Exhibit 99.1
For Immediate Release Contact: John A. Stiles
John A. Stiles & Assoc. LLC
314-994-0560
AuthentiDate Holding Corp. Announces
Second Quarter and Six Month Results
Schenectady, NY--February 13, 2004--AuthentiDate Holding Corp. (NASDAQ: ADAT)
announced today that revenue for the quarter ended December 31, 2003 was
$4,029,068 compared to $5,920,575 for the same quarter a year ago. Revenue for
the six-month period ending December 31, 2003 was $7,300,291 compared to
$11,385,151 for the same six-month period in 2002. The Company noted that
deferred revenue increased 121% from $648,000 at June 30, 2003 to $1,432,000 at
December 31, 2003.
The Company stated that a reduction in low margin hardware sales by the
Company's DJS Marketing Group subsidiary contributed to the sales decline in the
quarter. Revenue for the six-month period for the AuthentiDate segment which
includes AuthentiDate, Inc., AuthentiDate International AG and Trac Medical
Solutions, Inc. decreased by $31,000 on a year-over-year basis. Authentidate
Group sales were essentially flat for the six months ended December 31, 2003
compared to the prior year because the Company had held off on adding sales
staff until the Microsoft Office Plug In was available for general release which
happened during the quarter ending December 31, 2003. The DocStar Division
realized a decrease in sales of $640,000. The Company stated that it believed
the decrease in DocStar sales is attributable to generally weak IT spending by
customers during the summer months of 2003. On a quarter to quarter basis
DocStar sales increased significantly from $1,225,000 for the quarter ended
September 30, 2003 to $1,689,000 for the quarter ending December 31, 2003, which
is a 38% increase over the first fiscal quarter.
The net loss for the second quarter ended December 31, 2003 was $7,823,689 or
$0.32 per share compared to a net loss of $1,953,555 or $0.10 per share for the
same quarter a year ago. The Company reported a net loss of $9,523,708 or $0.43
per share and $3,948,421 or $0.20 per share for the respective sixth-month
periods ended December 31, 2003 and 2002.
During the three months ended December 31, 2003, all of the Company's
convertible debt was converted to equity. During the three and six months ended
December 31, 2003 the Company expensed $5.6M and $5.9M as non-cash interest
expense related to the convertible debt conversion. This non-cash charge reduced
earnings per share in the three months and six months ended December 31, 2003,
by approximately $0.23 per share and $0.27 per share, respectively.
- more -
Subsequent to the end of the quarter the Company sold 5.4 Million shares of its
common stock in a private transaction, realizing net cash proceeds of
approximately $69 Million. This transaction significantly strengthens the
balance sheet and also provides the resources to properly market the
Authentidate product lines.
"A large portion of our loss this quarter was due to a one time charge which
converts debt to equity, the result of which leaves us with a much stronger
balance sheet ," stated John Botti, AuthentiDate's Chairman and CEO. "In
addition, our deferred revenue increased 121% which we believe is a strong
indication of success going forward."-
The following table are condensed Statements of Operations and Balance Sheet for
AuthentiDate Holding Corp. A more detailed explanation is detailed in the
Company's SEC filings.
AuthentiDate Holding Corp. and Subsidiaries
Consolidated Statements of Operations
(Unaudited)
For Three Months Ended For Six Months Ended
December 31, December 31,
2003 2002 2003 2002
---- ---- ---- ----
Net sales $ 4,029,068 $ 5,920,575 $ 7,300,291 $ 11,385,151
Cost of goods sold 2,402,816 4,147,192 4,447,756 8,311,835
------------ ------------ ------------ ------------
Gross profit 1,626,252 1,773,383 2,852,535 3,073,316
Operating Expenses 3,747,411 3,663,197 7,024,024 7,160,620
------------ ------------ ------------ ------------
Operating loss (2,121,159) (1,889,814) (4,171,489) (4,087,304)
Other income (expense)
Interest expense (5,724,704) (203,658) (6,182,160) (247,822)
Interest and other income 22,174 180,395 812,037 511,643
Equity in net loss of affiliated companies - (38,669) - (121,047)
------------ ------------ ------------ ------------
Loss before income taxes (7,823,689) (1,951,746) (9,541,612) (3,944,530)
Income tax (expense)/benefit - (1,809) 17,904 (3,891)
------------ ------------ ------------ ------------
Net loss ($7,823,689) ($1,953,555) ($9,523,708) ($3,948,421)
============ ============ ============ ============
Weighted average number of shares 24,495,904 19,994,817 22,461,881 19,949,807
============ ============ ============ ============
Net loss per common share ($0.32) ($0.10) ($0.43) ($0.20)
============ ============ ============ ============
- more -
AuthentiDate Holding Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited)
December 31, 2003 June 30, 2003
----------------- -------------
Current Assets:
Cash and cash equivalents $ 7,757,986 $ 3,460,446
Restricted cash 1,099,635
Accounts receivable 2,784,129 3,642,221
Other current assets 198,186 264,628
----------- -----------
Total current assets 11,839,936 7,367,295
Property and equipment, net 3,567,379 3,764,846
Other assets:
Software development costs, net 255,073 355,082
Goodwill 12,795,501 12,795,501
Patent costs, net 280,000 277,406
Other intangible assets 144,690 189,479
Deferred financing fees 268,935
Other assests 122,131 27,296
----------- -----------
Total Assets $29,004,710 $25,045,840
=========== ===========
Current Liabilities:
Accounts payable $ 882,511 $ 1,436,943
Accrued expenses and other liabilities 2,697,290 2,125,111
Deferred revenue 1,431,525 647,599
Other current liabilities 662,127 1,234,037
----------- -----------
Total current liabilities 5,673,453 5,443,690
Convertible debentures 3,316,815
Long-term debt, net of current portion 1,330,134 1,331,129
Deferred grant 1,000,000
Obligations under capital leases,
net of current portion 36,768 85,556
----------- -----------
Total liabilities 7,040,355 11,177,190
----------- -----------
Total shareholders' equity 21,964,355 13,868,650
----------- -----------
Total liabilities and shareholders' equity $29,004,710 $25,045,840
=========== ===========
- more -
------------------------------
About AuthentiDate Holding Corp.
AuthentiDate Holding Corp. (AHC) is the holding company of five business units;
DocStar, AuthentiDate International AG, AuthentiDate, Inc., DJS Marketing
Group/Computer Professionals International and Trac Medical Solutions, Inc.
DocStar sells a complete line of proprietary document imaging products.
AuthentiDate and AuthentiDate AG provide the authentication of digital data
through its proprietary and patent pending technology. AuthentiDate intends to
establish itself as the authority on "content security" as it is a growing
sector of the electronic network security infrastructure market. DJS delivers
professional services centered around technology systems integration projects,
staff augmentation, out-tasking, outsourcing services and resells computer
related products. Trac Medical uses the AuthentiDate service in the medical
supply business.
This press release contains forward-looking statements within the meaning of
section 27A of the Securities Act of 1933 and section 21E of the Securities Act
of 1934. When used in this release, the words "believe," "anticipate," "think,"
"intend," "plan," "will be," "expect," and similar expressions identify such
forward-looking statements. Such statements regarding future events and/or the
future financial performance of The Company are subject to certain risks and
uncertainties, which could cause actual events or the actual future results of
the Company to differ materially from any forward-looking statement. Such risks
and uncertainties include, among other things, the availability of any needed
financing, the Company's ability to implement its business plan for various
applications of its technologies, the impact of competition, the management of
growth, and the other risks and uncertainties that may be detailed from time to
time in the Company's reports filed with the Securities and Exchange Commission.
In light of the significant risks and uncertainties inherent in the
forward-looking statements included herein, the inclusion of such statements
should not be regarded as a representation by the Company or any other person
that the objectives and plans of the Company will be achieved.
###