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Authentidate Holding Corp. First Quarter Results Show Improvement
SCHENECTADY, N.Y.
Nov. 12, 2002
Authentidate Holding Corp. today announced its results for the first fiscal quarter ended September 30, 2002.
The Company had a net loss of $2.0 million ($0.10 per share) for the quarter ended September 30, 2002 compared to a net loss of $2.6 million ($0.19 per share) for the same quarter last year. Consolidated sales totaled $5.5 million for the quarter ended September 30, 2002 compared to $3.3 million for the same quarter a year ago. The reduction in the loss is attributable to the DocSTAR Division whose segment profit improved by $218,216 as a result of an increase in sales of $54,775 and improvement in gross profit margins.
Also contributing to the reduced loss was improvement in the Authentidate Group (which includes Authentidate, Inc., Authentidate International, AG and Trac Medical Solutions, Inc.) whose segment loss declined from $1,479,720 to $1,380,897. The decline was due to a reduction in expenditures and an increase in sales from $25,000 to $200,257.
The sales increase is due to the aforementioned sales increases in DocSTAR and Authentidate but the primary increase in sales was due to DJS Marketing Group which realized a larger percentage of direct sales compared to indirect sales this year compared to last year. DJS sales increased by $2.0 million for the quarter ended September 30, 2002 over last year. On a direct sale DJS sells computer hardware directly to its customer but on an indirect sale DJS passes the sale on to the manufacturer or distributor and receives a fee. The gross profit dollars are about the same in a direct sale as an indirect sale however the sales dollars are much higher in a direct sale scenario. The segment profit for DJS this year compared to last year was about the same.
The Company's cash flow from operating activities was a negative $222,812 for the quarter ended September 30, 2002 compared to a negative $2,379,222 for the same quarter last year. The improvement is due to the reduced loss this year compared to last year and also due to strong collections of receivables and timing of payments on accounts payable during the first quarter ended September 30, 2002.
John Boffi, CEO, stated, "We are pleased to note that our legacy operations continue to operate profitably. Both DocSTAR and DJS have strengthened their respective organizations and are well positioned for continued growth. Our Authentidate initiatives are gaining traction as the marketplace shows growing acceptance of the fundamental benefits of authentication services. We are particularly delighted to see the first revenues from Authentidate's relatively recent marketing and sales efforts. Considering the manifold opportunities that Authentidate is developing, including Authentidate International AG's German and European agreements and strategic relationships, Trac Medical's billing solution for Durable Medical Equipment suppliers and, of course, the US Postal Service agreement with Authentidate and its strategic partners, IBM, Microsoft and Unisys, as well as a multitude of others, we are cautiously optimistic that Authentidate is poised for significant improvement in both revenues and profits."
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Quarter Ended September 30,
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2002
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2001
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Sales
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$5,464,576
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$3,263,503
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Gross profit
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1,299,933
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972,142
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Operating loss
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(2,197,490)
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(2,391,851)
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Net loss
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(1,994,866)
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(2,608,970)
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Net loss per share:
basic and diluted
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($.10)
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($.19)
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About Authentidate Holding Corp.
Authentidate Holding Corp. (AHC) is the holding company of five business units: DocSTAR, Authentidate International AG, Authentidate, Inc., DJS Marketing Group/Computer Professionals International and Trac Medical Solutions, Inc. Authentidate and Authentidate AG provide the authentication of digital data through its proprietary and patent pending technology. Authentidate is establishing itself as the authority on "content security," a growing sector of the electronic network security infrastructure market Trac Medical uses the Authentidate service to improve speed, accuracy and security in processing medical forms. These three business units comprise the Authentidate Segment for financial reporting purposes. DocSTAR sells a complete line of document imaging products and DJS delivers professional services centered on systems integration projects, staff augmentation, out-tasking and outsourcing services, and resells computer related products.
This press release contains forward-Iooking 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," 'lan,""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, 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.
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