Captaris Announces First Quarter 2002 Financial Results; Q1 Revenues Increase 5.5% From Q1 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 25, 2002 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 positive year-over-year financial results for its quarter ended March 31, 2002. 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 first quarter of 2002 were $21.5 million, a 5.5% increase when compared to the same period of the prior year. The revenue for the quarter decreased 11.1% from the fourth quarter of 2001, which is consistent with normal seasonality for the Company. 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 $519,000 or $0.02 per share, as compared with a pro forma net loss of $2.3 million or $0.07 per share for the first quarter of 2001. Net loss for the quarter was $2.1 million or $0.07 per share as compared to a net loss of $4.9 million or $0.15 per share for the same quarter of 2001. The net loss for the quarter includes charges totaling $3.2 million (pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern ) for the amortization of intangibles, stock compensation expense, and non-recurring items. "Overall, we were pleased with our performance, both financially and in our execution as we continue to expand our efforts into new areas of opportunity," said 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 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. . "We performed well at a time when much of the technology sector, and telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. in particular, continued to struggle. Our balance sheet remains strong and we did an outstanding job at controlling our operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. during the quarter." In the first quarter, Captaris released the next major version of its mobility offering -- Infinite Mobile Delivery version 2.5, as well as two new RightFax connectors for integration with Oracle and FileNET A document imaging system from IBM (www.filenet.com). Introduced in 1985 by FileNet Corporation, the company was acquired by IBM in 2006. FileNet is the most widely used high-end workflow system and runs on PCs and a variety of Unix workstations. systems. The company also forged forge 1 n. 1. A furnace or hearth where metals are heated or wrought; a smithy. 2. A workshop where pig iron is transformed into wrought iron. v. new and expanded strategic relationships, including an agreement with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) Corporation that expanded Captaris' global partnership for development of unified communications solutions. The Company later announced National Reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. and Strategic Service Alliance Agreements with Altura Communication Solutions -- a leading provider of voice, telephony Meaning "sound over distance," it refers to electronically transmitting the human voice. In the beginning, telephony dealt only with analog signals in the circuit-switched networks of the telephone companies. , and messaging products. The Company will hold its regularly scheduled earnings conference call on April 25, 2002, 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 and the reservation number is 20466048. 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. In addition, Captaris has sales and support offices in Holland, 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. , Australia, 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 Operations (Unaudited)
(in thousands, except per share amounts)
Quarter ended March 31,
2002 2001
-------- --------
Net sales $ 21,543 $ 20,428
Cost of sales 8,164 7,347
-------- --------
Gross profit 13,379 13,081
Operating expenses:
Research and development 2,698 3,390
Sales, general and administrative 12,093 14,093
Stock compensation expense (204)
Amortization of goodwill and
intangibles (1) 389 1,112
Acquired research and development -- 1,900
Non-recurring items (2) 2,994 1,042
-------- --------
Total operating expenses 17,970 21,537
-------- --------
Operating loss (4,591) (8,456)
Other income, net 374 860
-------- --------
Loss before income tax (4,217) (7,596)
Income tax benefit (2,109) (2,659)
-------- --------
Net loss $ (2,108) $ (4,937)
======== ========
Basic net loss per share $ (0.07) $ (0.15)
Diluted net loss per share $ (0.07) $ (0.15)
Weighted average common shares outstanding 31,826 32,232
Diluted weighted average common shares
outstanding 31,826 32,232
Pro forma net loss (3) $ (519) $ (2,302)
======== ========
Pro forma basic net loss per share $ (0.02) $ (0.07)
Pro forma diluted net loss per share $ (0.02) $ (0.07)
(1) The reduction in amortization expense reflects the adoption of
FAS No 142 which requires that amortization of goodwill be
discontinued as of January 1, 2002.
(2) In the first quarter of 2002, nonrecurring charges consist of
$2,119,000 related to the previously announced reduction in work
force that took place in January and $875,000 related to the
settlement of a patent related suit. 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.
(3) Pro forma amounts are derived from historical financial statements
excluding non-recurring items, variable accounting charges for
stock-based compensation, amortization of goodwill (in 2001) 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 period. 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 certain
industry analysts to evaluate Captaris' operations. See the
following table for reconciliation of pro forma net income (loss).
The following table reflects the differences between pro forma and
as reported net loss (in thousands):
Quarter ended March 31,
2002 2001
------- -------
As reported net loss $(2,108) $(4,937)
------- -------
Pro forma adjustments:
Stock compensation expense (204) --
Amortization of goodwill and intangibles 389 1,112
Acquired research and development -- 1,900
Non-recurring items (2)(3) 2,994 1,042
Tax effect of pro forma adjustments (1,590) (1,419)
------- -------
Pro forma net loss $ (519) $(2,302)
======= =======
Captaris, Inc.
Consolidated Balance Sheets (Unaudited)
(in thousands)
March 31, December 31,
2002 2001
------- -------
ASSETS:
Current assets:
Cash, cash equivalents, and short-term
investments $ 74,433 $ 77,172
Accounts receivable, net 14,137 14,597
Inventories 4,816 5,022
Deferred and prepaid income taxes 9,409 8,267
Prepaid expenses and other assets 2,320 1,304
------- -------
Total current assets 105,115 106,362
Equipment and leasehold improvements, net 6,585 7,463
Goodwill, intangibles and other, net 18,812 18,766
Deferred income taxes 2,769 2,769
------- -------
Total assets $133,281 $135,360
======= =======
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current liabilities:
Accounts payable $ 3,218 $ 4,941
Other current liabilities 11,167 11,341
Deferred revenue 9,311 7,433
Current portion of note payable 537 527
------- -------
Total current liabilities 24,233 24,242
------- -------
Note payable, net of current portion 882 882
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,
31,868,941 and 31,746,067 outstanding,
respectively, and additional
paid-in capital 66,298 66,260
Retained earnings 41,868 43,976
------- -------
Total shareholders' equity 108,166 110,236
------- -------
Total liabilities and
shareholders' equity $133,281 $135,360
======= =======
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