ===========  ===========
  Diluted              $      0.02  $     (0.02)  $      0.02  $     (0.04)
                       ===========  ===========   ===========  ===========

Weighted average
 shares outstanding:
  Basic                 37,144,000   36,895,000    37,144,000   36,857,000
                       ===========  ===========   ===========  ===========
  Diluted               82,695,000   36,895,000    59,920,000   36,857,000
                       ===========  ===========   ===========  ===========



ENTERPRISE INFORMATICS INC.
Consolidated Balance Sheets

                                         March 31,  September 30,
                                           2007         2006
                                        -----------  -----------
                                        (unaudited)
ASSETS

  Current assets:
    Cash                                $   749,000  $    95,000
    Receivables, net                      1,036,000      854,000
    Other current assets                    191,000      190,000
                                        -----------  -----------
      Total current assets                1,976,000    1,139,000

  Property and equipment, net               149,000      131,000
  Computer software, net                    373,000      425,000
  Other assets                                5,000       28,000
                                        -----------  -----------
        Total assets                    $ 2,503,000  $ 1,723,000
                                        ===========  ===========




LIABILITIES AND SHAREHOLDERS' DEFICIT

  Current liabilities:
    Accounts payable                    $   482,000  $   792,000
    Payable to Spescom Ltd.                       -      550,000
    Notes and accrued interest payable
     to Spescom Ltd.                        675,000            -
    Preferred stock dividend payable
     to Spescom Ltd.                      1,056,000      887,000
    Accrued liabilities                   1,499,000    1,446,000
    Lease obligation - current portion       38,000       44,000
    Deferred revenue                      2,901,000    2,752,000
    Series I redeemable preferred stock           -    2,450,000
                                        -----------  -----------
      Total current liabilities           6,651,000    8,921,000

  Notes and accrued interest payable
   to Spescom Ltd.                                -      664,000
  Lease obligation                            3,000       16,000
                                        -----------  -----------
      Total liabilities                   6,654,000    9,601,000

      Total shareholders' deficit        (4,151,000)  (7,878,000)
                                        -----------  -----------
        Total liabilities and
         shareholders' deficit          $ 2,503,000  $ 1,723,000
                                        ===========  ===========


EBITDA Calculation
(unaudited)

                         For the three months       For the six months
                           ended March 31,            ended March 31,
                       ------------------------   ------------------------
                           2007         2006          2007         2006
                       -----------  -----------   -----------  -----------

Income (loss) from
 operations            $ 1,539,000  $   (53,000)  $ 1,551,000  $  (180,000)
Add back:
  Depreciation and
   amortization             41,000       45,000        86,000       67,000
  FAS 123R stock
   compensation expense     25,000       38,000        67,000       92,000
                       -----------  -----------   -----------  -----------
EBITDA excluding
 FAS 123R stock
 compensation
 expense               $ 1,605,000  $    30,000   $ 1,704,000  $   (21,000)
                       ===========  ===========   ===========  ===========
EBITDA per common
 share
  Basic                $      0.04  $      0.00   $      0.05  $     (0.00)
                       ===========  ===========   ===========  ===========
  Diluted              $      0.02  $      0.00   $      0.03  $     (0.00)
                       ===========  ===========   ===========  ===========

Shares used in
 computing EBITDA
 per common share
  Basic                 37,144,000   36,895,000    37,144,000   36,857,000
                       ===========  ===========   ===========  ===========
  Diluted               82,695,000   36,895,000    59,920,000   36,857,000
                       ===========  ===========   ===========  ===========

Contact Information


  • COMPANY CONTACT:
    Alan Kiraly, CEO
    John Low, CFO
    (858) 625-3000