Optio Software Reports Better-Than-Expected 2Q 2002 Results; 29 Percent Sequential Software License Revenue Growth In Line With Revised Upward Guidance.Business Editors ATLANTA--(BUSINESS WIRE)--Aug. 28, 2001 - 2Q02 revenue of $9.4 million with 10% sequential growth - 2Q02 cash loss per share of $0.07 exceeds analyst expectation - Software license revenue of $3.7 million with 29% sequential growth - Cash Flow Positive for first full quarter in Optio's Public History and Operating Cash flow increase of 116% above Q1 - Management actions are improving company performance Optio(R) Software, Inc. (Nasdaq:OPTO OPTO Optical OPTO One Person Train Operation (transportation) ), a leading provider of software that captures, formats and delivers information and data to allow automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. processes, today announced financial results for the second quarter ended July 31, 2001, that is in line with the revised upward company guidance announced last month. The Company experienced significant sales growth for its software products during the quarter, reporting improved software license revenue over the first quarter of FY2002 of 29%. Total revenue for the second quarter of fiscal year 2002, which ended July 31, 2001 of $9.4 million, represented an increase of 10% over Q1 of this fiscal year. Second quarter software license sales finished at $3.7 million, an increase of 29% from Q1. Total revenue gross margin for Q2 was at 65%, which was an increase of 30% over Q1. The loss (before amortization of intangible assets Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. , assuming a 40 percent tax rate) improved 54% from Q1 this year, to a loss of approximately $1.3 million. The Q2 Earnings Per Share (EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ) was a loss of $.07, an improvement of 56% from Q1 of this year. Cash flow from Q2 operations increased 116% to $600K in Q2 over Q1. DSO's (Days Sales Outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). , a measure of accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying ) decreased to 59 days in Q2 from 78 days in Q1. This reduction in DSO's resulted in positive cash flow for the second quarter and increased cash reserves Cash reserves See: Cash investments cash reserves Investment funds that are held in short-term assets such as Treasury bills and certificates of deposit until more permanent investment opportunities are available. , from $5.0 million as of April 30, 2001 to $5.6 million (net of line of credit) as of July 31, 2001. This is the first full quarter since Optio has been a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. that it was cash flow positive. In comparison to prior year, total Q2 revenue for fiscal year 2002 decreased by 8 percent to $9.4 million from $10.2 million for the second quarter of fiscal 2001. The Company had a loss for the second quarter (before amortization of intangible assets, assuming a 40 percent tax rate) of $1.3 million, or $0.07 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, compared with a cash loss of $0.9 million, or $0.05 per basic and diluted share, for the same quarter in fiscal 2001. Optio's net loss was $4.0 million, or $0.22 per basic and diluted share for the quarter, compared with a net loss of $3.3 million, or $0.19 per basic and diluted share for the same quarter in fiscal 2001. "A comparison of results to the prior quarter shows significant improvement in company operations based on the management initiatives that have been implemented by the new management team. While there is still significant work to be done, we are beginning to see some positive signs and improvement in our efforts to align align (  līn),v to move the teeth into their proper positions to conform to the line of occlusion. our cost structure with the economic reality of today's markets," said Warren Neuburger, president and chief executive officer of Optio. "At the same time, we have seen significant sales of Optio Software products, despite a weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. global economic picture. In recent weeks,
we have announced sales to several key international customers,
including Bureau Veritas an institution, in the interest of maritime underwriters, for the survey and rating of vessels all over the world. It was founded in Belgium in 1828, removed to Paris in 1830, and reëstablished in Brussels in 1870.See also: Bureau ." "Optio has engaged all company departments in its plan for profitability", continued Neuburger. "Other initiatives that have been completed include: - Reorganized re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. the sales force, instituted new compensation plans and goals resulting in reduced headcount and increased software license sales. - Implemented new engineering lifecycle process to increase consistent on-time delivery of quality products. - Repackaged products and revised pricing based on competitive analysis, and began long-term strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. process. - Turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. profitability in consulting services Noun 1. consulting service - service provided by a professional advisor (e.g., a lawyer or doctor or CPA etc.) service - work done by one person or group that benefits another; "budget separately for goods and services" business ahead of plan, as well as process engineering, individual accountability and leveraging internal resources rather than outside consultants." "These are solid second quarter results, and reversed some of the downward trends seen in prior quarters," remarked F. Barron Hughes, Optio's Chief Financial Officer. "The cash flow improvement is particularly significant as is the significant improvement in software sales." "We are very encouraged by the strong performance in the quarter, particularly with the sequential growth of software by our global direct sales force," said C. Wayne Cape, chairman of the board of Optio. "By re-focusing on our core strengths in the re-emerging enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. (ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. ) and distributed output management space, we will continue to strengthen our leadership position in this billion dollar market. With economic trends showing some signs of improvement, we should see our return to profitability soon."
OPTIO SOFTWARE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
July 31, January 31,
2001 2001
---------- ----------
ASSETS
Current Assets:
Cash, cash equivalents and
marketable securities $ 6,547 $ 9,087
Accounts receivable, net 7,717 9,962
Other current assets 1,852 3,240
---------- ----------
Total current assets 16,116 22,289
Property and equipment, net 2,687 2,656
Intangible assets, net 24,591 28,436
Other assets 2,290 2,457
---------- ----------
Total Assets $ 45,684 $ 55,838
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,316 $ 2,682
Other accrued liabilities 3,348 2,623
Deferred revenue 6,795 6,969
Current portion of debt 903 178
---------- ----------
Total current liabilities 12,362 12,452
Long-term portion of debt 8,364 8,261
Deferred revenue 103 78
Stockholders' equity 24,855 35,047
---------- ----------
Total liabilities and stockholders'
equity $ 45,684 $ 55,838
========== ==========
OPTIO SOFTWARE, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT PER SHARE DATA)
Three Months Ended Six Months Ended
July 31, July 31,
------------------ ----------------
2001 2000 2001 2000
------ ------ ------ ------
Revenue:
License fees $ 3,746 $ 4,498 $ 6,653 $ 9,273
Services, maintenance,
and other 5,701 5,730 11,348 10,298
------ ------ ------ ------
9,447 10,228 18,001 19,571
Cost of revenue
License fees 112 215 282 606
Services, maintenance,
and other 3,150 3,853 7,215 6,354
------ ------ ------ ------
3,262 4,068 7,497 6,960
------ ------ ------ ------
6,185 6,160 10,504 12,611
Operating expenses:
Sales and marketing 4,213 4,074 9,560 7,833
Research and
development 1,371 1,446 2,910 2,622
General and
administrative 2,295 1,877 4,085 2,896
Depreciation and
amortization 2,207 2,138 4,375 2,934
------ ------ ------ ------
10,086 9,535 20,930 16,285
------ ------ ------ ------
Loss from operations (3,901) (3,375) (10,426) (3,674)
Other income (expense):
Interest income 66 206 145 672
Interest expense (182) (144) (326) (193)
Other - 6 13 23
------ ------ ------ ------
(116) 68 (168) 502
------ ------ ------ ------
Loss before income taxes (4,017) (3,307) (10,594) (3,172)
Income tax expense - 28 - 305
------ ------ ------ ------
Net loss $ (4,017) $ (3,335) $ (10,594) $ (3,477)
====== ====== ====== ======
Net loss per share -
basic $ (0.22) $ (0.19) $ (0.58) $ (0.20)
====== ====== ====== ======
Net loss per share -
diluted $ (0.22) $ (0.19) $ (0.58) $ (0.20)
====== ====== ====== ======
Weighted average shares
outstanding
- basic 18,500,532 17,456,618 18,300,626 17,325,063
========== ========== ========== ==========
Weighted average shares
outstanding
- diluted 18,500,532 17,456,618 18,300,626 17,325,063
========== ========== ========== ==========
Net loss excluding
acquisition-related
goodwill amortization
and assuming a
normal tax rate of 40% $ (1,290) $ (854) $ (4,137) $ (425)
====== ====== ====== =====
Net loss per share,
excluding acquisition-
related goodwill
amortization and
assuming a normal tax
rate of 40% for 2000 -
basic and diluted $ (0.07) $ (0.05) $ (0.23) $ (0.02)
====== ====== ====== =====
Weighted average shares
outstanding -
basic and diluted 18,500,532 17,456,618 18,300,626 17,325,063
========== ========== ========== ==========
Conference Call Information The live broadcast of Optio Software, Inc.'s second quarter conference call is scheduled to begin Wednesday, August 29, 2001, at 8:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT . The numbers to call for this interactive teleconference are: within the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Canada (888) 280-8349; outside North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. (416) 695-9707. A playback of the call will be available through 6:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. Sept 5, 2001, by calling: within North America (888) 509-0081; outside North America (416) 695-9728. No access code is required to obtain the replay. Optio Software will also simulcast the earnings conference call over the Internet at http://www.vcall.com. About Optio Software, Inc. Optio Software, Inc. provides infrastructure software that enables organizations to communicate and connect with their e-commerce constituents. Optio's software improves the quality of an organization's communications with customers, suppliers, partners and employees by customizing, delivering and exchanging information over a global network of digital destinations. Optio has more than 4,000 customers serving the manufacturing, healthcare, retail, distribution and financial industries. For more information contact Optio Software - Phone: (770) 576-3500, Fax: (770) 576-3699, E-Mail: info@optiosoftware.com, Corporate Headquarters: 3015 Windward wind·ward adj. 1. Of or moving toward the quarter from which the wind blows. 2. Of or on the side exposed to the wind or to prevailing winds. adv. In a direction from which the wind blows; against the wind. Plaza, Windward Fairways II, Alpharetta, GA 30005, Web Site: (http://www.optiosoftware.com) Forward Looking Statements This press release includes statements and other matters that could be considered to be forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations. Factors that might cause or contribute to such differences include, but are not limited to, risks associated with Optio's reliance on strategic marketing and reseller An organization that sells hardware and software to the general public. Resellers purchase products from software publishers and hardware manufacturers. relationships, fluctuations in operating results because of acquisitions or dispositions, changes in competition, delays in developing new software, disputes regarding Optio's intellectual property, risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the potential delisting Delisting When the stock of a company is removed from a stock exchange. Notes: Reasons for delisting include violating regulations and/or failure to meet financial specifications set out by the stock exchange. of our stock, or risks associated with Optio's international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. . In addition, other written or oral statements that constitute 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. may be made by or on behalf of Optio. These and additional factors are set forth in "Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Compliance Statement for Forward-Looking Statements" included as Exhibit 99.8 to Optio'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. . You should carefully review these risks and additional risks described in other documents Optio files from time to time with the Securities and Exchange Commission, including the Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. that Optio has filed. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion