8-K

                       SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549

                                   ----------

                                    FORM 8-K

                                 CURRENT REPORT
                     PURSUANT TO SECTION 13 OR 15(d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

      Date of Report (Date of earliest event reported): September 16, 2003

                            ASTEA INTERNATIONAL INC.
             (Exact name of Registrant as specified in its charter)

           Delaware                      0-26330                 23-2119058
(State or Other Jurisdiction    (Commission File Number)      (I.R.S. Employer
      of Incorporation)                                      Identification No.)

                               240 Gibraltar Road
                           Horsham, Pennsylvania 19044
                    (Address of principal executive offices)

                                 (215) 682-2500
              (Registrant's telephone number, including area code)

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Item 5. Other Events.

      On September 16, 2003, we received a letter from The NASDAQ Stock Market,
Inc. notifying us that the NASDAQ Listing Qualifications Panel has determined to
continue the listing of our common stock on the NASDAQ SmallCap Market. We
issued a press release on September 18, 2003, announcing this determination. The
press release is filed as Exhibit 99.1 to this current report on Form 8-K and is
incorporated by reference.

Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.

            (c)   Exhibits

                  Exhibit 99.1 Press release, dated September 18, 2003



Signature

      Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this Current Report on Form 8-K to be signed on its
behalf by the undersigned hereunto duly authorized.

                                       ASTEA INTERNATIONAL INC.

Date: September 18 2003                By: /s/Zack B. Bergreen
                                           -------------------------------------
                                           Zack B. Bergreen
                                           President and Chief Executive Officer

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                                  EXHIBIT INDEX

Exhibit Number     Description
- --------------     -----------

99.1               Press Release, Dated September 18, 2003

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EX-99.1

                                                                    Exhibit 99.1

[ASTEA(R) LOGO]

For More Information Contact:

INVESTOR RELATIONS
Rick Etskovitz
Astea International, Inc.
215-682-2500
retskovitz@astea.com

For Immediate Release:

        Astea Announces Favorable NASDAQ Continued Listing Determination

Horsham, PA, September 18, 2003--Astea International Inc. (NASDAQ:ATEA), a
global provider of Service Smart, Enterprise Proven CRM solutions, today
announced that it has been notified by NASDAQ that the NASDAQ Listing
Qualifications Panel (the "Panel") has determined to continue the listing of the
Company's securities on the NASDAQ SmallCap Market. The notice follows a hearing
held before the Panel on August 21, 2003, where Astea presented its plan of
compliance, including a proposed reverse stock split. The one for five reverse
split, after approval by stockholders at the Annual Meeting, was implemented on
September 2, 2003. Since the effective date of the reverse split, the minimum
bid price has remained well above the required one dollar minimum closing bid
price. This recent trading history, including the ten consecutive day period
required to regain compliance, was among the factors the Panel considered when
reaching the decision to continue Astea's SmallCap listing.

Zack Bergreen, Chairman and CEO of Astea, said, "We are pleased that our
reverse-split strategy helped us to regain compliance with NASDAQ. We are
thankful to have this issue behind us and are excited with the outlook for the
Company."

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About Astea International Inc.

Astea International Inc. (www.astea.com) is a global provider of service-focused
CRM software that addresses the unique needs of companies who manage capital
equipment, mission critical assets and human capital. The Astea Alliance CRM
suite addresses the complete service lifecycle, from lead generation and project
quotation to service and billing through asset retirement. It integrates and
optimizes critical business processes for Sales & Marketing, Contact Center,
Field Service, Depot Repair, Professional Services, Portals, Analytics and
Mobile solutions. Astea has licensed applications to companies in a wide range
of sectors including information technology, telecommunications, instruments &
controls, business systems, and medical devices.

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(C)2003 Astea International Inc. Astea and Astea Alliance CRM are trademarks of
Astea International Inc. All other company and product names contained herein
are trademarks of the respective holders.

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