Captaris, Inc. Announces Financial Results for First Quarter 2001.Business Editors KIRKLAND Kirkland, city (1990 pop. 40,052), King co., W Wash., a suburb of Seattle on Lake Washington; inc. 1905. The city produces semiconductors, transformers, prefabricated metal buildings, heating and navigation equipment, computer peripherals, motor vehicles, apparel, , Wash--(BUSINESS WIRE)--April 26, 2001 Captaris, Inc. (Nasdaq:CAPA CAPA California Alternate Performance Assessment CAPA Captaris, Inc (stock symbol) CAPA Confederation of Asian and Pacific Accountants CAPA Creative and Performing Arts (school) ) a premiere unified communications The real time redirection of a voice, text or e-mail message to the device closest to the intended recipient at any given time. For example, voice calls to desk phones could be routed to the user's cellphone when required. and mobile business solutions provider today reported its financial results for the quarter ended March 31, 2001. First quarter results are in line with preliminary guidance provided on March 15, 2001. Sales for the first quarter of 2001 were $20,428,000, a 17.9 percent decrease compared to the first quarter of 2000. The Company reported a pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma net loss of $2,302,000 or $0.07 per share, as compared with pro forma net income of $2,658,000 or $0.08 per share (diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. ) for the same period in 2000. First quarter net loss was $4,937,000 or $0.15 per share, and includes charges totaling $4,054,000 (pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern ) for the amortization of goodwill and other intangibles, restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. and non-recurring charges related to the acquisition of Infinite Technologies in January January: see month. , 2001. This compares with net income in the first quarter of 2000 of $3,551,000 or $0.10 per share (diluted). Commenting on the quarter, Captaris president 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. , David P. Anastasi ''For other uses, see Anastasi (disambiguation) Anastasi is a traditional weapon/tool used by the prehistoric settlers in the Maltese Islands. Fragments of anastasi weapons were discovered at the Ghar Dalam cave. stated, "Captaris is rapidly implementing the strategy announced in March of 2001 to enhance our market leadership position in unified communications and document exchange while aggressively pursuing new mobile wireless initiatives worldwide. During the quarter we completed several milestones, such as the acquisition of Infinite Technologies, the launch of the next-generation Infinite Mobile Delivery Server and applications, the release of OmniBridge, the consolidation of the Company's two primary product groups, and the introduction of the Captaris corporate branding Corporate branding is the practice of using a company's name as a product brand name. It is an attempt to leverage corporate brand equity to create product brand recognition. It is a type of family branding or umbrella brand. initiative. Focus will continue to build upon the Company's business strategy through technological developments and an enhancement of strategic partnerships in the unified communications and mobile wireless markets." Commenting further, Anastasi stated, "As expected, the first quarter of 2001 proved to be difficult in terms of revenue. This, combined with significant investments in strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. , corporate and product branding and mobile delivery, along with a charge for deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in our receivable base that reflects current economic conditions, resulted in a loss within the range of guidance previously provided." Previously the company announced its intention to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. its common stock. Through April 26, 2001, approximately 263,000 shares have been repurchased, utilizing approximately $646,000. The company may continue to repurchase shares subject to overall market conditions, its stock price, and the company's cash position and requirements going forward. The Company will hold its regularly scheduled earnings conference call on April 26, 2001 at 1:45 PM PDT PDT abbr. Pacific Daylight Time PDT Pacific Daylight Time PDT n abbr (US) (= Pacific Daylight Time) → hora de verano del Pacífico PDT . The call may be accessed via live web cast at www.Captaris.com. The conference call replay number is 800/633-8284 confirmation number 18566763 and will remain available through May 2, 2001. About Captaris, Inc. Captaris is a leading provider of unified communications and mobile business solutions that allow companies to improve business communications with customers, partners and employees. The company provides access to and control of critical business information from almost any communications device Typically refers to a terminal used to send voice, video or text. Mobile phones, wireless PDAs and personal computers equipped with microphones, speakers and cameras are all considered communications devices. See modem. and enhances communications workflow The automatic routing of documents to the users responsible for working on them. Workflow is concerned with providing the information required to support each step of the business cycle. by improving the way in which company stakeholders Stakeholders All parties that have an interest, financial or otherwise, in a firm-stockholders, creditors, bondholders, employees, customers, management, the community, and the government. exchange information. The company specializes in developing and marketing its CallXpress unified messaging Having access to e-mail, voice mail and faxes via a common computer application or by telephone. For example, unified messaging may send faxes and digitized voice mail to a mail server that turns them into e-mail attachments. solution, its RightFAX fax and communications servers See network access server, modem server, terminal server and communications controller. (operating system) Communications Server - IBM's rebranding of ACF. , its MediaLinq electronic document delivery services, and its Infinite Mobile Delivery product lines. Captaris has more than 75,000 systems installed, and over 1 million users worldwide, with 80 percent of Fortune 100 companies using the company's award winning products and services. Captaris is headquartered in Kirkland, WA and has main offices in Tucson Tucson (t  `sŏn'), city (1990 pop. 405,390), seat of Pima co., SE Ariz.; inc. 1877. , AZ.; Portland, OR; San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , CA; and Owings Mills, MD. In
addition, Captaris has sales and support offices in the United Kingdom,
Germany, Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. , and Dubai. The company was founded in 1982 and is
publicly traded on the Nasdaq National Market under the symbol CAPA.
Captaris maintains a site on the World Wide Web at www.captaris.com.
Captaris was previously known as AVT AVTavian arginine vasotocin. See vasotocin. Corporation. Certain statements in this press release are "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 the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements include all passages containing verbs such as "aims," "anticipates," "believes," "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 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, 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' Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2000 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.
Consolidated Statements of Income (Unaudited)
(in thousands, except per share amounts)
Quarter ended March 31,
2001 2000
---- ----
Net sales $ 20,428 $ 24,875
Cost of sales 7,347 8,594
Gross profit 13,081 16,281
Operating expenses:
Research and development 3,390 2,463
Sales, general and
administrative 14,093 10,503
Amortization of goodwill
and intangibles 1,112 324
Acquired research and
development 1,900 --
Non-recurring items (1) 1,042 --
Total operating expenses 21,537 13,290
Operating (loss) income (8,456) 2,991
Other income, net (2) 860 2,558
(Loss) income before
income tax (7,596) 5,549
Income tax (benefit)
expense (2,659) 1,998
Net (loss) income $ (4,937) $ 3,551
Basic net (loss) income
per share $ (0.15) $ 0.11
Diluted net (loss) income
per share $ (0.15) $ 0.10
Weighted average common
shares outstanding 32,232 31,255
Diluted weighted average
common shares outstanding 32,232 33,841
Pro forma net (loss)
income (3) $ (2,302) $ 2,658
======== ========
Pro forma basic net (loss)
income per share $ (0.07) $ 0.09
Pro forma diluted net
(loss) income per share $ (0.07) $ 0.08
(1) In the first quarter of 2001 non-recurring charges of
$1,042,000 were incurred related primarily to the
consolidation of the Tucson and Kirkland operations.
(2) In the first quarter 2000 a non-recurring gain of $1,784,000
was realized from the sale of marketable securities held for
investment.
(3) Pro forma amounts are derived from historical financial
statements excluding non-recurring charges and amortization of
goodwill and other intangible assets and the write off of
acquired in-process research and development. The tax effect
of items excluded in the pro forma presentation was calculated
using the company's actual expected effective tax rate for the
year. Pro forma amounts are not intended to replace amounts
calculated in accordance with generally accepted accounting
principles; rather they are a supplemental financial
measurement used by management and industry analysts to
evaluate Captaris' operations.
Captaris, Inc.
Consolidated Balance Sheets (Unaudited)
(in thousands)
March 31, December 31,
---------- -----------
2001 2000
ASSETS:
Current assets:
Cash, cash equivalents,
and short-term investments $ 76,757 $ 88,423
Accounts receivable, net 13,259 16,010
Inventories 6,291 6,249
Deferred and prepaid
income taxes 5,665 3,007
Prepaid expenses and
other assets 1,999 1,871
Total current assets 103,971 115,560
Equipment and leasehold
improvements, net 6,903 6,220
Goodwill, Intangibles
and other, net (1) 22,305 5,256
Deferred income taxes 3,208 3,208
Total assets $ 136,387 $ 130,244
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 3,304 $ 4,914
Other current
liabilities 14,131 12,329
Current portion of
note payable 469 --
Total current
liabilities 17,904 17,243
Note payable, net
of current portion 881 --
Shareholders' equity:
Preferred stock, par
value $.01 per share, 2,000,000
Authorized, none
outstanding -- --
Common stock, par value
$.01 per share, 120,000,000
Authorized, 32,332,141
and 30,666,319 outstanding,
respectively, and
additional paid-in capital 66,031 56,493
Retained earnings 51,571 56,508
Total shareholders'
equity 117,602 113,001
Total liabilities
and shareholders' equity $ 136,387 $ 130,244
(1) Includes goodwill and other intangibles related to the
acquisition of Infinite Technologies in January 2001.
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