EXHIBIT 99.1
[DOCUCORP LOGO] NEWS RELEASE
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Contact:
John H. Gray
Chief Financial Officer
(214) 891-6450
jgray@docucorp.com
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For Release:
FOR IMMEDIATE RELEASE
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DOCUCORP ANNOUNCES SECOND QUARTER RESULTS
DALLAS - FEBRUARY 19, 2003 - Docucorp(R) International (Nasdaq: DOCC), a leading
provider of enterprise information solutions, today announced revenues of $17.4
million for the second quarter of fiscal year 2003, as compared to $18.2 million
for the second quarter of the prior year. For the six months ended January 31,
2003, revenues increased slightly to $35.5 million compared to $35.3 million for
the same period of fiscal year 2002.
The company reported earnings of $687,000, or $0.05 per diluted share,
for the second quarter of fiscal year 2003 compared to $1.4 million, or $0.10
per diluted share, for the same period a year ago. Net income for the first six
months of fiscal year 2003 was $1.9 million, or $0.13 per diluted share,
compared to $2.7 million, or $0.18 per diluted share, for the first six months
of fiscal year 2002.
The decrease in revenue for the quarter is attributed to a decrease in
software license revenue. Software license revenue was $1 million for the second
quarter of fiscal year 2003 compared to $3 million for the second quarter of
fiscal year 2002.
"Companies have been hesitant to buy software given the increased
uncertainty in the marketplace and the continued international unrest. As a
result of the current environment, we've seen our sales cycle for software and
services lengthen," said Michael D. Andereck, president and chief executive
officer of Docucorp. "Despite the decrease in software license revenue during
the quarter, this is the company's 22nd consecutive quarter of profitability."
All other revenue categories had a combined increase of 8
percent in the current quarter
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DOCUCORP, SECOND QUARTER 2003 RESULTS
ADD #1
when compared to the same quarter of fiscal year 2002. ASP revenue increased 8
percent to $5.7 million, professional services revenue increased 6 percent to
$5.4 million and maintenance revenue increased 11 percent to $5.2 million.
"Our sales pipeline is beginning to strengthen, and we will work
diligently to increase software license revenue," said Andereck. "Docucorp has a
good business model, bolstered by diversified and recurring revenue streams, and
significant financial resources at its disposal."
ABOUT DOCUCORP
Docucorp is the authority in providing dynamic solutions for acquiring,
managing, personalizing and presenting enterprise information. Servicing the
entire enterprise information lifecycle, Docucorp's information software,
application service provider (ASP) hosting and professional consulting services
enable companies to implement solutions in-house or fully outsource to Docucorp.
The company has an installed base of more than 1,200 customers, including many
of the largest insurance, utility and financial services organizations.
Headquartered in Dallas, Docucorp has major facilities in Atlanta and
Silver Spring, MD. The company also maintains offices in Portland, Maine and
Bedford, N.H., as well as an international office in London that represents
Europe, Middle East, Africa and Asia Pacific.
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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CONSOLIDATED STATEMENTS OF OPERATIONS AND BALANCE SHEET DATA FOLLOW.
[DOCUCORP LOGO]
5910 North Central Expressway, Suite 800
Dallas, Texas 75206-5140
214-891-6532
fax: 214-987-8187
http://www.docucorp.com
(C) 2003 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
FISCAL QUARTERS ENDED JANUARY 31, 2003 AND 2002
STATEMENTS OF OPERATIONS DATA:
<Table>
<Caption>
(in thousands except per share amounts)
(unaudited)
Three Months Six Months
Ended January 31, Ended January 31,
------------------- -------------------
2003 2002 2003 2002
-------- -------- -------- --------
REVENUES
ASP hosting $ 5,740 $ 5,323 $ 10,948 $ 9,873
Professional services 5,408 5,094 11,201 10,400
License 1,014 3,034 3,113 5,686
Maintenance and other recurring 5,211 4,702 10,248 9,344
-------- -------- -------- --------
Total revenues 17,373 18,153 35,510 35,303
-------- -------- -------- --------
EXPENSES
ASP hosting 4,852 4,365 9,312 8,318
Professional services 4,240 4,199 8,617 8,483
Product development and support 3,161 2,979 6,186 5,691
Selling, general and administrative 4,021 4,204 8,357 8,508
-------- -------- -------- --------
Total expenses 16,274 15,747 32,472 31,000
-------- -------- -------- --------
Operating income 1,099 2,406 3,038 4,303
Other income (expense), net 173 (97) 177 31
-------- -------- -------- --------
Income before income taxes 1,272 2,309 3,215 4,334
Provision for income taxes 585 866 1,335 1,650
-------- -------- -------- --------
Net income $ 687 $ 1,443 $ 1,880 $ 2,684
======== ======== ======== ========
Net income per share:
Basic $ 0.05 $ 0.11 $ 0.14 $ 0.20
Diluted $ 0.05 $ 0.10 $ 0.13 $ 0.18
Weighted average shares
outstanding used in the net
income per share calculation:
Basic 13,407 13,443 13,471 13,534
Diluted 14,664 14,946 14,980 14,661
</Table>
BALANCE SHEET DATA:
<Table>
<Caption>
JANUARY 31, July 31,
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2003 2002
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(in thousands)
Current assets $ 30,552 $ 33,410
Current liabilities 18,822 20,260
Working capital 11,730 13,150
Stockholders' equity 32,849 33,064
Total assets $ 53,922 $ 55,750
</Table>