Astea International: 2Q Improvement; Fails To Meet Profitability Targets; Expects Strong 3Q
- ATEA reported a 10% sequential revenue growth and 38% lower losses. Software license revenues were $1.2M almost tripling 1Q 2014 license fees and 32% higher than the year ago quarter.
- The company failed to meet a key minimum profitability bank loan covenant target during the quarter, but it expects to meet the 3Q 2013 six-month trailing profitability target of $450K.
- The company expects a big 3Q 2014 because of deferred revenues, contracts that closed after the end of 2Q 2014, and contracts that they expected to close in 3Q 2014.