| TenFold Announces Q4 2006 and Year 2006 Financial Results |
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SALT LAKE CITY, Utah - February 21, 2007 - TenFold Corporation (OTC BB: TENF.OB), provider of the EnterpriseTenFold SOA platform for building and implementing SOA-compliant, enterprise-scale applications and services, today announced its financial results for the fourth quarter and year ended December 31, 2006. For the fourth quarter, TenFold reported revenues of $2.6 million, income from operations of $193,000, net income of $458,000, and net income applicable to common shareholders of $12,000 after a non-cash deemed dividend of $446,000 related to warrants issued with preferred stock and a beneficial conversion feature on preferred stock, resulting in diluted earnings per share of $0.00. For calendar year 2006, TenFold reported revenues of $5.0 million, an operating loss of $5.5 million, a net loss of $5.2 million, and a net loss applicable to common shareholders of $7.4 million after non-cash deemed dividends of $2.2 million related to warrants issued with preferred stock and beneficial conversion features on preferred stock, resulting in a diluted loss per common share of $0.16. TenFold's operating cash flow for Q4 was $21,000 and the ending cash balance at the end of 2006 was $3.6 million. For calendar year 2006, net cash used in operating activities was $4.4 million. On December 19, 2006, TenFold completed a capital raising transaction for gross proceeds of approximately $1.3 million (before expenses), from the sale of 312,009 shares of unregistered convertible preferred stock and warrants. The preferred shares are convertible into 4,225,809 shares of common stock. The warrants are to purchase 2,112,904 shares of common stock at an exercise price of $0.62 per share, with a 5-year term. "I am so pleased to announce that we achieved positive cash flow of $21,000 from operations in Q4," said Robert W. Felton, TenFold's Chairman, President and CEO. "I see this as a positive sign that our efforts of the past year are being rewarded with growing business from our existing and new customers, and that these contracts are beginning to produce meaningful revenues and cash flow." The financial results for the quarter and year ended December 31, 2006, include license revenue of $1 million from DevonWay that was originally deferred from a transaction in 2005, because the license agreement contained a discount that could not be determined at the inception of the agreement. Although the revenue was recognized in 2006, the cash from the transaction was received in 2005. Devon Way is a software applications company whose founder and Chairman is Mr. Felton. Operating expenses for the quarter and year ended December 31, 2006 include $608,000 and $2.7 million, respectively, of stock based compensation expense from the adoption, effective January 1, 2006, of Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment, which requires the measurement and recognition of compensation expense for all share-based payment awards made to employees and directors including employee stock options and employee stock purchase plan purchases based on estimated fair values. TenFold conference call TenFold will host a conference call to discuss the financial results on Wednesday, February 21, 2007, at 5:00 p.m. EST and is available by dialing 888-913-9965 or 210-234-0009 for international calls. The conference title is "Q4 and 2006 Financial Results Conference Call," the passcode is "TenFold," and the call leader is "Robert W. Felton." Telephone replays of the conference call will be available from approximately one hour after the call through March 21, 2007. To access the telephone replay, dial 800-925-2380 or 402-220-4107 for international calls. View a PDF copy of TenFold's Q4 2006 Financial Results About TenFold TenFold (OTC Bulletin Board: TENF) licenses its patented technology for applications and services development, EnterpriseTenFold SOA, to organizations that face the daunting task of replacing obsolete applications or building complex SOA-compliant applications systems. Unlike traditional approaches, where business and technology requirements create difficult IT bottlenecks, EnterpriseTenFold SOA technology lets a small team of business people and IT professionals design, build, deploy, maintain, and upgrade new or replacement applications with extraordinary speed, superior applications quality and power features. For more information, call (800) TENFOLD or visit www.tenfold.com. ### This release contains forward-looking statements. These statements can be identified by reference to "goals" or "intentions" or by the use of forward-looking terminology such as "believe," "expect," "anticipate," "estimate," "should," "will," "may," or the negatives thereof, or similar terminology, or by discussions of our strategy or the benefits of our technology, and include any facts or assumptions underlying such statements. Forward-looking statements in this release include Mr. Felton's remarks regarding growing business. Our business and operations are subject to a wide variety of risks and uncertainties that may cause actual future events or results to differ materially from those described in the forward-looking statements. Factors that could cause actual results to differ materially from those in the forward-looking statements include the company's inability to attract new customers and close sales with new or existing customers. Forward-looking statements in this release also include that EnterpriseTenFold SOA technology lets a small team design, build, deploy, maintain and upgrade applications with extraordinary speed, superior applications quality and power features. Factors that could cause actual benefits of the TenFold product and technology to differ materially from those in the forward-looking statements include inadequate training, incorrect installation, use of unsupported hardware and software versions or combinations thereof, and inadequate consultation with TenFold support personnel. These and other factors that could cause actual results to differ materially from those in the forward-looking statements are discussed in greater detail in certain documents filed by TenFold Corporation with the Securities and Exchange Commission, including but not limited to, the most recent reports on Forms 10-K and 10-Q. We make no commitment to revise or update any forward-looking statement to reflect events or circumstances after the date such statement is made. ### TenFold and EnterpriseTenFold are trademarks of TenFold Corporation. All other trademarks and registered trademarks are the property of their respective owners. Press Contact: Sally N. White TenFold Corporation 801-619-8232 swhite@tenfold.com |
