Exhibit 99.1
Document Sciences Announces First Quarter Financial Results
CARLSBAD, Calif., April 29 /PRNewswire-FirstCall/ -- Document Sciences
Corporation (Nasdaq: DOCX) today reported net income for the quarter ended
March 31, 2004, of $112,112 compared with a net loss of $963,010 for the
quarter ended March 31, 2003. Net income per share for the quarter ended
March 31, 2004, was $0.03, based on 4,401,047 diluted shares outstanding,
compared with a net loss per share of $0.25, based on 3,869,878 shares
outstanding for the same quarter in 2003. Revenues for the quarter ended
March 31, 2004, were $5.3 million, an increase of 14% from the revenues for
the quarter ended March 31, 2003.
Jack McGannon, Document Sciences' President and CEO, stated that "the
financial results for the quarter showed improvement over the results for the
same quarter last year. Initial license fee revenues, which were positively
impacted by the recognition of certain transactions signed in prior quarters,
exhibited healthy growth." McGannon added that "while the sales environment
remains challenging, we are hopeful that we can continue to grow our revenue
during the remainder of the year. We also continued to add xPression
customers during the quarter, including insurance companies in Ireland and
China."
Our cash balance at March 31, 2004 was $7.0 million, up from the $5.9
million balance at December 31, 2003.
Document Sciences will be exhibiting and demonstrating its solutions for
policies, proposals, correspondence and other insurance-focused customer
communications at the ACORD LOMA Insurance Systems Forum at the Las Vegas
Convention Center in Las Vegas, NV, on May 23-25, booth 1322. Randy James,
CIO of Americo Financial Life and Annuity Company, will also present a case
study regarding implementation of Document Sciences' xPression at the
conference from 2:30pm to 3:15pm, Tuesday May 25th.
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, 2003. We do not undertake,
and specifically disclaim, any obligation to update forward-looking
statements.
DOCUMENT SCIENCES CORPORATION
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2004 2003
(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents $2,683,150 $1,916,595
Short-term investments 4,298,155 3,979,864
Accounts receivable, net 3,796,870 5,311,089
Due from affiliates 1,180,992 1,648,851
Unbilled revenue 24,000 ---
Other current assets 833,028 655,392
Total current assets 12,816,195 13,511,791
Property and equipment, net 616,591 689,575
Software development costs, net 2,930,138 2,494,634
Goodwill, net 724,615 724,615
Other assets 201,345 202,944
Total assets $17,288,884 $17,623,559
LIABILITIES
Current liabilities:
Accounts payable $113,156 $205,036
Accrued compensation 893,676 1,088,772
Other accrued liabilities 1,158,309 1,159,686
Deferred revenue 10,063,386 10,356,855
Total current liabilities 12,228,527 12,810,349
Obligations under capital leases 64,200 69,405
STOCKHOLDERS' EQUITY
Common stock, $.001 par value 3,392 3,331
Treasury stock (513,352) (556,352)
Additional paid-in capital 8,861,490 8,759,120
Accumulated comprehensive loss (93,803) (88,611)
Retained deficit (3,261,570) (3,373,683)
Total stockholders' equity 4,996,157 4,743,805
Total liabilities and stockholders'
equity $17,288,884 $17,623,559
DOCUMENT SCIENCES CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,
2004 2003
Revenues:
Initial license fees $1,607,701 $1,047,870
Annual renewal license and support fees 2,808,848 2,599,839
Services and other 843,869 960,958
Total revenues 5,260,418 4,608,667
Cost of revenues:
Initial license fees 261,894 265,551
Annual renewal license and support fees 513,634 373,815
Services and other 689,669 680,782
Total cost of revenues 1,465,197 1,320,148
Gross margin 3,795,221 3,288,519
Operating expenses:
Research and development 928,001 1,403,552
Selling and marketing 1,898,367 2,198,803
General and administrative 867,079 689,834
Total operating expenses 3,693,447 4,292,189
Income (loss) from operations 101,774 (1,003,670)
Interest and other income, net 22,579 64,070
Income (loss) before income taxes 124,353 (939,600)
Provision for income taxes 12,241 23,410
Net income (loss) $112,112 $(963,010)
Net income (loss) per share -- basic $.03 $(0.25)
Weighted average shares used in basic
calculation 3,222,290 3,869,878
Net income (loss) per share -- diluted $.03 $(0.25)
Weighted average shares used in diluted
calculation 4,401,047 3,869,878
SOURCE Document Sciences Corporation
-0- 04/29/2004
/CONTACT: Editorial, Jack McGannon, +1-760-602-1597,
jmcgannon@docscience.com, or Investor, Scott Samuels, +1-760-602-1528,
ssamuels@docscience.com, both of Document Sciences Corporation/
(DOCX)
CO: Document Sciences Corporation
ST: California
IN: CPR PUB
SU: ERN