Exhibit 99.1 Document Sciences Announces Fourth Quarter and Full Year Financial Results CARLSBAD, Calif., Jan. 28 /PRNewswire-FirstCall/ -- Document Sciences Corporation (Nasdaq: DOCX) today reported net income for the quarter ended December 31, 2003, of $329,575 compared with net income of $1.1 million for the quarter ended December 31, 2002. The results for the fourth quarter of 2003 include a $520,000 provision included in general and administrative expense for a European Value Added Tax assessment that the company is disputing. Net income per share for the quarter ended December 31, 2003, was $0.07, based on 4,447,407 diluted shares outstanding, compared with net income per share of $0.26, based on 4,307,287 diluted shares outstanding for the same quarter in 2002. Revenues for the quarter ended December 31, 2003, were $6.1 million, while revenues for the quarter ended December 31, 2002, were $6.6 million. For the full year ended December 31, 2003, the company reported a net loss of $1.8 million, or $0.47 per share based on 3,768,219 shares outstanding, compared with net income of $1.6 million, or $0.36 per share based on 4,286,485 diluted shares outstanding for the year ended December 31, 2002. Revenues for the year ended December 31, 2003, were $20.4 million, compared with revenues of $23.1 million for the year ended December 31, 2002. Jack McGannon, Document Sciences' President and CEO, stated, "We finished 2003 on a positive note, recording a net operating profit for the second half of the year. This profit was enabled by improving revenue and corrective expense actions taken at mid-year." McGannon highlighted new xPression sales to several significant US insurers, as well as major Finnish and English insurers. "Additionally, our Autograph suite of products continued to be a significant contributor of revenue," McGannon added. McGannon noted that the company repurchased the remaining 740,024 shares, or 19% of its outstanding total, for $2.7 million from Xerox Corporation during the quarter. The company's cash balance of $5.9 million at year end 2003 was down from the $8.6 million at the prior year end due to this repurchase. 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 December 31, December 31, 2003 2002 ASSETS Current assets: Cash and cash equivalents $1,916,595 $2,284,367 Short-term investments 3,979,864 6,294,838 Accounts receivable, net 5,311,089 7,223,750 Due from affiliates 1,648,851 1,242,196 Unbilled revenue -- 161,159 Other current assets 655,392 756,268 Total current assets 13,511,791 17,962,578 Property and equipment, net 689,575 781,874 Computer software costs, net 2,494,634 1,518,102 Goodwill, net 724,615 724,615 Other assets 202,944 197,497 Total assets $17,623,559 $21,184,666 LIABILITIES Current liabilities: Accounts payable $205,036 $192,945 Accrued compensation 1,088,772 1,580,521 Other accrued liabilities 1,159,686 495,679 Deferred revenue 10,356,855 9,689,774 Total current liabilities 12,810,349 11,958,919 Obligations under capital leases 69,405 -- Deferred revenue - long-term -- 44,810 STOCKHOLDERS' EQUITY Common stock, $.001 par value 3,331 3,858 Treasury stock (556,352) -- Additional paid-in capital 8,759,120 10,786,007 Accumulated comprehensive income (loss) (88,611) 10,981 Retained deficit (3,373,683) (1,619,909) Total stockholders' equity 4,743,805 9,180,937 Total liabilities and stockholders' equity $17,623,559 $21,184,666 DOCUMENT SCIENCES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended Years Ended December 31, December 31, 2003 2002 2003 2002 Revenues: Initial license fees $2,478,113 $3,268,475 $5,994,283 $9,592,009 Annual renewal license and support fees 2,741,146 2,483,427 10,594,958 9,576,671 Services and other 915,559 842,491 3,856,002 3,917,099 Total revenues 6,134,818 6,594,393 20,445,243 23,085,779 Cost of revenues: Initial license fees 296,026 348,662 1,082,550 1,599,958 Annual renewal license and support fees 425,787 361,272 1,689,887 1,513,812 Services and other 720,480 643,695 2,821,939 2,606,356 Total cost of revenues 1,442,293 1,353,629 5,594,376 5,720,126 Gross margin 4,692,525 5,240,764 14,850,867 17,365,653 Operating expenses: Research and development 1,106,173 1,473,446 4,655,418 5,456,164 Selling and marketing 1,942,955 2,275,803 8,555,237 7,755,772 General and administrative 1,296,519 671,528 3,367,372 2,981,169 Total operating expenses 4,345,647 4,420,777 16,578,027 16,193,105 Income (loss) from operations 346,878 819,987 (1,727,160) 1,172,548 Interest and other income (loss), net 24,174 (7,584) 52,314 93,903 Income (loss) before income taxes 371,052 812,403 (1,674,846) 1,266,451 Provision (benefit) for income taxes 41,477 (293,589) 78,928 (293,589) Net income (loss) $329,575 $1,105,992 $(1,753,774) $1,560,040 Net income (loss) per share-basic $0.10 $0.29 $(0.47) $0.41 Weighted average shares used in basic calculation 3,422,260 3,839,608 3,768,219 3,843,850 Net income (loss) per share-diluted $0.07 $0.26 $(0.47) $0.36 Weighted average shares used in diluted calculation 4,447,407 4,307,287 3,768,219 4,286,485 SOURCE Document Sciences Corporation -0- 01/28/2004 /CONTACT: Editorial, Jack McGannon of Document Sciences Corporation, +1-760-602-1597, jmcgannon@docscience.com; or Investor, 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 HRD OTC SU: ERN