Captaris Reports Financial Results for Its Fourth Quarter and Year Ended December 31, 2003.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)--Feb. 5, 2004 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) ): -- Strong revenue growth exceeds expectations and earnings in-line In-line Used in the context of general equities. (1) An order or market in a specific security within the inside market; 2) any announcement (earnings) that adheres closely to Wall Street analysts' expectations. with company forecast -- Net income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $0.22 per fully 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. share for the quarter Captaris, Inc. (Nasdaq:CAPA), a leading provider of business process automation and information delivery, today reported financial results for its fourth quarter and year ended Dec. 31, 2003. Highlights for the quarter included stronger than anticipated revenue performance, continued growth of RightFax revenue, strong initial performance from Teamplate and improved gross margin. "I am very pleased that in the fourth quarter we continued solid improvement in our core business and demonstrated early signs of growth in new business," 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. "We are clearly benefiting from our intensive planning and execution during 2003, and have positioned the company well for the coming year. We enter 2004 energized and poised for continuous improvement and success." Revenue for the fourth quarter of 2003 was up 45% to $31.4 million, from $21.6 million in the fourth quarter of 2002 and includes $11.9 million in revenue from the acceleration of the company's 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 agreement 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. For the year ended Dec. 31, 2003, revenue was $83.3 million, a 17% increase over $71.3 million in 2002. RightFax revenue increased 17% sequentially and 11% over the same quarter a year ago. Reported gross margin for the quarter including the Cisco transaction was 80%. Adjusting for Cisco, gross margin was 67%, up 6 percentage points from the third quarter of 2003. Income from continuing operations for the fourth quarter ended Dec. 31, 2003, was $7.2 million or $0.22 per fully diluted share, compared with a loss from continuing operations of $9,000 or break-even per fully diluted share for the fourth quarter of 2002. Loss from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. for the fourth quarter ended Dec. 31, 2003, was $354,000 or $0.01 per fully diluted share, compared to income from discontinued operations of $793,000 or $0.02 per fully diluted share for the same period of 2002. Net income for the full year of 2003 was $12.5 million, or $0.40 per fully diluted share. This compares with a net loss for 2002 of $7.4 million, or $0.23 per fully diluted share, including charges totaling $2.7 million for a cumulative effect of a change in accounting principle related to the adoption of the new financial accounting standard on goodwill in 2002. Cash, cash equivalents, and investment balances at Dec. 31, 2003, were $95.7 million, up $8.5 million from $87.2 at Sept. 30, 2003. Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. During the fourth quarter of 2003, the company repurchased 487,997 shares of its common stock at an average price of $5.98 per share, totaling $2,919,387 under the company's previously announced stock repurchase program. Approximately $12 million remains available 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. shares. 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 Annual Report on 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. Guidance The company will provide guidance relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc expected future results of operations on its regularly scheduled conference call today. Web Cast Information The company will host its regularly scheduled conference call today at 1:45 pm PT/4:45 pm ET to discuss its results of operations and financial condition. 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 800-218-9073 and no access code is required. The company will also provide a replay of the conference call at 800-405-2236, confirmation number 568248# until Feb. 12, at 11:59 pm PT. About Captaris, Inc. Captaris is a leading provider of business information delivery solutions that integrate, process 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. Captaris produces a suite of proven products and services, in partnership with leading enterprise technology companies, delivered through a global distribution network. Captaris has installed over 80,000 systems worldwide, with 93 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, Wash., and has main offices in Tucson Tucson (t `sŏn'), city (1990 pop. 405,390), seat of Pima co., SE Ariz.; inc. 1877. , Ariz., 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. , Ore,, Calgary Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. headquarters in Nieuwegein  is a municipality and a city in the Netherlands, in the province of Utrecht. It lies about 7 km south of the city of Utrecht. It borders on the Lek River in the south. , Netherlands Netherlands (nĕth`ərləndz), Du. Nederland or Koninkrijk der Nederlanden, officially Kingdom of the Netherlands, constitutional monarchy (2005 est. pop. 16,407,000), 15,963 sq mi (41,344 sq km), NW Europe. . In addition, Captaris has sales
and support offices in Switzerland Switzerland (swĭt`sərlənd), Fr. Suisse, Ger. Schweiz, Ital. Svizzera, officially Swiss Confederation, federal republic (2005 est. pop. 7,489,000), 15,941 sq mi (41,287 sq km), central Europe. , 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 (dbī`), 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 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 earnings growth. 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 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 Form 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, Teamplate 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 OPERATIONS
(in thousands, except per share data)
Quarter Ended Year Ended
December 31, December 31,
(unaudited) (unaudited) (unaudited)
2003 2002 2003 2002
----------- ----------- ----------- --------
Net revenue $31,368 $21,624 $83,286 $ 71,256
Cost of revenue 6,339 8,370 25,494 27,080
------- ------- ------- --------
Gross profit 25,029 13,254 57,792 44,176
Operating expenses:
Research and development 2,314 3,110 9,496 10,376
Selling, general and
administrative 11,530 11,805 39,257 40,860
Amortization of
intangibles 105 93 275 942
Impairment of intangible
assets - - - 5,529
Restructuring charges - 1 423 2,034
Stock compensation
expense (benefit) 214 78 2,269 (938)
Gain on sale of the
CallXpress product line (81) - (2,169) -
Other - - - 875
------- ------- ------- --------
Total operating expenses 14,082 15,087 49,551 59,678
------- ------- ------- --------
Operating income (loss) 10,947 (1,833) 8,241 (15,502)
Other income (expense):
Interest 316 505 1,459 2,422
Other, net 303 352 198 (200)
------- ------- ------- --------
Other income 619 857 1,657 2,222
Income (loss) from
continuing operations
before income tax
expense (benefit) 11,566 (976) 9,898 (13,280)
Income tax expense
(benefit) 4,330 (967) 3,680 (6,036)
------- ------- ------- --------
Income (loss) from
continuing operations 7,236 (9) 6,218 (7,244)
Discontinued operations:
Income from operations
of MediaLinq, net of
income taxes (298) 793 472 2,535
Gain (loss) from sale of
MediaLinq, net of
income taxes (56) - 5,843 -
------- ------- ------- --------
Income (loss) from
discontinued operations (354) 793 6,315 2,535
Cumulative effect of
change in accounting
principle - - - (2,695)
------- ------- ------- --------
Net income (loss) $ 6,882 $ 784 $12,533 $ (7,404)
======= ======= ======= ========
Quarter Ended Year Ended
December 31, December 31,
----------------- -----------------
2003 2002 2003 2002
------- ------- ------- -------
Basic net income (loss) per common
share:
Income (loss) from continuing
operations $ 0.22 $ (0.00) $ 0.20 $ (0.23)
Income (loss) from discontinued
operations (0.01) 0.02 0.21 0.08
Cumulative effect of change in
accounting principle - - - (0.08)
------ ------- ------- -------
Basic net income (loss) per common
share $ 0.21 $ 0.02 $ 0.41 $ (0.23)
======= ======= ======= =======
Weighted average basic common
shares 32,232 31,530 30,849 31,780
Diluted net income (loss) per
common share:
Income (loss) from continuing
operations $ 0.22 $ (0.00) $ 0.20 $ (0.23)
Income (loss) from discontinued
operations (0.01) 0.02 0.20 0.08
Cumulative effect of change in
accounting principle - - - (0.08)
------- ------- ------- -------
Diluted earnings (loss) per common
share $ 0.21 $ 0.02 $ 0.40 $ (0.23)
======= ======= ======= =======
Weighted average diluted common
shares 32,890 31,530 31,210 31,780
CAPTARIS, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31,
2003 December 31,
ASSETS (unaudited) 2002
------------ ------------
Cash & cash equivalents $ 41,896 $ 21,971
Short-term investments, available for sale 28,081 30,519
Accounts receivable, net 13,638 17,811
Inventories 1,973 2,928
Prepaid expenses and other current assets 2,516 1,544
Deferred income taxes and income tax
receivable 1,770 4,308
--------- ---------
Total Current Assets 89,874 79,081
Long-term investments, available for sale 25,685 20,599
Restricted cash 1,000 1,000
Equipment and leasehold improvements, net 4,605 7,595
Intangible and other assets, net 6,704 2,480
Goodwill 15,541 8,976
Deferred income taxes 1,346 1,546
--------- ---------
Total Assets $ 144,755 $ 121,277
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable $ 4,875 $ 7,204
Accrued compensation and benefits 4,403 4,186
Other accrued liabilities 1,393 3,401
Income taxes payable 2,999 -
Deferred revenue 10,257 8,185
--------- ---------
Total Current Liabilities 23,927 22,976
--------- ---------
Redeemable common stock 3,000 -
Shareholders' equity:
Common stock 318 302
Additional paid-in capital 67,453 60,539
Retained earnings 49,681 37,148
Accumulated other comprehensive income 376 312
--------- ---------
Total Shareholders' Equity 117,828 98,301
--------- ---------
Total Liabilities and Shareholders' Equity $ 144,755 $ 121,277
========= =========
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