Optika Inc. Reports First Quarter 2001 Results

Company Sees Increased Customer Demand and Sequential Revenue Growth



Apr 19, 2001, 01:00 ET from Optika Inc.

    COLORADO SPRINGS, Colo., April 19 /PRNewswire/ --
 Optika Inc. (Nasdaq:   OPTK), a leading provider of imaging, workflow and
 collaborative commerce software, today reported financial results for the
 first quarter ended March 31, 2001.
     Total revenue for the first quarter of 2001 was $3.8 million, compared
 with $3.6 million in the fourth quarter of 2000 and with $3.8 million in the
 first quarter of 2000.  License revenue for the first quarter of 2001 rose
 28% over the fourth quarter of 2000 to $1.4 million.  Net loss for the first
 quarter was $2.1 million, or a loss of $0.32 per share (excluding a one-time
 charge of $1.1 million).  First quarter net loss per share includes a non-cash
 preferred stock dividend and accretion of preferred stock of $496,000.  In the
 first quarter the company incurred a charge to earnings of $1.1 million for
 restructuring related costs due to a reduction in force.  This compares with a
 net loss of $3.6 million, or a loss of $0.50 per share for the fourth quarter
 of 2000 (including a non-cash preferred stock dividend and accretion of
 preferred stock of $494,000) and with a net loss of $2.9 million, or a loss of
 $0.99 per share for the first quarter of 2000 (including a non-cash preferred
 stock dividend and accretion of preferred stock of $192,000, and a non-cash
 beneficial conversion of $4.4 million).
     "We are extremely pleased with the results during the first quarter and
 feel the changes we made at the beginning of the year are paying off and have
 positioned us well to achieve our goal of profitability by the end of the
 year," said Mark K. Ruport, president, chief executive officer and chairman of
 Optika.  "During the quarter we spent a significant amount of time focusing on
 our relationships with our customers and our channel partners.  This focus,
 coupled with the strength of our product offerings, produced a significant
 increase in orders from existing customers.  During the quarter, we saw major
 customers such as Mayo Clinic and North American Van Lines upgrade their
 FilePower system to Acorde.  In addition, we are beginning to see existing
 Acorde customers, such as Veteran's Administration and AON Consulting
 significantly expand their current systems."
     "Our direct sales force also produced encouraging results in the quarter,"
 added Ruport.  "Our integrations with J.D. Edwards WorldSoftware and OneWorld
 paid significant dividends with new customers such as CarrAmerica Realty
 Corp., Kent Electronics and Sargent Manufacturing.  We intend to continue our
 focus of supporting our channel partners and pursuing efforts with
 J.D. Edwards customers to continue our quarter over quarter revenue growth."
     Optika management will hold a conference call to discuss these results
 today, April 19, at 7:00 a.m. Mountain Time.  Those wishing to join should
 dial 712-271-3421 (passcode:  Optika) at approximately 6:45 a.m.  A replay of
 the call will be available starting one hour after the completion of the call
 until May 3, 2001.  To access the recording, please dial 402-998-0852.
 
     About Optika
     Headquartered in Colorado Springs, Colorado, Optika Inc. is a leading
 provider of imaging, workflow and collaborative commerce software.
 Optika's Acorde(TM) family of Internet software solutions allow companies to
 effectively and cost-efficiently manage paper-intensive or complex business
 processes and transactions.  By enabling companies to access and store
 multiple formats of business content, automate processes across the
 organization and externally with partners and customers, and enable online
 collaboration around unruly processes in real and near time -- the Acorde
 product family allows organizations to improve processing efficiency, reduce
 operating costs and increase customer and trading partner service and
 satisfaction.  With more than 1800 customers worldwide, Optika drives business
 decisions for profitability in leading companies such as The Home Depot,
 Turner Broadcasting Systems, Siemens Communications, Southwest Airlines,
 Verizon Wireless and Clear Channel Communications.  Optika was again named one
 of the Top 500 Technology Companies in 2000 by Software Magazine. For more
 information about Optika and Acorde, contact the company at 719-548-9800 or
 visit www.optika.com.
     Except for historical information contained herein, the matters discussed
 in this news release may contain "forward-looking statements" that involve
 risks and uncertainties. Factors that could cause actual results to differ
 materially include, but are not limited to, adoption of the Acorde product
 family by Optika's customers, general business conditions in the software
 industry, Optika's relationships with its partners, availability of competing
 products and other risks detailed from time to time in the company's periodic
 filings with the Securities and Exchange Commission, including Optika's annual
 report on Form 10-K.
 
                                  Optika Inc.
          Condensed Consolidated Statements of Operations (Unaudited)
                    (In thousands, except per share amounts)
 
                                                         Quarter Ended
                                                   March 31,          March 31,
                                                      2001              2000
     Revenues:
         Licenses                                    $1,422            $1,190
         Maintenance and other                        2,423             2,637
             Total revenues                           3,845             3,827
 
     Cost of revenues:
         Licenses                                       149               142
         Maintenance and other                          979             1,055
             Total cost of revenues                   1,128             1,197
     Gross profit                                     2,717             2,630
     Operating expenses:
         Sales and marketing                          2,778             2,916
         Research and development                     1,646             2,051
         General and administrative                     515               667
         Restructuring and other
          non-recurring charges                       1,071                --
             Total operating expenses                 6,010             5,634
     Loss from operations                            (3,293)           (3,004)
 
     Other income, net                                   97               100
     Loss before income tax expense                  (3,196)           (2,904)
 
     Income tax expense                                   7                --
     Net loss                                        (3,203)           (2,904)
     Preferred stock dividend                          (317)             (120)
     Accretion of preferred stock and
      beneficial conversion feature                    (179)           (4,480)
 
     Net loss applicable to common
      stockholders                                  $(3,699)          $(7,504)
 
     Basic and diluted net loss per common
      share                                          $(0.45)           $(0.99)
 
     Basic and diluted weighted average
      number of common
      shares outstanding                              8,150             7,548
 
     Condensed Consolidated Balance Sheets (Unaudited)
     (in thousands)
                                                    March 31,      December 31,
     Assets                                            2001             2000
     Current assets:
        Cash and cash equivalents                    $4,826            $2,192
        Short-term investments                        4,660             9,512
        Accounts receivable, net                      2,655             2,913
        Other current assets                            712               801
               Total current assets                  12,853            15,418
 
     Fixed assets, net                                2,149             2,625
     Other assets                                       384               481
                                                    $15,386           $18,524
 
     Liabilities, redeemable preferred
      stock and stockholders' equity
      (deficit)
     Current liabilities:
        Accounts payable and accrued
         expenses                                    $3,388            $3,004
        Deferred revenues                             3,578             3,902
               Total current liabilities              6,966             6,906
 
     Redeemable convertible preferred
      stock                                          11,345            10,849
     Total stockholders' equity (deficit)            (2,925)              769
                                                    $15,386           $18,524
 
 

SOURCE Optika Inc.
    COLORADO SPRINGS, Colo., April 19 /PRNewswire/ --
 Optika Inc. (Nasdaq:   OPTK), a leading provider of imaging, workflow and
 collaborative commerce software, today reported financial results for the
 first quarter ended March 31, 2001.
     Total revenue for the first quarter of 2001 was $3.8 million, compared
 with $3.6 million in the fourth quarter of 2000 and with $3.8 million in the
 first quarter of 2000.  License revenue for the first quarter of 2001 rose
 28% over the fourth quarter of 2000 to $1.4 million.  Net loss for the first
 quarter was $2.1 million, or a loss of $0.32 per share (excluding a one-time
 charge of $1.1 million).  First quarter net loss per share includes a non-cash
 preferred stock dividend and accretion of preferred stock of $496,000.  In the
 first quarter the company incurred a charge to earnings of $1.1 million for
 restructuring related costs due to a reduction in force.  This compares with a
 net loss of $3.6 million, or a loss of $0.50 per share for the fourth quarter
 of 2000 (including a non-cash preferred stock dividend and accretion of
 preferred stock of $494,000) and with a net loss of $2.9 million, or a loss of
 $0.99 per share for the first quarter of 2000 (including a non-cash preferred
 stock dividend and accretion of preferred stock of $192,000, and a non-cash
 beneficial conversion of $4.4 million).
     "We are extremely pleased with the results during the first quarter and
 feel the changes we made at the beginning of the year are paying off and have
 positioned us well to achieve our goal of profitability by the end of the
 year," said Mark K. Ruport, president, chief executive officer and chairman of
 Optika.  "During the quarter we spent a significant amount of time focusing on
 our relationships with our customers and our channel partners.  This focus,
 coupled with the strength of our product offerings, produced a significant
 increase in orders from existing customers.  During the quarter, we saw major
 customers such as Mayo Clinic and North American Van Lines upgrade their
 FilePower system to Acorde.  In addition, we are beginning to see existing
 Acorde customers, such as Veteran's Administration and AON Consulting
 significantly expand their current systems."
     "Our direct sales force also produced encouraging results in the quarter,"
 added Ruport.  "Our integrations with J.D. Edwards WorldSoftware and OneWorld
 paid significant dividends with new customers such as CarrAmerica Realty
 Corp., Kent Electronics and Sargent Manufacturing.  We intend to continue our
 focus of supporting our channel partners and pursuing efforts with
 J.D. Edwards customers to continue our quarter over quarter revenue growth."
     Optika management will hold a conference call to discuss these results
 today, April 19, at 7:00 a.m. Mountain Time.  Those wishing to join should
 dial 712-271-3421 (passcode:  Optika) at approximately 6:45 a.m.  A replay of
 the call will be available starting one hour after the completion of the call
 until May 3, 2001.  To access the recording, please dial 402-998-0852.
 
     About Optika
     Headquartered in Colorado Springs, Colorado, Optika Inc. is a leading
 provider of imaging, workflow and collaborative commerce software.
 Optika's Acorde(TM) family of Internet software solutions allow companies to
 effectively and cost-efficiently manage paper-intensive or complex business
 processes and transactions.  By enabling companies to access and store
 multiple formats of business content, automate processes across the
 organization and externally with partners and customers, and enable online
 collaboration around unruly processes in real and near time -- the Acorde
 product family allows organizations to improve processing efficiency, reduce
 operating costs and increase customer and trading partner service and
 satisfaction.  With more than 1800 customers worldwide, Optika drives business
 decisions for profitability in leading companies such as The Home Depot,
 Turner Broadcasting Systems, Siemens Communications, Southwest Airlines,
 Verizon Wireless and Clear Channel Communications.  Optika was again named one
 of the Top 500 Technology Companies in 2000 by Software Magazine. For more
 information about Optika and Acorde, contact the company at 719-548-9800 or
 visit www.optika.com.
     Except for historical information contained herein, the matters discussed
 in this news release may contain "forward-looking statements" that involve
 risks and uncertainties. Factors that could cause actual results to differ
 materially include, but are not limited to, adoption of the Acorde product
 family by Optika's customers, general business conditions in the software
 industry, Optika's relationships with its partners, availability of competing
 products and other risks detailed from time to time in the company's periodic
 filings with the Securities and Exchange Commission, including Optika's annual
 report on Form 10-K.
 
                                  Optika Inc.
          Condensed Consolidated Statements of Operations (Unaudited)
                    (In thousands, except per share amounts)
 
                                                         Quarter Ended
                                                   March 31,          March 31,
                                                      2001              2000
     Revenues:
         Licenses                                    $1,422            $1,190
         Maintenance and other                        2,423             2,637
             Total revenues                           3,845             3,827
 
     Cost of revenues:
         Licenses                                       149               142
         Maintenance and other                          979             1,055
             Total cost of revenues                   1,128             1,197
     Gross profit                                     2,717             2,630
     Operating expenses:
         Sales and marketing                          2,778             2,916
         Research and development                     1,646             2,051
         General and administrative                     515               667
         Restructuring and other
          non-recurring charges                       1,071                --
             Total operating expenses                 6,010             5,634
     Loss from operations                            (3,293)           (3,004)
 
     Other income, net                                   97               100
     Loss before income tax expense                  (3,196)           (2,904)
 
     Income tax expense                                   7                --
     Net loss                                        (3,203)           (2,904)
     Preferred stock dividend                          (317)             (120)
     Accretion of preferred stock and
      beneficial conversion feature                    (179)           (4,480)
 
     Net loss applicable to common
      stockholders                                  $(3,699)          $(7,504)
 
     Basic and diluted net loss per common
      share                                          $(0.45)           $(0.99)
 
     Basic and diluted weighted average
      number of common
      shares outstanding                              8,150             7,548
 
     Condensed Consolidated Balance Sheets (Unaudited)
     (in thousands)
                                                    March 31,      December 31,
     Assets                                            2001             2000
     Current assets:
        Cash and cash equivalents                    $4,826            $2,192
        Short-term investments                        4,660             9,512
        Accounts receivable, net                      2,655             2,913
        Other current assets                            712               801
               Total current assets                  12,853            15,418
 
     Fixed assets, net                                2,149             2,625
     Other assets                                       384               481
                                                    $15,386           $18,524
 
     Liabilities, redeemable preferred
      stock and stockholders' equity
      (deficit)
     Current liabilities:
        Accounts payable and accrued
         expenses                                    $3,388            $3,004
        Deferred revenues                             3,578             3,902
               Total current liabilities              6,966             6,906
 
     Redeemable convertible preferred
      stock                                          11,345            10,849
     Total stockholders' equity (deficit)            (2,925)              769
                                                    $15,386           $18,524
 
 SOURCE  Optika Inc.