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EXHIBIT 99.2
INVESTOR RELATIONS CONTACT: FOR IMMEDIATE RELEASE
Blanche M. Sutter
Executive Vice President and CFO
Caere Corporation
408/395-7000
Heidi Flannery
President
Fi.Comm
503/844-8888
heidi.flannery@ficomm.com
CAERE CORPORATION REPORTS
FOURTH QUARTER AND 1999 YEAR END REVENUES AND NET EARNINGS
LOS GATOS, CA -- FEBRUARY 1, 2000 -- Caere Corporation (NASDAQ: CAER) today
reported fourth quarter 1999 net earnings of $1,536,000 or $.13 per share, net
of $1,235,000, related to the discontinued operation of its hardware business
and a one-time charge of $1,150,000 for the settlement of a patent claim.
Excluding the effect of the discontinued operation and the one-time charge,
earnings and earnings per share would have been $3,576,000 and $.30,
respectively. Net earning and earnings per share from continuing operations for
the fourth quarter of 1999 were $2,771,000 and $ .23, respectively, compared to
net earnings and earnings per share from continuing operations for the fourth
quarter of 1998 of $3,307,000, and $.26, respectively. Net revenues from
continuing operations for the fourth quarter of 1999 were $16,603,000, compared
to $16,482,000 for the fourth quarter of 1998.
During the fourth quarter of 1999, Caere discontinued the operations of its
hardware business. Accordingly, all the information in the income statement
reflects the effect of the discontinued operations. As part of the
discontinuance, the company sold manufacturing rights, remaining inventory, and
fixed assets related to the hardware operation to a former distributor of the
products. Additionally, the purchaser is assuming all future product support
obligations for the hardware products.
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For the full year 1999, Caere's revenues, net earnings and earnings per
share from continuing operations were $58,793,000, $8,236,000, and $.67,
respectively, compared to $57,351,000, $9,260,000, and $.70, respectively, for
1998.
"We are extremely pleased with our software revenue in the last quarter,
which represents our best quarter ever," said Bob Teresi, Caere's chairman and
CEO. "Our growing installed base of over 20 million customers has responded very
positively to the introduction of OmniPage Pro 10.0. This new version offers
many enhancements that increase OmniPage Pro's technological and value
advantage. In addition, we are impressed with the continued growth we see with
OmniForm, both as a stand-alone forms application and as an integrated component
for corporate enterprise solutions."
The Company notes that, except for the historical information contained
herein, the matters discussed above contain forward-looking statements subject
to risks and uncertainties that may cause the Company's actual results to differ
materially. These risks and uncertainties include, but are not limited to,
various technological and competitive factors such as the introduction and
acceptance of rival products; acceptance of the Company's new products; pricing
pressures; success of the "bundle and upgrade" business model, including the
Company's maintaining its relationships with scanner manufacturers along with
customers' opting to upgrade to newer or more fully featured products; changes
in customer order patterns, including the maintenance of relationships with
retail distributors and dealers; manufacturing considerations, including the
maintenance of margins in a declining-price environment, as well as risk of
inventory obsolescence due to shifts in market demand and new product
introductions; and other risk factors listed from time to time in the Company's
SEC reports, including but not limited to, the Company's 1998 Annual Report on
Form 10-K for the year ended December 31, 1998, and the 1999 Quarterly Reports
on Form 10-Q.
About The Company
Caere Corporation a worldwide leader in software solutions for scanners and
digital cameras. Caere develops optical character recognition (OCR) technology,
electronic forms, document and digital camera management products, Web
publishing software, and media asset management software. Caere's products
bridge the gap between the paper and digital worlds by converting static paper
documents into dynamic electronic information. Caere products include the
OmniPage(R), WordScan(R), M/Series(TM), and Recognita families of OCR software;
OmniForm(R), and OmniForm Internet Publisher family of electronic forms
software; PageKeeper(R)family of personal document management software;
ImageAXS(TM) family of media asset management products, and Production OCR
solutions and Developer's kits. Caere is headquartered in Los Gatos, California.
Subsidiaries are located in Amsterdam, Budapest, Munich, and Paris. Caere
corporate and product information is available at http://www.caere.com on the
World Wide Web.
Caere product names and features referred to herein are trademarks of the
Company. Trade names, product names, and marks other than those identified as
trademarks of Caere are trademarks of their respective holder(s) and are hereby
recognized.
-financial tables to follow-
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CAERE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(IN THOUSANDS)
DECEMBER 31, DECEMBER 31,
1999 1998
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ASSETS:
CASH AND SHORT-TERM INVESTMENTS $50,883 $44,337
RECEIVABLES, NET 7,760 7,336
INVENTORIES, NET 199 1,953
OTHER CURRENT ASSETS 876 422
PROPERTY AND EQUIPMENT, NET 3,302 3,640
DEFERRED TAX ASSETS 5,919 4,578
OTHER ASSETS 1,078 1,618
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TOTAL ASSETS $70,017 $63,884
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LIABILITIES AND STOCKHOLDERS' EQUITY:
ACCRUED EXPENSES AND OTHER PAYABLES $ 7,394 $ 7,711
COMMON STOCK 41,708 42,421
RETAINED EARNINGS 20,915 13,752
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $70,017 $63,884
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CAERE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(IN THOUSANDS EXCEPT PER SHARE DATA)
QUARTER ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1999 1998 1999 1998
-------- -------- -------- -------
NET REVENUES $ 16,603 $ 16,482 $ 58,793 $57,351
COST OF REVENUES 2,103 2,395 8,995 9,963
-------- -------- -------- -------
14,500 14,087 49,798 47,388
-------- -------- -------- -------
OPERATING EXPENSES:
RESEARCH AND DEVELOPMENT 3,009 3,191 11,914 11,298
SELLING, GENERAL AND ADMINISTRATIVE 7,148 6,973 27,573 26,364
SETTLEMENT OF PATENT LITIGATION 1,150 -- 1,150 --
-------- -------- -------- -------
11,307 10,164 40,637 37,662
-------- -------- -------- -------
OPERATING EARNINGS 3,193 3,923 9,161 9,726
INTEREST AND OTHER INCOME 766 656 2,604 2,621
-------- -------- -------- -------
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 3,959 4,579 11,765 12,347
INCOME TAX EXPENSE 1,188 1,272 3,529 3,087
-------- -------- -------- -------
INCOME FROM CONTINUING OPERATIONS 2,771 3,307 8,236 9,260
DISCONTINUED OPERATIONS:
INCOME (LOSS) FROM OPERATION OF HARDWARE (ADE) GROUP
(NET OF TAX EXPENSE (BENEFIT) OF $(24), $59, $46, AND $338)
AND $338) (56) 152 106 1,016
LOSS ON DISPOSAL OF HARDWARE (ADE) GROUP (NET OF TAX
BENEFIT OF $505 FOR BOTH THE QUARTER ENDED AND YEAR ENDED
DECEMBER 31, 1999) (1,179) (1,179)
-------- -------- -------- -------
(1,235) 152 (1,073) 1,016
-------- -------- -------- -------
NET INCOME $ 1,536 $ 3,459 $ 7,163 $10,276
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BASIC EARNINGS PER SHARE FROM:
CONTINUING OPERATIONS $ 0.23 $ 0.27 $ 0.68 $ 0.73
DISCONTINUED OPERATIONS:
INCOME (LOSS) FROM OPERATION OF HARDWARE (ADE) GROUP $ 0.00 $ 0.01 $ 0.01 $ 0.08
LOSS FROM DISPOSAL OF HARDWARE (ADE) GROUP $ (0.10) $ 0.00 $ (0.10) $ 0.00
-------- -------- -------- -------
BASIC EARNINGS PER SHARE $ 0.13 $ 0.28 $ 0.59 $ 0.81
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DILUTED EARNINGS PER SHARE FROM:
CONTINUING OPERATIONS $ 0.23 $ 0.26 $ 0.67 $ 0.70
DISCONTINUED OPERATIONS:
INCOME (LOSS) FROM OPERATION OF HARDWARE (ADE) GROUP $ 0.00 $ 0.01 $ 0.01 $ 0.08
LOSS FROM DISPOSAL OF HARDWARE (ADE) GROUP $ (0.10) $ 0.00 $ (0.10) $ 0.00
-------- -------- -------- -------
DILUTED EARNINGS PER SHARE $ 0.13 $ 0.27 $ 0.58 $ 0.78
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WEIGHTED AVERAGE SHARES USED IN:
BASIC EARNINGS PER SHARE CALCULATION 12,096 12,315 12,082 12,687
DILUTED EARNINGS PER SHARE CALCULATION 12,112 12,769 12,336 13,246