News & Events
Document Sciences Announces First Quarter Financial Results
4/25/2003, 8:30AM ET
CARLSBAD, CA (April 25, 2003, BUSINESS WIRE) - Document Sciences Corporation (NASDAQ:DOCX - News) today reported a net loss for the quarter ended March 31, 2003, of $963,010 compared with a net loss of $588,926 for the quarter ended March 31, 2002. Net loss per share for the quarter ended March 31, 2003, was $0.25, based on 3,869,878 shares outstanding, compared with a net loss per share of $0.15, based on 3,848,659 shares outstanding for the same quarter in 2002. Revenues for the quarter ended March 31, 2003, were $4.6 million, a decrease of 5% from the revenues for the quarter ended March 31, 2002.
Jack McGannon, Document Sciences' President and CEO, stated, "We continue to face a challenging environment in which sales cycles are being elongated. The financial results for the first quarter fell far short of our expectations and were below last year's results. These results and current economic and geopolitical factors may adversely affect our results for the balance of the year. Over the long-term, however, we remain convinced that our prospects are solid. As such, we will continue to devote significant amounts to activities that promote awareness and sales of our new xPression suite."
McGannon also commented, "We are committed to building on our strong technology foundation." Document Sciences recently announced the release of xPression™ version 1.2. The latest version of xPression adds support for BEA WebLogic 7.0 and two new Web Services that allow organizations to easily extend the content processing capabilities of their existing enterprise applications.
DOCUMENT SCIENCES CORPORATION
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2003 2002
--------------- -------------
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $1,834,745 $2,284,367
Short-term investments 7,866,343 6,294,838
Accounts receivable, net 3,879,668 7,223,750
Due from affiliates 1,075,437 1,242,196
Unbilled revenue 15,076 161,159
Other current assets 784,584 756,268
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Total current assets 15,455,853 17,962,578
Property and equipment, net 964,072 781,874
Software development costs, net 1,577,886 1,518,102
Goodwill, net 724,615 724,615
Other assets 194,046 197,497
--------------- -------------
Total assets $18,916,472 $21,184,666
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LIABILITIES
Current liabilities:
Accounts payable $210,605 $192,945
Accrued compensation 832,099 1,580,521
Other accrued liabilities 269,452 495,679
Deferred revenue 9,263,416 9,689,774
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Total current liabilities 10,575,572 11,958,919
Obligations under capital leases 85,021 ---
Deferred revenue - long-term 22,405 44,810
STOCKHOLDERS' EQUITY
Common stock, $.001 par value 3,875 3,858
Additional paid-in capital 10,814,807 10,786,007
Accumulated comprehensive income (2,290) 10,981
Retained deficit (2,582,918) (1,619,909)
--------------- -------------
Total stockholders' equity 8,233,474 9,180,937
--------------- -------------
Total liabilities and
stockholders' equity $18,916,472 $21,184,666
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DOCUMENT SCIENCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,
------------------------------
2003 2002
--------------- -------------
Revenues:
Initial license fees $1,047,870 $1,355,031
Annual renewal license and support
fees 2,599,839 2,295,959
Services and other 960,958 1,195,641
--------------- -------------
Total revenues 4,608,667 4,846,631
Cost of revenues:
Initial license fees 265,551 350,314
Annual renewal license and support
fees 373,815 375,320
Services and other 680,782 677,679
--------------- -------------
Total cost of revenues 1,320,148 1,403,313
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Gross margin 3,288,519 3,443,318
Operating expenses:
Research and development 1,403,552 1,626,513
Selling and marketing 2,198,803 1,676,612
General and administrative 689,834 744,562
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Total operating expenses 4,292,189 4,047,687
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Loss from operations (1,003,670) (604,369)
Interest and other income, net 64,070 15,443
--------------- -------------
Loss before income taxes (939,600) (588,926)
Provision for income taxes 23,410 ---
--------------- -------------
Net loss $(963,010) $(588,926)
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Net loss per share--basic $(0.25) $(0.15)
=============== =============
Weighted average shares used in
basic calculation 3,869,878 3,848,659
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Net loss per share--diluted $(0.25) $(0.15)
=============== =============
Weighted average shares used in
diluted calculation 3,869,878 3,848,659
=============== =============
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 http://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.