SOURCE: Enterprise Informatics, Inc

August 14, 2007 11:18 ET

Enterprise Informatics Announces Third Quarter 2007 Results

Highlights: Revenue Up 15% vs. 2006 Quarter; EBITDA $129,000 vs. 2006 Quarter Loss

SAN DIEGO, CA--(Marketwire - August 14, 2007) - Enterprise Informatics Inc. (OTCBB: EPRS), a leading provider of enterprise information management solutions, today reported results of operations for its third quarter of fiscal 2007 ended June 30, 2007.

Revenues for the third quarter of FY2007 were $1.8 million versus $1.5 million in the same period a year ago. Earnings before interest, taxes, depreciation, amortization and stock compensation expense ("EBITDA") for the third quarter of FY2007 were $129,000, or $0.00 per share. These results compare to EBITDA loss of ($240,000) or ($0.01) per share for the same quarter a year ago.

Net loss available to common shareholders for the second quarter was ($54,000) or $0.00 on a basic and diluted basis, respectively versus a net loss of ($539,000) or ($0.01) per share in the prior year.

Revenues for the first nine months of FY2007 were $7.3 million versus $5.4 million reported in the same period a year ago. Earnings before interest, taxes, depreciation, amortization and stock compensation expense ("EBITDA") for the nine months of FY2007 were $1,833,000, or $0.05 and $0.03 per share on a basic and diluted basis, respectively. These results compare to an EBITDA loss of ($255,000) or ($0.01) per share for the same quarter a year ago.

Net income available to common shareholders for the nine months of FY 2007 was $1,215,000 or $0.03 and $0.02 per share on a basic and diluted basis, respectively versus a net loss of ($2,006,000) or ($0.05) per share in the prior year.

"Our third quarter results continue to demonstrate our progress as shown by the revenue growth, improvement in gross profit percentages and positive EBITDA versus the results a year ago," stated Alan Kiraly, Chief Executive Officer. "In addition to our improved operating position, this year we launched the Company as Enterprise Informatics, positioned ourselves as a significant player in the Enterprise Information Management (EIM) market and certified our flagship product eB for Microsoft Windows Vista. We plan to capitalize on this momentum as we continue to focus on our primary vertical markets of energy, local government and engineering/construction," 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 nine months
                        ended June 30,              ended June 30,
                  --------------------------  --------------------------
                      2007          2006          2007          2006
                  ------------  ------------  ------------  ------------
Revenues:
  Licenses        $    126,000  $    255,000  $  2,798,000  $  1,471,000
  Services and
   other             1,638,000     1,278,000     4,474,000     3,954,000
                  ------------  ------------  ------------  ------------
Total revenues      1,764,0000     1,533,000     7,272,000     5,425,000
                  ------------  ------------  ------------  ------------

Cost of revenues:
  Licenses              30,000        78,000       127,000       272,000
  Services and
   other               605,000       542,000     1,869,000     1,803,000
                  ------------  ------------  ------------  ------------
Total cost of
 revenues              635,000       620,000     1,996,000     2,075,000
                  ------------  ------------  ------------  ------------

Gross profit         1,129,000       913,000     5,276,000     3,350,000
                  ------------  ------------  ------------  ------------

Operating
 expenses:
    Research and
     development       257,000       289,000       820,000       774,000
    Marketing and
     sales             430,000       553,000     1,471,000     1,891,000
    General and
     administrat-
     ive               373,000       441,000     1,365,000     1,235,000
                  ------------  ------------  ------------  ------------
Total operating
 expenses            1,060,000     1,283,000     3,656,000     3,900,000
                  ------------  ------------  ------------  ------------

Income (loss)
 from operations        69,000      (370,000)    1,620,000      (550,000)

Interest and
 other income                -             -             -         4,000
Interest and
 other expense         (57,000)      (72,000)     (182,000)     (177,000)
                  ------------  ------------  ------------  ------------
Net income (loss)       12,000      (442,000)    1,438,000      (723,000)

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

Net income (loss)       12,000      (442,000)    1,413,000      (723,000)

Deemed preferred
 dividend                    -             -             -    (1,000,000)
                  ------------  ------------  ------------  ------------
Net income (loss)
 available after
 deemed preferred
 dividend               12,000      (442,000)    1,413,000    (1,723,000)

Cumulative
 preferred
 dividends             (66,000)      (97,000)     (198,000)     (283,000)
                  ------------  ------------  ------------  ------------
Net income (loss)
 available
 to common
 shareholders     $    (54,000) $   (539,000) $  1,215,000  $ (2,006,000)
                  ============  ============  ============  ============

Earnings (loss)
 per share:
   Basic          $      (0.00) $      (0.01) $       0.03  $      (0.05)
                  ============  ============  ============  ============

   Diluted        $      (0.00) $      (0.01) $       0.02  $      (0.05)
                  ============  ============  ============  ============

Weighted average
 shares
 outstanding:
   Basic            37,504,000    36,895,000    37,264,000    36,869,000
                  ============  ============  ============  ============

   Diluted          37,504,000    36,895,000    52,448,000    36,869,000
                  ============  ============  ============  ============


ENTERPRISE INFORMATICS INC.
Consolidated Balance Sheets



                                               June 30,     September 30,
                                                 2007            2006
                                            --------------  --------------
                                              (unaudited)
ASSETS
Current assets:

Cash                                        $      706,000  $       95,000
Receivables, net                                   681,000         854,000
Other current assets                               217,000         190,000
                                            --------------  --------------
Total current assets                             1,604,000       1,139,000

Property and equipment, net                        143,000         131,000
Computer software, net                             347,000         425,000
Other assets                                        26,000          28,000
                                            --------------  --------------
Total assets                                $    2,120,000  $    1,723,000
                                            ==============  ==============




LIABILITIES AND SHAREHOLDERS' DEFICIT

Current liabilities:
Accounts payable                            $      440,000  $      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.                                            1,144,000         887,000
 Accrued liabilities                             1,348,000       1,446,000
Lease obligation - current portion                  30,000          44,000
Deferred revenue                                 2,622,000       2,752,000
Series I redeemable preferred stock                      -       2,450,000
                                            --------------  --------------
Total current liabilities                        6,259,000       8,921,000

Notes and accrued interest payable to
 Spescom Ltd.                                            -         664,000
Lease obligation                                         -          16,000
                                            --------------  --------------

Total liabilities                                6,259,000       9,601,000

Total shareholders' deficit                     (4,139,000)     (7,878,000)
                                            --------------  --------------

Total liabilities and shareholders' deficit $    2,120,000  $    1,723,000
                                            ==============  ==============



EBITDA Calculation
(unaudited)


                          For the three months      For the nine months
                             ended June 30,            ended June 30,
                        ------------------------- -------------------------
                            2007         2006         2007         2006
                        ------------ -----------  ------------ -----------

  Income (loss) from
   Operations           $     69,000 $  (370,000) $  1,620,000 $  (550,000)

  Add back:
     Depreciation and
      amortization            44,000      45,000       130,000     118,000
     FAS 123R stock
      compensation
      expense                 16,000      85,000        83,000     177,000
                        ------------ -----------  ------------ -----------

EBITDA excluding FAS
 123R stock
 compensation expense   $    129,000 $  (240,000) $  1,833,000 $  (255,000)
                        ============ ===========  ============ ===========

EBITDA  per common
 share

    Basic               $       0.00 $     (0.01) $       0.05 $     (0.01)
                        ============ ===========  ============ ===========
    Diluted             $       0.00 $     (0.01) $       0.03 $     (0.01)
                        ============ ===========  ============ ===========

Shares used in
 computing EBITDA
 per common share
   Basic                  37,504,000  36,895,000    37,264,000  36,869,000
                        ============ ===========  ============ ===========
   Diluted                37,504,000  36,895,000    52,448,000  36,869,000
                        ============ ===========  ============ ===========

Contact Information

  • Company Contact:
    Alan Kiraly, CEO
    John Low, CFO
    (858) 625-3000