News & Events
Document Sciences Announces Second Quarter Financial Results
8/4/2004, 7:28AM ET
CARLSBAD, CA (Aug. 4, 2004 /PRNewswire-FirstCall) -- Document Sciences Corporation (NASDAQ: DOCX - News) today reported net income for the quarter ended June 30, 2004, of $165,270 compared with a net loss of $779,159 for the quarter ended June 30, 2003. Net income per share for the quarter ended June 30, 2004, was $0.04, based on 4,460,011 diluted shares outstanding, compared with a net loss per share of $0.20, based on 3,880,010 shares outstanding for the same quarter in 2003. Revenues for the quarter ended June 30, 2004, were $5.5 million, an increase of 7% from the revenues for the quarter ended June 30, 2003.
For the six months ended June 30, 2004, the company reported net income of $277,382, or $0.06 per share based on 4,431,845 shares outstanding, compared with a net loss of $1.7 million, or $0.45 per share based on 3,874,944 shares outstanding, for the six months ended June 30, 2003. Revenues for the six months ending June 30, 2004, were $10.7 million, compared with revenues of $9.7 million for the six months ending June 30, 2003.
Jack McGannon, Document Sciences' President and CEO, stated that "Our financial results for the most recent quarter and through the first six months of the year represent an improvement over the results for the same periods last year. Initial license fee revenues have been stronger this year, up by 9% during the second quarter and by 28% during the first six months of the year." McGannon further stated that "We also continued to add xPression customers during the quarter, including a health insurer, a property and casualty insurer, as well as a transportation company."
The company's cash balance at June 30, 2004, was $5.6 million, down slightly from the $5.9 million balance at December 31, 2003.
During July, the company completed its acquisition of Objectiva Software Solutions, Inc. The financial results of the company on a go forward basis will include the results of Objectiva from the date of acquisition.
This press release may contain "forward-looking" statements about possible or assumed future results of our financial condition, operations, plans, objectives and performance. You can identify these statements by the fact they use words such as "believe," "expect," "anticipate," "estimate," "project," "intend," "plan" or similar expressions. Many possible events or factors could affect our future financial results and performance. This could cause our results or performance to differ materially from those expressed in these forward-looking statements. Some of these events or factors include the following: (i) national, international, regional and local economic, competitive and regulatory conditions and developments; (ii) the market for document automation software (including the emerging content processing market); (iii) market acceptance of enhancements to our existing products and introduction of new products; (iv) continued profitability of our professional services; (v) maintaining our relationships with Xerox Corporation and our other distribution partners and/or other risks detailed from time-to-time in our SEC reports, including the report on Form 10-K for the fiscal year ended December 31, 2003. We do not undertake, and specifically disclaim, any obligation to update forward-looking statements.
DOCUMENT SCIENCES CORPORATION
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2004 2003
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $2,107,080 $1,916,595
Short-term investments 3,487,182 3,979,864
Accounts receivable, net 5,421,884 6,959,940
Other current assets 1,083,462 655,392
Total current assets 12,099,608 13,511,791
Property and equipment, net 564,639 689,575
Software development costs, net 3,401,022 2,494,634
Goodwill, net 724,615 724,615
Other assets 265,281 202,944
Total assets $17,055,165 $17,623,559
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $213,595 $205,036
Accrued compensation 988,495 1,088,772
Other accrued liabilities 1,098,060 1,159,686
Deferred revenue 9,407,274 10,356,855
Total current liabilities 11,707,424 12,810,349
Obligations under capital leases 58,995 69,405
STOCKHOLDERS' EQUITY
Common stock, $.001 par value 3,435 3,331
Treasury stock (472,231) (556,352)
Additional paid-in capital 8,961,638 8,759,120
Accumulated comprehensive loss (107,795) (88,611)
Retained deficit (3,096,301) (3,373,683)
Total stockholders' equity 5,288,746 4,743,805
Total liabilities
and stockholders' equity $17,055,165 $17,623,559
DOCUMENT SCIENCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Six Months Ended
June 30, June 30,
2004 2003 2004 2003
Revenues:
Initial
license fees
$1,593,320 $1,457,623 $3,201,021 $2,505,493
Annual renewal
license and
support fees 2,929,296 2,593,637 5,738,144 5,193,476
Services and other 955,223 1,069,927 1,799,092 2,030,885
Total revenues 5,477,839 5,121,187 10,738,257 9,729,854
Cost of revenues:
Initial license fees 272,205 234,930 534,099 500,481
Annual renewal
license and
support fees 504,119 445,396 1,017,753 819,211
Services and other 741,696 720,203 1,431,365 1,400,985
Total cost
of revenues 1,518,020 1,400,529 2,983,217 2,720,677
Gross margin 3,959,819 3,720,658 7,755,040 7,009,177
Operating expenses:
Research and
development 903,706 1,272,434 1,831,707 2,675,986
Selling and
marketing
2,084,817 2,576,154 3,983,184 4,774,957
General and
administrative 818,025 692,892 1,685,104 1,382,726
Total operating
expenses 3,806,548 4,541,480 7,499,995 8,833,669
Income (loss)
from operations 153,271 (820,822) 255,045 (1,824,492)
Interest and
other income, net 18,881 44,697 41,460 108,767
Income (loss)
before income taxes 172,152 (776,125) 296,505 (1,715,725)
Provision for
income taxes 6,882 3,034 19,123 26,444
Net income (loss) $165,270 $(779,159) $277,382 $(1,742,169)
Net income (loss)
per share-basic $0.05 $(0.20) $0.09 $(0.45)
Weighted average
shares used in
basic calculation 3,284,161 3,880,010 3,253,225 3,874,944
Net income (loss)
per share-diluted $0.04 $(0.20) $0.06 $(0.45)
Weighted average
shares used in diluted
calculation 4,460,011 3,880,010 4,431,845 3,874,944
About Document Sciences
Document Sciences Corporation delivers real-time, interactive content processing services that content-driven organizations depend on to realize productivity benefits, cut costs, and increase competitiveness. Approximately 650 customers worldwide use Document Sciences products in insurance, banking and financial services, managed-care, telecommunications, utilities and commercial print service bureaus. Customers include more than 60 Fortune 500 companies. Based in Carlsbad, Calif., with regional locations across the U.S. and a European subsidiary in Paris, Document Sciences also markets its products in Australia, Canada, New Zealand, Brazil, Mexico and China. For more information about Document Sciences Corp., visit www.docscience.com.
This press release contains certain forward-looking statements. Words such as "plan," "will," "anticipate," "intend," "increasing," "pursue," "provide," "begin," "should," "would," "focus," "believe," "expect," "continue," and "plan," or the negative thereof or variations thereon and similar expressions are intended to identify forward-looking statements. These forward-looking statements inherently involve certain risks and uncertainties, although they are based on our current plans or assessments that are believed to be reasonable as of the date of this press release. Factors that may cause actual results, goals, targets or objectives to differ materially from those contemplated, projected, forecast, estimated, anticipated, planned or budgeted in such forward-looking statements include, among others, the following possibilities: (i) changes in our stock price; (ii) changes in our operating results; (iii) the market for document automation software; (iv) continued expansion of our professional services; (v) market acceptance of our existing products and introduction of new products and enhancements to existing products; (vi) maintaining our relationships with Xerox; and/or (vii) changes in general economic and business conditions. Actual events or results may differ materially from those discussed, contemplated, forecasted, estimated, anticipated, planned or implied in the forward-looking statements as a result of the various factors described above and those further set forth under the heading "Risk Factors" in our Form 10-K for its fiscal year ended December 31, 2001