Captaris Announces Financial Results for Second Quarter.Business Editors/High Tech Writers 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)--July 19, 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 leading provider of 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, today reported financial results for its second quarter ended June June: see month. 30, 2001. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the second quarter of 2001 were $23.5 million, a 15.3 percent increase over the first quarter of this year. When compared to the same period in the prior year, net sales decreased 6.7 percent. 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 $1.6 million or $0.05 per share, as compared with pro forma net income of $2.4 million 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 second quarter of 2000. Net loss for the quarter was $2.3 million, or $0.07 per share as compared to earnings per share of $0.07 per share (diluted) for the same quarter of 2000. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was a positive $1.4 million for the quarter ended June 30, 2001. "We are encouraged by a number of points associated with our performance this quarter. We were cash-flow positive from operations and saw a 15% quarter-over-quarter increase in revenue, driven primarily by positive trends in our domestic dealer channel," stated 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. , Captaris president and chief executive officer. "While we remain cautious given current economic times and the continued softness in general technology spending, we believe these results, combined with the ongoing execution of our stated strategy, and this quarter's commercial launch of our Infinite Mobile Delivery product position Captaris well for the future." For the six months ended June 30, 2001, net sales were $44.0 million, a 12.2 percent decrease over the same period in the prior year. The pro forma loss totaled $3.9 million or $0.12 per share compared to pro forma income of $6.2 million or $0.19 per share (diluted) for the first six months of 2000. Net loss for this six-month time period was $7.3 million or $0.23 per share, and includes charges totaling $5.2 million (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 for the six months ended June 30, 2000, of $5.8 million or $0.17 per share (diluted), which is inclusive of inclusive of prep. Taking into consideration or account; including. a non-recurring gain in the first quarter of 2000 of $1.8 million realized from the sale of marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has held for investment. Anastasi continued, "We saw revenue increase during the quarter compared to the prior quarter, but equally important is our continued commitment to execute on our strategy. This included, among others, the launch of the Captaris brand, the launch of our new permission email service See Internet e-mail service. , and the release of Infinite Mobile Delivery worldwide." Employee Stock Option Exchange Program The Company announced that its previously announced employee stock option exchange program has been completed as planned. On July July: see month. 11, 2001, the Company accepted for exchange options to purchase 3,125,620 shares of Captaris common stock, representing approximately 87% of the options that were eligible to be tendered in the Offer. Upon the terms and subject to the conditions of the Offer, the Company has granted options to purchase an aggregate of 1,298,284 shares of Captaris common stock in exchange for such tendered options. Because the exchange of stock options occurred immediately upon the expiration EXPIRATION. Cessation; end. As, the expiration of, a lease, of a contract, or statute. 2. In general, the expiration of a contract puts an end to all the engagements of the parties, except to those which arise from the non- fulfillment of obligations created of the offering period, the new options will be treated as variable awards and thus will subject the Company to non-cash compensation charges in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with variable accounting rules. In addition, stock options granted to participating employees within the six months before or after the exchange that have an exercise price less than the exercise price of the tendered stock options will also be subject to variable accounting to the extent the employee's new grant was for fewer shares than the shares subject to the tendered options. As a result of this exchange program, the Company now has approximately 2 million options to purchase common shares subject to such variable accounting rules. The Company will hold its regularly scheduled earnings conference call on July 19, 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, the reservation number 19208936. 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 Portland, town, EnglandPortland, town (1991 pop. 12,945), Dorset, S England. It is on the Isle of Portland, a small rocky peninsula. Portland stone has been used in St. Paul's Cathedral and other important London buildings. Lobsters and crabs are harvested. , 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 Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). , 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 AVT avian 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' most recent quarterly report on Form 10- Q 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 Six months ended
------------- ----------------
June 30, June 30,
-------- --------
2001 2000 2001 2000
-------- -------- -------- --------
Net sales $23,550 $25,240 $43,977 $50,115
Cost of sales 9,026 8,548 16,375 17,142
-------- -------- -------- --------
Gross profit 14,524 16,692 27,602 32,973
Operating expenses:
Research and development 4,113 2,494 7,503 4,957
Sales, general and
administrative 13,864 11,400 27,963 21,903
Amortization of goodwill
and intangibles 1,112 324 2,224 648
Acquired research and
development -- -- 1,900 -
Non-recurring items (1) -- -- 1,042 --
-------- -------- -------- --------
Total operating expenses 19,089 14,218 40,632 27,508
-------- -------- -------- --------
Operating (loss) income (4,565) 2,474 (13,030) 5,465
Other income, net (2) 952 930 1,817 3,486
-------- -------- -------- --------
(Loss) income before income tax (3,613) 3,404 (11,213) 8,951
Income tax (benefit) expense (1,266) 1,192 (3,924) 3,188
-------- -------- -------- --------
Net (loss) income $(2,347) $ 2,212 $(7,289) $5,763
======== ======== ======== ========
Basic net (loss) income per share $ (0.07) $ 0.07 $ (0.23) $ 0.19
Diluted net (loss) income
per share $ (0.07) $ 0.07 $ (0.23) $ 0.17
Weighted average common shares
outstanding 32,104 31,008 32,168 31,131
Diluted weighted average common
shares outstanding 32,104 31,884 32,168 33,111
Pro forma net (loss) income (3) $(1,626) $ 2,423 $(3,930) $ 6,184
======== ======== ======== ========
Pro forma basic net (loss) income
per share $ (0.05) $ 0.08 $ (0.12) $ 0.20
Pro forma diluted net (loss)
income per share $ (0.05) $ 0.08 $ (0.12) $ 0.19
(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)
June 30, December 31,
----------- ------------
2001 2000
----------- ------------
ASSETS:
Current assets:
Cash, cash equivalents, and
short-term investments $ 76,405 $ 88,423
Accounts receivable, net 12,209 16,010
Inventories 5,653 6,249
Deferred and prepaid income taxes 5,948 3,007
Prepaid expenses and other assets 2,399 1,871
----------- ------------
Total current assets 102,614 115,560
Equipment and leasehold improvements, net 7,646 6,220
Goodwill, Intangibles and other, net (1) 21,119 5,256
Deferred income taxes 3,208 3,208
----------- ------------
Total assets $ 134,587 $ 130,244
=========== ============
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 3,410 $ 4,914
Other current liabilities 15,079 12,329
Current portion of note payable 469 -
----------- ------------
Total current liabilities 18,958 17,243
----------- ------------
Note payable, net of current portion 882 -
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, 32,104,141 and
30,666,319 outstanding,
respectively, and
additional paid-in capital 65,585 56,493
Retained earnings 49,162 56,508
----------- ------------
Total shareholders' equity 114,747 113,001
----------- ------------
Total liabilities and
shareholders' equity $ 134,587 $ 130,244
(1) Includes goodwill and other intangibles related to the acquisition
of Infinite Technologies in January 2001.
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