DocuCorp Reports Net Income Rose 46% During the Second Quarter of Fiscal 1999
PR Newswire - February 24, 1999 09:57
DALLAS, Feb. 24 /PRNewswire/ -- DocuCorp International (Nasdaq: DOCC), a leading provider of document automation software, services and outsourcing, today announced its net income rose 46 percent to $1.1 million in the second fiscal quarter, ended January 31, 1999, from $768,000 in the corresponding three months a year earlier.
Net income in the latest quarter was equal to $.06 per share on a diluted basis, compared with $.06 per share on 4.7 million fewer shares outstanding in the fiscal 1998 period. Revenues in the most recent quarter totaled $13 million, up 16 percent from year earlier revenues of $11.2 million.
The company said it earned $2.1 million, or $.12 per share on a diluted basis, in the six months ended January 31, 1999, up 44 percent from $1.5 million, or $.11 per share on 4.9 million fewer shares outstanding in the first half of fiscal 1998. Revenues for the 1999 six month period rose 14 percent to $25.2 million from $22.1 million last year.
"I am extremely pleased with the continued strong growth in profitability," said Michael D. Andereck, DocuCorp's president and chief executive officer. "Moreover, our revenue growth is much more significant than it initially appears when you consider that DocuCorp achieved 14 percent growth despite the fact that we discontinued a marginally profitable channel that generated approximately $1.5 million in print outsourcing revenue per quarter in fiscal 1998.
"Our operating margin -- operating profit as a percent of revenue -- rose to 14.1 percent in the latest quarter from 12.4 percent in the corresponding 1998 period," he said. "This was largely the result of adjusting our distribution channels and a change in our product mix reflecting an increase in higher margin software license revenues and the decrease in lower margin print outsourcing contracts."
Andereck noted that Kemper Insurance Companies recently signed a six-year contract under which it will use DocuCorp's entire integrated line of recently announced software products to streamline insurance policy and claims processes, ensure document compliance, and provide global access to documents. He added that DocuCorp also has continued to win new customers in the utilities market.
DocuCorp has repurchased approximately 800,000 shares of its common stock, at an aggregate price of approximately $3.5 million, under a one million share repurchase program authorized by the Board of Directors in September of 1998, Andereck said.
Commenting on the company's overall financial strength, he said, "Even with that stock repurchase expenditure, we are debt free, generating cash, and have $14.7 million of cash and short term investments to execute our growth plans."
About DocuCorp
DocuCorp markets a portfolio of open-architecture, enterprise-wide, document automation software products that enable its customers to create, publish, manage, and archive complex, high-volume, individualized documents.
The company also provides document automation consulting, application integration, and document processing, printing, Internet, and mailing services. DocuCorp has an installed base of more than 800 customers, including many of the largest insurance, utilities, financial services, higher education, and telecommunications organizations. Headquartered in Dallas, DocuCorp has major facilities in Atlanta and Silver Spring, MD. The company also maintains offices in London, Portland, ME, and Bedford, NH. DocuCorp is a Safeguard Scientifics, Inc. (NYSE: SFE) partnership company. For more information, visit DocuCorp's Web site at www.docucorp.com.
Certain information contained in this news release may include "forward- looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this news release are forward-looking statements. Such statements are subject to certain risks and uncertainties, which include but are not limited to the risk of competitive pressures, failure to adequately respond to technological developments, loss of significant customers or distributors, and the other risk factors and cautionary statements listed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. All forward-looking statements included in this news release and all subsequent oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these cautionary statements.
DOCUCORP INTERNATIONAL Fiscal Quarters Ended January 31, 1999 and 1998
Statements of Operations Data:
(in thousands, except per share data)
(Unaudited)
Three Months Six Months
Ended January 31, Ended January 31,
1999 1998 1999 1998
Revenues
Professional services $ 6,863 $ 6,297 $13,256 $12,985
License 2,833 2,245 5,547 3,820
Maintenance and other recurring 3,317 2,662 6,419 5,245
Total revenues 13,013 11,204 25,222 22,050
Expenses
Professional services 4,955 4,941 9,799 9,782
Product development and support 2,418 2,114 4,717 3,993
Selling, general and
administrative 3,802 2,765 7,261 5,532
Total expenses 11,175 9,820 21,777 19,307
Operating income 1,838 1,384 3,445 2,743
Other income (expense) 144 (126) 343 (282)
Income before income taxes 1,982 1,258 3,788 2,461
Provision for income taxes 860 490 1,648 974
Net income $ 1,122 $ 768 $ 2,140 $ 1,487
Net income per share:
Basic $ 0.07 $ 0.07 $ 0.13 $ 0.14
Diluted $ 0.06 $ 0.06 $ 0.12 $ 0.11
Weighted average shares outstanding
used in the net income per share
calculations:
Basic 16,055 10,785 16,263 10,772
Diluted 17,684 13,025 17,820 12,932
Balance Sheet Data: (Unaudited)
January 31, July 31,
1999 1998
(in thousands)
Current assets $32,553 $28,786
Current liabilities 16,453 12,798
Working capital 16,100 15,988
Total debt 36 87
Stockholders' equity 37,775 38,433
Total assets $54,892 $51,921
SOURCE DocuCorp International
/CONTACT: Todd Rognes, Sr. VP-Finance, CFO of DocuCorp International,
214-891-6500; or Bill Robertson of Sunwest Communications, 214-373-1601, for
DocuCorp International/ |
