3SOF

we might take away that 8.98 resistance

ATEA BREAKING OUT NOW ON SOME GOOD VOLUME BECAUSE OF GREAT EARNINGS ! 

Press Release   Source: Astea International Inc.

Astea Reports Profitable First Quarter 2007 Results
Tuesday May 15, 8:30 am ET

HORSHAM, Pa., May 15 /PRNewswire-FirstCall/ -- Astea International Inc. (Nasdaq: ATEA - News), a global provider of service management solutions, today released financial results for the first quarter of 2007.

For the first quarter ended March 31, 2007, Astea reported revenues of $7.8 million compared to revenues of $3.8 million for the same period in 2006. Net profit for the first quarter was $1.3 million or $.36 per share, compared to a net loss of $2.3 million or $.64 per share for the same period in 2006. License revenues were $1.7 million compared to $125,000 in 2006. Total service and maintenance revenue increased 65% to $6.1 million. The improvement in license revenue comes from a number of sales to existing customers; recognition of income from a sale which occurred in the second quarter of 2006, which is spread out over 18 month; sales to new customers and recognition of license revenue deferred from a European customer in December 2004. Cash on hand increased $1.1 million from December 31, 2006.

For the quarter ended March 31, 2007, Astea recognized $1.6 million of revenue which had been deferred from a transaction that occurred with a customer in the U.K. in the fourth quarter of 2004 and continued through the end of 2006. This revenue is comprised of $384,000 of license revenue and $1.2 million in services and maintenance revenue. All costs related to generating these revenues were expensed in the periods in which they incurred. The results from operations for the quarter include all of the revenues discussed, but no related costs. Therefore, gross profit on revenue this quarter appears higher than other quarters. Such operation results are not typical for the Company and are not expected to recur.

"We are pleased to see the substantial improvements in our reported revenues this quarter, yet we recognize that we are still not where we need to be regarding our financial performance. Without the recognition of the deferred revenue from the UK transaction, we would not have been profitable. Nevertheless our pipeline is healthy. However, the sales cycles on our larger opportunities are inherently more complex and it is difficult to predict their timing. We are beginning to see the positive outcomes of our cost containment strategies as well as our shifted focus to aggressive sales and marketing execution," stated Zack Bergreen, Chairman and CEO, Astea International. "Our service revenue has improved dramatically and the expertise of our services team continues to be one of our compelling differentiators in this competitive market. Organizations around the world continue to turn to Astea as the clear choice for industry leading service lifecyle management solutions to support their global service operations."

    FIRST QUARTER HIGHLIGHTS

    -- License revenues for this quarter came from both new and existing
       customers and in all of Astea's operating offices, such as ESAB (US),
       Optos (US); Jones Lang LaSalle (US); Bunn-O-Matic (US); Leisure Link
       (UK); Thales (UK) and Thiess (AUS).
    -- Embedded the FieldCentrix® service management and mobility solution
       into Microsoft Dynamics CRM. Together, with Microsoft Dynamics CRM,
       this solution brings the breadth and depth of functionality that is
       mission-critical to service-centric organizations, seamlessly
       supporting business processes and sharing information from lead
       generation and quotation to service delivery and support through to
       expense capture and billing. FieldCentrix for Microsoft Dynamics CRM
       was launched in March at Convergence 2007, Microsoft's annual event for
       Microsoft Dynamics customers. Since the launch, Astea has successfully
       signed several partners that will market, sell, and implement the
       solution generating a new channel for Astea.
    -- Introduced a new version of the industry's most robust solution for
       service-centric organizations, Astea Alliance 8.0. Leveraging more than
       28 years of experience, Astea Alliance 8.0 delivers extensive
       enhancements and new features to empower service-centric organizations
       to achieve a new level of service excellence. More than 160 new
       features and enhancements have been added to empower organizations with
       advanced capabilities, exceptional performance, and a new process-
       driven user interface.

Astea will host a conference call that will be broadcast live over the Internet on May 16, 2007 at 11:00 AM EDT to discuss the Company's first quarter financial results. Investors can access the call from the Company's Web site at http://www.astea.com/about_investors.asp. For those who cannot listen to the live broadcast, a replay will be available shortly after the call.