EX-99.1 3 prq303.txt PRESS RELEASE ISSUED OCTOBER 15, 2003 Exhibit 99.1 News Release Contacts: Jim Fanucchi Betty Wiggins Summit IR Group Optika Inc. (408) 404-5400 (719) 260-4388 OPTIKA INC. ACHIEVES PROFITABILITY, REVENUE GROWTH AND POSITIVE CASH FLOW IN Q3 2003 Integrated ERP Strategy Drives 30% License Revenue Increase; Expects Continued Growth, Profitability in Q4 2003 Colorado Springs, Colo.--Oct. 15, 2003--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 third quarter of fiscal year 2003, ended Sept. 30, 2003. Revenue for the third quarter of fiscal 2003 was $5.4 million, up 15 percent from the $4.7 million reported in the second quarter of fiscal 2003, and up 15 percent from the $4.7 million reported in the third quarter of fiscal 2002. Net income for the third quarter was $183,000, or basic net income of $0.02 per share. This compares with a net loss of $288,000, or a net loss of $0.03 per share in the second quarter of 2003, and net income of $45,000, or basic net income of $0.01 per share in the same period a year ago. The company generated approximately $500,000 of cash in the quarter. "This strong third quarter performance is validation of our strategy to deliver world-class solutions to our customers that provide efficiency and control," said Mark K. Ruport, president, CEO and chairman of Optika. "We achieved significant customer wins in the ERP integration and records management marketplaces and made great strides in our strategic partnerships with outstanding companies such as PeopleSoft, EMC, and Nth Orbit." In the third quarter, a number of major companies purchased Optika's Acorde(TM), including American Golf Corporation, Stock Building Supply, Nintendo of America, General Parts, Inc., Beringer Blass Wine Estates, and MWH Americas, Inc. Several current customers also expanded their existing Acorde systems, including Amalgamated Sugar Company LLC, Crown Media Holdings, McKesson Medical, SBC Communications, Milwaukee Electric Tool, and Priority Healthcare Corp. The company also announced today that it has signed a worldwide reseller agreement with Group 1 Software, a Lanham, Md.-based provider of personalized document composition and delivery software solutions. Under the terms of the agreement, Group 1 will resell Optika products into its international base of more than 3,000 customers and will also represent Optika in new global customer opportunities. Optika's continued focus on the ERP marketplace was evidenced in the third quarter by its acceptance into the PeopleSoft, Inc. Partner Connection Program, and subsequent certification of Acorde for PeopleSoft Financial Management Solutions. Optika also announced partnerships with three major J.D. Edwards implementation partners and the general availability of a new version of Acorde Payables(TM) for Oracle 11i Financials. "We are very excited by the progress we've made since the acquisition of Select Technologies," said Mr. Ruport. "We signed records management contracts with a number of leading companies in the third quarter and have made great strides in product development. The DoD 5015.2 certification process of Acorde Records Management is well underway and our partnerships with EMC and Nth Orbit expand the depth of our compliance offerings and marketplace coverage." OUTLOOK AND GUIDANCE "Looking ahead, we expect to continue to increase our revenue and profit in the fourth quarter, as we generate approximately an additional $400,000 in cash from operations," said Mr. Ruport. "These expected results meet our original January, 2003 revenue guidance range of ten to fifteen percent revenue growth over 2002 and positive cash flow from operations for 2003." Specifically, in the fourth quarter of fiscal 2003, ending Dec. 31, 2003, the company currently expects: o Revenue to be between $5.4 million and $5.8 million. o Earnings per share to be in the range $0.02 to $0.06 per share. o Ending cash and short-term investment balances will increase to approximately $8.3 million. CONFERENCE CALL Optika management will hold a conference call to discuss these results tomorrow, Oct. 16, 2003 at 7:00 a.m. Mountain Time. Those wishing to join should dial (773) 756-4629 at approximately 6:45 a.m. Mountain Time. A live webcast of the conference call will also be available in the investor relations page of the company's website at www.optika.com. A replay of the call will be available until Oct. 24, 2003. To access the recording, please dial (402) 280-1626. ABOUT OPTIKA Headquartered in Colorado Springs, Colo., Optika Inc. (NASDAQ:OPTK) is a leading provider of imaging, workflow, collaboration and records management software. Optika's Acorde 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 2000 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. Except for historical information contained herein, the matters discussed in this news release may contain "forward-looking statements" that involve risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to, adoption of the Acorde product family by Optika's customers, general economic conditions in the software industry, Optika's relationships with its partners, availability of competing products, and other risks detailed from time to time in the company's periodic filings with the Securities and Exchange Commission, including Optika's annual report on Form 10-K for the year ended December 31, 2002 and its quarterly reports on Form 10-Q. Optika undertakes no obligation to update or revise any forward-looking statements. (Condensed consolidated statements of operations and balance sheets follow) OPTIKA INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except per share amounts) Quarter Ended Nine Months Ended Sept 30, Sept 30, Sept 30, Sept 30, 2003 2002 2003 2002 -------- -------- -------- -------- Revenues: Licenses $ 1,989 $ 1,635 $ 4,750 $ 3,948 Maintenance and other 3,362 3,015 9,600 9,051 -------- -------- -------- -------- Total revenues 5,351 4,650 14,350 12,999 Cost of revenues: Licenses 195 214 547 432 Maintenance and other 909 911 2,724 2,730 -------- -------- -------- -------- Total cost of revenues 1,104 1,125 3,271 3,162 -------- -------- -------- -------- Gross profit 4,247 3,525 11,079 9,837 Operating expenses: Sales and marketing 2,298 1,865 6,860 5,514 Research and development 1,211 1,262 3,563 3,836 General and administrative 555 384 1,369 1,150 -------- -------- -------- -------- Total operating expenses 4,064 3,511 11,792 10,500 -------- -------- -------- -------- Income (loss) from operations 183 14 (713) (663) Other income - 31 50 108 -------- -------- -------- -------- Income (loss) before income taxes 183 45 (663) (555) Income taxes - - - (3) -------- -------- -------- -------- Net income (loss) $ 183 $ 45 $ (663) $ (552) ======== ======== ======== ======== Basic net income (loss) per common share $ 0.02 $ 0.01 $ (0.08) $ (0.07) Basic Weighted average number of common shares outstanding 8,917 8,314 8,601 8,280 Diluted net income (loss) per common share $ 0.02 $ 0.00 $ (0.08) $ (0.07) Diluted weighted average number of common shares outstanding 10,845 9,263 8,601 8,280 CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands) Sept 30, Dec 31, Assets 2003 2002 ------------ ------------ Current assets: Cash and cash equivalents $ 2,703 $ 2,458 Restricted cash and cash equivalents 100 - Short-term investments 5,153 5,950 Accounts receivable, net 3,931 3,796 Other current assets 602 557 ------------ ------------ Total current assets 12,489 12,761 Property and equipment, net 713 895 Intangible assets, net 610 - Goodwill 1,166 - Other assets 175 233 ------------ ------------ $ 15,153 $ 13,889 ============ ============ Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued expenses $ 2,081 $ 1,755 Deferred revenues 5,868 5,146 ------------ ------------ Total current liabilities 7,949 6,901 Total stockholders' equity 7,204 6,988 ------------ ------------ $ 15,153 $ 13,889 ============ ============