Prepress
Captaris Document Technologies to Implement Capture Technology Under German Government Contract
Thursday 24. January 2008 - Approximate $12.2 million (8.3 Million Euro) Revenue Opportunity Underscores Value of Recently Acquired Capture Technology
Captaris, Inc. (NASDAQ:CAPA), announced today that Captaris Document Technologies (formerly Oce Document Technologies) has completed important steps under a contract for the supply and maintenance of document capture technology to the German government. Captaris Document Technologies (CDT) has completed the installation of pilot systems in several German states.
Under the contract, CDT is working with Fujitsu Siemens Computers GmbH to deploy CDT’s software and hardware for a key department of the German government. Thus far, CDT has secured orders in several of the sixteen German states. Software and hardware installation under existing orders is expected to commence in the second half of 2008 and possibly continue into early 2009.
The total value of existing orders under the contract is approximately $15.6 million (10.6 million Euro) of which approximately $3.4 million (2.3 million Euro) was recognized in 2007. Captaris expects that the remaining $12.2 million (8.3 million Euro) will be recognized in late 2008 and early 2009. The timing of revenue recognition is expected to coincide with the installation schedules for the relevant German states. Included in the order amount is revenue from a three year maintenance and support agreement that begins in May of 2008. CDT is in discussions with Fujitsu Siemens Computers GmbH and other German states in an effort to secure additional orders.
“We are very excited to announce the completion of these important steps in a multi-year project with one of the largest ministries in the German government. This is further validation for Captaris and its shareholders of the quality and value of our recent acquisition,” said David P Anastasi, President and CEO of Captaris. “The integration of Captaris and Captaris Document Technologies has begun smoothly and, as demonstrated by this contract, the acquisition is expected to deliver substantial value to shareholders. CDT document capture technology is enabling us to address the large and rapidly growing distributed capture market. We intend to leverage the CDT technology across our platforms, which now include distributed capture, workflow, archiving, and document delivery at affordable prices. We expect this technology integration will enable us to deliver substantial revenue synergies and further diversify our revenues by product and geography. As announced in our press release on January 14, we have seen improving RightFax performance, substantial sequential growth of our FaxPress product line from our July 2007 acquisition of Castelle, and strong results from our Alchemy product line, particularly in relation to our MFP (multi-function printing devices) channel partners. With this current opportunity from CDT and our progress on our operating leverage initiatives, we are confident that our acquisitions and our business strategy are all moving in the right direction and we are very excited about our future prospects.”
Captaris intends to hold a conference call to discuss its fourth quarter and fiscal year 2007 results in February. On this call, we intend to discuss in more detail the Captaris Document Technologies acquisition, the German government transaction, current operating leverage initiatives and guidance for 2008.