Authentidate Holding Corp.
Authentidate Holding Corp. Reports Fiscal 2009 First Quarter Results
Thursday 13 November 2008
BERKELEY HEIGHTS, N.J., Nov. 13 /PRNewswire-FirstCall/ -- Authentidate Holding Corp. (NASDAQ: ADAT), a worldwide provider of secure workflow management software and web-based services, today announced financial results for the fiscal 2009 first quarter ended September 30, 2008.
Ben Benjamin, President of Authentidate, stated, "Through the first quarter of fiscal 2009 we continued to implement our new strategy announced in January 2008, by increasing revenues, cutting and managing operating costs and expanding into new markets. Even as macro-economic pressures face the country, we are confident in our ability to increase the use of our Inscrybe solutions as they offer customers, among other things, the ability to reduce costs and improve efficiency."
Total revenue for the three months ended September 30, 2008 increased 61% to approximately $1,690,000 compared to $1,048,000 for the same period last year. These results reflect an increase of approximately 41% in U.S. revenues and growth from our German operations of approximately 80%. Compared to the fourth quarter of fiscal 2008, revenues increased approximately 1% reflecting an increase of approximately 9.5% in U.S. revenues which was partially offset by a decrease of approximately 4.5% in German revenues due primarily to exchange rate changes.
Net loss for the first quarter of fiscal 2009 decreased to $2,446,000, or $0.07 per share, compared to $4,583,000, or $0.13 per share, for the same period last year. The net loss for the prior year period includes approximately $1,115,000 for incremental legal, professional service and accrued severance expenses.
As of September 30, 2008, the Company's cash and cash equivalents, and marketable securities totaled $12,761,000 and deferred revenue totaled $1,340,000.
Mr. Benjamin continued, "Increased transaction volumes and new customers for both our U.S. and German operations resulted in revenue growth of 61%. This growth, coupled with our cost management activities significantly reduced our operating loss for the quarter. We recently announced three new customers in the U.S., Virtuox, Community Home Care Services and WILLCARE, and added other new customer projects during the period. We expect new and existing customers to contribute to our revenue growth as they ramp up their use of our current services and sign on for expanded services."
"Our solutions offer the necessary tools to help customers reduce the cost of healthcare administration by automating complex workflows and allowing fast, flexible and compliant communications between third parties that are a key component of such workflows. As such, we believe demand for our services will increase as awareness grows and healthcare providers face increased pressure to reduce their costs while not sacrificing quality of care," concluded Mr. Benjamin.
Conference Call
Management will host a conference call today at 4:30 p.m. ET, to discuss the latest corporate developments and results. The dial-in number for callers in the U.S. is (888) 562-3356 and the dial in number for international callers is (973) 582-2700. The access code for all callers is 69280399. To access the live webcast, visit http://www.authentidate.com/, click the "About Us" link, followed by "Investor Relations" on the drop-down menu and then the "Audio Archives" link. Following the conclusion of the call, the webcast will also be archived on the Company's website.
A replay of the call will be available through November 20, 2008. To access the replay, please dial (800) 642-1687 in the U.S. and (706) 645-9291 internationally, and then enter the access code 69280399. A live web cast will be available on the Company's website.
Information About the Proposed Merger with Parascript
On August 6, 2008, Authentidate announced a definitive merger agreement with Parascript, LLC, an image analysis and pattern recognition software provider. In connection with the proposed transaction, our subsidiary, AHC Group, filed with the Securities and Exchange Commission (the "SEC"), a Registration Statement on Form S-4, containing a preliminary joint proxy statement of Authentidate and Parascript, and a preliminary prospectus of Authentidate covering the common stock of the new Authentidate to be issued upon closing of the transaction. Authentidate and Parascript will mail the definitive Joint Proxy Statement/Prospectus to their respective security holders, which will contain important information about the transaction. Authentidate and Parascript urge investors and security holders to read the definitive Joint Proxy Statement/Prospectus when it is available. Investors and security holders will be able to obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus and other documents filed with the SEC by and through the web site maintained by the SEC at http://www.sec.gov/. In addition, investors and security holders will be able to obtain free copies of the Registration Statement and the Joint Proxy Statement/Prospectus from Authentidate from Authentidate's website (http://www.authentidate.com/) under the tab "About Us - Investor Relations and then under the item "SEC Filings."
The merger is still subject to customary closing conditions, including shareholder approval. However, in light of the uncertainty in the credit markets and changes in Parascript's business, the board of directors of the company is considering a proposal to change the structure of the proposed merger. However, there can be no assurance that the parties will agree on an amendment to the merger agreement.
Proxy Solicitation
Authentidate, Parascript and their respective directors and executive officers and certain other persons may be deemed to be participants in the solicitation of proxies in respect of the merger. Information regarding the persons, who may, under the rules of the SEC, be considered participants in the solicitation of proxies in connection with the proposed merger will be set forth in the definitive joint proxy statement/prospectus when it is filed with the SEC. You can also find information about Authentidate's executive officers and directors in its 2008 Annual Report on Form 10-K, which was filed with the SEC on September 26, 2008. You can obtain free copies of these documents from the SEC at the SEC's web site at http://www.sec.gov/ and from Authentidate using the contact information above.
About Authentidate Holding Corp.
Authentidate Holding Corp. is a worldwide provider of secure workflow management software and web-based services. The company's automated and trusted workflow solutions enable enterprises and office professionals to employ rules-based electronic forms, intelligent routing and transaction management, electronic signing, content authentication, identity credentialing and verification and web and fax based communication capabilities. Customer benefits from the company's offerings include increased revenues, reduced costs, improved productivity and service levels, automated audit trails, enhanced compliance with regulatory requirements and the reduction of paper-based processes. The company has offices in the United States and Germany. In the United States we offer our patent pending content authentication technology in the form of the United States Postal Service® Electronic Postmark® (EPM).
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.
Authentidate is a registered trademark of Authentidate Holding Corp. and Inscrybe is a trademark of Authentidate Holding Corp. All other trade names are the property of their respective owners.
This press release is available on the KCSA Strategic Communications Web site at http://www.kcsa.com/.
Tables follow:
Authentidate Holding Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30,
2008 June 30,
(in thousands, except per share data) (Unaudited) 2008
Assets
Current assets
Cash and cash equivalents $2,836 $4,493
Restricted cash 512 512
Marketable securities 8,925 6,375
Accounts receivable, net 874 1,287
Prepaid expenses and other current assets 1,328 671
Total current assets 14,475 13,338
Marketable securities 1,000 3,950
Property and equipment, net 893 1,014
Note receivable, net of deferred gain of $2,000 - -
Other assets
Software development costs, net 2,530 2,533
Goodwill 7,341 7,341
Other assets 1,339 1,375
Assets held for sale 2,000 2,000
Total assets $29,578 $31,551
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable and accrued expenses $1,776 $1,850
Deferred revenue 1,200 1,273
Other current liabilities 60 97
Total current liabilities 3,036 3,220
Long-term deferred revenue 140 140
Total liabilities 3,176 3,360
Commitments and contingencies
Shareholders' equity
Preferred stock $.10 par value; 5,000
shares authorized Series B, 28 shares
issued and outstanding 3 3
Common stock, $.001 par value; 75,000
shares authorized, 34,615 and 34,537
issued and outstanding on September
30, 2008 and June 30, 2008, respectively 35 35
Additional paid-in capital 165,983 165,681
Accumulated deficit (139,470) (137,006)
Accumulated other comprehensive loss (149) (522)
Total shareholders' equity 26,402 28,191
Total liabilities and shareholders'
equity $29,578 $31,551
Authentidate Holding Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
Three Months Ended
September 30,
(in thousands, except per share data) 2008 2007
Revenues
Software licenses and support $983 $547
Hosted software services 707 501
Total revenues 1,690 1,048
Operating expenses
Cost of revenues 735 454
Selling, general and administrative 2,827 4,557
Product development 423 772
Depreciation and amortization 353 379
Total operating expenses 4,338 6,162
Operating loss (2,648) (5,114)
Other income, net 202 531
Net loss $(2,446) $(4,583)
Basic and diluted loss per share $(0.07) $(0.13)
Investor Contacts: Media Contacts:
Todd Fromer / Garth Russell Erika Kay
KCSA Strategic Communications KCSA Strategic Communications
212-896-1215 / 212-896-1250 212-896-1208
tfromer@kcsa.com / grussell@kcsa.com ekay@kcsa.com
SOURCE: Authentidate Holding Corp.
CONTACT: Investors, Todd Fromer, +1-212-896-1215, tfromer@kcsa.com, or
Garth Russell, +1-212-896-1250, grussell@kcsa.com, or Media, Erika Kay,
+1-212-896-1208, ekay@kcsa.com, all of KCSA Strategic Communications for
Authentidate Holding Corp.
Web site: http://www.authentidate.com/