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Authentidate Holding Corp. Announces First Quarter Results
Security Software Solutions Segment Revenue Climbs 89%
SCHENECTADY, N.Y.
Nov 09, 2005
Authentidate Holding Corp. (Nasdaq: ADAT) today announced financial results for the first quarter ended September 30, 2005.
Total revenue in the fiscal 2006 first quarter rose 17.5% to $4,304,000 from $3,662,000 in the first quarter last year. Results reflect sales growth of 89% in the company's Security Software Solutions Segment to $1,121,000 from $593,000 in the same period a year ago.
The company's Document Solutions Segment reported sales of $1,495,000 in the first quarter compared to $1,406,000 last year, an increase of 6.3%. First quarter sales in the Systems Integration Segment totaled $1,688,000 versus $1,663,000 in the year-earlier period.
Gross profit in the first quarter rose 25% to $2,132,000 from $1,703,000 in the corresponding period last year. The company's net loss was $3,749,000, or $0.11 per diluted share, in the fiscal 2006 first quarter versus a net loss of $2,906,000, or $0.09 per diluted share, in the same period a year ago. Net loss for the fiscal 2006 first quarter includes the effect of a new accounting requirement for the expensing of stock options totaling $653,000.
Suren Pai, Chief Executive Officer of Authentidate, said, "Our strategic shift last year to a solutions-based approach to commercialize our advanced content authentication technology led to increased sales of 89% in our Security Software Solutions Segment during the first quarter of fiscal 2006. In this business segment, our focus remains on targeting key vertical markets that are heavily regulated, such as healthcare, and growing the installed user base for our applications."
As of September 30, 2005, the company's cash and marketable securities was $57,926,000. Deferred revenue at the end of the fiscal 2006 first quarter totaled $2,349,000.
Pai concluded, "We have successfully redeployed our resources to align our operations with the new direction of the company. In the first quarter, we continued to gain positive traction in our authentication services and are excited by the recent launch of our latest application, CareFax(TM), a web- based, fax automation and workflow solution that addresses compliance needs associated with document processing. As we continue to build our capabilities and execute our business plan, we expect to introduce additional market-driven products and services during the current fiscal year."
About Authentidate Holding Corp.
Authentidate Holding Corp. (AHC) is the holding company which operates its software and services businesses in three segments: the Security Software Solutions Segment (fka Authentidate Segment, including Authentidate, Inc., Trac Medical Solutions, Inc. and Authentidate International AG), the Document Management Solutions Segment (fka Docstar Division) and the Systems Integration Segment (fka DJS).
The Company is a worldwide provider of secure enterprise workflow management solutions that incorporate its proprietary and patent pending content authentication technology. Authentidate's offerings include the United States Postal Service Electronic Postmark Service (USPS EPM(R)), electronic signing solutions, and electronic forms processing solutions. Authentidate also provides secure document management solutions, and enterprise network security products and services.
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:
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Authentidate Holding Corp. and Subsidiaries
Consolidated Statement of Operations
Unaudited
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For the 3
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months ended
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September 30,
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September 30,
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2005
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2004
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----------------
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Net sales
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Products
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$3,973,114
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$3,343,461
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Services
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330,422
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318,937
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----------------
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Total net sales
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4,303,536
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3,662,398
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Cost of sales
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Products
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2,027,281
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1,828,479
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Services
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144,169
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131,306
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----------------
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Total cost of sales
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2,171,450
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1,959,785
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Gross profit
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2,132,086
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1,702,613
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Selling, general and administrative expenses
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5,038,057
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4,209,357
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Product development expenses
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718,436
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701,274
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Stock option expense
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653,000
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-
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Total operating expenses
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6,409,493
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4,910,631
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Loss from operations
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(4,277,407)
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(3,208,018)
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Other income (expense)
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Interest and other income
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530,707
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308,678
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Interest expense
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(2,287)
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(4,198)
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528,420
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304,480
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Loss before income taxes
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(3,748,987)
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(2,903,538)
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Income tax (expense) benefit
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-
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(2,551)
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Net loss
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$(3,748,987)
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$(2,906,089)
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Per share amounts
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Basic and diluted loss per common share
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$ (0.11)
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$ (0.09)
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Authentidate Holding Corporation and Subsidiaries
Consolidated Balance Sheets
(unaudited except for the June 30, 2005 balance sheet)
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September 30,
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June 30,
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2005
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2005
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Assets
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Current assets
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Cash and cash equivalents
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$ 7,669,826
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$ 6,429,210
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Restricted cash
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656,581
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141,947
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Marketable securities
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49,600,000
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56,075,000
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Accounts receivable, net of allowance for doubtful
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accounts of
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$472,222 and $406,877 at September 30, 2005 and
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2,799,130
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3,230,822
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June 30, 2005, respectively
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Due from related parties
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1,609
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682
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Inventories
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375,497
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303,678
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Prepaid expenses and other current assets
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1,442,689
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478,159
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Total current assets
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62,545,332
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66,659,498
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Property and equipment, net
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3,846,917
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3,878,750
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Other assets
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Software development costs, net of accumulated
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amortization of
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$2,001,752 and $1,758,200 at September 30, 2005
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911,021
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411,775
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and June 30, 2005
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Goodwill
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7,340,736
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7,340,736
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Other intangible assets, net
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633,743
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663,397
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Investment in affiliate
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750,000
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750,000
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Other assets
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4,449
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4,449
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Total assets
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$ 76,032,198
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$ 79,708,605
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Liabilities and Shareholders' Equity
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Current liabilities
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Accounts payable
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$ 978,029
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$ 1,336,840
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Accrued expenses and other current liabilities
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2,837,691
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2,739,553
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Deferred revenue
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1,935,097
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2,059,427
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Current portion of obligations under capital leases
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20,466
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23,903
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Current portion of long-term debt
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18,000
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48,000
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Line of credit
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488,730
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429,756
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Income taxes payable
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23,168
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15,743
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Total current liabilities
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6,301,181
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6,653,222
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Long-term deferred revenue
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414,375
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446,250
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Other long-term accrued liabilities
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65,465
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243,520
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Obligations under capital leases, net of current
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759
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3,909
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portion
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----------------
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Total liabilities
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6,781,780
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7,346,901
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Commitments and contingencies
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|
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Shareholders' equity
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|
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Preferred stock $.10 par value, 5,000,000 shares
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authorized
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Series B - 28,000 shares issued and outstanding at
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September 30, 2005
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and June 30, 2005
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2,800
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2,800
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Common stock, $.001 par value;
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75,000,000 shares authorized, 34,399,161 issued and
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outstanding
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at September 30, 2005 and June 30, 2005
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34,399
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34,399
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Additional paid-in capital
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161,139,902
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160,488,500
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Accumulated deficit
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(91,867,062)
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(88,100,574)
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Accumulated comprehensive loss
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(59,621)
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(63,421)
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Total shareholders' equity
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69,250,418
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72,361,704
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Total liabilities and shareholders' equity
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$ 76,032,198
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$79,708,605
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End of Filing
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Press Release 11-09-05 
