News & Events
Document Sciences Announces Fourth Quarter And Full Year Financial Results
1/28/2004, 7:00AM ET
CARLSBAD, CA (January 28, 2004) - Document Sciences Corporation (NASDAQ: DOCX) today reported net income for the quarter ended December 31, 2003, of $329,575 compared with net income of $1.1 million for the quarter ended December 31, 2002. The results for the fourth quarter of 2003 include a $520,000 provision included in general and administrative expense for a European Value Added Tax assessment that the company is disputing. Net income per share for the quarter ended December 31, 2003, was $0.07, based on 4,447,407 diluted shares outstanding, compared with net income per share of $0.26, based on 4,307,287 diluted shares outstanding for the same quarter in 2002. Revenues for the quarter ended December 31, 2003, were $6.1 million, while revenues for the quarter ended December 31, 2002, were $6.6 million.
For the full year ended December 31, 2003, the company reported a net loss of $1.8 million, or $0.47 per share based on 3,768,219 shares outstanding, compared with net income of $1.6 million, or $0.36 per share based on 4,286,485 diluted shares outstanding for the year ended December 31, 2002. Revenues for the year ended December 31, 2003, were $20.4 million, compared with revenues of $23.1 million for the year ended December 31, 2002.
Jack McGannon, Document Sciences' President and CEO, stated, "We finished 2003 on a positive note, recording a net operating profit for the second half of the year. This profit was enabled by improving revenue and corrective expense actions taken at mid-year." McGannon highlighted new xPression sales to several significant US insurers, as well as major Finnish and English insurers. "Additionally, our Autograph suite of products continued to be a significant contributor of revenue," McGannon added.
McGannon noted that the company repurchased the remaining 740,024 shares, or 19% of its outstanding total, for $2.7 million from Xerox Corporation during the quarter. The company's cash balance of $5.9 million at year end 2003 was down from the $8.6 million at the prior year end due to this repurchase.
DOCUMENT SCIENCES CORPORATION
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2003 2002
ASSETS
Current assets:
Cash and cash equivalents $1,916,595 $2,284,367
Short-term investments 3,979,864 6,294,838
Accounts receivable, net 5,311,089 7,223,750
Due from affiliates 1,648,851 1,242,196
Unbilled revenue -- 161,159
Other current assets 655,392 756,268
Total current assets 13,511,791 17,962,578
Property and equipment, net 689,575 781,874
Computer software costs, net 2,494,634 1,518,102
Goodwill, net 724,615 724,615
Other assets 202,944 197,497
Total assets $17,623,559 $21,184,666
LIABILITIES
Current liabilities:
Accounts payable $205,036 $192,945
Accrued compensation 1,088,772 1,580,521
Other accrued liabilities 1,159,686 495,679
Deferred revenue 10,356,855 9,689,774
Total current liabilities 12,810,349 11,958,919
Obligations under capital leases 69,405 --
Deferred revenue - long-term -- 44,810
STOCKHOLDERS' EQUITY
Common stock, $.001 par value 3,331 3,858
Treasury stock (556,352) --
Additional paid-in capital 8,759,120 10,786,007
Accumulated comprehensive income (loss) (88,611) 10,981
Retained deficit (3,373,683) (1,619,909)
Total stockholders' equity 4,743,805 9,180,937
Total liabilities and
stockholders' equity $17,623,559 $21,184,666
DOCUMENT SCIENCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Years Ended
December 31, December 31,
2003 2002 2003 2002
Revenues:
Initial license
fees $2,478,113 $3,268,475 $5,994,283 $9,592,009
Annual renewal
license and
support fees 2,741,146 2,483,427 10,594,958 9,576,671
Services and other 915,559 842,491 3,856,002 3,917,099
Total revenues 6,134,818 6,594,393 20,445,243 23,085,779
Cost of revenues:
Initial license
fees 296,026 348,662 1,082,550 1,599,958
Annual renewal
license and
support fees 425,787 361,272 1,689,887 1,513,812
Services and other 720,480 643,695 2,821,939 2,606,356
Total cost of
revenues 1,442,293 1,353,629 5,594,376 5,720,126
Gross margin 4,692,525 5,240,764 14,850,867 17,365,653
Operating expenses:
Research and
development 1,106,173 1,473,446 4,655,418 5,456,164
Selling and
marketing 1,942,955 2,275,803 8,555,237 7,755,772
General and
administrative 1,296,519 671,528 3,367,372 2,981,169
Total operating
expenses 4,345,647 4,420,777 16,578,027 16,193,105
Income (loss) from
operations 346,878 819,987 (1,727,160) 1,172,548
Interest and other
income (loss), net 24,174 (7,584) 52,314 93,903
Income (loss) before
income taxes 371,052 812,403 (1,674,846) 1,266,451
Provision (benefit)
for income taxes 41,477 (293,589) 78,928 (293,589)
Net income (loss) $329,575 $1,105,992 $(1,753,774) $1,560,040
Net income (loss)
per share-basic $0.10 $0.29 $(0.47) $0.41
Weighted average
shares used in
basic calculation 3,422,260 3,839,608 3,768,219 3,843,850
Net income (loss)
per share-diluted $0.07 $0.26 $(0.47) $0.36
Weighted average
shares used in
diluted
calculation 4,447,407 4,307,287 3,768,219 4,286,485
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 "forward-looking" statements about our financial results and estimates, business prospects, and products that involve substantial risks and uncertainties. You can identify these statements by the fact that they use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words of similar meaning in connection with any discussion of future operating or financial performance. Among the factors that could cause actual results to differ materially include, among others, the following: (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; (vii) changes in general economic and business conditions 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, 2002. We do not undertake, and specifically disclaim, any obligation to update forward-looking statements.