Docucorp Announces Second Quarter Results
Thursday, February 24, 2005
DALLAS--Feb. 23, 2005-- Docucorp International, a leading provider of enterprise information solutions, today announced record revenues of $20.3 million for the second quarter of fiscal year 2005, compared to $19.6 million for the second quarter of the prior year. The company reported net income of $496,000, or $0.04 per diluted share, for the quarter compared to net income of $1.6 million, or $0.14 per diluted share, for the same period a year ago. For the six months ended January 31, 2005, revenues increased to $40.0 million compared to $38.5 million for the same period of fiscal year 2004. Net income for the first six months of fiscal year 2005 was $1.9 million, or $0.17 per diluted share, compared to $3.1 million, or $0.27 per diluted share, for the first six months of fiscal year 2004. Compared to the second quarter of the prior fiscal year, ASP hosting revenue increased 23 percent to $7.5 million, professional services revenue increased 12 percent to $5.6 million and maintenance revenue increased one percent to $5.5 million. Software license revenue decreased 46 percent to $1.7 million. Second quarter net income was negatively impacted by weak software license sales in North America and increased expenses resulting from accounting and auditing fees, primarily related to Sarbanes-Oxley compliance, and amortization costs associated with software introduced to the marketplace during the last 12 months. "While we are disappointed with Docucorp's second quarter net income and software license revenue, we are pleased with record quarterly and six-month revenue, as well as improvements in our European operations," said Michael D. Andereck, president and chief executive officer, Docucorp International. "We are focused on improving software license sales and earnings per share for the remainder of fiscal 2005, while continuing to invest in our future as evidenced by the acquisition of Newbridge Corporation and the ongoing development of new software solutions."