Captaris, Inc. News
Captaris Reports Q1, 2008 Financial Results
Total revenue for the quarter was
— Software revenue was $8.9 million, an increase of $1.8 million, or 25% — Maintenance, support and services revenue was $14.4 million, an increase of $5.0 million or 53% — Hardware revenue was $3.7 million, a decrease of $379,000 or 9% — Appliance revenue, the FaxPress product line of hardware and embedded software, was $1.0 million
"We transformed our business in the first quarter of 2008," said
"Captaris has a solid set of assets including a large customer base, a worldwide distribution network, a collection of intellectual property rights and a skilled and diverse work force," continued Mr. Anastasi. "The integration of our acquisitions of Castelle and CDT are on track. We have also initiated cost reductions and will continue to eliminate redundant headcount and programs. We expect these actions will favorably impact our operating expenses in the second quarter and we will continue to look for additional opportunities to run the business more efficiently."
Gross profit was
Total operating expenses for the quarter were
Amortization of intangible assets for the quarter was
The decrease in other income for the quarter ended
The Company reported a net loss for the first quarter of 2008 of
Cash flow from operations was
Consolidated cash, cash equivalents and investment balances as of
Deferred revenue at
Stock Repurchase
During the quarter, the Company repurchased 36,000 shares of its outstanding common stock at a cost of
Evaluation of Strategic Alternatives
In March, 2008, the company announced that the Board of Directors decided to evaluate strategic alternatives to further enhance shareholder value. To oversee and expedite this process, the Board established a special committee of the Board comprised of independent directors. This evaluation is ongoing and developments will be disclosed as the Board deems appropriate.
Conference Call
The Company will discuss its 2008 first quarter results and business outlook on its regularly scheduled conference call today,
About Captaris, Inc.
Captaris, Inc. is a leading provider of software products that automate business processes, manage documents electronically and provide efficient information delivery. The products of Captaris and its subsidiaries Castelle and Captaris Document Technologies GmbH, including Captaris RightFax, Captaris Workflow, Captaris Alchemy, the FaxPress line of products, RecoStar, DOKuStar, DOKuStar Capture Suite, Single Click Entry, ID-Star, BUSY, Invoice CENTER, Tax CENTER, and Mail CENTER are distributed through a global network of leading technology partners. We have customers in financial services, healthcare, government and many other industries, and our products are installed in all of the Fortune 100 and many Global 2000 companies. Headquartered in
The following are registered trademarks and trademarks of Captaris: Captaris, Alchemy, RightFax and Captaris Workflow. FaxPress is a trademark of Castelle. RecoStar, DOKuStar, DOKuStar Capture Suite, Single Click Entry, ID- Star, BUSY, Invoice CENTER, Tax CENTER and Mail CENTER are trademarks of Captaris Document Technologies GmbH. All other brand names and trademarks are the property of their respective owners.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, statements regarding the expected impact of our cost reduction actions on our operating expenses in the second quarter. Forward-looking statements include all passages containing verbs such as "aims," "anticipates," "estimates," "expects," "intends," "plans," "predicts," "projects" or "targets" or nouns corresponding to such verbs. Forward-looking statements also include any other passages that are primarily relevant to expected future events or that can only be evaluated by events that will occur in the future. Forward-looking statements are based on the opinions and estimates of the management at the time the statements are made and are subject to certain risks and uncertainties that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could affect Captaris' actual results include, among others, the impact, if any, of stock-based compensation charges, the potential failure to maintain and expand Captaris' network of dealers and resellers or to establish and maintain strategic relationships, inability to integrate recent and future acquisitions, including the recent acquisition of Captaris Document Technologies GmbH, inability to develop new products or product enhancements on a timely basis, inability to protect our proprietary rights or to operate without infringing the patents and proprietary rights of others, and quarterly and seasonal fluctuations in operating results. More information about factors that potentially could affect Captaris' financial results is included in Captaris' most recent annual report on Form 10-K filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance upon these forward-looking statements that speak only as to the date of this release. Except as required by law, Captaris undertakes no obligation to update any forward-looking or other statements in this press release, whether as a result of new information, future events or otherwise.
Captaris, Inc. Condensed Consolidated Balance Sheets (in thousands) (Unaudited) March 31, December 31, 2008 2007 Assets Current assets: Cash and cash equivalents $39,851 $46,182 Restricted cash — 1,000 Accounts receivable, net 21,647 19,348 Inventories 2,568 1,681 Prepaid expenses and other current assets 2,252 4,564 Income tax receivable and current deferred tax assets, net 3,263 3,527 Total current assets 69,581 76,302 Other long-term assets 1,122 847 Equipment and leasehold improvements, net 10,220 7,735 Intangible assets, net 31,851 11,748 Goodwill 57,181 37,522 Long-term deferred tax assets, net 2,199 5,344 Total assets $172,154 $139,498 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $13,589 $8,621 Accrued compensation and benefits 6,114 5,528 Other accrued liabilities 3,708 1,706 Income taxes payable 49 327 Deferred revenue 25,791 22,747 Total current liabilities 49,251 38,929 Other long-term accrued liabilities 654 696 Long-term deferred revenue 5,716 5,962 Pension and other long-term employee benefit obligations 19,513 — Bank loan 9,675 — Total liabilities 84,809 45,587 Shareholders' equity: Common stock 264 264 Additional paid-in capital 41,442 40,971 Retained earnings 43,314 49,961 Accumulated other comprehensive income 2,325 2,715 Total shareholders' equity 87,345 93,911 Total liabilities and shareholders' equity $172,154 $139,498 Captaris, Inc. Condensed Consolidated Statements of Operations (in thousands, except per share data) (Unaudited) Quarter Ended March 31, 2008 2007 Net revenue $27,919 $20,513 Cost of revenue 9,753 6,258 Gross profit 18,166 14,255 Operating expenses: Research and development 6,351 3,186 Selling and marketing 12,222 8,278 General and administrative 6,461 4,716 Amortization of intangible assets 664 141 In-process research and development 1,224 — Gain on sale of discontinued product line CallXpress — (1,000) Total operating expenses 26,922 15,321 Operating loss (8,756) (1,066) Other income (expense): Interest income 271 575 Interest expense (440) - Other income, net 474 144 Other income 305 719 Loss from continuing operations before income tax benefit (8,451) (347) Income tax benefit (1,805) (84) Loss from continuing operations (6,646) (263) Discontinued operations: Loss from sale of MediaTel assets, net of income tax benefit (1) (2) Loss from discontinued operations (1) (2) Net loss $(6,647) $(265) Basic and diluted net loss per common share: Loss from continuing operations $(0.25) $(0.01) Loss from discontinued operations (0.00) (0.00) Net loss $(0.25) $(0.01) Weighted average basic and diluted common shares 26,406 27,476 Captaris, Inc. Condensed Consolidated Statements of Cash Flows (in thousands) (Unaudited) Quarter Ended March 31, 2008 2007 Cash flows from operating activities: Net loss $(6,647) $(265) Adjustments to reconcile net income to net cash provided by operating activities: Depreciation 936 726 Amortization 1,744 622 Stock-based compensation expense 396 195 Gain on foreign currency revaluation (525) (63) Pension and long-term employee benefit expense 458 — Provision for doubtful accounts 64 49 In-process research and development 1,224 - (Gain) loss on disposition of assets 29 (46) Deferred income tax benefit (1,717) (426) Changes in assets and liabilities (net of acquired assets and liabilities): Accounts receivable 3,180 1,415 Inventories (346) 362 Prepaid expenses and other assets (622) (401) Accounts payable 2,514 (778) Accrued compensation and benefits (1,538) (882) Other accrued liabilities 857 (243) Income taxes payable (8) (40) Pension liability (43) - Deferred revenue 880 1,914 Net cash flow provided by operating activities 836 2,139 Cash flows from investing activities: Purchase of equipment and leasehold improvements (2,590) (1,149) Purchase of investments — (10,171) Purchase of Captaris Document Technologies GmbH (17,926) — Proceeds from disposals of assets 35 55 Proceeds from sales and maturities of investments 4 7,328 Net cash used in investing activities (20,477) (3,937) Cash flows from financing activities: Proceeds from bank loan 9,675 — Proceeds from release of restricted cash 1,000 — Proceeds from exercise of common stock options 208 1,009 Repurchase of common stock (138) (2,649) Excess tax benefits from stock-based compensation 5 135 Net cash provided by (used in) financing activities 10,750 (1,505) Net decrease in cash (8,891) (3,303) Effect of exchange rate changes on cash 2,560 (3) Cash and cash equivalents at beginning of period 46,182 10,695 Cash and cash equivalents at end of period $39,851 $7,389
SOURCE Captaris, Inc.
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