Exhibit 99.1
Document Sciences Announces Third Quarter Financial Results
CARLSBAD, Calif., Oct. 27 /PRNewswire-FirstCall/ -- Document Sciences
Corporation (Nasdaq: DOCX) today reported a net loss of $341,180 for the
quarter ended September 30, 2003 compared with net income of $551,031 for the
quarter ended September 30, 2002. Net loss per share for the quarter ended
September 30, 2003 was $0.09, based on 3,900,727 shares outstanding, compared
with net income per share of $0.13, based on 4,199,673 diluted shares
outstanding for the same quarter in 2002. Revenues for the quarter ended
September 30, 2003 were $4.6 million, while revenues for the quarter ended
September 30, 2002 were $6.0 million.
For the nine months ended September 30, 2003, the company reported a net
loss of $2.1 million, or $0.54 per share based on 3,883,538 shares
outstanding, compared with net income of $454,048, or $0.11 per share based on
4,279,343 diluted shares outstanding, for the nine months ended September 30,
2002. Revenues for the nine months ending September 30, 2003 were
$14.3 million, compared with revenues of $16.5 million for the nine months
ending September 30, 2002.
Jack McGannon, Document Sciences' President and CEO, stated that "we
continue to be challenged with the introduction of our new xPression software
offering during a period in which businesses are restricting outlays for new
enterprise software initiatives. In response, we trimmed operating expenses
to a level more in line with realities of the environment in which we are
operating. Our balance sheet continues to remain strong, with $8.5 million of
cash, cash equivalents and short-term investments which is virtually unchanged
from the previous quarter end."
McGannon noted several significant new xPression customers during the
quarter, including Sammons Financial Group, an insurance holding company with
a history of growth through acquisition; Americo Financial, a life and annuity
insurance company; and Blue Cross/Blue Shield of Arkansas. Additionally, a
major provider of insurance to the education industry was signed as the first
customer through VeraSure(SM), a joint offering with DST Output. VeraSure(SM)
represents a single-source application service provider (ASP) solution for the
life, annuity, and property and casualty insurance sectors.
This press release contains "forward-looking" statements about our
financial results and estimates, business prospects, and products that involve
substantial risks and uncertainties. You can identify these statements by the
fact that they use words such as "anticipate," "estimate," "expect,"
"project," "intend," "plan," "believe," and other words of similar meaning in
connection with any discussion of future operating or financial performance.
Among the factors that could cause actual results to differ materially
include, among others, the following: (i) changes in our stock price; (ii)
changes in our operating results; (iii) the market for document automation
software; (iv) continued expansion of our professional services; (v) market
acceptance of our existing products and introduction of new products and
enhancements to existing products; (vi) maintaining our relationships with
Xerox; (vii) changes in general economic and business conditions and/or other
risks detailed from time-to-time in our SEC reports, including the report on
Form 10-K for the fiscal year ended December 31, 2002. We do not undertake,
and specifically disclaim, any obligation to update forward-looking
statements.
DOCUMENT SCIENCES CORPORATION
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2003 2002
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $2,354,342 $2,284,367
Short-term investments 6,112,899 6,294,838
Accounts receivable, net 4,117,482 7,223,750
Due from affiliates 1,481,072 1,242,196
Unbilled revenue 16,506 161,159
Other current assets 818,416 756,268
Total current assets 14,900,717 17,962,578
Property and equipment, net 744,520 781,874
Computer software costs, net 2,221,524 1,518,102
Goodwill, net 724,615 724,615
Other assets 197,309 197,497
Total assets $18,788,685 $21,184,666
LIABILITIES
Current liabilities:
Accounts payable $227,908 $192,945
Accrued compensation 914,102 1,580,521
Other accrued liabilities 462,181 495,679
Deferred revenue 9,952,223 9,689,774
Total current liabilities 11,556,414 11,958,919
Obligations under capital leases 74,611 ---
Deferred revenue -- long-term --- 44,810
STOCKHOLDERS' EQUITY
Common stock, $.001 par value 3,916 3,858
Treasury stock (11,390) ---
Additional paid-in capital 10,893,151 10,786,007
Accumulated comprehensive income (24,759) 10,981
Retained deficit (3,703,258) (1,619,909)
Total stockholders' equity 7,157,660 9,180,937
Total liabilities and
stockholders' equity $18,788,685 $21,184,666
DOCUMENT SCIENCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Revenues:
Initial license
fees $1,010,677 $2,730,381 $3,516,170 $6,323,534
Annual renewal
license and
support fees 2,660,336 2,438,126 7,853,812 7,093,244
Services and other 909,558 826,523 2,940,443 3,074,608
Total revenues 4,580,571 5,995,030 14,310,425 16,491,386
Cost of revenues:
Initial license
fees 286,043 544,547 786,524 1,251,296
Annual renewal
license and
support fees 444,889 399,363 1,264,100 1,152,540
Services and other 700,474 619,533 2,101,459 1,962,661
Total cost of
revenues 1,431,406 1,563,443 4,152,083 4,366,497
Gross margin 3,149,165 4,431,587 10,158,342 12,124,889
Operating expenses:
Research and
development 873,259 1,190,777 3,549,245 3,982,718
Selling and
marketing 1,837,325 2,028,392 6,612,282 5,479,969
General and
administrative 688,127 693,235 2,070,853 2,309,641
Total operating
expenses 3,398,711 3,912,404 12,232,380 11,772,328
Income (loss) from
operations (249,546) 519,183 (2,074,038) 352,561
Interest and
other income
(loss), net (80,627) 31,848 28,140 101,487
Income (loss) before
income taxes (330,173) 551,031 (2,045,898) 454,048
Provision for
income taxes 11,007 --- 37,451 ---
Net income (loss) $(341,180) $551,031 $(2,083,349) $454,048
Net income (loss)
per share -- basic $(0.09) $0.14 $(0.54) $0.12
Weighted average
shares used in
basic calculation 3,900,727 3,838,704 3,883,538 3,845,297
Net income (loss)
per share -- diluted $(0.09) $0.13 $(0.54) $0.11
Weighted average
shares used in
diluted calculation 3,900,727 4,199,673 3,883,538 4,279,343
SOURCE Document Sciences Corporation
-0- 10/27/2003
/CONTACT: Editorial, Jack McGannon of Document Sciences Corporation,
+1-760-602-1597, jmcgannon@docscience.com; or Investors, Heidi Flannery of
Fi.Comm, +1-503-203-8808, heidi.flannery@ficomm.com, for Document Sciences
Corporation/
/Web site: http://www.docscience.com /
(DOCX)
CO: Document Sciences Corporation
ST: California
IN: CPR STW OTC
SU: ERN