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DOCdata NV Expects a Small Operating Loss in the First Half Year 2000 and Discusses the Acquisition of ABLEX Ltd.


Business Editors

VUGHT, The Netherlands--(BUSINESS WIRE)--June 9, 2000

DOCdata (NASDAQ NASDAQ
 in full National Association of Securities Dealers Automated Quotations

U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on
:DOCDF; AEX AEX

See: Amsterdam Exchange
:DOCD DOCD Development Operations Coordination Document ) also announces

a second share buy-back program

The operating loss operating loss

The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income.
 before amortization of goodwill (EBITA EBITA Earnings Before Interest Taxes Amortization ) for the first six months ending 30 June 2000 is expected to be approximately Euro 0.5 million compared with an operating profit Operating profit (or loss)

Revenue from a firm's regular activities less costs and expenses and before income deductions.


operating profit

See operating income.
 before amortization of goodwill of Euro 2.7 million in the comparable period of 1999. DOCdata's operating result to 30 June 2000 was influenced by:

Increased prices for raw materials as a result of the higher oil prices and the strengthened exchange rate of the dollar versus the Euro. These price increases are only partly offset by higher sales prices due to the competitiveness of the market especially in the first half of the year when the available capacity is greater than demand. However, the company expects to further increase sales prices to its customers in the second half of this year when demand traditionally exceeds supply.

A reduction in the requirements of customers in the more service related parts of the CD-ROM CD-ROM: see compact disc.
CD-ROM
 in full compact disc read-only memory

Type of computer storage medium that is read optically (e.g., by a laser).
 market affected the margins of DOCdata in the first six months especially in Germany and New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. . Based on the fact that the New England subsidiary did not meet its targets, the management of DOCdata decided in the first quarter of 2000 to further reduce its cost base in the US. The implementation of a leaner organization with a focus on creating a competitive cost structure has resulted in cost savings per the second quarter of 2000 on an annualized annualized

Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared.
 base of approximately Euro 1.4 million.

Lower than expected revenues in the UK predominantly caused by the lower sales to its independent music customers, slower than expected development of new customers and the high cost base of the UK operation. The initial costs associated with the start up of the European e-commerce fulfillment activities in Waalwijk, The Netherlands. DOCdata intends to remain focused on establishing itself as a dominant e-commerce fulfillment player in the rapidly growing Internet related media markets.

DOCdata expects that its niche markets with an established requirement for service and fast delivery within the music and multimedia market will produce limited growth in the foreseeable future. DOCdata will, however, remain focused on servicing these markets since higher prices can be commanded when customer service expectations are consistently met or exceeded. In addition, DOCdata wants to establish a lower cost base in order to also participate in the less service and more volume driven sectors of the market in a profitable way. During the next six months the company will also consider opportunities to lead the consolidation process of the European replication industry. The first step in this process has already been taken in the UK.

DOCdata and the shareholders of ABLEX ABLEX Airborne Laser Experiment  Ltd in the UK are discussing the sale of all of the outstanding shares in ABLEX Ltd to DOCdata

Subject to definitive documentation and a satisfactory completion of the due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. , the parties involved expect to finalize their discussions in the next week with the objective of final completion around the end of June 2000. ABLEX is located in the West Midlands West Midlands, former metropolitan county, central England. Created in the 1974 local government reorganization, the county embraced the Birmingham conurbation and comprised seven metropolitan districts: Walsall, Wolverhampton, Dudley, Sandwell, Birmingham, Solihull,  and has around 110 full time employees. Like DOCdata, ABLEX is servicing the UK music and multimedia industry with CD replication Manufacturing CDs and CD-ROMs by stamping blank plastic discs from a metal die that contains the predefined pit pattern (binary pattern). Contrast with CD duplication. , music cassette duplication and related value-added services. In the year ending 31 March 2000, ABLEX reported sales of approximately Euro 21 million and an operating profit (pre interest and tax) of approximately Euro 3 million. ABLEX has sold in this period approximately 43 million CDs and music cassettes. DOCdata expects to acquire the shares of ABLEX for a consideration in cash and a further to be announced To be announced (TBA)

A contract for the purchase or sale of an MBS to be delivered at an agreed-upon future date but does not include a specified pool number and number of pools or precise amount to be delivered.
 number of shares in DOCdata NV. DOCdata is currently reviewing the option to consolidate the UK manufacturing activities into one location in order to reduce its operating costs in the UK. The costs of the intended reorganizations can be offset for a large part by the gains of the reorganization process.

DOCdata further announces a second share buy-back program

DOCdata intends to start a second share buy-back program in order to increase the number of ordinary shares in its own capital from 5% to a maximum of 10% of the total number of ordinary shares currently outstanding in the market. It is expected that DOCdata will buy the shares in the open market at times, prices and amounts to be determined from time to time. The shares can be used to fund future acquisitions and the DOCdata option scheme. DOCdata currently holds 400,000 ordinary shares in its own capital. Ordinary shares owned by the company are not entitled to distribution of profit.

DOCdata is a leading independent provider of supply chain management services to content owners: audio, multimedia and software publishers with facilities in The Netherlands, France, Germany, United Kingdom and the United States. DOCdata provides e-commerce fulfillment services to webshops, retail chains, direct marketing and Internet service providers Internet service provider (ISP)

Company that provides Internet connections and services to individuals and organizations. For a monthly fee, ISPs provide computer users with a connection to their site (see data transmission), as well as a log-in name and password.
. DOCdata also designs and builds production systems based on optical and laser technology.

Note: Certain matters discussed in this news release are forward-looking statements, as defined in 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. Such forward-looking statements are subject to a number of known and unknown risks and uncertainties including, but not limited to; uncertainty as to DOCdata's future profitability; DOCdata's ability to develop and implement operational and financial systems to manage its operations; competition in DOCdata's existing and potential future lines of business; DOCdata's ability to integrate and operate successfully acquired businesses and the risks associated with such businesses; DOCdata's ability to obtain financing on acceptable terms to finance DOCdata's growth strategy and for DOCdata to operate within the limitations imposed by financing arrangements; uncertainty as to the future profitability of acquired businesses; and other factors. Other factors and assumptions not identified above were also involved in the derivation of these forward-looking statements, and the failure of such other assumptions to be realized as well as other factors may also cause actual results to differ materially from those projected. DOCdata assumes no obligation to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements.

Vught, The Netherlands, June 9, 2000 Management DOCdata N.V.
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Publication:Business Wire
Date:Jun 9, 2000
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