AuthentiDate Holding Corp. Announces Second Quarter and Six Month 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 NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : 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 December December: see month. 31, 2004 increased 18% to $4,761,727 from $4,029,068 for the quarter ended December 31, 2003. Revenue for the six-month period ending December 31, 2004, increased 15% to $8,424,125 from $7,300,291 for the same six-month period a year ago. The Company noted that deferred revenue increased to over $2.3 million from $1.9 million at June June: see month. 30, 2004. The Company stated that the increase in revenue for the quarter and the six-month period ended December 31, 2004 was largely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to its AuthentiDate segment. The AuthentiDate segment increased more than $720,000 for the quarter and more than $1.1 million for the six-month period, an increase of 186% over the same year ago periods. The AuthentiDate segment includes the Company's 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. Electronic Postmark (EPM EPM equine protozoal myeloencephalitis. ) division, its homecare British Gas HomeCare is the name for British Gas Services which operates in the United Kingdom, which was originally set up to provide maintenance for central heating and other gas appliances. solutions division (TracMed) and its German division (AuthentiDate International AG). The net loss for the second quarter ended December 31, 2004 was $4,920,116, or $0.15 per share, compared to a net loss of $7,823,689, or $0.23 per share, for the same quarter a year ago. The Company reported a net loss of $7,826,205, or $0.23 per share, and $9,523,708, or $0.43 per share, for the respective six-month periods ended December 31, 2004 and 2003. While the Company noted that Selling, General and Administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. increased during the quarter, it attributed this increase to costs and staffing associated with the build out of the Company's EPM and homecare solutions business. On a non-GAAP basis, the Company reported a net loss of $3,036,768, or $0.09 per share, for the quarter ended December 31, 2004 and $5,942,307, or $0.18 per share, for the six-month period ended December 31, 2004. The Company said that the difference between the non-GAAP net loss and the GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). net loss was attributable to costs associated with non-recurring expense items, including severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and consulting expenses. "These results illustrate that we are experiencing revenue 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. , particularly in our AuthentiDate business segment," stated AuthentiDate 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. Suren Pai. "We are investing in building strong capabilities to address some exciting market opportunities ahead of us. While there is still a lot of work to be done we are making steady progress towards identifying and executing against opportunities to apply our core USPS electronic postmarking technology." 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 Sheets 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
(Unaudited)
For Three Months Ended For Six Months Ended
December 31, December 31,
2004 2003 2004 2003
---------- ---------- ---------- ----------
Net sales $4,761,727 $4,029,068 $8,424,125 $7,300,291
Cost of goods sold 2,493,129 2,402,816 4,452,914 4,447,756
---------- ---------- ---------- ----------
Gross profit 2,268,598 1,626,252 3,971,211 2,852,535
Selling, general
and administrative
expenses 6,962,081 3,246,924 11,171,438 5,943,997
Product development
expenses 600,073 500,487 1,301,347 1,080,027
---------- ---------- ---------- ----------
Operating loss (5,293,556) (2,121,159) (8,501,574) (4,171,489)
Other income (expense)
Interest expense (4,615) (5,724,704) (8,813) (6,182,160)
Interest and other
income 381,054 22,174 689,732 812,037
---------- ---------- ---------- ----------
Loss before
income taxes (4,917,117) (7,823,689) (7,820,655) (9,541,612)
Income tax
(expense)/benefit (2,999) - (5,550) 17,904
---------- ---------- ---------- ----------
Net loss ($4,920,116) ($7,823,689) ($7,826,205) ($9,523,708)
========== ========== ========== ==========
Weighted average
number of shares 33,763,939 24,495,904 33,626,088 22,462,881
========== ========== ========== ==========
Net loss per
common share ($0.15) ($0.32) ($0.23) ($0.43)
========== ========== ========== ==========
AuthentiDate Holding Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
December 31, June 30,
2004 2004
------------ ------------
Current Assets:
Cash and cash equivalents $67,527,016 $73,989,823
Restricted cash 367,191 365,116
Accounts receivable 3,762,904 3,039,044
Other current assets 864,151 599,515
----------- -----------
Total current assets 72,521,262 77,993,498
Property and equipment, net 3,588,137 3,396,454
Goodwill 11,616,736 11,616,736
Other assets 2,279,938 1,230,188
----------- -----------
Total Assets $90,006,073 $94,236,876
=========== ===========
Current Liabilities:
Accounts payable $ 1,309,088 $ 859,360
Accrued expenses and other 2,319,112 1,838,860
Deferred revenue 1,930,274 1,881,277
Current portion capital leases 43,233 69,968
Current portion long-term debt 108,000 208,239
Line of credit 407,696 571,622
Income taxes payable 10,798 6,130
----------- -----------
Total current liabilities 6,128,201 5,435,456
Deferred revenue, long-term 408,000 -
Long-term debt, net of current portion - 48,000
Obligations under capital leases, net of
current portion 16,077 35,421
Other long-term liabilities 496,925
----------- ------------
Total liabilities 7,049,203 5,518,877
----------- -----------
Total shareholders' equity 82,956,870 88,717,999
----------- -----------
Total liabilities and shareholders' equity $90,006,073 $94,236,876
=========== ===========
In analyzing its financial results the Company has used non-GAAP pro
forma financial measures because it believes that they provide
meaningful information regarding the Company's operational performance
that excludes certain unusual and non-recurring expenses, as described
in the footnotes to the following reconciliation. They also facilitate
management's internal comparisons to historical operating results.
Wherever non-GAAP disclosures are included in this press release the
Company has provided a reconciliation of non-GAAP operating results to
GAAP operating results. The non-GAAP financial measures are not
prepared in accordance with generally accepted accounting principles
and may be different from non-GAAP financial measures used by other
companies and therefore the non-GAAP results should not be considered
in isolation from, or as a substitute for financial information
prepared in accordance with GAAP. The footnotes to the non-GAAP
reconciliation should be read in conjunction with the reconciliation
below.
Reconciliation of GAAP Statement of Operations to
non-GAAP Proforma Statement of Operations
For the Six Months Ended December 31, 2004
For the 6 months ended December 31, 2004
GAAP (1) DIFFERENCE NON-GAAP (2)
Revenues: $8,424,125 $8,424,125
Costs & expenses:
Cost of sales 4,452,914 4,452,914
S,G&A expenses 11,171,438 (1,221,114)(3) 9,288,090
(662,234)(4)
Product development exp. 1,301,347 1,301,347
-------------------------- ------------
Total costs & expenses 16,925,699 (1,883,348) 15,042,351
-------------------------- ------------
Operating Loss (8,501,574) 1,883,348 (6,618,226)
-------------------------- ------------
Other income (expense)
Interest and other income 689,732 689,732
Interest expense (8,813) (8,813)
-------------------------- ------------
Loss before income taxes (7,820,655) 1,883,348 (5,937,307)
-------------------------- ------------
Income tax (expense)/benefit (5,550) (5,550)
-------------------------- ------------
Net loss $(7,826,205) $1,883,348 $(5,942,857)
========================== ============
Per share amounts:
Basic and diluted loss per
common share $(.23) $(0.18)
============= ============
Reconciliation of GAAP Statement of Operations to
non-GAAP Proforma Statement of Operations
For the Three Months Ended December 31, 2004
For the 3 months ended December 31, 2004
GAAP (1) DIFFERENCE NON-GAAP (2)
Revenues: $4,761,727 $4,761,727
Costs & expenses:
Cost of sales 2,493,129 2,493,129
S,G&A expenses 6,962,081 (1,221,114)(3) 5,078,733
(662,234)(4)
Product development exp. 600,073 600,073
-------------------------- ------------
Total costs & expenses 10,055,283 (1,883,348) 8,171,935
-------------------------- ------------
Operating Loss (5,293,556) 1,883,348 (3,410,208)
-------------------------- ------------
Other income (expense)
Interest and other income 381,054 381,054
Interest expense (4,615) (4,615)
-------------------------- ------------
Loss before income taxes (4,917,117) 1,883,348 (3,033,769)
Income tax (expense)/benefit (2,999) (2,999)
-------------------------- ------------
Net loss $(4,920,116) $1,883,348 $(3,036,768)
=========================================
Per share amounts:
Basic and diluted loss per
common share $(.15) $(.09)
============= ============
(1) Reflects operating results in accordance with US GAAP.
(2) Non-GAAP amounts exclude a warrant charge for a one-time
consulting arrangement and one-time severance accruals
(3) Represents the exclusion of a one-time severance accrual related
to executive officer restructuring.
(4) Represents the exclusion of a non-cash equity based expense
relating to a consultant fee.
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 DJS Dubin-Johnson Syndrome DJS Def Jam South (record label) DJS Deutsche Journalistenschule eV DJS Dow Jones Spot DJS Director, Joint Staff 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 and/or conj. Used to indicate that either or both of the items connected by it are involved. Usage Note: And/or is widely used in legal and business writing. 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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