Docucorp International (DOCC) 8-K Docucorp Announces First Quarter Results

Exhibit 99.1

News Release

Contact:
	Ed Holcomb
	Controller
	214-891-6546
	eholcomb@docucorp.com
For Release:
	FOR IMMEDIATE RELEASE

Docucorp Announces First Quarter Results

DALLAS — November 21, 2005 —Docucorp® International (Nasdaq: DOCC), a leading provider of Customer Communication Management (CCM) solutions, today announced revenues increased six percent to a record $20.8 million for the quarter ended October 31, 2005, as compared to $19.7 million for the first quarter of the prior year. Net income for the quarter was $546,000, or $0.05 per diluted share, compared to net income of $1.4 million, or $0.12 per diluted share, for the same period a year ago.

     Compared to the first quarter of fiscal 2005, ASP hosting revenue increased 33 percent to $8.0 million and maintenance revenue increased two percent to $5.4 million. Software license revenue decreased 31 percent to $2.0 million and professional services revenue decreased one percent to $5.4 million.

     “ While net income was less than the first quarter of fiscal 2005, I am pleased with the record revenues as well as operating improvements compared to recent quarters. Compared to the July quarter, we achieved increases in total revenue, earnings per share, ASP margin and professional services margin,” said Michael D. Andereck, president and chief executive officer, Docucorp International. “We will continue to focus our efforts on strengthening the sales and marketing organization, increasing profitability and accelerating growth.”

About Docucorp
Docucorp markets Customer Communication Management (CCM) solutions via a portfolio of information software, business process outsourcing and professional services, which enables companies to create, publish, manage and archive complex, high-volume, personalized

information in-house or fully outsource to Docucorp. The company has an installed base of
more than 1,300 customers, including some of the largest insurance, utility, financial services and health care organizations. Headquartered in Dallas, Docucorp has facilities in Atlanta, Silver Spring, Md., Bedford, N.H., and London, as well as an international presence in the Benelux, Switzerland, Central and Eastern Europe, Middle East and Africa regions.

Certain information contained in this news release may include “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than historical facts, included herein are forward-looking statements. These statements involve risks and uncertainties, such as competition, technological developments, loss of significant customers and the other factors discussed in the Company’s periodic reports filed with the Securities and Exchange Commission, that could cause the Company’s actual results to differ materially from those expressed or implied by these forward-looking statements.
Docucorp is a registered trademark of Docucorp International.

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One Lincoln Centre
5400 LBJ Freeway
Suite 300
Dallas, Texas 75240
214-891-6500
fax: 214-987-8187
http://www.docucorp.com

© 2005 Docucorp International. All Rights Reserved.
Company, organization and product names mentioned herein are trademarks or registered trademarks of their respective owners. Docucorp and its symbol are trademarks of Docucorp International.

DOCUCORP INTERNATIONAL, INC.
Consolidated Statements of Operations
(in thousands except per share amounts)
(unaudited)

	Three Months
	Ended October 31,
	2005			2004
Revenues
ASP hosting	$	8,048		$	6,050
Professional services		5,372			5,408
License		2,035			2,969
Maintenance		5,363			5,238
Total revenues		20,818			19,665
Cost of revenues
ASP hosting		7,360			5,037
Professional services		4,134			4,179
License		1,174			940
Maintenance		359			346
Total cost of revenues		13,027			10,502
Gross profit		7,791			9,163
Operating expenses
Product development		2,193			2,005
Sales and marketing		2,569			2,899
General and administrative		2,155			1,938
Total operating expenses		6,917			6,842
Income from operations		874			2,321
Interest expense		(113	)		(151	)
Other income, net		106			119
Income before income taxes		867			2,289
Provision for income taxes		321			882
Net income	$	546		$	1,407
Basic net income per share	$	0.05		$	0.13
Weighted average basic shares outstanding		10,900			10,507
Diluted net income per share	$	0.05		$	0.12
Weighted average diluted shares outstanding		11,505			11,435

DOCUCORP INTERNATIONAL, INC.
Consolidated Balance Sheets
(in thousands except share and per share amounts)
(unaudited)

	October 31,			July 31,
	2005			2005
Assets
Current assets:
Cash and cash equivalents	$	9,263		$	8,381
Accounts receivable, net of allowance of $285 and $293, respectively		16,081			17,132
Current portion of deferred taxes		170			170
Income tax receivable		248			248
Other current assets		2,409			2,559
Total current assets		28,171			28,490
Property and equipment, net of accumulated depreciation of $21,147 and $20,122, respectively		9,608			10,261
Software development costs, net of accumulated amortization of $26,982 and $25,909 respectively		13,886			13,687
Goodwill		9,842			9,842
Identifiable intangibles, net of accumulated amortization of $161 and $113, respectively		859			907
Other assets		426			448
Total assets	$	62,792		$	63,635
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable	$	2,824		$	2,423
Accrued liabilities:
Accrued compensation		3,184			3,067
Other		1,413			1,491
Income taxes payable		101			403
Current portion of lease obligations		1,452			1,459
Current portion of long-term debt		3,618			3,617
Deferred revenue		10,584			11,479
Total current liabilities		23,176			23,939
Deferred taxes		5,271			5,178
Long-term lease obligations		1,924			2,303
Long-term debt		2,557			3,462
Other long-term liabilities		1,255			1,224
Commitment and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized; none issued		—			—
Common stock, $0.01 par value, 50,000,000 shares authorized; 16,593,849 shares issued		166			166
Additional paid-in-capital		48,132			48,035
Treasury stock at cost, 5,253,953 and 5,458,912 shares, respectively		(29,207	)		(30,347	)
Retained earnings		12,814			12,268
Unearned compensation		(2,803	)		(2,100	)
Foreign currency translation adjustment		(493	)		(493	)
Total stockholders’ equity		28,609			27,529
Total liabilities and stockholders’ equity	$	62,792		$	63,635