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Centra Reports Q2 Results

Centra Software Inc. , a Web-based enterprise collaboration software provider, today announced revenues of $8.5 million for its second quarter, which ended on June 30. The figure is down from $9.8 million for the same quarter last year, but exceeds the company's previous guidance of $8.0 to $8.3 million and is a 13 percent increase over first quarter revenue.

According to the Lexington, Mass.-based company, the net loss for the second quarter of 2002 was $4.2 million, or $0.17 per share, compared to a net loss of $6.3 million, or $0.26 per share for the same period last year, and a net loss of $5.9 million for the first quarter of 2002.

Centra reported that services revenue for the second quarter, including the company's products delivered on an ASP basis, increased to $4.2 million, a 15-percent increase over the first quarter of 2002. Software license revenue, which accounted for 50 percent of total revenue for the quarter, was $4.2 million.

"The initiatives we implemented early in the quarter have strengthened the company," said Leon Navickas, chairman and CEO. "We are seeing many positive signs from a renewed focus on Centra's core collaboration software business, as evidenced by our revenue growth and bottom-line results in the second quarter."

"During the quarter, we worked diligently to get expenses back in line following the termination of the prospective merger with SmartForce and made investments in several key areas of our business," Navickas said. (See Q1 Woes Sink SmartForce, Centra Merger.)

Navickas said Centra plans to grow revenue through distribution agreements with value-added resellers, system integrators, independent software vendors and telecommunications providers. "Also, by aggressively scaling our inside sales channel, we anticipate that our ASP business will continue to grow, helping us to achieve an even stronger financial model."

Centra said it expects to report revenue in the range of $8.8 to $9.0 million for the third quarter, with gross margins expected to be in the range of 80 percent to 82 percent. The company projects a pro forma net loss for the third quarter of 2002 to be in the range of $0.12 to $0.13 per share.


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