Business News
Captaris Announces Preliminary Results for the Fourth Quarter 2007
Tuesday 15. January 2008 - Expects to Report Revenue 11% to 12% Higher Than Q4 2006
Captaris, Inc. (NASDAQ:CAPA), announced today that it expects to report revenue at the high end or slightly above the top end of revenue guidance for the fourth quarter ending December 31, 2007, an increase of 11% to 12% compared to revenue of $25.2 million in the fourth quarter of 2006. These estimates update earlier revenue estimates of $27 to $28.3 million for the fourth quarter announced on its conference call on November 5, 2007.
The Company expects that operating expenses will be higher than estimated, primarily due to higher one time costs associated with outsourcing certain R & D maintenance and new project activities to third parties, costs associated with the acquisition of ODT completed on January 4, 2008 and higher legal expenses. As a result the Company now expects to report operating expenses in the range of $19.9 to $20.2 million for the fourth quarter ending December 31, 2007. These estimates update earlier operating expense estimates of $18.5 to $18.8 million announced on the November 5 conference call.
“Our revenue performance is very encouraging, with strength in several areas,” said David P Anastasi, President and CEO of Captaris. “In particular, we exceeded our expectations in the international markets. From a product perspective, Right Fax software revenue was about 9% higher than the fourth quarter of 2006, our FaxPress product line from our July 2007 acquisition of Castelle showed strong sequential growth and Alchemy again had a strong quarter particularly in relation to our MFP (multi-function printing devices) channel partners. We achieved the strong increase in revenue from the prior year overcoming challenging economic conditions, particularly in the financial services sector.”
“As previously announced, we have been working to improve our development organization’s structure and resource allocation methodology. The changes we are making are designed to significantly increase our speed to market and allow for more flexibility to shift resources between development projects. We have been working with multiple companies to outsource certain engineering efforts and this transition, with the resulting cost overlap, is almost complete. We expect to release exciting new products beginning in the first half of 2008, while at the same time realizing facilities cost reductions. We are also on track with the announced synergies from our Castelle acquisition and expect to see those benefits in the near term. We are optimistic about our business going forward especially as we see the benefits in 2008 of new product releases which will continue to strengthen our offering within our MFP, Microsoft and IP Telephony strategies combined with the fruits of our operating leverage improvement projects.”
Captaris expects to release its full financial results for the fourth quarter and hold its regularly scheduled quarterly conference call in February.