Captaris Announces First Quarter 2003 Financial Results; Company's Results Improved over Same Quarter Prior Year; in Line with Revenue and Earnings Guidance.Business Editors BELLEVUE Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. , Wash.--(BUSINESS WIRE)--May 8, 2003 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 business information delivery solutions that integrate and automate To turn a set of manual steps into an operation that goes by itself. See automation. the flow of messages, data and documents, today reported financial results for its first quarter ended March 31, 2003. Highlights for the quarter included a 9% increase in net RightFax sales and a 3% increase in MediaLinq services 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 . Net sales for the first quarter of 2003 increased slightly to $21.6 million, as compared to $21.5 million for the same period of the prior year. The company reported a net loss for the first quarter of $890,000, or ($0.03) per share, as compared to a net loss of $4.8 million, or ($0.15) per share, for the same quarter of 2002. Cash and cash equivalents, and investment balances totaled $71.8 million at March 31, 2003. "We are pleased to report first quarter revenue within our published guidance and a notable improvement in the bottom line over the first quarter of last year," 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. , president and chief executive officer of Captaris. "I am particularly pleased with the 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. we are getting from our strategic partnerships and other key initiatives. We are off to a good start for the year and are as confident as ever in our ability to achieve our objectives for 2003." Guidance The company's guidance for the full year of 2003 remains unchanged with expected revenue of $92 to $96 million and expected net earnings of $0.03 to $0.09 per share. The earnings per share guidance assumes the company incurs no further charges or benefits resulting from variable accounting treatment of stock-based compensation. As of March 31, 2003, the company had 1,226,299 outstanding stock options subject to variable accounting treatment, and therefore expects to report stock-based compensation charges or benefits in future quarters. The amount of these charges or benefits will depend on the company's stock price and the number of stock options subject to variable accounting that are outstanding at the end of each quarter, neither of which can be predicted. These charges or benefits could have a material impact on the company's reported financial results in a particular quarter or for the year. The company's management excludes the impact of variable accounting charges or benefits in evaluating internally the company's financial results in order to facilitate comparison to prior periods. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. As previously announced, in August 2000, the Board of Directors of Captaris approved a plan 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. up to $15.0 million of its common stock. The company did not repurchase shares in the first quarter of 2003 and has approximately $10.0 million available under this plan for future repurchases. The company may repurchase shares in the future subject to open trading windows, overall market conditions, stock prices and the company's cash position and requirements going forward. Captaris intends to provide updates on the status of its repurchase program each quarter in its Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. and 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. filed with the Securities and Exchange Commission. Web Cast Information The company will host its regularly scheduled conference call today at 1:45 pm PT. The live Web cast of the conference call can be accessed from the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Captaris Web site at www.Captaris.com. The dial-in number is 800/240-2430 and no access code is required. The company will also provide a replay of the conference call at 800/405-2236, confirmation number 536380# until Thursday Thursday: see week. , May 15 at 11:59 pm PT. About Captaris, Inc. Captaris is a leading provider of business information delivery solutions that integrate and automate the flow of messages, data and documents. Captaris produces a suite of proven products and services, in partnership with leading enterprise software companies, delivered through a global distribution network. Captaris has nearly 100,000 systems installed worldwide, with more than 90 of the Fortune 100 using the company's award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" products and services to reduce costs and increase the performance of critical business information investments. Captaris is headquartered in Bellevue, 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, and 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 product 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 Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , and Dubai Dubai (d bī`), sheikhdom (1995 pop. 674,101), c.1,500 sq mi (3,890 sq km), part of the federation of seven United Arab Emirates, SE Arabia, on the Persian Gulf. . The company's MediaLinq
Services group has additional office locations in Reston Reston, uninc. city (1990 pop. 48,556), Fairfax co., N Va., a planned community established in 1961. A suburb of Washington, D.C., Reston is organized in a series of residential villages and commercial areas. , VA, New York New York, state, United StatesNew York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY, Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. , IL and Newport Beach Newport Beach, residential and resort city (1990 pop. 66,643), Orange co., S Calif., on Newport Bay and the Pacific Ocean; inc. 1906. It is a popular seaside resort and yachting center. Manufactures include electrical and medical equipment, computers, boats, and adhesives. , CA. The company was founded in 1982 and is publicly traded on the NASDAQ National Market under the symbol CAPA. For more information please visit www.captaris.com. 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, including, without limitation, statements regarding expected revenue and the company's ability to achieve its objectives for 2003. 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 impact, if any, of stock-based compensation charges or benefit associated with variable accounting treatment on certain stock options, the amount and timing of payments, if any, received under Captaris' OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and arrangement with Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. , Inc., 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 and annual report on 10-K 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 for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. or other statements in this press release, whether as a result of new information, future events or otherwise. Captaris products RightFax, CallXpress, MediaLinq and Infinite (mathematics) infinite - 1. Bigger than any natural number. There are various formal set definitions in set theory: a set X is infinite if (i) There is a bijection between X and a proper subset of X. (ii) There is an injection from the set N of natural numbers to X. are trademarks of Captaris. All other company, brand and product names are the property 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. trademarks of their respective companies.
CAPTARIS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(Unaudited)
Quarter ended
March 31,
2003 2002
-------- --------
Net sales:
Software products $15,700 $15,801
E-document services 5,910 5,742
-------- --------
Total net sales 21,610 21,543
Cost of sales:
Software products 5,794 6,068
E-document services 2,108 2,096
-------- --------
Total cost of sales 7,902 8,164
-------- --------
Gross profit 13,708 13,379
Operating expenses:
Research and development 2,805 2,698
Selling, general and administrative 12,146 12,043
Amortization of intangibles 57 439
Restructuring charges -- 2,119
Stock compensation expense (benefit) 482 (204)
Other -- 875
-------- --------
Total operating expenses 15,490 17,970
-------- --------
Operating income (loss) (1,782) (4,591)
Other income (expense):
Interest 455 736
Other, net (43) (362)
-------- --------
Other income 412 374
Income (loss) before income tax expense (benefit)
and cumulative effect
of change in accounting principle (1,370) (4,217)
Income tax expense (benefit) (480) (2,109)
-------- --------
Income (loss) before cumulative effect of change in
accounting principle (890) (2,108)
Cumulative effect of change in accounting principle -- (2,695)
-------- --------
Net income (loss) $(890) $(4,803)
======== ========
Basic and diluted earnings (loss) per common share
prior to
cumulative effect $(0.03) $(0.07)
Cumulative effect of change in accounting principle -- $(0.08)
-------- --------
Basic and diluted earnings (loss) per common share $(0.03) $(0.15)
======== ========
Weighted average common shares outstanding 30,220 31,824
(1) The first quarter of 2002 contained restructuring charges of
$2,119,000 related to reduction in work force and other charges of
$875,000 related to the prior-years portion of the AudioFax
settlement.
CAPTARIS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
March 31, Dec. 31,
2003 2002
----------- -----------
ASSETS (Unaudited)
Current assets:
Cash and cash equivalents $24,789 $21,971
Short-term investments, available for sale 18,926 30,519
Accounts receivable, net 15,570 17,811
Inventories 2,187 2,928
Deferred and income tax receivable 4,419 4,308
Prepaid expenses and other 2,101 1,544
----------- -----------
Total current assets 67,992 79,081
Long-term investments, available for sale 28,058 20,599
Equipment and leasehold improvements, net 7,570 7,595
Goodwill, net 9,000 8,976
Intangible and other assets, net 2,365 2,480
Restricted cash 1,000 1,000
Deferred income taxes 1,553 1,546
----------- -----------
Total assets $117,538 $121,277
=========== ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $5,492 $7,204
Accrued compensation and benefits 3,435 4,186
Deferred revenue 8,385 8,185
Other accrued liabilities 2,295 3,401
----------- -----------
Total current liabilities 19,607 22,976
Total liabilities 19,607 22,976
Shareholders' equity:
Common stock 303 302
Additional paid-in capital 61,137 60,539
Retained earnings 36,258 37,148
Accumulated other comprehensive income 233 312
----------- -----------
Total shareholders' equity 97,931 98,301
----------- -----------
Total liabilities and shareholders
equity $117,538 $121,277
=========== ===========
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