OPTK - Optika Inc. Announces 29 Percent Year-Over-Year Revenue Growth for Q1 2004
/FROM PR NEWSWIRE SAN FRANCISCO 415-543-7800/
TO BUSINESS AND TECHNOLOGY EDITORS:
Optika Inc. Announces 29 Percent Year-Over-Year Revenue Growth for Q1 2004
License Revenue Increases 52 Percent Over Q1 2003; Strong ECM Market Momentum
Drives Expanded Customer and Reseller Base
COLORADO SPRINGS, Colo., April 7 /PRNewswire-FirstCall/ -- Optika(R) Inc.
(Nasdaq: OPTK), a leading Enterprise Content Management (ECM) provider of
imaging, workflow, collaboration and records management software, today
reported financial results for its first quarter of fiscal 2004, ended
March 31, 2004.
Revenue for the first quarter was $5.6 million, an increase of 29 percent
from the $4.3 million reported in the first quarter of 2003, and up 1 percent
from the $5.6 million reported in the fourth quarter of 2003.
Net loss for the first quarter was $79,000, or a basic net loss of
$0.01 per share. This compares with a net loss of $558,000, or a basic
net loss of $0.07 per share in first quarter of 2003, and net income of
$279,000, or basic net income of $0.03 per share in the fourth quarter of
2003. First quarter 2004 net loss includes charges of $417,000 associated with
the proposed merger with Stellent Inc. Excluding these merger-related
charges, first quarter non-GAAP net income was $338,000, or basic net income
of $0.04 per share. The company generated approximately $350,000 of cash
during the first quarter of 2004.
"Our license revenue growth of 52 percent year-over-year is a testament to
our focus on delivering solutions that tightly integrate with leading ERP
systems," said Mark K. Ruport, president, CEO and chairman of Optika. "Our
commitment to increasing sales coverage and providing high-quality software
products that deliver measurable ROI, combined with the rising momentum of the
enterprise content management market, places Optika in a unique position to
take advantage of the growth opportunities in front of us."
In the first quarter of 2004, many new and existing customers purchased
Acorde(TM) software, including Ingenix, Inc., Granite Construction
Incorporated, Verizon Wireless, Badger Mutual Insurance, City of Seattle, and
Louisville Gas & Electric. In addition, a number of Optika customers purchased
Acorde Records Management(TM), including Entergy-Koch and Southern LINC.
Optika also continued to grow its reseller program, and added several
new Advantage Partners in the first quarter, including Aston Business
Solutions (Ann Arbor, Mich.), ePartners, Inc. (Dallas), American MicroImaging
(Los Angeles), Idea Integration (Jacksonville, Fla.), Imaging Solutions
Company (Wichita, Kan.), and DigiTec Companies (Houston). These partners
contribute to the strategic focus of Optika in leveraging financial systems.
For example, Aston Business Solutions is the Microsoft Global Partner of The
Year for 2003. Idea Integration is a Microsoft Certified Partner, a PeopleSoft
Consulting Partner, an Oracle Certified Partner, a SAP Services Partner, and
an expert in Geographic Information Systems (GIS).
Merger Agreement with Stellent Inc.
On Jan. 12, 2004 the company announced it entered into a definitive merger
agreement with Stellent, Inc. (Nasdaq: STEL). As previously announced, the
transaction is expected to close in the second quarter.
"Awareness of Optika and our solutions in the marketplace has increased
after the announced proposed merger with Stellent, resulting in greater demand
for Optika's products with existing and potential customers in the first
quarter," said Mr. Ruport. "We expect the combined company will realize
revenue and expense synergies, delivering accelerated growth and
profitability, which we believe will result in increased shareholder value."
Optika Outlook
"Over the last year we have increased our license revenue while
also generating a substantial amount of cash from operations," said
Steven M. Johnson, chief financial officer of Optika. "We have created a solid
foundation for our business, and we expect to continue to grow revenue and
maintain profitability in the second quarter."
Conference Call
Optika management will hold a conference call to discuss the company's
first quarter financial results on April 8 at 9:00 a.m. Eastern Time. To
access the conference call, dial 973-582-2767 by 8:50 a.m. Eastern Time. A
replay of the conference call will be available until April 22. To access the
recording, dial 973-341-3080, passcode: 4651054. A live webcast of the
conference call will also be available via the investor relations section of
the company's Web site at www.optika.com.
About Optika
Headquartered in Colorado Springs, Colo., Optika Inc. is a leading
provider of imaging, workflow, collaboration and records management software.
Optika's Acorde(TM) family of Enterprise Content Management (ECM) solutions
allows companies to streamline their business processes, eliminate paper and
increase operational efficiencies. The company's more than 2,000 customers
worldwide include The Home Depot, Merrill Lynch, Georgia-Pacific, Bayer
Corporation, Turner Broadcasting Systems, Airborne Express, and SBC
Communications. For more information about Optika and the Acorde product
family, contact the company at 719-548-9800 or visit www.optika.com.
NON-GAAP FINANCIAL MEASUREMENTS
The non-GAAP net income and basic net income per share amounts supplement
the corresponding financial measurement computed in accordance with generally
accepted accounting principles (GAAP) and excludes merger related costs. The
Company has provided this non-GAAP financial measure to assist investors to
better understand the Company's core operating performance and to enhance
comparisons of its core operating performance with historical periods and the
operating performance of its competitors. Items excluded from non-GAAP
financial measurements are also excluded by management in its evaluation of
the core operating performance of the Company and in its evaluation of trends
between fiscal periods. In addition, the Company prepares and maintains all
budgets and forecasts of future periods on a basis consistent with this
non-GAAP financial measurement. Investors should consider non-GAAP measures in
addition to, and not as a substitute for, or as superior to, measures of
financial performance prepared in accordance with GAAP.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements that are subject
to risks, uncertainties and other factors that could be deemed forward-looking
statements and could cause actual results to differ materially from those
referred to in the forward-looking statements. All statements other
than statements of historical fact are statements that could be deemed
forward-looking statements. For example, statements of expected synergies,
industry ranking, timing of closing, market or customer needs, organizational
structure and execution of integration plans are all forward-looking
statements. Risks, uncertainties and assumptions include the possibility that
the Stellent/Optika merger does not close or that the companies may be
required to modify aspects of the transaction to achieve regulatory approval
or that prior to the closing of the proposed merger, the businesses of the
companies suffer due to uncertainty; the market for the sale of certain
products and services may not develop as expected; that development of these
products and services may not proceed as planned; that Optika and Stellent are
unable to transition customers, successfully execute their integration
strategies, or achieve planned synergies; lack of market acceptance of the
Stellent and Optika suite of products, failure of the market for enterprise
content management software to develop and grow as quickly as expected; delays
and difficulties in introducing new products and enhancements to address the
needs of specific vertical markets; the introduction of new products or
services by competitors that could delay or reduce sales; the failure of
reseller and OEM programs to develop as expected; the impact of world and
geopolitical events on sales cycles and transaction closure rates; and actual
or perceived declining economic conditions that could negatively affect sales
and profits; other risks that are described from time to time in Stellent and
Optika's Securities and Exchange Commission reports. If any of these risks or
uncertainties materializes or any of these assumptions proves incorrect,
Stellent and Optika's results could differ materially from either company's
expectations in these statements. All forward-looking statements in this press
release are made as of the date hereof, based on information available to
Optika as of the date hereof, and Optika assumes no obligation to update or
revise any of its forward-looking statements even if experience or future
changes show that the indicated results or events will not be realized.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed merger, Stellent (Nasdaq: STEL)and Optika
have filed a joint proxy statement/prospectus with the Securities and Exchange
Commission. INVESTORS AND SECURITY HOLDERS OF STELLENT AND OPTIKA ARE URGED
TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT MATERIALS
BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT STELLENT, OPTIKA AND THE
PROPOSED MERGER. Investors and security holders may obtain without charge
copies of the joint proxy statement/prospectus and other relevant materials,
and any other documents filed by Stellent or Optika with the Securities and
Exchange Commission at the SEC's web site at http://www.sec.gov . A free copy
of the joint proxy statement/prospectus and other relevant materials, and any
other documents filed by Stellent or Optika with the SEC, may also be obtained
from Stellent and Optika. In addition, investors and security holders may
access copies of the documents filed with the SEC by Stellent on Stellent's
website at www.Stellent.com. Investors and security holders may obtain copies
of the documents filed with the SEC by Optika on Optika's website at
www.Optika.com.
INFORMATION CONCERNING PARTICIPANTS
Each of Stellent and Optika and their respective officers and directors
may be deemed to be participants in the solicitation of proxies from their
respective stockholders in favor of the transaction. Information about the
directors and executive officers of Stellent may be found in Stellent's
definitive proxy statement for its 2003 annual meeting of shareholders
and in Stellent's annual report on Form 10-K for the fiscal year ended
March 31, 2003. Information about the directors and officers of Optika may be
found in Optika's definitive proxy statement for its 2003 annual meeting of
stockholders and in Optika's annual report on Form 10-K for the fiscal year
ended December 31, 2003. In addition, information regarding the interests of
Optika's officers and directors in the transaction are included in the joint
proxy statement/prospectus.
Optika Inc.
Condensed Consolidated Statements of Operations (Unaudited)
(In thousands, except per share amounts)
Quarter Ended
March 31, March 31,
2004 2003
Revenues:
Licenses $1,873 $1,231
Maintenance and other 3,749 3,115
Total revenues 5,622 4,346
Cost of revenues:
Licenses 170 180
Maintenance and other 1,047 925
Total cost of revenues 1,217 1,105
Gross profit 4,405 3,241
Operating expenses:
Sales and marketing 2,384 2,227
Research and development 1,164 1,191
General and administrative 570 399
Merger expenses 417 --
Total operating expenses 4,535 3,817
Loss from operations (130) (576)
Other income 51 18
Loss before income taxes (79) (558)
Income taxes -- --
Net loss $(79) $(558)
Basic and diluted loss per common
share $(0.01) $(0.07)
Weighted average number of common
shares outstanding 9,370 8,351
Condensed Consolidated Balance Sheets (Unaudited)
(in thousands)
March 31, December 31,
Assets 2004 2003
Current assets:
Cash and cash equivalents $4,283 $3,929
Restricted cash and cash
equivalents 100 100
Short-term investments 5,153 5,153
Accounts receivable, net 4,475 4,696
Other current assets 462 523
Total current assets 14,473 14,401
Property and equipment, net 678 683
Intangible assets, net 559 584
Goodwill 1,166 1,166
Other assets 126 221
$17,002 $17,055
Liabilities and stockholders' equity
Current liabilities:
Accounts payable and accrued
expenses $2,288 $2,763
Deferred revenues 6,703 6,358
Total current liabilities 8,991 9,121
Total stockholders' equity 8,011 7,934
$17,002 $17,055
SOURCE Optika Inc.
/CONTACT: Jim Fanucchi of Summit IR Group Inc., +1-408-404-5400, or
jim@summitirgroup.com, for Optika Inc.; or Betty Wiggins of Optika
Inc.,+1-719-260-4388, or investorrelations@optika.com/
/Web site: http://www.optika.com /
Apr-07-2004 20:02 GMT
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