-----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, WJj6gdIqyIJ5qVAgPqctp6c9x9zC0BdcDLxivF/MK3EZsQXEFhkmIM9dvmQn6IcY lTBhrVon/LOxbPQlrmst8g== 0001275287-06-005631.txt : 20061101 0001275287-06-005631.hdr.sgml : 20061101 20061101080044 ACCESSION NUMBER: 0001275287-06-005631 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20061101 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061101 DATE AS OF CHANGE: 20061101 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: 061177148 BUSINESS ADDRESS: STREET 1: 5958 PRIESTLY DRIVE CITY: CARLSBAD STATE: CA ZIP: 92008 BUSINESS PHONE: 7606021400 MAIL ADDRESS: STREET 1: 5958 PRIESTLY DRIVE CITY: CARLSBAD STATE: CA ZIP: 92008 8-K 1 ds7718.txt FORM 8-K ================================================================================ 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): November 1, 2006 DOCUMENT SCIENCES CORPORATION (Exact Name of Registrant as Specified in Charter) Delaware 000-20981 33-0485994 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File Number) Identification No.) 5958 Priestly Drive Carlsbad, California 92008 (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) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) ================================================================================ ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. On November 1, 2006, Document Sciences Corporation issued a press release to report its financial results for the year and third fiscal quarter of 2006. 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. (d) Exhibits: The following exhibit is furnished with this Current Report on Form 8-K: Exhibit Number Description of Exhibit -------------- --------------------------------------------------------- 99.1 Press release, dated November 1, 2006, reporting Document Sciences Corporation's financial results for the third fiscal quarter of 2006. 2 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: November 1, 2006 DOCUMENT SCIENCES CORPORATION By: /s/ John L. McGannon ------------------------------------- Name: John L. McGannon Its: President and Chief Executive Officer 3 EXHIBIT INDEX EXHIBIT NUMBER DESCRIPTION - -------------- --------------------------------------------------------- 99.1 Press release, dated November 1, 2006, reporting Document Sciences Corporation's financial results for the year and third fiscal quarter of 2006. 4 EX-99.1 2 ds7718ex991.txt EXHIBIT 99.1 Exhibit 99.1 DOCUMENT SCIENCES ANNOUNCES THIRD QUARTER RESULTS CARLSBAD, Calif., Nov. 1 /PRNewswire-FirstCall/ -- Document Sciences Corporation (Nasdaq: DOCX), a global leader in providing customer communications management solutions, today reported revenues of $8.4 million for the quarter ended September 30, 2006, an increase of 13% over revenues of $7.4 million for the quarter ended September 30, 2005. Net income for the quarter ended September 30, 2006, was $115,000 compared with a net loss of $69,000 for the quarter ended September 30, 2005. Net income per share for the quarter ended September 30, 2006, was $0.02 based on 5,324,126 diluted shares outstanding, compared with net loss per share of $0.02, based on 4,158,371 diluted shares outstanding for the quarter ended September 30, 2005. For the nine months ended September 30, 2006, revenues were $24.6 million, compared with revenues of $21.6 million for the same period in 2005, representing an increase of 14%. For the nine months ending September 30, 2006, the company reported a net loss of $199,000, or $0.05 per share based on 4,250,690 shares outstanding, compared with a net loss of $326,000, or $0.08 per share based on 4,128,384 shares outstanding, for the nine months ending September 30, 2005. Jack McGannon, Document Sciences' President and CEO, stated that "this quarter represented the best quarter of the year for the company in terms of license bookings. Due to our revenue recognition policy, a significant amount of these bookings were not recognized to revenue during the quarter but have contributed to the noteworthy growth in our deferred revenue. However, we were still able to achieve our ninth consecutive quarter of year-over-year quarterly revenue growth." McGannon further stated that "the Company's balance sheet strengthened during the quarter. Our cash and short-term investments balances of $6.9 million at September 30, 2006, while down by $971,000 from year end balances due to typical seasonality, were nearly $700,000 higher than the third quarter of 2005. Our accounts receivable balance continues to grow in concert with the licensing of our products and the execution of professional services contracts and is up by nearly $4.3 million since the end of last year. Deferred revenue remains significant, with a balance of approximately $16.7 million at the end of the third quarter. Increases were recorded in accounts receivable and deferred revenue resulting from our normal invoicing for the renewal of annual license and maintenance fees for customers whose contracts expire at year-end. Additionally, these two accounts grew with the signing of two license agreements totaling approximately $2.5 million, for which revenue will be recognized over the respective term of the arrangement." Also included in expenses for the three and nine months ended September 30, 2006 are $155,000 and $364,000, respectively, of stock-based compensation expenses, including $36,000 and $128,000, respectively, resulting from the adoption of Statement of Financial Accounting Standards No. 123 (revised 2004), Share-Based Payment. About Document Sciences Document Sciences is a market-leading global solutions provider for customer communications management. Our award-winning xPression software suite enables organizations to automate the creation and delivery of well-designed, highly personalized communications -- from customized marketing collaterals, contracts and policies to high-volume relationship statements and correspondence. More than 500 content-driven organizations worldwide, including over 60 FORTUNE Global 500 companies, use Document Sciences' solutions to reduce development costs by up to 90%, improve time-to-revenue by as much as 75%, and enhance the overall customer experience with highly effective 1:1 communications. Based in Carlsbad, California, with award-winning offshore services operations in Beijing, China and offices across the U.S. and in London, Document Sciences also markets its products in Europe, Australia, Canada, New Zealand, Latin America and Asia. For more information about Document Sciences Corporation, call 888.4.DOC.SCI or 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, 2005. We do not undertake, and specifically disclaim, any obligation to update forward-looking statements. DOCUMENT SCIENCES CORPORATION CONSOLIDATED BALANCE SHEETS (UNAUDITED)
September 30, December 31, 2006 2005 -------------- -------------- ASSETS Current assets: Cash and cash equivalents $ 5,260,433 $ 6,692,642 Short-term investments 1,641,414 1,179,851 Accounts receivable, net 11,810,125 7,564,929 Other current assets 1,445,102 1,666,382 Total current assets 20,157,074 17,103,804 Property and equipment, net 744,189 788,567 Software development costs, net 984,310 1,698,394 Goodwill, net 4,495,192 4,495,192 Total assets $ 26,380,765 $ 24,085,957 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 471,114 $ 160,160 Accrued compensation 1,237,907 1,719,869 Other accrued liabilities 693,403 445,659 Deferred revenue 16,697,872 14,861,856 Total current liabilities 19,100,296 17,187,544 Obligations under capital leases 11,905 27,521 STOCKHOLDERS' EQUITY Common stock, $.001 par value 4,377 4,315 Treasury stock (293,123) (344,858) Additional paid-in capital 13,803,612 13,258,962 Accumulated other comprehensive income 661 18 Retained deficit (6,246,963) (6,047,545) Total stockholders' equity 7,268,564 6,870,892 Total liabilities and stockholders' equity $ 26,380,765 $ 24,085,957
DOCUMENT SCIENCES CORPORATION CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Ended Nine Months Ended September 30, September 30, -------------------------------- ------------------------------- 2006 2005 2006 2005 -------------- -------------- -------------- -------------- Revenues: License fees $ 5,509,267 $ 5,128,929 $ 16,242,752 $ 14,708,982 Services and other 2,889,103 2,286,510 8,399,835 6,847,464 Total revenues 8,398,370 7,415,439 24,642,587 21,556,446 Cost of revenues: License fees 966,455 1,078,795 3,185,690 3,317,855 Services and other 2,471,598 2,081,653 7,462,625 5,567,692 Total cost of revenues 3,438,053 3,160,448 10,648,315 8,885,547 Gross margin 4,960,317 4,254,991 13,994,272 12,670,899 Operating expenses: Research and development 1,590,614 1,613,984 4,356,412 4,311,484 Selling and marketing 2,313,439 1,976,649 7,030,561 6,262,075 General and administrative 975,875 773,927 2,944,973 2,572,890 Total operating expenses 4,879,928 4,364,560 14,331,946 13,146,449 Income (loss) from operations 80,389 (109,569) (337,674) (475,550) Interest and other income, net 60,452 47,314 169,311 168,859 Income (loss) before income taxes 140,841 (62,255) (168,363) (306,691) Provision for income taxes 25,670 6,375 31,055 19,540 Net income (loss) $ 115,171 $ (68,630) $ (199,418) $ (326,231) Net income (loss) per share - basic $ 0.03 $ (0.02) $ (0.05) $ (0.08) Weighted average shares used in basic calculation 4,281,906 4,158,371 4,250,690 4,128,384 Net income (loss) per share - diluted $ 0.02 $ (0.02) $ (0.05) $ (0.08) Weighted average shares used in diluted calculation 5,324,126 4,158,371 4,250,690 4,128,384
SOURCE Document Sciences Corporation -0- 11/01/2006 /CONTACT: Editorial, Todd Schmidt, tschmidt@docscience.com, +1-760-602-1597, or Investors, Leslie Weller, +1-760-602-1524, lweller@docscience.com, both of Document Sciences Corporation / /Web site: http://www.docscience.com / -----END PRIVACY-ENHANCED MESSAGE-----