DALLAS--Sept. 15, 2005-- Docucorp International, a leading provider of Customer Communication Management (CCM) solutions, today announced record revenues of $79.2 million for fiscal year 2005, compared to revenues of $75.7 million for fiscal year 2004. The company reported net income of $2.5 million, or $0.22 per diluted share, for fiscal year 2005 compared to net income of $5.4 million, or $0.47 per diluted share, for the same period a year ago. For the year, Docucorp's ASP hosting revenue increased 16 percent to $27.0 million, and professional services revenue increased two percent to $21.0 million. Maintenance revenue was $21.1 million, compared to $21.2 million for fiscal 2004, and license revenue decreased four percent to $10.1 million. For the quarter ended July 31, 2005, the company reported revenues of $19.4 million, compared to $18.6 million for the same period a year ago. Net income for the fourth quarter was $135,000, or $0.01 per diluted share, compared to net income of $1.6 million, or $0.14 per diluted share, for the fourth quarter of fiscal year 2004. Fourth quarter net income was less than the same period of the prior year due primarily to lower margin in the company's ASP business, increased software amortization, expenses associated with Sarbanes-Oxley compliance, and foreign currency exchange losses. Additionally, stock-based compensation charges related to accelerated vesting of stock options and other one-time charges were incurred in the quarter. "I am pleased that we achieved record revenues for fiscal 2005; however, I am disappointed in the decrease in profitability," said Michael D. Andereck, president and chief executive officer, Docucorp International. "We have taken a number of steps to improve profitability, and in fiscal 2006, we believe our net income will be positively impacted by: increased visibility and backlog of professional services projects; additional maintenance revenue; improving ASP margins; the absence of a number of one-time charges incurred during fiscal 2005; the elimination of costs associated with non-performing sales representatives; and the avoidance of future expense associated with previously granted stock options." "We experienced a number of positive trends in the fourth quarter of fiscal 2005, including continued momentum in Europe, increased traction in financial services, and selling our largest Policy Xpress(TM) software license," said Andereck. "We will continue to build on these successes, as well as focus our efforts on strengthening the sales and marketing organization, increasing profitability and accelerating growth."