Spescom Software Reports Profitable First Quarter

Spescom Software Reports Profitable First Quarter 


SAN DIEGO, Feb. 13  /PRNewswire-FirstCall/ -- Spescom Software Inc.  (BULLETIN
BOARD: ALTS) , a leading provider of enterprise content and configuration
management solutions, today reported results ofoperations for its first quarter
ended December 31, 2003. Revenue for the first quarter ended December 31, 2003
was $2.1 million compared with $2.3 million for the same period of 2002.  Net
income was $11,000 or $0.00 per share for the quarter, compared with a net loss
of $62,000, or ($0.00) per share, for the same period of 2002.

"We were pleased with the results of the quarter, especially the 20% increase in
license revenues," said Mr. Mostert.  "Our recently announced contract win with
a leading East Coast utility not only had a positive effect on our quarterly
results, but it provides another significant reference account in the utility
industry.  One of our goals is to be the leading supplier of enterprise content
and configuration managementsoftware to the utility industry. By capturing 15%
of the nuclear power plant market we have made significant progress in achieving
this goal. I believe the overall market is continuing to slowly recover from the
recent economic downturn, and we have positioned Spescom to capitalize on future
opportunities."

About Spescom eB

eB is a registered trademark of Spescom Software Inc. eB comprises an extensive
set of software components that together form the foundation for an extremely
flexible and powerful information management platform.  eB's components include:
document management; requirements management; records management; item
management; change management; configuration management and workflow components.
 These components are tightly integrated with CAD, GIS, office and email
applications to capture and view information.  The full functionality of eB is
available via a set of API's that enable the rapid definition and deployment of
customer specific solutions and integration with other line-of-business
applications including ERP, CRM, SCM, maintenance management and project
management products.

About Spescom Software Inc.

Spescom Software (OTC:ALTS) (BULLETIN BOARD: ALTS)  delivers enterprise
eBusiness solutions that provide rapid access to accurate information in context
to assets, products and processes, resulting in improved customer satisfaction,
productivity and safety. It achieves this through a tightly integrated suite of
document, configuration and records management technologies that not only allows
it to capture and securely store information, but also organizes and structures
this information to place it in context.

Key customers include Ocean Energy, Continental Express, AmerenUE, City of
Winston-Salem, Sempra Energy, Bombardier, Entergy, Northeast Utilities, London
Underground, Railtrack, and many others.

  For further information visit us at http://www.spescomsoftware.com/

  Safe Harbor Statement


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, known and unknown, including such factors, among
others, as market acceptance, market demand for the Company's technologies and
services, pricing, changing regulatory environment, the effect of the company's
accounting policies, potential seasonality, industry trends, adequacy of the
financial resources to execute its business plan, the Company's ability to
attract, retain and motivate keytechnical, marketing and management personnel,
possible disruption in commercial activities occasioned by terrorist activity
and armed conflict, and other risk factors detailed in the Company's SEC
filings.  Such risks and uncertainties may cause actual results, performance or
achievement to be materially different from any future trends, results,
performance or achievements expressed or implied by these statements.  The
forward looking statements in this press release are based upon management's
current expectations and belief, which management believes are reasonable.  You
are cautioned not to place undue reliance on any forward- looking statements. 
The financial information contained in this release should be read in
conjunction with the consolidated financial statements and notes thereto
included in the Company's most recent reports on Form 10-K and Form 10-Q, each
as it may be amended from time to time.

                          SPESCOM SOFTWARE, INC.
                  Consolidated Statements of Operations

                                                 For the three months ended
                                                          December 31,
                                                      2003           2002
  Revenues:
 Licenses                                   $ 1,119,000       $921,000
    Services and other                           1,006,000      1,368,000
  Total revenues                                 2,125,000      2,289,000

  Cost of revenues:
    Licenses                                       101,000        275,000
    Services and other                             553,000        566,000
  Total cost of revenues                           654,000        841,000

  Gross profit                           1,471,000      1,448,000

    Operating expenses:
      Research and development                     334,000        351,000
      Marketing and sales                          605,000        626,000
      General and administrative               503,000        408,000
                                                 1,442,000      1,385,000

  Income (loss) from operations                     29,000         63,000

  Interest and other expense                       (23,000)      (125,000)
 Gain on derivative revaluation                     5,000             --

  Net income (loss)                                $11,000       $(62,000)

  Basic and diluted net loss per common share        $0.00         $(0.00)

  Shares used in computing basic and diluted
   net loss per common share                    33,929,000     30,842,000


                          SPESCOM SOFTWARE INC.
                   Consolidated Summary Balance Sheets

                                               December31,  September 30,
                                                      2003           2003

                                 ASSETS
  Current assets:
    Cash and cash equivalents                      $73,000       $333,000
    Receivables, net      1,548,000        423,000
    Other current assets                           119,000        169,000
      Total current assets                       1,740,000        925,000

  Property and equipment, net                      180,000        213,000
  Computer software, net                            43,000         63,000
  Other assets                                      29,000         29,000
      Total assets                              $1,992,000     $1,230,000

  LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

  Current liabilities:
    Accounts payable                             $ 671,000      $ 405,000
    Payable to Spescom Limited                     146,000         46,000
    Preferred stock dividend payable
     toSpescom                                     66,000              -
    Accrued liabilities                          1,186,000      1,080,000
    Notes payable to Spescom                     1,119,000              -
    Lease obligation - current portion22,000         23,000
    Deferred revenue                             1,830,000      2,018,000
    Fair value of equity instruments
     redeemable for common stock                 1,160,000      1,233,000
      Total current liabilities 6,200,000      4,805,000

  Note Payable to Spescom                                -        504,000
  Lease Obligation                                  57,000         62,000
     Total liabilities                           6,257,000    5,371,000

  Convertible preferred stock, $1,000 state
   value per share, 1,000,000 shares
   authorized; 5,291 shares issued and
   outstanding                                   6,790,000      6,790,000

  Total Shareholders' Deficit                (11,055,000)   (10,931,000)

      Total liabilities and
       shareholders' equity                     $1,992,000     $1,230,000


DATASOURCE: Spescom Software Inc.



CONTACT:  Ken Sgro of CEOcast, Inc., [phone], for Spescom

Software Inc.;or Carl Mostert, CEO, or John Low, CFO, both of Spescom

Software Inc., [phone]



Web site:  http://www.spescomsoftware.com/ 

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