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Centra Reports Growing ASP Revenues

Looking for another sign that the ASP model is gaining footing? Yesterday Centra Software Inc. , a collaboration software provider, reported what it described as "record ASP sales" in its fourth quarter, which closed December 31, 2002. The company also reported success in moving beyond e-learning to broader real-time enterprise collaboration applications such as marketing and sales.

The Lexington, Mass.-based Centra reported ASP-related sales of $4.8 million for the fourth quarter (up from $3.4 million in the same quarter in 2001). Overall, revenues for the quarter were $9.3 million, down 14 percent over fourth quarter revenues of $11 million in 2001.

Net loss for the fourth quarter was $8.9 million (or $0.34 per share) compared with a net loss of $2.6 million (or $0.10 per share) for the fourth quarter last year. The company attributed part of the loss to a write down of goodwill during the fourth quarter of 2002 of $5.9 million (or $0.23 per share).

"Our installed base of more than 1,000 corporate accounts, government agencies and universities is rapidly expanding the use of Centra's real-time collaboration application software and services into additional new business initiatives beyond e-learning," chairman and CEO Leon Navickas said.

Navicksa described Microsoft's recent purchase of collaboration ASP Placeware as a positive event for Centra. "We are encouraged by Microsoft making a move in that they broaden the market and create awareness" for both collaboration applications and the ASP model.

Navickas added that Centra is targetting profitability and cash-flow positive operations in the second half of 2003.

Centra also announced plans to search for a new president and CEO. "Both Tony Mark, [Centra's president and chief operating officer] and I look forward to recruiting an outstanding candidate to lead our organization and create a large and profitable application software business in the years ahead."


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