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. , 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 quarterwas $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 of2003. 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, placesOptika
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, VerizonWireless,
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 Integrationis 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, deliveringaccelerated 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
http://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 http://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 evaluationof
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 uncertaintiesmaterializes 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 theSEC by Stellent on Stellent's website
at http://www.stellent.com/. Investors and security holders may
obtain copies of the documents filed with the SEC by Optika on
Optika's website at http://www.optika.com/. INFORMATION CONCERNING
PARTICIPANTS Eachof 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
officersand 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
5118 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 BalanceSheets (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
DATASOURCE: Optika Inc. CONTACT: Jim Fanucchi of Summit IR Group
Inc., +1-408-404-5400, or , for Optika Inc.; or Betty Wiggins of
Optika Inc., +1-719-260-4388, or Web site: http://www.optika.com/
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