-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, VZUWGw/2YDrT74okxtsBnCRCELZ8SdcYByWIIu2i0i33/2CJEnQWUihckv449cUQ FtcKqmBw588k9dHydGW1Qg== 0001275287-05-001567.txt : 20050428 0001275287-05-001567.hdr.sgml : 20050428 20050428131950 ACCESSION NUMBER: 0001275287-05-001567 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050428 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050428 DATE AS OF CHANGE: 20050428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DOCUMENT SCIENCES CORP CENTRAL INDEX KEY: 0001016831 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 330485994 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-20981 FILM NUMBER: 05779560 BUSINESS ADDRESS: STREET 1: 6339 PASEO DEL LAGO CITY: CARLSBAD STATE: CA ZIP: 92009 BUSINESS PHONE: 7606021400 MAIL ADDRESS: STREET 1: 6339 PASEO DEL LAGO CITY: CARLSBAD STATE: CA ZIP: 92009 8-K 1 ds2563.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of report (Date of earliest event reported): April 28, 2005 DOCUMENT SCIENCES CORPORATION (Exact Name of Registrant as Specified in Charter) Delaware 0-20981 33-0485994 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 6339 Paseo del Lago Carlsbad, California 92009 (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (760) 602-1400 Not Applicable (Former Name or Former Address, if Changed Since Last Report) ================================================================================ ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On April 28, 2005 Document Sciences Corporation issued a press release to report its financial results for the first fiscal quarter of 2005. A copy of the press release is attached to this Current Report on Form 8-K as Exhibit 99.1. The information in this Current Report, including the exhibit attached hereto, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of such section. ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS. (c) Exhibits: The following exhibit is furnished with this Current Report on Form 8-K: Exhibit Number Description of Exhibit -------------- ---------------------------------------------------- 99.1 Press release, dated April 28, 2005, reporting Document Sciences Corporation's financial results for the first fiscal quarter of 2005. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: April 28, 2005 DOCUMENT SCIENCES CORPORATION By: /s/ John L. McGannon -------------------------------------- Name: John L. McGannon Its: President, Chief Executive Officer and Chief Financial Officer EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION - -------------- -------------------------------------------------------------- 99.1 Press release, dated April 28, 2005, reporting Document Sciences Corporation's financial results for the first fiscal quarter of 2005. EX-99.1 2 ds2563ex991.txt Exhibit 99.1 DOCUMENT SCIENCES ANNOUNCES FIRST QUARTER FINANCIAL RESULTS REVENUE UP BY 32% OVER FIRST QUARTER OF 2004 CARLSBAD, Calif., April 28 /PRNewswire-FirstCall/ -- Document Sciences Corporation (Nasdaq: DOCX) today reported net income for the quarter ended March 31, 2005, of $114,982 compared with net income of $112,112 for the quarter ended March 31, 2004. Net income per share for the quarter ended March 31, 2005, was $0.02 based on 5,136,575 diluted shares outstanding, compared with net income per share of $0.03, based on 4,401,047 diluted shares outstanding for the same quarter in 2004. Revenues for the quarter ended March 31, 2005, were $6.9 million, an increase of 32% from the revenues of $5.3 million for the quarter ended March 31, 2004. Jack McGannon, Document Sciences' President and CEO, stated that "the financial results for the first quarter evidence that we are on track with our goals of revenue growth, cash generation and profitability. Significantly, we grew our cash balance by $0.9 million during the quarter, from $6.7 million at December 31, 2004 to $7.6 million at March 31, 2005. Cash generation significantly exceeded net income, largely because of substantial non-cash expenses reported during the quarter. Total depreciation and amortization expense for the quarter was $530,000, mainly software amortization. We capitalized no software development costs during the first quarter." McGannon added "growth was especially pronounced in Professional Services, where revenues grew by $1.3 million over the same quarter last year. A majority of this growth was from the delivery of implementation services to clients who have licensed our xPression software. Revenues from Initial License Fees were up slightly over the first quarter of last year, and xPression now makes up a majority of our license revenue. Annual License Fee revenue, up by 11%, continued its steady growth pattern." McGannon further stated that "expenses were up significantly over the same quarter last year, particularly in the area of Professional Services, where we have added substantial headcount to support our increased project load. Reported Research & Development expenses were up by over $0.4 million versus the first quarter of last year due to the fact that we did not capitalize any software development costs during the first quarter of 2005, while we capitalized over $0.6 million in the first quarter of 2004. Additionally, Cost of Initial License Fees was up by over $0.3 million due to increased non-cash amortization expense following the release of xPression 2.0 in the fourth quarter of 2004." About Document Sciences Document Sciences Corporation delivers real-time, interactive content processing services that content-driven organizations depend on to realize productivity benefits, cut costs, and increase competitiveness. Over 600 customers and partners worldwide use Document Sciences products in insurance, banking and financial services, managed-care, telecommunications, utilities and commercial print service bureaus. Customers include more than 60 Fortune 500 companies. Based in Carlsbad, California, with regional locations across the U.S. and London, Document Sciences also markets its products in Australia, Canada, New Zealand, Brazil, Mexico and China. For more information about Document Sciences Corporation visit www.docscience.com. This press release may contain "forward-looking" statements about possible or assumed future results of our financial condition, operations, plans, objectives and performance. You can identify these statements by the fact they use words such as "believe," "expect," "anticipate," "estimate," "project," "intend," "plan" or similar expressions. Many possible events or factors could affect our future financial results and performance. This could cause our results or performance to differ materially from those expressed in these forward-looking statements. Some of these events or factors include the following: (i) national, international, regional and local economic, competitive and regulatory conditions and developments; (ii) the market for document automation software (including the emerging content processing market); (iii) market acceptance of enhancements to our existing products and introduction of new products; (iv) continued profitability of our professional services; (v) maintaining our relationships with Xerox Corporation and our other distribution partners and/or other risks detailed from time-to-time in our SEC reports, including the report on Form 10-K for the fiscal year ended December 31, 2004. We do not undertake, and specifically disclaim, any obligation to update forward-looking statements. DOCUMENT SCIENCES CORPORATION CONSOLIDATED BALANCE SHEETS March 31, December 31, 2005 2004 --------------- --------------- (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 6,480,345 $ 5,193,440 Short-term investments 1,183,008 1,530,523 Accounts receivable, net 6,171,249 7,601,485 Other current assets 952,842 876,201 Total current assets 14,787,444 15,201,649 Property and equipment, net 579,954 511,318 Software development costs, net 2,787,183 3,247,194 Goodwill, net 4,495,192 4,495,192 Other assets 54,468 57,536 Total assets $ 22,704,241 $ 23,512,889 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 4,669 $ 137,886 Accrued compensation 1,321,847 1,456,261 Other accrued liabilities 499,838 649,525 Deferred revenue 11,521,909 12,092,782 Total current liabilities 13,348,263 14,336,454 Obligations under capital leases 43,137 48,342 STOCKHOLDERS' EQUITY Common stock, $.001 par value 4,234 4,205 Treasury stock (440,930) (440,930) Additional paid-in capital 13,013,183 12,943,243 Accumulated comprehensive loss (68,479) (68,276) Retained deficit (3,195,167) (3,310,149) Total stockholders' equity 9,312,841 9,128,093 Total liabilities and stockholders' equity $ 22,704,241 $ 23,512,889 DOCUMENT SCIENCES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Ended March 31, ---------------------------------- 2005 2004 --------------- --------------- Revenues: Initial license fees $ 1,699,429 $ 1,607,701 Annual renewal license and support fees 3,104,420 2,808,848 Services and other 2,125,338 843,869 Total revenues 6,929,187 5,260,418 Cost of revenues: Initial license fees 584,773 261,894 Annual renewal license and support fees 534,693 513,634 Services and other 1,566,024 689,669 Total cost of revenues 2,685,490 1,465,197 Gross margin 4,243,697 3,795,221 Operating expenses: Research and development 1,359,866 928,001 Selling and marketing 1,923,762 1,898,367 General and administrative 861,221 867,079 Total operating expenses 4,144,849 3,693,447 Income from operations 98,848 101,774 Interest and other income, net 29,299 22,579 Income before income taxes 128,147 124,353 Provision for income taxes 13,165 12,241 Net income $ 114,982 $ 112,112 Net income per share -- basic $ 0.03 $ 0.03 Weighted average shares used in basic calculation 4,107,029 3,222,290 Net income per share -- diluted $ 0.02 $ 0.03 Weighted average shares used in diluted calculation 5,136,575 4,401,047 SOURCE Document Sciences Corporation -0- 04/28/2005 /CONTACT: Editorial, Jack McGannon, +1-760-602-1597, jmcgannon@docscience.com, or Investors, Scott Samuels, +1-760-602-1528, ssamuels@docscience.com, both of Document Sciences Corporation/ /Web site: http://www.docscience.com -----END PRIVACY-ENHANCED MESSAGE-----