ATLANTA, June 9, 2004- Optio Software, Inc. (OTCBB:OPTO) today reported financial results for its first fiscal quarter ended April 30, 2004, including revenue of $7.2 million, an increase of $691,000 or 11% year-over-year.
Net income was $569,000 for the quarter, representing a three-fold increase over the $193,000 reported in the same quarter of the prior year. Diluted earnings per share were $0.02 and earnings per basic share were $0.03.
"Optio delivered another strong quarter with solid revenue gains and continued profitability," said C. Wayne Cape, Optio chairman, president and chief executive officer. "These results demonstrate that even in an intensely competitive marketplace, we are gaining financial and market strength."
Software, services and maintenance revenues
Software license revenues in the first quarter of fiscal 2005 were $2.9 million, up 39% over the $2.1 million reported in the same quarter of the prior year. Services and maintenance revenues were $4.3 million, a 3% decline from the $4.4 million reported in the first quarter of fiscal 2004.
Optio Software closed the quarter with $6 million in cash, compared to $5.3 million as of Jan. 31, 2004, and compared to $3.8 million as of April 30, 2003. The company had no outstanding balance on its line of credit as of April 30, 2004. The company's days' sales outstanding (DSO) was 59 in the first quarter of fiscal 2005, compared with 62 days in the previous quarter.
"Strong license revenue increases, combined with continued financial discipline and strategic investments in sales and marketing and research and development, position us on a solid path for growth in fiscal 2005," said Caroline Bembry, Optio chief financial officer. "We have gained significant sales and marketing traction in our EMEA and North American businesses as demonstrated by the 31 new customers we added during the quarter. Not only did we achieve a 39% increase in software license revenue, but we also improved our cash position to $6 million at the close of the quarter."
Highlights from the first quarter of fiscal 2005 include:
-- Added 31 new customers to our global customer base, including
BobCat Co., Colony Resorts, Dresser Inc. and DuPont Photomasks,
Inc.
-- Signed several significant contracts in EMEA, including
TeleColumbus Data and Service and JC Bamford Excavators
Limited.
-- Closed over 15 major deals with Oracle customers, a testament
to the strength of our partnership with Oracle.
-- Announced the certification of Optio e.ComIntegrate(tm) with
the PeopleSoft EnterpriseOne 8.9 application suite. Optio's
certification validated that data created by PeopleSoft
EnterpriseOne can be successfully integrated with Optio
e.ComIntegrate, which transforms enterprise information into
high-impact business documents that can be delivered via print,
fax, e-mail and the web.
-- Established Optio's Healthcare Customer Advisory Board, a forum
for a cross-section of healthcare customers to provide input on
the future development, sales and support of Optio products and
services.
About Optio
Optio Software provides software for more than 5,000 customers in virtually every enterprise resource planning (ERP) or hospital information systems (HIS) environment. Our output management solutions enable companies to produce, enhance, distribute and exchange documents and other critical information via print, fax, e-mail and the web. Founded in 1981, Optio Software has world headquarters in Atlanta, EMEA headquarters in Paris and sales offices in Germany and the United Kingdom. More information about Optio Software (OTCBB:OPTO) is available at: www.optiosoftware.com.
Copyright 2004, Optio Software, Inc. All Rights Reserved. Optio is a registered trademark and Optio e.ComIntegrate is a trademark of Optio Software, Inc. Other companies and products mentioned in this document are the property of their respective owners.
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 Annual Report on Form 10-K. 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 Quarterly Report of Form 10-Q that Optio will file before June 14, 2004.
OPTIO SOFTWARE, INC.
Consolidated Statements of Operations
(in thousands, except per share data)
Three Months Ended
April 30,
----------------------------
2004 2003
------------ ------------
(unaudited)
Revenue:
License fees $ 2,881 $ 2,070
Services, maintenance,
and other 4,325 4,445
------------ ------------
7,206 6,515
Cost of revenue:
License fees 149 118
Services, maintenance,
and other 1,586 1,603
------------ ------------
1,735 1,721
------------ ------------
5,471 4,794
Operating expenses:
Sales and marketing 2,695 2,381
Research and development 1,085 964
General and administrative 1,053 1,123
Depreciation and
amortization 71 179
------------ ------------
4,904 4,647
------------ ------------
Income from operations 567 147
Other income (expense):
Interest income 42 49
Interest expense (4) (3)
Other 21 6
------------ ------------
59 52
------------ ------------
Income before income taxes 626 199
Income tax expense 57 6
------------ ------------
Net income 569 193
============ ============
Net income per share --
basic $ 0.03 $ 0.01
============ ============
Net income per share --
diluted $ 0.02 $ 0.01
============ ============
Weighted average shares
outstanding -- basic 19,399,918 19,140,644
============ ============
Weighted average shares
outstanding -- diluted 23,002,374 20,595,179
============ ============
OPTIO SOFTWARE, INC.
Condensed Consolidated Balance Sheets
(in thousands)
April 30, January 31,
2004 2004
------- -------
(unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $ 5,991 $ 5,328
Accounts receivable, net 4,736 5,293
Current portion of note
receivable from M2 310 310
Other current assets 463 288
------- -------
Total current assets 11,500 11,219
Property and equipment, net 543 541
Note receivable from M2, net,
less current portion 2,292 2,376
Other assets 103 110
------- -------
Total assets $14,438 $14,246
======= =======
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Accounts payable $ 1,014 $ 812
Other accrued liabilities 1,943 2,627
Deferred revenue 6,273 6,256
Current portion of capital
lease obligations 76 76
------- -------
Total current liabilities 9,306 9,771
Long-term portion of capital
lease obligations 69 87
Long-term accrued expenses 97 101
Shareholders' equity 4,966 4,287
------- -------
Total liabilities and
shareholders' equity $14,438 $14,246
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