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Authentidate Holding Corp. Announces Fiscal 2007
Second Quarter Results
BERKELEY HEIGHTS, N.J.
February 8, 2007
Authentidate Holding Corp. (Nasdaq: ADAT), a worldwide provider of secure enterprise workflow management applications, today announced financial results for the fiscal 2007 second quarter ended December 31, 2006.
Total revenue for the three months ended December 31, 2006 was $4,144,000 versus $4,211,000 for the second quarter last year. Revenue in the Company's Security Software Solutions segment was $1,002,000 for the second quarter of fiscal 2007, compared to $1,253,000 for the prior year quarter which included approximately $310,000 related to the amortization of deferred revenue. Excluding this one-time revenue from the prior year's results, revenue in our Security Software Solutions segment increased approximately 6% for the second quarter of fiscal 2007.
Net loss for the second quarter of fiscal 2007 was $3,812,000, or $0.11 per diluted share, compared to a net loss of $3,556,000, or $0.10 per diluted share, for fiscal 2006. This increase is due primarily to litigation expenses for on-going matters of approximately $750,000, or $0.02 per diluted share, and higher product development expenses in our Security Software Solutions segment.
Total revenue for the six months ended December 31, 2006 was approximately $7,601,000 versus $8,514,000 for 2005. Revenue in the Company's Security Software Solutions segment was $1,885,000 for the first half of fiscal 2007, compared to $2,374,000 for the prior year period which included approximately $623,000 related to the amortization of deferred revenue and other one-time revenues. Excluding these one-time items from the prior year's results, Security Software Solutions revenue increased approximately 7% for the six months ended December 31, 2006.
Net loss for the six months ended December 31, 2006 was $8,107,000, or $0.24 per diluted share, compared to a net loss of $7,304,000, or $0.21 per diluted share, for the prior year period. The net loss for fiscal 2007 reflects continued investments in our Security Software Solutions business as well as incremental litigation expenses for on-going matters of approximately $1,300,000, or $0.04 per diluted share.
As of December 31, 2006, the Company's cash and marketable securities totaled $35,982,000. Total deferred revenue at the end of the second quarter was $2,205,000.
Suren Pai, Chief Executive Officer of Authentidate, stated, "Our results for the quarter and year-to-date periods reflect steady progress in our core Security Software Solutions business and we are encouraged by the response to Inscrybe Healthcare TM. We have added several customers since we launched Inscrybe in October 2006 and we are currently migrating our existing CareCert and CareFax customers to this new platform. We also signed up our first customer for our Inscrybe Plan of Care Module which expands our addressable market into the Home Health Agency space, and we recently announced a significant win by our German subsidiary in the healthcare space. As reported in the past, these positive developments will take a while to show up in our financial results but we are encouraged by our progress." He added, "Our TrueBlue beta test has thus far provided valuable feedback about the product's usability and is on track for a commercial launch in the second half of fiscal 2007."
Conference Call
Management will host a conference call at 4:30 p.m. ET on Thursday, February 8, 2007 to discuss the latest corporate developments and results. The dial-in number for callers in the U.S. is 866-406-5408 and the dial in number for international callers is 973-582-2770. The access code for all callers is 8385809. A live webcast of the call will also be available on the Company's website at http://www.authentidate.com/.
A replay of the call will be available through February 15, 2007. To access the replay, please dial 877-519-4471 in the U.S. and 973-341-3080 outside the U.S., and then enter the access code 8385809.
About Authentidate Holding Corp.
Authentidate Holding Corp. is a worldwide provider of secure enterprise workflow management applications that incorporate its proprietary and patent pending content authentication technology in the form of the United States Postal Service® Electronic Postmark® and electronic signing solutions. Authentidate also provides secure document management solutions, and enterprise network security products and services.
The company operates its software and services businesses in three segments: the Security Software Solutions segment (including Authentidate, Inc., Trac Medical Solutions, Inc. and Authentidate International AG), the Document Management Solutions segment (Docstar Division) and the Systems Integration segment (DJS). For more information, visit the company's website at http://www.authentidate.com/.
This press release contains forward-looking statements within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Act of 1934. When used in this release, the words "believe," "anticipate," "think," "intend," "plan," "will be," "expect," and similar expressions identify such forward-looking statements. Such statements regarding future events and/or the future financial performance of the Company are subject to certain risks and uncertainties, which could cause actual events or the actual future results of the Company to differ materially from any forward-looking statement. Such risks and uncertainties include, among other things, the availability of any needed financing, the Company's ability to implement its business plan for various applications of its technologies, related decisions by the USPS, the impact of competition, the management of growth, and the other risks and uncertainties that may be detailed from time to time in the Company's reports filed with the Securities and Exchange Commission. In light of the significant risks and uncertainties inherent in the forward-looking statements included herein, the inclusion of such statements should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.
Tables follow:
Authentidate Holding Corp. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
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Three Months Ended
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Three Months Ended
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Six Months Ended
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Six Months Ended
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(in thousands, except share data)
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December 31
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December 31
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December 31
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December 31
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2006
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2005
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2006
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2005
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Net sales
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|
|
|
|
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Products
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3,735
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3,916
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6,808
|
7,899
|
|
Services
|
409
|
295
|
793
|
625
|
|
Total net sales
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4,144
|
4,211
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1,601
|
8,514
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|
Cost of sales
|
|
|
|
|
|
Products
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1,682
|
1,521
|
3,098
|
3,548
|
|
Services
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210
|
147
|
405
|
291
|
|
Total cost of sales
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1,892
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1,668
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3,503
|
3,839
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Gross profit
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2,252
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2,543
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4,098
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4,675
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Selling, general and administrative expenses
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5,594
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5,778
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11,356
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11,469
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Product development expenses
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978
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879
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1,947
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1,597
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Total operating expenses
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6,572
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6,657
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13,303
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13,066
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Loss from operations
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(4,320)
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(4,114)
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(9,205)
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(8,391)
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Other income
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|
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Interest and other income
|
508
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559
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1,098
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1,090
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Interest expense
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-
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(1)
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-
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(3)
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508
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558
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1,098
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1,087
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Net loss
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(3,812)
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(3,556)
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(8,107)
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(7,304)
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Basic and diluted loss per common share
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(0.11)
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(0.10)
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(0.24)
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(0.21)
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December 31,
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June 30,
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2006
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2006
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( in thousands )
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(Unaudited)
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Assets
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Current assets
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Cash and cash equivalents
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$9,152
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9,366
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Restricted cash
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521
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521
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Marketable securities
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26,830
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36,539
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Accounts receivable, net
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3,689
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2,757
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Prepaid expenses and other current assets
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1,570
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825
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Total current assets
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41,762
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50,008
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Property and equipment, net
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3,727
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3,945
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Other assets
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Software development costs, net
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2,451
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1,926
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Goodwill
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7,341
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7,341
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Other assets
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1,464
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1,314
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Total assets
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$56,745
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64,534
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Liabilities and Shareholders' Equity
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|
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Current liabilities
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|
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Accounts payable and accrued expenses
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$5,187
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5,925
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Deferred revenue
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1,976
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1,988
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Other current liabilities
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230
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57
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Total current liabilities
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7,393
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7,970
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Long-term deferred revenue
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229
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229
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Total liabilities
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7,622
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8,199
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Commitments and contingencies
|
|
|
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Shareholders' equity
|
|
|
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Preferred stock $.10 par value; 5,000 shares authorized
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|
|
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Series B, 28 shares issued and outstanding
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3
|
3
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Common stock, $.001 par value; 75,000 shares authorized,
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34,413 issued and outstanding
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34
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34
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Additional paid-in capital
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163,311
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162,386
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Accumulated deficit
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(114,134)
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(105,992)
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Accumulated comprehensive loss
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(91)
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96
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Total shareholders' equity
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49,123
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56,335
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Total liabilities and shareholders' equity
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56,745
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64,534
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Authentidate Holding Corp. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
SOURCE Authentidate Holding Corp.
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Investor News 02-08-07 
