News & Events
Document Sciences Announces Record Annual Results
3/30/2006, 4:09PM ET
Full year revenue up by 28% over 2004
CARLSBAD, CA (March 30, 2006) - Document Sciences Corporation (NASDAQ: DOCX - news) today reported revenues of $29.6 million for the year ended December 31, 2005, a record for the company and an increase of 28% from the restated revenues of $23.0 million for the year ended December 31, 2004. Net income for the year ended December 31, 2005, was $19,255 compared with restated net income of $598,280 for the year ended December 31, 2004. Net income per share for the year ended December 31, 2005, was $0.00 based on 5,333,868 diluted shares outstanding, compared with restated net income per share of $0.13, based on 4,729,373 diluted shares outstanding for the year ended December 31, 2004.
For the quarter ended December 31, 2005, revenues were $8.0 million, compared with restated revenues of $6.4 million for the same quarter in 2004, representing an increase of 25%. For the three months ending December 31, 2005, the company reported net income of $345,486, or $0.06 per share based on 5,459,680 diluted shares outstanding, compared with restated net income of $249,509, or $0.05 per share based on 5,050,565 diluted shares outstanding, for the three months ending December 31, 2004.
The results for fiscal 2005 reflect the Company's decision to revise its policy on the timing of revenue recognition for annually renewable term license agreements and professional services bundled with these agreements. In accordance with the revised policy, fiscal 2004's results have been restated.
Jack McGannon, Document Sciences' President and CEO, stated that, "We are certainly pleased with the results for the full year since we are focused on moving the company to a growth model. Growth was especially strong in Professional Services, where revenues were up by more than 100% over last year to nearly $10 million. License revenue, which consists of fees for the use of our products as well as annual renewal license and support fees, grew by 8% to nearly $20 million. Growth has come as we transition from Autograph to our current generation xPression® technology." McGannon added, "Importantly, cash growth was also very strong. Our cash balance of $7.9 million at December 31, 2005 represented an increase of $1.1 million from the $6.8 million balance at December 31, 2004."
McGannon further stated, "We were also able to achieve profitability this past year, even as we have recorded substantial non-cash expenses and have grown our workforce considerably. Total depreciation and amortization expense for the full year was $1.8 million, while we capitalized no software development costs during the year. During 2004, the company capitalized $1.9 million of software development costs. Expenses were up significantly over last year, particularly in the area of Professional Services, where we have invested to add substantial headcount to support our increased current and anticipated future project load."
Click here to view 4Q05 Financials.
About Document Sciences
Document Sciences Corporation delivers real-time, dynamic content publishing solutions that content-driven organizations depend on to realize productivity benefits, cut costs and increase competitiveness. Over 600 customers and partners 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 operations in Beijing, China and offices across the U.S. and in London, Document Sciences also markets its products in Australia, Canada, New Zealand, Latin America and Asia. For more information about Document Sciences Corporation visit www.docscience.com.
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, geopolitical and regulatory conditions and developments; (ii) the markets for dynamic content publishing software; (iii) market acceptance of enhancements to our existing products and introduction of new products; (iv) continued profitability of our professional service (v) maintaining our relationships with our 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, 2004. We do not undertake, and specifically disclaim, any obligation to update forward-looking statements.