AuthentiDate Holding Corp. Announces Fourth Quarter and Year End Results.SCHENECTADY Schenectady (skənĕk`tədē), city (1990 pop. 65,566), seat of Schenectady co., E central N.Y., on the Mohawk River and Erie Canal; founded 1661 by Arent Van Curler, inc. 1798. , N.Y. -- AuthentiDate Holding Corp. (Nasdaq:ADAT (Alesis Digital Audio Tape) A digital audio recording technology from Alesis, LLC, Cumberland, RI (www.alesis.com). In 1992, Alesis introduced the first 8-track digital tape recording system. ) announced today that revenue for the quarter ended June 30, 2004 was $5,151,000 compared to $5,795,000 for the same quarter a year ago. Revenue for the fiscal year ending June 30, 2004 was $19,242,000 compared to $25,286,000 for fiscal year ended June 30, 2003. Revenue for the quarter ended June 30, 2004 for the AuthentiDate segment, which consists of AuthentiDate, AuthentiDate International, AG, and Trac Medical Solutions, increased by approximately $104,000 compared to the same quarter last year. The DocStar segment recorded a revenue increase for the quarter of almost $36,000 while the DJS DJS Dubin-Johnson Syndrome DJS Def Jam South (record label) DJS Deutsche Journalistenschule eV DJS Dow Jones Spot DJS Director, Joint Staff segment reported a decline in revenue of close to $784,000 when compared to the same quarter last year. Much of the decline in revenue for the year was in the DJS segment. DJS experienced a decline of $5.5 million in revenue primarily due to a decrease in low margin direct hardware sales in 2004 compared to last year. DocStar also experienced a slight revenue decline for the year of slightly more than $500,000. Much of the DocStar revenue decline was due to a reduction of lower margin hardware sales offset by an increase of higher margin software only sales. The AuthentiDate segment, experienced an increase of approximately $4,000 for the year. Deferred revenue, mainly due to increases in the AuthentiDate segment, increased from June 30, 2003 to June 30, 2004 by $1.1 million. The net loss for the quarter ended June 30, 2004 was $3,580,000 or $0.11 per share compared to a net loss of $2,881,000 or $0.14 per share for the same quarter a year ago. The Company reported a net loss of $15,669,000 or $0.59 per share for fiscal year 2004 and $9,839,000 or $0.50 per share for fiscal 2003. The loss for the AuthentiDate Segment declined by approximately $175,000 for the quarter ended June 30, 2004 when compared to the same quarter last year, while DocStar and DJS saw an increase in segment profits for the same period of more than $123,000 and approximately $96,000, respectively. Much of the loss for fiscal 2004 was due to $6.2 million in interest expense, $5.3 million more than the Company reported the previous year. The increase was primarily due to the write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of unamortized debt discount and unamortized deferred financing costs of $5.9 million due to the conversion of an aggregate principal amount of $8,895,300 of convertible debentures Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. to common stock. The Company recorded non-cash interest expense of approximately $5.9 million during the year ended June 30, 2004 relative to the amortization of debt discount on the convertible debentures. The Company's cash position at the end of the year remained strong, reporting more than $74 million in cash on hand. As an update on the Company's service with the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. Postal Services postal service, arrangements made by a government for the transmission of letters, packages, and periodicals, and for related services. Early courier systems for government use were organized in the Persian Empire under Cyrus, in the Roman Empire, and in medieval Electronic Postmark(R) (USPS (1) (Uninterruptible Switching Power Supply) A power supply for a computer that contains its own battery and uninterruptible power supply (UPS) circuitry. See power supply and UPS. EPM EPM equine protozoal myeloencephalitis. (R)), the Company stated that it was encouraged with the recent news that the state of South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. has given an electronic document with an EPM the same legal standing as certified See certification. or registered mail for specific legal communications such as service of process. The Company said that it expected the South Carolina law to have applications in the area of court summons summons: see procedure. summons In law, written notification that one is required to appear in court. In civil (noncriminal) cases, it notifies a defendant that he or she must appear and defend (e.g. process, charitable services auditing and communications and legal communications. In addition, the Company stated that it has hired four new sales representatives each with a background in software and specific sales experience in the area of state and local government, legal and financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . With these sales people now in place, AuthentiDate said it has begun a marketing campaign to build market awareness of the EPM technology. The Company and the Postal Service established certain performance metrics Performance metrics are measures of an organizations activities and performance. Performance metrics should support a range of stakeholder needs from customers, shareholders to employees [1]. when the agreement was first signed. The original revenue metric has not been attained at·tain v. at·tained, at·tain·ing, at·tains v.tr. 1. To gain as an objective; achieve: attain a diploma by hard work. 2. , and with the benefit of two years of experience with the EPM business, the parties have been discussing new performance metrics. The Postal Service has notified the Company of its failure to comply with the current revenue metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. , which commences a six month period to achieve compliance with the metrics. While there is no guarantee that the Company will be successful in completing the negotiations, the Company believes that it has reached an agreement in principle and anticipates that an agreement amending the original metrics will be completed shortly. The Company also stated that it has received notification from USPS that the Company's data center for the second time has been re-certified to process Electronic Postmark transactions for another year. "While it can't be seen in these numbers, we are starting to experience traction Traction Definition Traction is the use of a pulling force to treat muscle and skeleton disorders. Purpose Traction is usually applied to the arms and legs, the neck, the backbone, or the pelvis. in several segments of our business," stated John Botti Raphael Jose Botti (born February 23, 1981) simply known as Botti, is a Brazilian professional footballer. He plays as a midfilder for Vissel Kobe. Botti is a hard-working and talented player who may not get on the scoresheet too often – just 14 times in his five years , AuthentiDate's Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The TracMed division is beginning to produce solid results and various other verticals such as real estate and financials services are being identified. We are working very aggressively to expand into those areas and believe they represent exciting opportunities for the Company as well." The following tables are condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. Statements of Operations and Balance Sheet for AuthentiDate Holding Corp. A more detailed explanation is detailed in the Company's SEC filings.
AuthentiDate Holding Corp. and Subsidiaries
Consolidated Statements of Operations
For Three Months Ended For Twelve Months Ended
June 30, June 30,
2004 2003 2004 2003
---------- ---------- ----------- -----------
Net sales $5,151,382 $5,795,450 $19,242,071 $25,286,471
Cost of goods sold 2,869,464 4,205,304 12,412,583 19,169,836
---------- ---------- ----------- -----------
Gross profit 2,281,918 1,590,146 6,829,488 6,116,635
Operating Expenses 4,923,566 4,215,753 16,409,783 15,135,678
Impairment of DJS
Goodwill 1,178,765 - 1,178,765 -
---------- ---------- ----------- -----------
Operating loss (3,820,413) (2,625,607) (10,759,060) (9,019,043)
Other income
(expense)
Interest expense (7,687) (284,122) (6,231,981) (871,856)
Interest and other
income 247,959 29,660 1,304,354 572,481
Equity in net loss
of affiliated
companies - - - (514,427)
---------- ---------- ----------- -----------
Loss before
income taxes (3,580,141) (2,880,069) (15,686,687) (9,832,845)
Income tax
(expense)/benefit 1 (1,061) 17,494 (6,464)
---------- ---------- ----------- -----------
Net loss ($3,580,140) ($2,881,130) ($15,669,193) ($9,839,309)
========== ========== =========== ===========
Weighted average
number of shares 32,821,558 20,331,055 26,980,843 20,028,736
========== ========== =========== ===========
Net loss per
common share ($0.11) ($0.14) ($0.59) ($0.50)
========== ========== =========== ===========
AuthentiDate Holding Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
June 30, 2004 June 30, 2003
------------- -------------
Current Assets:
Cash and cash equivalents $74,354,939 $3,460,446
Accounts receivable 3,039,044 3,644,500
Other current assets 599,515 262,349
----------- -----------
Total current assets 77,993,498 7,367,295
Property and equipment, net 3,396,454 3,764,846
Goodwill 11,616,736 12,795,501
Other assets 1,230,188 1,118,198
----------- -----------
Total Assets $94,236,876 $25,045,840
=========== ===========
Current Liabilities:
Accounts payable and other $3,554,179 $4,705,524
Deferred revenue 1,881,277 738,166
----------- -----------
Total current liabilities 5,435,456 5,443,690
Convertible debentures 3,316,815
Long-term debt, net of current portion 48,000 1,331,129
Deferred grant 1,000,000
Obligations under capital leases,
net of current portion 35,421 85,556
----------- -----------
Total liabilities 5,518,877 11,177,190
----------- -----------
Total shareholders' equity 88,717,999 13,868,650
----------- -----------
Total liabilities and shareholders' equity $94,236,876 $25,045,840
=========== ===========
About AuthentiDate Holding Corp. AuthentiDate Holding Corp. (AHC AHC Appalachian Hardwood Center AHC American Heritage Center (University of Wyoming, Laramie, WY) AHC American Horse Council AHC Association for History and Computing AHC Australian Heritage Commission AHC Assault Helicopter Company ) is the holding company of five business units; DocStar, AuthentiDate International AG, AuthentiDate, Inc., DJS Marketing Group/Computer Professionals International and Trac Medical Solutions, Inc. DocStar sells proprietary document imaging software that includes the AuthentiDate technology. AuthentiDate and AuthentiDate AG provide the authentication (1) Verifying the integrity of a transmitted message. See message integrity, e-mail authentication and MAC. (2) Verifying the identity of a user logging into a network. of digital data through its proprietary and patent pending technology. AuthentiDate intends to establish itself as the authority on "content security" as it is a growing sector of the electronic network security infrastructure market. DJS delivers professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. centered around technology systems integration projects, staff augmentation AUGMENTATION, old English law. The name of a court erected by Henry VIII., which was invested with the power of determining suits and controversies relating to monasteries and abbey lands. , out-tasking, outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. services and resells computer related products. Trac Medical offers an electronic form processing solution and utilizes the AuthentiDate technology to prove the authenticity The correct attribution of origin such as the authorship of an e-mail message or the correct description of information such as a data field that is properly named. Authenticity is one of the six fundamental components of information security (see Parkerian Hexad). of the content represented in completed healthcare forms. This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Act of 1934. When used in this release, the words "believe," "anticipate," "think," "intend," "plan," "will be," "expect," and similar expressions identify such forward-looking statements. Such statements regarding future events and/or the future financial performance of The Company are subject to certain risks and uncertainties, which could cause actual events or the actual future results of the Company to differ materially from any forward-looking statement. Such risks and uncertainties include, among other things, the availability of any needed financing, the Company's ability to implement its business plan for various applications of its technologies, the impact of competition, the management of growth, and the other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in the forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved. |
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