Firstwave Cautiously Optimistic After Q3 Gains

Small-cap eCRM solutions provider Firstwave Technologies pulled a profit before dividends for the first time in four years in the quarter ended Sept. 30, 2001, the company announced Monday.

The Atlanta-based company reported net income of $7,000 for third quarter of 2001 excluding a non-cash charge of $462,000 for dividends.

While the profit margin might have been missed by larger enterprises, Firstwave, a relatively small company, took it as a sign of success. As recently as September, Firstwave had fought and successfully overturned a recommendation that it be delisted as a Nasdaq SmallCap company.

Firstwave's total revenues rose both sequentially and year-to-year. The company reported $2.3 million in total revenues for third quarter 2001, compared to $1.7 million in second quarter and $2.2 million in third quarter 2000.

Net loss applicable to common shareholders was $455,000 for the quarter, or $(0.22) per share, also a sequential and year-to-year improvement. The company had lost $482,000 for the previous quarter and $743,000 for last year's third quarter.

President and CEO Richard Brock maintained a stance of cautious optimism in a statement, citing the company's $1.2 million of available cash and its CRM competitors' comparatively large quarterly losses as reasons why Firstwave's future was secure.

"Our improved financial performance makes Firstwave begin to stand out as the ‘safe choice'," said Brock. "We will continue the tight financial controls and conservative management--we will not be spending in anticipation of future revenues. We believe we can maintain a balanced growth strategy."

www.firstwave.com