ATLANTA, April 6, 2004 (PRIMEZONE) -- Optio(r) Software Inc. (OTCBB:OPTO), a leading provider of solutions that enhance the form, content, distribution and availability of business-critical documents and information, today reported financial results for its fourth quarter and fiscal year ended Jan. 31, 2004.
Fourth Quarter Results: Fourth quarter revenue was $7.7 million, a year-over-year increase of 18% over the $6.5 million reported in the fourth quarter of last year and a 21% increase over the $6.4 million reported in the third quarter of fiscal year 2004.
Software license revenues in the fourth quarter of 2004 were $3.6 million, a 74% increase over the $2.1 million posted in the third quarter of 2004 and a 45% increase over the $2.5 million posted in the prior year's fourth quarter. Services and maintenance revenues in the fourth quarter of 2004 were $4.1 million compared to $4.3 million in the third quarter of 2004 and $4.1 million in the fourth quarter last year.
For the three months ended Jan. 31, 2004, Optio reported net income of $889,000, representing earnings of $0.05 per basic share and $0.04 per diluted share outstanding. This compares to a loss of $878,000 or a loss of $0.05 per basic and diluted share for the same period last year. Operating expenses were $5.0 million, compared to operating expenses of $5.2 million for the third quarter of 2004 and $5.8 million in the fourth quarter of 2003.
Optio closed the quarter and the year ended Jan. 31, 2004 with $5.3 million in cash, compared to $4.4 million as of October 31, 2003 and compared to $3.9 million as of Jan. 31, 2003. The company had no outstanding balance on its line of credit as of Jan. 31, 2004.
The company's days' sales outstanding (DSOs) lengthened to 62 days in the fourth quarter 2004 compared with 53 days in the prior quarter.
"License revenues in the fourth quarter were strong, reflecting solid market acceptance and demand for our products introduced throughout fiscal year 2004 such as Optio Print Manager(tm), an SAP certified version of e.ComIntegrate(tm) and our signature healthcare product, MedEx(tm)," said Caroline Bembry, Optio's chief financial officer. "Not only did we achieve our most profitable quarter in over three years, but we continued to grow our cash balances, reporting nearly $1.0 million in cash flows from operations in the fourth quarter of 2004."
Annual Results: Total revenue for the year ended Jan. 31, 2004 was $27.3 million, compared with $27.8 million for the same period last year. Software license revenue for the year ended Jan. 31, 2004, was $10.2 million, compared to $10.4 million in the prior year. Services and maintenance revenue was $17.1 million in the year ended Jan. 31, 2004, as compared to $17.4 in the same period last year.
For the year ended Jan. 31, 2004, total operating expenses declined from $25.0 million in the prior year to $19.6 million.
Net income for the year ended Jan. 31, 2004 was $1.4 million or $0.07 per basic share and $0.06 per diluted share, a significant improvement from the $4.8 million net loss, including a $132,000 loss from discontinued operations, posted in the prior year.
"I'm pleased that we have achieved our goal of returning the company to profitability during fiscal 2004," said C. Wayne Cape, Optio's chairman, president and CEO. "I'm very proud of the entire Optio team and their extraordinary focus, determination and dedication. Going into the new year, it is our goal to build on this year's success as we sharpen our focus on providing better customer value while continuing to improve the performance of our business."
Highlights from the year ended Jan. 31, 2004, included:
-- Significant new customers included: Alpha Natural
Resources, Aspect Communications, Good Samaritan Hospital,
Hamilton Sunstrand, Johns Hopkins University Applied Physics
Laboratory, MedEx Inc., Mercy Health Center of Oklahoma City,
Midmark Corporation, New Hanover Regional Medical Center,
ReView Video LLC, ServiceMaster Consumer Services L.P.,
Southern Regional Health System and Take 2 Interactive
Software Europe Ltd.
-- The formation of Optio's Enterprise Customer Advisory Board
to provide input and feedback to help Optio enhance the overall
customer experience; share its strategic vision in an open
discussion format with key customers; understand business,
economic and technology trends that influence customer
requirements; and learn about innovative solutions created
through the use of Optio solutions.
-- Achieved certification for Oracle(r) applications including
Oracle Warehouse Management (Oracle WMS) and Oracle Mobile
Supply Chain Application (Oracle MSCA) applications. The
certification process for Optio's e.ComIntegrate offering
includes the successful demonstration of facilities such as:
visual design and mapping of Oracle data into Oracle WMS
and Oracle MSCA labels, data passing using XML, inclusion
of multiple format barcodes, support for a variety of
printer types (direct thermal / thermal transfer), enhancing
data with identifiers and other key capabilities.
-- Released Optio Print Manager to help customers strengthen
their document printing infrastructure and reduce costs.
Optio Print Manager enables assured delivery of printed
documents and reports across enterprise network environments
that span departments, locations, factories, divisions and
multinational boundaries. It also enables organizations to
easily manage enterprise print resources and load balance
print jobs from a centralized management console.
-- Earned SAP(r) certification for Optio e.ComIntegrate 7.7 on
SAP's version 4.0 or later. SAP customers who take advantage
of SAP-certified software to complement their existing
investments in SAP solutions can benefit from faster
implementation time and lower integration costs through the
use of tested interfaces.
-- Named by the QAD Global Alliance Program as a preferred
document output management provider. As a selected partner,
QAD will promote Optio as a preferred document output
management partner to QAD customers, prospects, sales staff
and management worldwide.
-- Released the latest version of Optio e.ComIntegrate, a
distributed output management application, for Linux.
About Optio
More than 5,000 customers worldwide use Optio solutions to reduce the cost and complexity of document-driven business processes and extend the value of enterprise technology investments. Optio's document output management solutions improve the form, content, distribution and availability of business-critical documents across global networks of digital destinations such as print, fax, e-mail, portals and wireless devices. Founded in 1981, Optio is headquartered in Atlanta and maintains international offices in France, Germany and the United Kingdom. More information about Optio (OTCBB:OPTO) is available at: www.optiosoftware.com.
Forward Looking Statements
This press release includes statements and other matters that could be considered to be forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from expectations. Such forward-looking statements are made pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995 and are made based on management's current expectations or beliefs as well as assumptions made by, and information currently available to, management. Factors that might cause or contribute to such differences include, but are not limited to, risks associated with Optio's reliance on strategic marketing and reseller relationships, the collectibility of Optio's accounts receivable and note receivable (specifically, the M2 note receivable), fluctuations in operating results because of acquisitions or dispositions, changes in competition, changes in economic conditions in the U.S. and in other countries in which Optio currently does business (both general and relative to the technology industry), delays or inability in developing new or unique software, market acceptance of new products, the failure of new products to operate as anticipated, expectation of achieving and sustaining operating profits and earnings, including the timing of such cash flow and company performance, disputes regarding Optio's intellectual property, risks relating to the delisting of our stock, possible adverse results of pending or future litigation, or risks associated with Optio's international operations. In addition, other written or oral statements that constitute forward-looking statements may be made by or on behalf of Optio. These and additional factors are set forth in "Safe Harbor Compliance Statement for Forward-Looking Statements" included as Exhibit 99.1 to Optio's most recent Quarterly Report on Form 10-Q. You should carefully review these risks and additional risks described in other documents Optio files from time to time with the Securities and Exchange Commission, including the Annual Report of Form 10-K that Optio will file before April 31, 2004.
Optio is a registered trademark and Optio Print Manager, MedEx and Optio e.ComIntegrate are trademarks of Optio Software, Inc. Other products mentioned in this document are registered, trademarked or service marked by their respective owners.
OPTIO SOFTWARE, INC.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended Year Ended
January 31, January 31,
-------------------------- ------------------------
2004 2003 2004 2003
----------- ------------ ----------- ----------
Revenue:
License fees $ 3,570 $ 2,462 $ 10,205 $ 10,445
Services,
maintenance,
and other 4,143 4,087 17,110 17,379
----------- ----------- ----------- ----------
7,713 6,549 27,315 27,824
Cost of
revenue:
License fees 151 187 436 549
Services,
maintenance,
and other 1,766 1,547 6,358 7,808
----------- ----------- ----------- ----------
1,917 1,734 6,794 8,357
----------- ----------- ----------- ----------
5,796 4,815 20,521 19,467
Operating
expenses:
Sales and
marketing 2,590 2,782 9,448 12,821
Research and
development 1,109 888 4,078 4,278
General and
administra-
tive 1,205 1,865 4,572 6,962
Impairment of
M2 Systems
note
receivable -- -- 900 --
Depreciation
and
amortization 110 216 553 920
----------- ----------- ----------- ----------
5,014 5,751 19,551 24,981
----------- ----------- ----------- ----------
Income (loss)
from
operations 782 (936) 970 (5,514)
Other income
(expense):
Interest
income 41 54 171 233
Interest
expense (4) (21) (17) (51)
Other 14 21 45 44
----------- ----------- ----------- ----------
51 54 199 226
----------- ----------- ----------- ----------
Income (loss)
before income
taxes 833 (882) 1,169 (5,288)
Income tax
benefit 56 93 202 578
----------- ----------- ----------- ----------
Income (loss)
from
continuing
operations 889 (789) 1,371 (4,710)
----------- ----------- ----------- ----------
Loss from
discontinued
operations -- (89) -- (132)
----------- ----------- ----------- ----------
Net income
(loss) $ 889 $ (878) $ 1,371 $ (4,842)
=========== ============ =========== ==========
Net income
(loss) per
share - basic $ 0.05 $ (0.05) $ 0.07 $ (0.26)
=========== ============ =========== ==========
Net income
(loss)
per share -
diluted $ 0.04 $ (0.05) $ 0.06 $ (0.26)
=========== ============ =========== ==========
Weighted
average
shares
outstanding
- basic 19,239,435 19,127,498 19,190,661 18,962,662
=========== =========== =========== ==========
Weighted
average
shares
outstanding
- diluted 22,639,822 19,127,498 21,313,286 18,962,662
=========== =========== =========== ==========
OPTIO SOFTWARE, INC.
Condensed Consolidated Balance Sheets
(in thousands)
January 31, January 31,
2004 2003
----------- -----------
ASSETS
Current Assets:
Cash and cash
equivalents $ 5,328 $ 3,902
Accounts
receivable, net 5,293 4,112
Note receivable
from M2 310 101
Other current
assets 502 1,605
----------- -----------
Total current
assets 11,433 9,720
Property and
equipment, net 541 912
Note receivable 2,376 3,571
Other assets 110 240
----------- -----------
Total assets $ 14,460 $ 14,443
=========== ===========
LIABILITIES AND
SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,026 $ 1,656
Other accrued
liabilities 2,627 3,657
Deferred revenue 6,256 5,849
Current portion of
debt and capital
lease
obligations 76 118
----------- -----------
Total current
liabilities 9,985 11,280
Long-term portion
of debt and
capital lease
obligations 87 167
Long-term accrued
expenses 101 130
Deferred revenue -- 92
Shareholders'
equity 4,287 2,774
----------- -----------
Total liabilities
and shareholders'
equity $ 14,460 $ 14,443
=========== ===========