Omtool Reports Increased AccuRoute(R) Sales and Second Quarter Fiscal Year 2006 Results; Continued Investment in Sales, Marketing and Vertical Market Expansion of AccuRoute Document Routing Platform Expected to Show Positive Impact.ANDOVER Andover (ăn`dōvər), town (1990 pop. 29,151), Essex co., NE Mass.; inc. 1646. Chiefly a textile producer in the 19th cent., Andover now makes toiletries, electronic and computer equipment, chemicals, medical instruments, rubber products, , Mass. -- Omtool OMTool - A graphical tool from General Electric Advanced Concepts Center for design and analysis of systems with the OMT methodology. Generates C++ and SQL code. , Ltd. (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 : OMTL), a leading provider of document routing products and services, today reported results of operations for the second quarter of fiscal year 2006. Total revenue for the quarter ended June June: see month. 30, 2006 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.1 million compared with revenue of approximately $3.6 million for the second quarter of 2005, representing a 14% decrease. However, AccuRoute software license and service revenues for the second quarter of 2006 increased 22% as compared to same quarter last year and 15% for the six months ended June 30, 2006 as compared to the same six months in 2005. These improvements in AccuRoute-related software license revenue demonstrate the positive impact of increased focus and expenditures on sales and marketing. For the six-month period ended June 30, 2006 and 2005, total revenues were $6.4 million and $7.4 million, respectively, representing a 14% decrease. Total software license revenues decreased by 20%, or $498,000, during the first six months of 2006 as compared to the same period in 2005. Hardware revenue for the six-month period ended June 30, 2006 decreased by approximately 38%, or $595,000, when compared to the same period in 2005 and service and other revenue increased by 2% as compared to the first six months of 2005. The decrease in software license revenue is partly attributed to the decline in the company's fax-related software license revenue which decreased by $205,879, or 39%, for the three months ended June 30, 2006 compared to the same three months in 2005 and by $397,488 or 33% for the six months ended June 30, 2006 as compared to the same six months in 2005. The company's decrease in its second quarter 2006 total revenue was due in part to an increase in orders for which it holds contracts but had to defer de·fer 1 v. de·ferred, de·fer·ring, de·fers v.tr. 1. To put off; postpone. 2. To postpone the induction of (one eligible for the military draft). v.intr. recognition of revenue because the associated sales did not yet meet all of the criteria criteria (krītēr´ē  ),n. for revenue recognition. The balance of those orders, $573,000, was invoiced as of June 30, 2006. Of this amount, the company expects to be able to recognize approximately $199,000 in software license revenue and $122,000 in hardware revenue during the third quarter of 2006 and the remaining $252,000, which is primarily support and service revenue, over the next twelve months. The adoption rate of AccuRoute within the legal vertical remains strong, with over 140 law firms This list of the world's largest law firms by revenue is taken from The Lawyer and The American Lawyer and is ordered by 2006 revenue:[1]
Please [ improve this article] or discuss the issue on the talk page. and healthcare markets, opening new opportunities for the future. Positive on the company's outlook, Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. L. Voelk, Omtool's chairman, president, and chief executive officer, said, "Based on our success in the legal vertical and the industry accolades about AccuRoute, along with the fact that AccuRoute now represents more than 50% of our software license revenue, we believe the market for AccuRoute beyond the legal market is far greater in several additional vertical segments, particularly finance and healthcare." Further commenting on the company's progress, Voelk said, "We believe there are many indications that our increased investments are starting to bear fruit. If the key business indicators continue on their current trajectories, these investments will increasingly have a positive impact on our financial results sometime during the next few quarters. We believe that: 1. the continued growth in AccuRoute software license and support and other revenue (a 58% increase in 2005 over 2004 with a continuing upward trend in the first half of 2006), 2. the stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders of our large legacy maintenance business (support and other revenue have been flattening
The flattening, ellipticity, or oblateness of an oblate spheroid is the "squashing" of the spheroid's pole, down towards its equator. out over the last four quarters after a 17% decline over the four prior quarters), and 3. the strong increase in U.S. bookings over the last four quarters (up 31% on the strength of AccuRoute), despite the steady and significant declines in new fax software and hardware over that same period, all indicate that we are poised to take the next step to advance our business and grow our top-line revenue. In addition to the growth attributed to our direct sales efforts, another specific area of steady growth has resulted from our significant investment in indirect sales (also referred to as channel sales). We have seen growth in indirect bookings over the last four quarters and continue to believe that indirect sales will ultimately become our primary distribution method." Consistent with the company's strategic plan, expenses for the quarter ended June 30, 2006 were 52% higher than they were for the quarter ended June 30, 2005. The company's 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. for the quarter ended June 30, 2006 were approximately $3.7 million as compared to approximately $2.4 million for the quarter ended June 30, 2005. Included in the operating expenses were costs incurred during the move of the company's corporate headquarters to Andover, Massachusetts Massachusetts (măsəch  `sĭts), most populous of the New England states of the NE United States. in April 2006 which resulted in a net increase of fixed
assets fixed assets npl → activo sg fijofixed assets npl → immobilisations fpl fixed assets fix npl → of $1.1 million - only a portion of which was financed. Net loss for the quarter ended June 30, 2006 was approximately $(1,797,000) or $(0.45) per basic and 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, as compared to a net income of approximately $12,000 or $0.00 per share, on a basic and diluted basis for the same quarter of 2005. About Omtool, Ltd. Omtool, Ltd. is a leading provider of document routing products and services that enable organizations to manage the capture, process and delivery into electronic information systems of "mixed-mode" documents containing both paper and electronic documents. Omtool's enterprise-level products are used by organizations worldwide whose business processes frequently include paper-based documents 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. stringent compliance requirements Compliance requirements are a series of directives established by United States Federal government agencies that summarize hundreds of Federal laws and regulations applicable to Federal assistance (also known as Federal aid or Federal funds). that include secure handling, storage, integration and tracking of a variety of documents into corporate systems. Omtool's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , AccuRoute, is a document capture, conversion and distribution platform that makes it easy to centralize cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. valuable company information and distribute it to multiple systems simultaneously, all from users' desktops. Based in Andover, Massachusetts with offices in the United Kingdom, Omtool can be contacted at 800-886-7845 or www.omtool.com. This press release contains 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. , including, without limitation, statements regarding Omtool's objectives and expectations; future financial and operating performance; customer interest in Omtool's Genifax(TM) and AccuRoute products; long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. sales strategy; distribution channels; and the future plans of Omtool's management. These forward-looking statements are neither promises nor guarantees, and are subject to risk and uncertainties that could cause actual results to differ materially from the expectations set forth in these forward-looking statements, including but not limited to, risks associated with the introduction of new product offerings, including the AccuRoute, Genidocs(TM) and Genifax software products; the success of Omtool's channel sales strategies; business partner strategies and new sales and marketing efforts; Omtool's investments in vertical markets, including legal, financial services and healthcare; the continuation continuation - continuation passing style of market demand for fax-based software solutions; fluctuations in quarterly results of operations; Omtool's headquarters relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. ; changes in the regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environment; dependence on continuing growth in the number of organizations implementing secure electronic document exchange; competition; product enhancements; product concentration; declines in Omtool's legacy fax business; seasonality; international sales; Omtool's ability to manage expansion; Omtool's ability to obtain desired financing; acquisitions and integration of complementary businesses; and those other risk factors described in Omtool's periodic reports and registration statements as filed with the Securities and Exchange Commission, including Omtool's 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 on March 28, 2006. Reported results should not be considered an indication of future performance. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . Omtool undertakes no responsibility to update any such forward-looking statements. The consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: statement of operations See Income statement. and condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. follows.
OMTOOL, LTD.
Consolidated Summary Financial Data
Consolidated Statements of Operations
(in thousands except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
2006 2005 2006 2005
Revenue:
Software license $926 $1,138 $1,958 $2,456
Hardware 407 722 964 1,559
Service and other 1,736 1,710 3,483 3,417
----------- ----------- ----------- ----------
Total revenue 3,069 3,570 6,405 7,432
----------- ----------- ----------- ----------
Cost of revenue:
Software license 52 50 83 72
Hardware 270 484 615 1,027
Service and other 881 682 1,595 1,399
----------- ----------- ----------- ----------
Total cost of
revenue 1,203 1,216 2,293 2,498
----------- ----------- ----------- ----------
Gross profit 1,866 2,354 4,112 4,934
----------- ----------- ----------- ----------
Operating expenses:
Sales and marketing 2,159 1,141 4,211 2,320
Research and
development 724 521 1,432 1,038
General and
administrative 819 725 1,718 1,501
----------- ----------- ----------- ----------
Total operating
expenses 3,702 2,387 7,361 4,859
----------- ----------- ----------- ----------
Income (loss) from
operations (1,836) (33) (3,249) 75
Interest and other
income 39 45 84 86
----------- ----------- ----------- ----------
Income (loss) before
tax provision (1,797) 12 (3,165) 161
Tax provision - - - 7
----------- ----------- ----------- ----------
Net Income (loss) $(1,797) $12 $(3,165) $154
=========== =========== =========== ==========
Net income (loss) per
share
Basic $(0.45) $0.00 $(0.79) $0.04
=========== =========== =========== ==========
Diluted $(0.45) $0.00 $(0.79) $0.04
=========== =========== =========== ==========
Weighted average number
of common shares
outstanding
Basic 4,032 3,915 4,026 3,904
=========== =========== =========== ==========
Diluted 4,032 4,048 4,026 4,051
=========== =========== =========== ==========
OMTOOL, LTD.
Consolidated Summary Financial Data
Condensed Consolidated Balance Sheets June 30, December 31,
2006 2005
(Unaudited)
(in thousands)
Assets:
Cash and cash equivalents $6,826 $10,472
Accounts receivable, net 1,935 1,619
Inventory 147 58
Prepaids and other 454 333
--------------- -------------
9,362 12,482
Property and equipment, net 1,503 175
Other assets 53 12
--------------- -------------
$10,918 $12,669
=============== =============
Liabilities and stockholders' equity:
Accounts payable $1,267 $905
Accrued expenses 1,210 1,171
Accrued state sales tax 322 343
Deferred revenue, current 3,600 3,408
Capital lease obligations, current 85 -
--------------- -------------
6,484 5,827
Deferred revenue, long-term 423 410
Deferred rent 310 -
Capital lease obligations, long-term 399 -
Stockholders' equity 3,302 6,432
--------------- -------------
$10,918 $12,669
=============== =============
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