Tangram Enterprise Solutions, Inc. (TESI), a producer and vendor of asset management software, announced mixed results in its first quarter earnings report today, showing revenues were down from $3.6 million during first quarter 2001 to $3.1 million this year while net losses also decreased from $569,000 to $421,000 during the same period.

Tangram also cut its earnings before interest, taxation, depreciation and amortization loss by more than half, down from a 2001 first quarter loss of $28,000 to $128,000 for the same period this year.

Overall for 2001, revenues increased 10 percent to $15.4 million while net losses decreased 48 percent to $2 million as a result of cost of services decreasing as a percentage of sales.

In a prepared statement Tangram Chief Executive Officer Norm Phelps says with brute honesty: “Clearly, we are disappointed with our first quarter sales results and are taking the necessary steps to get our performance back on track for the remainder of the year — As the economic climate for technology spending improves, we are poised to execute on our strategy and resume financial growth in the coming quarters.”

At the same time first quarter results show that the company decreased is marketing budget from $1.6 million during first quarter 2001 to $1.3 million in this year’s first quarter.

Shares of TESI ranged in price from 52 cents to $1.55 during the last 52 weeks, and recently traded near 68 cents. The company’s market capitalization is $13.5 million.

Tangram Web site: www.tangram.com