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Astea International Inc. Message Board

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  • jimturner54321 jimturner54321 Jun 7, 2004 8:12 PM Flag

    Re: Leviticus Capital sold

    This post sums it up well:

    Re: Leviticus Capital sold
    by: good_inv (37/M/NY) 06/07/04 12:57 pm
    Msg: 3897 of 3906

    I should agree with you, I missed Leviticus first filings. They did a great job.
    I'm happy for them they have enough insane buyers to let them get out with a huge profit.
    Regarding Astea itself.
    Here is a simple revenue recognition trick.
    Lets see ATEA's license revenues in last years:
    2000 - $6.6M
    2001 - $6.4M
    2002 - $6.5M
    2003 - $1.9M
    Then CEO gives a hint releasing 2003 results:
    license revenues for 1q04 will be higher than all 2003 license revenues (which are 70% below of 3-year average).
    Now company 'beats' the guidance reporting $2.8M licenses, third of it from one customer.
    I do believe ATEA's business improving in 2004. But, obviously, all excitement produced from 'underperforming' and 'overperforming'
    isn't a way to attract serious investors.
    Company didn't give any future guidance.
    It's fine to make $1.5M a quarter for 10M company. It wasn't a fun to lose $5.5M in previous 4 quarters.
    ATEA CEO (an owner of half of outstanding)made a great attempt to boost stock price and without guidance there are 2 months at least before investors can find out how sustainable Astea's momentum.
    My guess in these months they will make all possible attempts to use high valuation for raising money, to cash out (half to CEO pocket) revenues recognition trick.

 
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