Arel Q2 revenues of $1m are 60% down from the first quarter

Yavne-based Arel Communications and Software (Nasdaq:ARLC) today announced consolidated revenues of one million dollars for the second quarter of 2002, down 60% compared with the first quarter, for which it reported $2.7 million.

For the first half, revenues were $3.8 million, the company said, down 16% versus the $4.6 million made in the parallel half.

Second-quarter 2002 consolidated net loss was $2.3 million, Arel said, excluding amortization of goodwill of $141,500.

In the parallel it lost $2.4 million net, excluding the amortization of goodwill of $548,000 and restructuring costs of $448,000.

Including amortization of goodwill, the company lost 19 cents per share in the second quarter, compared with 27 cents per share in the parallel quarter.

For the half year, Arel lost 28 cents per share including amortization of goodwill, versus losing 38 cents per share in the corresponding six months of 2001.

On the future, Arel notes that it is negotiating to sell its IDEAL e-learning solution to several Fortune 500 customers. If any of these transactions are completed, the company sees a substantial upturn in the third quarter. It has also slashed spending, the company said, including through job cuts.

Through all these means, "we expect that Q3 will constitute a turning point in our strategy, towards re-establishing Arel as a dominant player in the e-learning and corporate communication arenas," commented Philippe Szwarc, who recently took over as chief executive officer.

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