Captaris Announces Preliminary Results for the Fourth Quarter 2007
January 14 2008 - 4:05PM
PR Newswire (US)
Expects to Report Revenue 11% to 12% Higher Than Q4 2006 BELLEVUE,
Wash., Jan. 14 /PRNewswire-FirstCall/ -- Captaris, Inc.
(NASDAQ:CAPA), announced today that it expects to report revenue at
the high end or slightly above the top end of revenue guidance for
the fourth quarter ending December 31, 2007, an increase of 11% to
12% compared to revenue of $25.2 million in the fourth quarter of
2006. These estimates update earlier revenue estimates of $27 to
$28.3 million for the fourth quarter announced on its conference
call on November 5, 2007. The Company expects that operating
expenses will be higher than estimated, primarily due to higher one
time costs associated with outsourcing certain R & D
maintenance and new project activities to third parties, costs
associated with the acquisition of ODT completed on January 4, 2008
and higher legal expenses. As a result the Company now expects to
report operating expenses in the range of $19.9 to $20.2 million
for the fourth quarter ending December 31, 2007. These estimates
update earlier operating expense estimates of $18.5 to $18.8
million announced on the November 5 conference call. "Our revenue
performance is very encouraging, with strength in several areas,"
said David P Anastasi, President and CEO of Captaris. "In
particular, we exceeded our expectations in the international
markets. From a product perspective, Right Fax software revenue was
about 9% higher than the fourth quarter of 2006, our FaxPress
product line from our July 2007 acquisition of Castelle showed
strong sequential growth and Alchemy again had a strong quarter
particularly in relation to our MFP (multi-function printing
devices) channel partners. We achieved the strong increase in
revenue from the prior year overcoming challenging economic
conditions, particularly in the financial services sector." "As
previously announced, we have been working to improve our
development organization's structure and resource allocation
methodology. The changes we are making are designed to
significantly increase our speed to market and allow for more
flexibility to shift resources between development projects. We
have been working with multiple companies to outsource certain
engineering efforts and this transition, with the resulting cost
overlap, is almost complete. We expect to release exciting new
products beginning in the first half of 2008, while at the same
time realizing facilities cost reductions. We are also on track
with the announced synergies from our Castelle acquisition and
expect to see those benefits in the near term. We are optimistic
about our business going forward especially as we see the benefits
in 2008 of new product releases which will continue to strengthen
our offering within our MFP, Microsoft and IP Telephony strategies
combined with the fruits of our operating leverage improvement
projects." Captaris expects to release its full financial results
for the fourth quarter and hold its regularly scheduled quarterly
conference call in February. About Captaris, Inc. Captaris, Inc. is
a leading provider of software products that automate business
processes, manage documents electronically and provide efficient
information delivery. The products of Captaris and its subsidiaries
Castelle and Captaris Document Technologies, including Captaris
RightFax, Captaris Workflow, Captaris Alchemy, the FaxPress line of
products, RecoStar, DOKuStar, DOKuStar Capture Suite, Single Click
Entry, ID-Star, BUSY, Invoice CENTER, Tax CENTER, and Mail CENTER
are distributed through a global network of leading technology
partners. We have customers in financial services, healthcare,
government and many other industries, and our products are
installed in all of the Fortune 100 and many Global 2000 companies.
Headquartered in Bellevue, Washington, Captaris was founded in 1982
and is publicly traded on the NASDAQ Global Market under the symbol
CAPA. For more information please visit http://www.captaris.com/.
The following are registered trademarks and trademarks of Captaris:
Captaris, Alchemy, RightFax and Captaris Workflow. FaxPress is a
trademark of Castelle. RecoStar, DOKuStar, DOKuStar Capture Suite,
Single Click Entry, ID-Star, BUSY, Invoice CENTER, Tax CENTER and
Mail CENTER are trademarks of Captaris Document Technologies GmbH.
All other brand names and trademarks are the property of their
respective owners. Certain statements in this press release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including, without
limitation, statements regarding expected revenue, operating
expenses other financial results for the fourth quarter, expected
releases of new products, expected benefits from the Castelle
acquisition and anticipated benefits of the changing we are making
in our development organization's structure and resource allocation
methodology. Forward-looking statements include all passages
containing verbs such as "aims," "anticipates," "estimates,"
"expects," "intends," "plans," "predicts," "projects" or "targets"
or nouns corresponding to such verbs. Forward-looking statements
also include any other passages that are primarily relevant to
expected future events or that can only be evaluated by events that
will occur in the future. Forward-looking statements are based on
the opinions and estimates of the management at the time the
statements are made and are subject to certain risks and
uncertainties that could cause actual results to differ materially
from those anticipated in the forward-looking statements. Factors
that could affect Captaris' actual results include, among others,
the impact, if any, of stock-based compensation charges, the
potential failure to maintain and expand Captaris' network of
dealers and resellers or to establish and maintain strategic
relationships, inability to integrate recent and future
acquisitions, including the recent acquisition of Captaris Document
Technologies, inability to develop new products or product
enhancements on a timely basis, inability to protect our
proprietary rights or to operate without infringing the patents and
proprietary rights of others, and quarterly and seasonal
fluctuations in operating results. More information about factors
that potentially could affect Captaris' financial results is
included in Captaris' quarterly reports on Form 10-Q filed in 2007,
and most recent annual report on Form 10-K filed with the
Securities and Exchange Commission. Readers are cautioned not to
place undue reliance upon these forward-looking statements that
speak only as to the date of this release. Except as required by
law, Captaris undertakes no obligation to update any
forward-looking or other statements in this press release, whether
as a result of new information, future events or otherwise.
DATASOURCE: Captaris, Inc. CONTACT: Erika Simms, Treasury Analyst
of Captaris, Inc., +1-425-638-4048, ; or investor relations, Todd
Kehrli or Jim Byers, both of MKR Group, Inc., +1-323-468-2300, ,
for Captaris, Inc. Web site: http://www.captaris.com/
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