By Gail Kailing May 7, 2003 -- Standard Register's first quarter earnings announcement and conference call on April 24 did not detail the revenues and costs by segment. Taken from the company's 10Q or quarterly report, filed with the SEC on May 5, are details by reporting segment. In January this year, Standard Register realigned the company's operating segments to improve operational effectiveness. The three segments are: Document and Label Solutions, Fulfillment Services, and InSystems. International, PathForward (both previously part of Document Management) and SMARTworks, considered individually insignificant segments, were aggregated into Other. Segment Details PlanetPrint, previously a part of Document Management, was separated into two operating units: CopyConcepts (now part of Fulfillment Services) and PathForward (now part of Other). Certain print-on-demand and software development operations that were also previously part of Document Management are part of Fulfillment Services and InSystems. Document and Label Solutions, comprising six business units aggregated for segment reporting, provides a wide array of printed documents and related services that facilitate the recording, storage, and communication of business information. The segment consists principally of business forms, PC-based printing systems, secure documents, form/label combinations, products and services relating to flexographic, screen and offset printed labels, bar code/automatic ID systems, pressure-sensitive labels, compliance labels and variable image products. Fulfillment Services, comprising three business units aggregated for segment reporting, is focused on outsourcing services, including document outsourcing or "the delegation to a supplier of the creation, production, processing, printing, mailing or electronic transmission, or fulfillment of any type of printed or electronic documents." Fulfillment Services includes monthly billing statements, customized information kits, and retail card production; warehousing and kitting operations; and print and mail type operations. InSystems, acquired July 2002, consists of two business units aggregated for reporting and is a provider of e-business solutions that enable companies to improve processes and organize, manage, and distribute information in both paper and digital infrastructures. This segment provides document-handling systems and document security and work flow consulting services. Operatio segment for the 13-week periods ended March 30, 2003 and March 31, 2002:     Document and Label Solutions Fulfillment Services InSystems Other Total Ext. Rev 2003 $161,858 $60,210 $13,232 $843 $236,143   2002 $190,224 $65,991 $6,037 $1527 $236,779 Interseg. Rev 2003 $ - $ - $ - $127 $127   2002 $ - $ - $ - $1,758 $1,758 Op Income 2003 $6,902 $(1,094) $(4,126) $(2483) $(801)   2002 $21,271 $(3,905) $(2,374) $(1961) $20,841 Document and Label Solutions This segment provides custom printed documents, workflow consulting, storage and distribution services, pressure sensitive labels, and integrated system solutions. It primarily serves companies in the healthcare, financial, manufacturing, and distribution markets. Excess production capacity and stiff price competition are prevalent in this segment, as the industry demand for traditional custom printed business forms and related services, which represents about 75% of this segment's total revenue, has been flat or in modest decline in recent years as a result of a relatively weak economy and inroads made by alternative technologies. Major factors responsible for the quarterly revenue decline in this segment are: relatively low economic activity, weak pricing in an oversupplied industry, and the residual effects of the 2001 restructuring. Fulfillment Services This segment helps its clients communicate effectively with their customers, providing information or marketing materials customized for each recipient. This may take the form of monthly billing statements, customized information kits, or one-to-one marketing communications. Its major markets are financial services, healthcare, and membership. Revenue in first quarter 2003 decreased 8.8% over the same period of 2002. The 2002 acquisitions contributed approximately $3.6 million in revenue for the first quarter of 2003. Excluding acquisitions, revenue decreased by 14.2 %, or $9.4 million. A significant share of this shortfall occurred in traditional short-run offset printing, attributed to shifting technology, pricing pressure, and the residual effects of the 2001 restructuring discussed earlier. The prior year also benefited from two orders totaling approximately $2 million that did not reoccur in 2003 - the first a one-time customer promotion and the second produced in a different quarter. The decline in operating income is primarily a function of the lower revenue and the decline in offset printing, which carries a higher gross margin than the digital print-on-demand that will replace it. Operating expenses were also higher as a result of investments made in the sales force. InSystems This segment is a leading provider of e-business solutions for financial services organizations. InSystems Corporation's solutions enable companies to improve processes and organize, manage and distribute information in both paper and digital infrastructures including integrated document-automation software helps organizations create, manage and distribute highly personalized, error-free documents. It also automates important business processes including compliance filings, document fulfillment and customer service. InSystems Corporation's extended relationship management software enables organizations to interact seamlessly via the Internet with their entire value network, including customers, suppliers, partners, regulators, and other constituents. This segment also provides document-handling systems and document security and workflow consulting services. Of the $7.2 million increase in revenue, approximately $6.0 million is attributed to the acquisition of InSystems Corporation in July 2002. This segment has seen a slight growth in business in spite of a slowdown in software spending as customers delay software purchases. Of the $1.7 million increase in operating loss, approximately $1.3 million is acquisition related, primarily from amortization of purchased intangibles and software development costs.