SCC Communications Corp. Reports First Quarter 2001 Results; Revenue Up 46% From Year-Ago Period

Company Continues to See Strong Momentum Across All Business Units;

Significant Growth in Wireless Segment with Over 5.9 Million Subscribers



Apr 26, 2001, 01:00 ET from SCC Communications Corp.

    BOULDER, Colo., April 26 /PRNewswire/ -- SCC Communications Corp.
 (Nasdaq: SCCX), the leading provider of data processing and data management
 services to the telecommunications industry, today announced its financial
 results for the first quarter ended March 31, 2001.
     For the three months ended March 31, 2001, the Company reported revenue of
 $13.2 million, up 46.6 percent from the $9.0 million for the same quarter last
 year.  Net loss for the first quarter of 2001 was $3.2 million, or $0.28 per
 share, compared with an adjusted net loss of $3.7 million, or $0.33 per share
 for the same period in 2000.
     "Consistent with our guidance, we are pleased with our performance during
 the first quarter 2001," said George Heinrichs, president and CEO of SCC
 Communications.  "Our wireless division continues to show strong growth as
 evidenced by the 5.9 million wireless subscribers.  As we successfully
 leverage our mission-critical capabilities into new markets, our achievements
 to date speak directly to the rapid market acceptance we're seeing in
 providing our customers with a comprehensive suite of services that are open,
 scalable and interoperable.  Our 25 year history of creating and managing
 massively-scaled and highly precise informed response databases, particularly
 in location services, positions us at the forefront of this life-saving
 industry."
 
     Quarterly Highlights
 
     -- During the first quarter of 2001, SCC reached considerable milestones,
        reporting 5.9 million wireless subscribers with records under
        management exceeding 100 million from wireline, 6.9 million from Direct
        and 1.4 million from Emergency Warning and Evacuation(SM) (EWE(SM)).
        Additionally, the Company has an estimated 32 million wireless
        subscriber backlog as of the end of the first quarter 2001.
 
     -- SCC signed significant contracts during the quarter, which, among
        others, included:  AT&T Wireless, AT&T Fixed Wireless and AT&T
        Broadband, MCI WorldCom and Grande Communications.
 
     -- Pursuant to SCC's corporate initiative to be an open standards company,
        SCC most recently completed the successful testing of a process to use
        its Automatic Location Information (ALI) databases to route E9-1-1
        calls using a DMS-100.  SCC developed the test in response to local
        telephone service carriers and public safety agencies needs to improve
        the accurate routing of emergency 9-1-1 calls.  This test marked the
        first time the DMS-100 switch has accessed SCC Communications' external
        ALI database to route emergency calls, versus utilizing an internal
        database located on the switch itself.  This new external database
        model enables continuous updated information to be retrieved
        immediately versus a limited time window batch process used when
        updates are required to be placed on the switch.
 
     -- Additionally during the first quarter, the Company launched four new
        standards-based interface specifications on its Web site, which allow
        customers across its business segments to write code directly to the
        SCC's applications.  Heinrichs commented, "What this means is that
        software developers can now use our interface specifications to connect
        to our applications without having to develop programs in-house.  Our
        advancement in standards-based interface specifications is another
        example of SCC's commitment to be the de facto open standards company.
        We continue to provide our customers with greater choice, cost
        efficiency and flexibility while, at the same time, achieving scale at
        no incremental cost to the Company."
 
     -- SCC also announced the addition of a Web-based interface to its
        industry-leading EWE(SM) system.  This Web-based interface now enables
        public safety agencies with the flexibility to highlight on a map exact
        geographical areas most at risk of natural disasters and notify the
        individuals living in those areas through the delivery of thousands of
        emergency messages -- all in a matter of minutes.
 
     Business Unit Summary
     Each of the Company's four business units achieved significant revenue
 growth over the same period a year-ago.
 
     Wireless Unit
     Wireless revenue for the first quarter of 2001 grew 242 percent to
 $1.8 million, up from $526,000 in the first quarter of 2000.  Revenue-
 generating subscribers in the first quarter grew to 5.9 million, a 637 percent
 increase over the same period last year, representing a 59.45 percent increase
 from the fourth quarter of 2000.
     Public safety agency requests for wireless services increased 8.9 percent
 over the fourth quarter to 5,638 -- covering approximately 32.2 million
 subscribers.  SCC's wireless carriers represent approximately 49.5 million
 subscribers.  First quarter 2001 gross margins for the wireless business unit
 were a negative 34 percent, compared to 8 percent in the fourth quarter 2000.
 
     CLEC Business Unit
     CLEC business continued to grow significantly, reporting $3.1 million in
 revenue for the first quarter of 2001, up 121 percent from the $1.4 million
 reported in the first quarter of 2000.  The CLEC revenue growth reflects
 continued signing of new contracts, as well as overall growth in the
 subscriber base for SCC's customers.  SCC now has 39 CLEC contracts,
 representing 6.4 million subscribers.  Gross margins for the CLEC business
 unit continued to be strong at 55 percent of revenue for first quarter 2001 as
 compared with 65 percent in the year-ago period.
 
     Direct Business Unit
     The Direct business unit subscriber base in Texas was sequentially flat
 with 6.9 million subscribers.  The EWE(SM) subscriber base was 700,000 as of
 year-end and currently stands at 1.4 million.  Revenue for the direct business
 unit was $1.1 million for the first quarter this year, compared with $298,000
 for the same quarter last year, reflecting a 269 percent increase.  Gross
 margin was a negative 60 percent in the first quarter 2001.
 
     ILEC Business Unit
     Revenue for the ILEC business unit increased 7.3 percent in the first
 quarter of 2001, from $6.8 million in the first quarter of 2000 to
 $7.3 million in the first quarter of 2001.  The increase in revenue resulted
 from the sale of enhancements to SCC's existing customer base, as well as from
 normal growth in subscriber counts.  Gross margin for this business unit was
 39 percent for the quarter.  ILEC subscribers under management grew
 5.8 percent from 82 million in the first quarter 2000 to 86.8 million in the
 first quarter 2001.
 
     LPSS Acquisition Update
     SCC management continues to view Lucent Public Safety Systems (LPSS) as a
 complimentary business with incremental value to SCC shareholders.  Over the
 past several months, both parties have continued negotiating with substantial
 progress, however certain open issues remain unresolved.  To-date, SCC still
 carries approximately $1 million of transaction related costs on its balance
 sheet.  If the two parties are unsuccessful in reaching mutually acceptable
 terms, SCC may take a one time extraordinary $1 million charge to earnings in
 the second quarter 2001.
 
     Guidance for 2001
     The following statements are based on current expectations.  These
 statements are forward-looking, and actual results may differ materially.
 
     The Company's expectations for fiscal 2001 revenue remain in a range
 between $57 million and $60 million, representing an expected increase of
 between 32 percent and 39 percent over fiscal year 2000.  Full year earnings
 per share expectations range from a negative $0.80 to $0.75 per share, with
 profitability emerging in the fourth quarter of 2001.  Gross margins for the
 full year 2001 are expected to be in the range of 30 percent to 32 percent.
     SCC's expectations for second quarter 2001 revenue range between
 $13 million and $14 million.  Second quarter 2001 earnings per share
 expectations range from a negative $0.27 to $0.25 per share with gross margins
 expected to be in the range of 27 percent to 30 percent.
 
     ILEC Business Segment
     SCC's expectations for the ILEC business unit's second quarter 2001
 revenue range between $7.3 million and $7.6 million.  The Company's
 expectations for the ILEC business unit's fiscal 2001 revenue remain in a
 range between $30 million and $31 million, representing an expected increase
 of between 4 percent and 8 percent over 2000.  ILEC gross margins are expected
 to be in the range of 38 percent to 40 percent in the second quarter 2001 and
 37 percent to 39 percent for the 2001 year.
 
     CLEC Business Segment
     SCC's expectations for the CLEC business unit's second quarter 2001
 revenue range between $2.9 million and $3.2 million.  The Company's
 expectations for the CLEC business unit's fiscal 2001 revenue range between
 $10.5 million and $11.5 million, representing an expected increase of between
 49 percent and 57 percent over 2000.  CLEC gross margins are expected to be in
 the range of 53 percent to 55 percent in the second quarter 2001 and
 52 percent to 54 percent for the 2001 year.
 
     Wireless Business Segment
     SCC's expectations for the Wireless business unit's second quarter 2001
 revenue range between $1.8 million and $2.0 million.  The Company's
 expectations for the Wireless business unit's fiscal 2001 revenue remain in a
 range between $9.5 million and $11.5 million, representing an expected
 increase of between 126 percent and 174 percent over 2000.  Wireless gross
 margins are expected to be in the range of negative 18 percent to negative
 25 percent in the second quarter, and 3 percent to 10 percent for the year.
 
     Direct Business Segment
     SCC's expectations for Direct business unit's second quarter 2001 revenue
 range between $1.4 million and $1.5 million.  The Company's expectations for
 the Direct business unit's fiscal 2001 revenue remain in a range between
 $6.2 million and $6.5 million, representing an expected increase of between
 110 percent and 125 percent over 2000.  Direct gross margins are expected to
 be in the range of negative 6 percent to negative 10 percent in the second
 quarter 2001 and breakeven for fiscal year 2001.
 
     Cash Flow
     SCC ended the first quarter 2001 with $8.7 million in cash and marketable
 securities.  Management expects that funding needs for basic operations will
 be met through cash on hand, expected operating cash flow and available
 equipment lease financing.  The Company may seek additional financing in the
 form of either equity or debt should extraordinary opportunities materialize.
 
     Conference Call Web Cast
     SCC will be hosting a live broadcast over the Internet of the conference
 call on Thursday, April 26, 2001, at 4:30 p.m. EDT, 2:30 p.m. MDT, and
 1:30 p.m. PDT to discuss first quarter 2001 results.  To participate, access
 the Company's website: http://www.scc911.com and click on the WEBCAST button.
 
     About SCC Communications Corp.
     SCC Communications Corp. (Nasdaq: SCCX) is the leading provider of
 mission-critical data management services, notification technologies and
 supporting services to wireless and wireline telecommunications companies and
 public safety organizations across the United States.  Today, SCC provides
 connectivity and data services to incumbent local exchange carriers (ILECs),
 competitive local exchange carriers (CLECs), integrated communications
 providers (ICPs) and wireless carriers.  SCC provides services to 22 leading
 wireless telecommunications carriers and 42 leading wireline
 telecommunications carriers.  SCC currently manages the records of
 approximately 106 million wireline and wireless telephone subscribers,
 including 6.4 million CLEC subscribers and more than 5.9 million wireless
 subscribers.  The Company also develops next-generation, IP-based notification
 systems and innovative solutions for the location-based wireless service
 market.  To receive SCC press releases and Company updates via e-mail, please
 register at the Company's Web site: http://www.scc911.com.
 
     Safe Harbor Statement Under the Private Securities Litigation Reform Act
 of 1995
     The matters discussed in this press release include forward-looking
 statements that involve a number of risks and uncertainties.  Actual results
 may vary significantly from SCC's expectations based on a number of factors,
 including (1) the lengthy sales cycles associated with SCC's services and
 products, (2) SCC's reliance on large contracts from a limited number of
 significant customers, (3) the rate of adoption of 9-1-1 technology by
 wireless carriers and other potential customers, (4) continuing rapid change
 in the telecommunications industry that may affect both SCC and its customers,
 (5) continuing demand for SCC's services and products, (6) market acceptance
 of new products and services introduced by SCC, (7) SCC's ability to
 accurately predict its costs related to new products, and (8) additional
 factors described in SCC's Form 10-K for the year ended December 31, 2000.
 
 
                            SCC COMMUNICATIONS CORP.
                            STATEMENTS OF OPERATIONS
              (Unaudited - in thousands, except per share amounts)
 
                                                        THREE MONTHS ENDED
                                                              MARCH 31,
                                                        2001          2000
     REVENUE:
      ILEC Business Unit                               $7,252         $6,838
      CLEC Business Unit                                3,090          1,371
      Wireless Business Unit                            1,788            526
      Direct Business Unit                              1,059            298
         Total revenue                                 13,189          9,033
 
     COSTS AND EXPENSES:
      ILEC Business Unit                                4,391          3,978
      CLEC Business Unit                                1,371            473
      Wireless Business Unit                            2,406            888
      Direct Business Unit                              1,697            946
      Sales and marketing                               2,732          1,543
      General and administrative                        2,610          1,352
      Research and development                          1,226            629
         Total operating expenses                      16,433          9,809
     LOSS FROM OPERATIONS                              (3,244)          (776)
 
     OTHER INCOME (EXPENSE):
      Interest and other income                           157            303
      Interest and other expense                          (88)           (92)
     NET LOSS FROM OPERATIONS BEFORE
      CUMULATIVE EFFECT OF CHANGE
      IN ACCOUNTING PRINCIPLE                          (3,175)          (565)
 
     CUMULATIVE EFFECT OF CHANGE
      IN ACCOUNTING PRINCIPLE                               0         (3,082)
     NET LOSS                                         ($3,175)       ($3,647)
 
     DILUTED NET LOSS PER SHARE                        ($0.28)        ($0.33)
 
     SHARES USED IN COMPUTING NET
      LOSS PER SHARE                               11,505,889     11,130,388
 
     DEPRECIATION/AMORTIZATION                          1,542          1,478
     INTEREST INCOME                                     (157)          (303)
     INTEREST EXPENSE                                      88             92
     EBITDA                                            (1,702)        (2,380)
     EBITDA EPS                                        ($0.15)        ($0.21)
 
     EBITDA+CUMLATIVE EFFECT                           (1,702)           702
     EBITDA+CUMLATIVE EFFECT EPS                       ($0.15)         $0.06
 
 
                            SCC COMMUNICATIONS CORP.
                                 BALANCE SHEET
                             (Dollars in thousands)
 
                                                  March 31,     December 31,
                                                    2001            2000
                                       ASSETS
     CURRENT ASSETS:
      Cash and cash equivalents                    $5,694          $5,036
      Short-term Investments                        2,982           6,939
      Accounts receivable, net                      8,124           7,166
      Unbilled revenue                                358             574
      Prepaids and other                              894             892
      Deferred acquisition costs                    1,088           1,054
      Deferred income taxes-current portion           869             869
         Total current assets                      20,009          22,530
 
     PROPERTY AND EQUIPMENT, net                   12,331          12,475
 
     OTHER ASSETS                                     107             107
 
     DEFERRED INCOME TAXES-NONCURRENT               3,206           3,206
 
     DEFERRED COSTS                                 5,126           5,363
 
     SOFTWARE DEVELOPMENT COSTS, net                  940             988
                                                  $41,719         $44,669
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
      Accounts payable                             $3,096          $1,228
      Accrued liabilities                           3,894           4,858
      Current portion of capital
       lease obligations                            1,836           2,107
      Deferred revenue                                219             200
 
         Total current liabilities                  9,045           8,393
 
     CAPITAL LEASE OBLIGATIONS,
      NET OF CURRENT PORTION                        1,154           1,511
 
     DEFERRED REVENUE                               9,811          10,071
         Total liabilities                         20,010          19,975
 
     STOCKHOLDERS' EQUITY
      Common stock                                     11              11
      Additional paid-in-capital                   45,004          44,815
      Common stock warrants                           373             373
      Stock subscriptions receivable                  (33)            (33)
      Accumulated deficit                         (23,646)        (20,472)
         Total stockholders' equity                21,709          24,694
 
                                                  $41,719         $44,669
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X36812527
 
 

SOURCE SCC Communications Corp.
    BOULDER, Colo., April 26 /PRNewswire/ -- SCC Communications Corp.
 (Nasdaq: SCCX), the leading provider of data processing and data management
 services to the telecommunications industry, today announced its financial
 results for the first quarter ended March 31, 2001.
     For the three months ended March 31, 2001, the Company reported revenue of
 $13.2 million, up 46.6 percent from the $9.0 million for the same quarter last
 year.  Net loss for the first quarter of 2001 was $3.2 million, or $0.28 per
 share, compared with an adjusted net loss of $3.7 million, or $0.33 per share
 for the same period in 2000.
     "Consistent with our guidance, we are pleased with our performance during
 the first quarter 2001," said George Heinrichs, president and CEO of SCC
 Communications.  "Our wireless division continues to show strong growth as
 evidenced by the 5.9 million wireless subscribers.  As we successfully
 leverage our mission-critical capabilities into new markets, our achievements
 to date speak directly to the rapid market acceptance we're seeing in
 providing our customers with a comprehensive suite of services that are open,
 scalable and interoperable.  Our 25 year history of creating and managing
 massively-scaled and highly precise informed response databases, particularly
 in location services, positions us at the forefront of this life-saving
 industry."
 
     Quarterly Highlights
 
     -- During the first quarter of 2001, SCC reached considerable milestones,
        reporting 5.9 million wireless subscribers with records under
        management exceeding 100 million from wireline, 6.9 million from Direct
        and 1.4 million from Emergency Warning and Evacuation(SM) (EWE(SM)).
        Additionally, the Company has an estimated 32 million wireless
        subscriber backlog as of the end of the first quarter 2001.
 
     -- SCC signed significant contracts during the quarter, which, among
        others, included:  AT&T Wireless, AT&T Fixed Wireless and AT&T
        Broadband, MCI WorldCom and Grande Communications.
 
     -- Pursuant to SCC's corporate initiative to be an open standards company,
        SCC most recently completed the successful testing of a process to use
        its Automatic Location Information (ALI) databases to route E9-1-1
        calls using a DMS-100.  SCC developed the test in response to local
        telephone service carriers and public safety agencies needs to improve
        the accurate routing of emergency 9-1-1 calls.  This test marked the
        first time the DMS-100 switch has accessed SCC Communications' external
        ALI database to route emergency calls, versus utilizing an internal
        database located on the switch itself.  This new external database
        model enables continuous updated information to be retrieved
        immediately versus a limited time window batch process used when
        updates are required to be placed on the switch.
 
     -- Additionally during the first quarter, the Company launched four new
        standards-based interface specifications on its Web site, which allow
        customers across its business segments to write code directly to the
        SCC's applications.  Heinrichs commented, "What this means is that
        software developers can now use our interface specifications to connect
        to our applications without having to develop programs in-house.  Our
        advancement in standards-based interface specifications is another
        example of SCC's commitment to be the de facto open standards company.
        We continue to provide our customers with greater choice, cost
        efficiency and flexibility while, at the same time, achieving scale at
        no incremental cost to the Company."
 
     -- SCC also announced the addition of a Web-based interface to its
        industry-leading EWE(SM) system.  This Web-based interface now enables
        public safety agencies with the flexibility to highlight on a map exact
        geographical areas most at risk of natural disasters and notify the
        individuals living in those areas through the delivery of thousands of
        emergency messages -- all in a matter of minutes.
 
     Business Unit Summary
     Each of the Company's four business units achieved significant revenue
 growth over the same period a year-ago.
 
     Wireless Unit
     Wireless revenue for the first quarter of 2001 grew 242 percent to
 $1.8 million, up from $526,000 in the first quarter of 2000.  Revenue-
 generating subscribers in the first quarter grew to 5.9 million, a 637 percent
 increase over the same period last year, representing a 59.45 percent increase
 from the fourth quarter of 2000.
     Public safety agency requests for wireless services increased 8.9 percent
 over the fourth quarter to 5,638 -- covering approximately 32.2 million
 subscribers.  SCC's wireless carriers represent approximately 49.5 million
 subscribers.  First quarter 2001 gross margins for the wireless business unit
 were a negative 34 percent, compared to 8 percent in the fourth quarter 2000.
 
     CLEC Business Unit
     CLEC business continued to grow significantly, reporting $3.1 million in
 revenue for the first quarter of 2001, up 121 percent from the $1.4 million
 reported in the first quarter of 2000.  The CLEC revenue growth reflects
 continued signing of new contracts, as well as overall growth in the
 subscriber base for SCC's customers.  SCC now has 39 CLEC contracts,
 representing 6.4 million subscribers.  Gross margins for the CLEC business
 unit continued to be strong at 55 percent of revenue for first quarter 2001 as
 compared with 65 percent in the year-ago period.
 
     Direct Business Unit
     The Direct business unit subscriber base in Texas was sequentially flat
 with 6.9 million subscribers.  The EWE(SM) subscriber base was 700,000 as of
 year-end and currently stands at 1.4 million.  Revenue for the direct business
 unit was $1.1 million for the first quarter this year, compared with $298,000
 for the same quarter last year, reflecting a 269 percent increase.  Gross
 margin was a negative 60 percent in the first quarter 2001.
 
     ILEC Business Unit
     Revenue for the ILEC business unit increased 7.3 percent in the first
 quarter of 2001, from $6.8 million in the first quarter of 2000 to
 $7.3 million in the first quarter of 2001.  The increase in revenue resulted
 from the sale of enhancements to SCC's existing customer base, as well as from
 normal growth in subscriber counts.  Gross margin for this business unit was
 39 percent for the quarter.  ILEC subscribers under management grew
 5.8 percent from 82 million in the first quarter 2000 to 86.8 million in the
 first quarter 2001.
 
     LPSS Acquisition Update
     SCC management continues to view Lucent Public Safety Systems (LPSS) as a
 complimentary business with incremental value to SCC shareholders.  Over the
 past several months, both parties have continued negotiating with substantial
 progress, however certain open issues remain unresolved.  To-date, SCC still
 carries approximately $1 million of transaction related costs on its balance
 sheet.  If the two parties are unsuccessful in reaching mutually acceptable
 terms, SCC may take a one time extraordinary $1 million charge to earnings in
 the second quarter 2001.
 
     Guidance for 2001
     The following statements are based on current expectations.  These
 statements are forward-looking, and actual results may differ materially.
 
     The Company's expectations for fiscal 2001 revenue remain in a range
 between $57 million and $60 million, representing an expected increase of
 between 32 percent and 39 percent over fiscal year 2000.  Full year earnings
 per share expectations range from a negative $0.80 to $0.75 per share, with
 profitability emerging in the fourth quarter of 2001.  Gross margins for the
 full year 2001 are expected to be in the range of 30 percent to 32 percent.
     SCC's expectations for second quarter 2001 revenue range between
 $13 million and $14 million.  Second quarter 2001 earnings per share
 expectations range from a negative $0.27 to $0.25 per share with gross margins
 expected to be in the range of 27 percent to 30 percent.
 
     ILEC Business Segment
     SCC's expectations for the ILEC business unit's second quarter 2001
 revenue range between $7.3 million and $7.6 million.  The Company's
 expectations for the ILEC business unit's fiscal 2001 revenue remain in a
 range between $30 million and $31 million, representing an expected increase
 of between 4 percent and 8 percent over 2000.  ILEC gross margins are expected
 to be in the range of 38 percent to 40 percent in the second quarter 2001 and
 37 percent to 39 percent for the 2001 year.
 
     CLEC Business Segment
     SCC's expectations for the CLEC business unit's second quarter 2001
 revenue range between $2.9 million and $3.2 million.  The Company's
 expectations for the CLEC business unit's fiscal 2001 revenue range between
 $10.5 million and $11.5 million, representing an expected increase of between
 49 percent and 57 percent over 2000.  CLEC gross margins are expected to be in
 the range of 53 percent to 55 percent in the second quarter 2001 and
 52 percent to 54 percent for the 2001 year.
 
     Wireless Business Segment
     SCC's expectations for the Wireless business unit's second quarter 2001
 revenue range between $1.8 million and $2.0 million.  The Company's
 expectations for the Wireless business unit's fiscal 2001 revenue remain in a
 range between $9.5 million and $11.5 million, representing an expected
 increase of between 126 percent and 174 percent over 2000.  Wireless gross
 margins are expected to be in the range of negative 18 percent to negative
 25 percent in the second quarter, and 3 percent to 10 percent for the year.
 
     Direct Business Segment
     SCC's expectations for Direct business unit's second quarter 2001 revenue
 range between $1.4 million and $1.5 million.  The Company's expectations for
 the Direct business unit's fiscal 2001 revenue remain in a range between
 $6.2 million and $6.5 million, representing an expected increase of between
 110 percent and 125 percent over 2000.  Direct gross margins are expected to
 be in the range of negative 6 percent to negative 10 percent in the second
 quarter 2001 and breakeven for fiscal year 2001.
 
     Cash Flow
     SCC ended the first quarter 2001 with $8.7 million in cash and marketable
 securities.  Management expects that funding needs for basic operations will
 be met through cash on hand, expected operating cash flow and available
 equipment lease financing.  The Company may seek additional financing in the
 form of either equity or debt should extraordinary opportunities materialize.
 
     Conference Call Web Cast
     SCC will be hosting a live broadcast over the Internet of the conference
 call on Thursday, April 26, 2001, at 4:30 p.m. EDT, 2:30 p.m. MDT, and
 1:30 p.m. PDT to discuss first quarter 2001 results.  To participate, access
 the Company's website: http://www.scc911.com and click on the WEBCAST button.
 
     About SCC Communications Corp.
     SCC Communications Corp. (Nasdaq: SCCX) is the leading provider of
 mission-critical data management services, notification technologies and
 supporting services to wireless and wireline telecommunications companies and
 public safety organizations across the United States.  Today, SCC provides
 connectivity and data services to incumbent local exchange carriers (ILECs),
 competitive local exchange carriers (CLECs), integrated communications
 providers (ICPs) and wireless carriers.  SCC provides services to 22 leading
 wireless telecommunications carriers and 42 leading wireline
 telecommunications carriers.  SCC currently manages the records of
 approximately 106 million wireline and wireless telephone subscribers,
 including 6.4 million CLEC subscribers and more than 5.9 million wireless
 subscribers.  The Company also develops next-generation, IP-based notification
 systems and innovative solutions for the location-based wireless service
 market.  To receive SCC press releases and Company updates via e-mail, please
 register at the Company's Web site: http://www.scc911.com.
 
     Safe Harbor Statement Under the Private Securities Litigation Reform Act
 of 1995
     The matters discussed in this press release include forward-looking
 statements that involve a number of risks and uncertainties.  Actual results
 may vary significantly from SCC's expectations based on a number of factors,
 including (1) the lengthy sales cycles associated with SCC's services and
 products, (2) SCC's reliance on large contracts from a limited number of
 significant customers, (3) the rate of adoption of 9-1-1 technology by
 wireless carriers and other potential customers, (4) continuing rapid change
 in the telecommunications industry that may affect both SCC and its customers,
 (5) continuing demand for SCC's services and products, (6) market acceptance
 of new products and services introduced by SCC, (7) SCC's ability to
 accurately predict its costs related to new products, and (8) additional
 factors described in SCC's Form 10-K for the year ended December 31, 2000.
 
 
                            SCC COMMUNICATIONS CORP.
                            STATEMENTS OF OPERATIONS
              (Unaudited - in thousands, except per share amounts)
 
                                                        THREE MONTHS ENDED
                                                              MARCH 31,
                                                        2001          2000
     REVENUE:
      ILEC Business Unit                               $7,252         $6,838
      CLEC Business Unit                                3,090          1,371
      Wireless Business Unit                            1,788            526
      Direct Business Unit                              1,059            298
         Total revenue                                 13,189          9,033
 
     COSTS AND EXPENSES:
      ILEC Business Unit                                4,391          3,978
      CLEC Business Unit                                1,371            473
      Wireless Business Unit                            2,406            888
      Direct Business Unit                              1,697            946
      Sales and marketing                               2,732          1,543
      General and administrative                        2,610          1,352
      Research and development                          1,226            629
         Total operating expenses                      16,433          9,809
     LOSS FROM OPERATIONS                              (3,244)          (776)
 
     OTHER INCOME (EXPENSE):
      Interest and other income                           157            303
      Interest and other expense                          (88)           (92)
     NET LOSS FROM OPERATIONS BEFORE
      CUMULATIVE EFFECT OF CHANGE
      IN ACCOUNTING PRINCIPLE                          (3,175)          (565)
 
     CUMULATIVE EFFECT OF CHANGE
      IN ACCOUNTING PRINCIPLE                               0         (3,082)
     NET LOSS                                         ($3,175)       ($3,647)
 
     DILUTED NET LOSS PER SHARE                        ($0.28)        ($0.33)
 
     SHARES USED IN COMPUTING NET
      LOSS PER SHARE                               11,505,889     11,130,388
 
     DEPRECIATION/AMORTIZATION                          1,542          1,478
     INTEREST INCOME                                     (157)          (303)
     INTEREST EXPENSE                                      88             92
     EBITDA                                            (1,702)        (2,380)
     EBITDA EPS                                        ($0.15)        ($0.21)
 
     EBITDA+CUMLATIVE EFFECT                           (1,702)           702
     EBITDA+CUMLATIVE EFFECT EPS                       ($0.15)         $0.06
 
 
                            SCC COMMUNICATIONS CORP.
                                 BALANCE SHEET
                             (Dollars in thousands)
 
                                                  March 31,     December 31,
                                                    2001            2000
                                       ASSETS
     CURRENT ASSETS:
      Cash and cash equivalents                    $5,694          $5,036
      Short-term Investments                        2,982           6,939
      Accounts receivable, net                      8,124           7,166
      Unbilled revenue                                358             574
      Prepaids and other                              894             892
      Deferred acquisition costs                    1,088           1,054
      Deferred income taxes-current portion           869             869
         Total current assets                      20,009          22,530
 
     PROPERTY AND EQUIPMENT, net                   12,331          12,475
 
     OTHER ASSETS                                     107             107
 
     DEFERRED INCOME TAXES-NONCURRENT               3,206           3,206
 
     DEFERRED COSTS                                 5,126           5,363
 
     SOFTWARE DEVELOPMENT COSTS, net                  940             988
                                                  $41,719         $44,669
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     CURRENT LIABILITIES:
      Accounts payable                             $3,096          $1,228
      Accrued liabilities                           3,894           4,858
      Current portion of capital
       lease obligations                            1,836           2,107
      Deferred revenue                                219             200
 
         Total current liabilities                  9,045           8,393
 
     CAPITAL LEASE OBLIGATIONS,
      NET OF CURRENT PORTION                        1,154           1,511
 
     DEFERRED REVENUE                               9,811          10,071
         Total liabilities                         20,010          19,975
 
     STOCKHOLDERS' EQUITY
      Common stock                                     11              11
      Additional paid-in-capital                   45,004          44,815
      Common stock warrants                           373             373
      Stock subscriptions receivable                  (33)            (33)
      Accumulated deficit                         (23,646)        (20,472)
         Total stockholders' equity                21,709          24,694
 
                                                  $41,719         $44,669
 
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 SOURCE  SCC Communications Corp.