CARY … Tangram Enterprise Solutions (Nasdaq: TESI) announced operating results for the second quarter, and things aren’t getting any better for the information technology asset management software company.
Revenues for the second quarter of 2002 were $2.6 million, compared with revenues of $3.4 million in second quarter of 2001, a decrease of 24 percent. The company went on to report a net loss of $1.1 million, or 6 cents per share, for the most recent quarter, compared to a net loss of $771,000, or 4 cents per share, for the three months ended June 30, 2001.
Norm Phelps, president and chief executive officer of Tangram, said in a statement that the company’s performance is reflective of the continued lag in technology spending, coupled with substantial vendor confusion and uncertainty in the IT asset management market.
“In this time of market disarray and economic instability, many organizations are deferring IT asset management purchasing decisions into future quarters,” Phelps said. “To address this situation in the near term, Tangram has implemented highly attractive pricing
incentives designed to encourage asset management purchasing decisions. Additionally, we will continue to expand our product and services offerings, while closely managing our financial resources. As a result, when the economy and the market recover, we believe that we will be well positioned to build revenues and resume financial growth.”
For the six months ended June 30, 2002, Tangram reported a net loss of $1.5 million, or 9 cents per share, on revenues of $5.7 million, compared to a net loss of $1.3 million, or 8 cents per share, on revenues of $7 million for the six months ended June 30, 2001.
Tangram stock was trading at 23 cents late Tuesday morning, near its 52-week low of 21 cents. Its high during that period was is $1.40. In February, the stock was hovering around $1.25, but it has steadily declined since then.
Tangram Enterprise Solutions: www.tangram.com
