Apropos Technology Reports First Quarter Results

Apropos Technology Reports First Quarter Results 


OAKBROOK TERRACE, Ill., April 26  /PRNewswire-FirstCall/ -- Apropos Technology
(NASDAQ:APRS), a leading provider of real time multi-channel interaction
management solutions, today reported revenues decreased 18% to $4.2 million for
the first quarter ended March 31, 2005 from $5.2 million for the first quarter
ended March 31, 2004.

Net loss for the three months ended March 31, 2005, was $511,000, or a loss of
$0.03 per share.  Net income for the comparable three months ended March 31,
2004, was $15,000, or income of $0.00 per share, which includes restructuring
and other charges of $0.4 million, or $0.03 per share.  During the first
quarter, the company's cash, cash equivalents, and short term investments
increased by $81,000 to $41.2 million.

"This was a difficult quarter for us," stated David McCrabb, interim chief
executive officer and president.  "It is taking longer for our marketing
programs and lead generation efforts to reach fruition than earlier
anticipated.

"We were able to expand our distribution channels during the first quarter.  We
signed a reseller agreement with SBC, a provider of communication services and
products, that allows SBC to resell our entire product suite. SBC has already
provided us with their first order in the first quarter.  We also completed a
restructured agreement with Mitel Networks Ltd. that allows their resellers and
partners to resell Apropos.  Under the previous agreement, this was not
possible.  Mitel channel partners provided us with two orders in the first
quarter."

During the first quarter, the Company received new and add-on customer orders
from Fujitsu Limited (UK); MCAP; Nokia, Inc.; Peregrine Systems, Inc. and
VinCiti AQ.

A conference call will be conducted by the Company at 5:00 p.m. Eastern Time
(ET) on Tuesday, April 26.  The conference call will be available to all
interested parties over the Internet.  To listen to the call on the Internet,
go to http://www.apropos.com/ or http://www.fulldisclosure.com/ at least
fifteen minutes early to register, download, and install any necessary audio
software. For those who cannot listen to the live broadcast, a replay will be
available shortly after the call at http://www.apropos.com/ ,
http://www.fulldisclosure.com/ or by dialing 877-519-4471 or 973-341-3080
(international) and providing access code 5994082.  The replay will be
available by phone through May 3, and over the Internet for 30 days.

About Apropos Technology

Apropos Technology, Inc. (NASDAQ:APRS) develops communications management
solutions for contact center operations and customer experience management.
Apropos solutions are largely used in customer service and support applications
for technical products and credit union member contact centers. Apropos
solutions integrate with existing systems to provide multi-channel interaction
management and a single, universal queuing system.  Organizations rely on
Apropos to differentiate, prioritize and intelligently route customers to the
right agent across voice, voicemail, e-mail, web chat, VoIP, and fax
communications.  Founded in 1989, the company serves over 300 clients worldwide
from its corporate headquarters in Oakbrook Terrace, Ill., and from its
European headquarters in the United Kingdom.  Additional information about
Apropos and its solutions can be found at http://www.apropos.com/ .

Apropos Technology statements contained in this press release that are not
purely historical are forward-looking statements within the meaning of Section
21E of the Securities and Exchange Act of 1934, including statements regarding
Apropos Technology's expectations, anticipations, goals, beliefs, targets,
hopes, intentions or strategies regarding the future.  Forward-looking
statements include statements regarding business model, product introduction
and acceptance, future sales, sales growth and sales channels, profitability
and results of operations, gross margins, operating expenses and financial
stability.  These forward-looking statements are subject to various risks and
uncertainties as more fully set forth under the caption "Risk Factors
Associated with Apropos' Business and Future Operating Results" in Apropos
Technology's Annual Report on Form 10-K for the year ended December 31, 2004,
as filed with the Securities and Exchange Commission.  Apropos Technology's
actual results and the timing of certain events may differ significantly from
the results discussed in the forward-looking statements; Apropos Technology
makes no commitment to disclose any revisions to forward-looking statements, or
any facts, events or circumstances after the date hereof that may bear upon
forward-looking statements.

                         Apropos Technology, Inc.
             Condensed Consolidated Statements of Operations
                 (In thousands, except per share amounts)

                                                     Three months ended
                                                          March 31
                                                     2005           2004
  Revenue                                        (Unaudited)    (Unaudited)
    Software licenses                               $1,099         $1,987
    Services and other                               3,116          3,173
  Total revenue                                      4,215          5,160

  Cost of goods and services
    Cost of software                                    36            170
    Cost of services and other                       1,076            852
  Total cost of goods and services                   1,112          1,022

  Gross margin                                       3,103          4,138

  Operating expenses
    Sales and marketing                              1,738          1,674
    Research and development                         1,096          1,052
    General and administrative                       1,007          1,096
    Restructuring and other charges                      -            368
  Total operating expenses                           3,841          4,190

  Income (loss) from operations                       (738)           (52)

  Other income (expense)
    Interest income                                    239             95
    Other income (expense), net                        (12)           (28)
  Total other income                                   227             67

  Net income (loss)                                  $(511)           $15

  Net income (loss) per share
    Basic                                           $(0.03)         $0.00
    Diluted                                         $(0.03)         $0.00

  Weighted-average number of shares outstanding
    Basic                                           17,789         17,104
    Diluted                                              *         18,537

  * Diluted weighted-average number of shares outstanding for 2005 is not
    shown as the effect would be anti-dilutive.



                         Apropos Technology, Inc.
                  Condensed Consolidated Balance Sheets
                              (In thousands)

                                                  March 31      December 31
                                                    2005           2004
  Assets                                        (unaudited)
  Current assets:
    Cash and cash equivalents                      $29,662        $12,291
    Short-term investments                          11,577         28,867
    Accounts receivable, net                         2,332          3,155
    Inventory                                           51             34
    Prepaid expenses and other current assets          583            355

  Total current assets                              44,205         44,702

  Equipment, net                                       540            565
  Other assets                                          28             21

  Total assets                                     $44,773        $45,288

  Liabilities and shareholders' equity
  Current liabilities:
    Accounts payable                                  $173           $155
    Accrued expenses                                 1,709          1,854
    Deferred revenues                                3,547          3,403
    Other current liabilities                          695            856

  Total current liabilities                          6,124          6,268

  Accrued restructuring, less current portion           98            245

  Shareholders' equity
    Common shares                                      178            176
    Additional paid-in capital                     103,440        103,155
    Treasury stock                                       -              -
    Accumulated deficit                            (65,067)       (64,556)

  Total shareholders' equity                        38,551         38,775

  Total liabilities and shareholders' equity       $44,773        $45,288


DATASOURCE: Apropos Technology



CONTACT:  Frank Leonard of Apropos Technology, [phone] ext. 7724,

 , or Investors Relations, Leslie Loyet of Financial

Relations Board, [phone],  



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

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