SOURCE: Document Capture Technologies

Document Capture Technologies

August 15, 2011 16:01 ET

DCT Releases Strong Second Quarter 2011 Financial Results

Quarterly Revenues Rise 17% Versus Second Quarter 2010

SANTA CLARA, CA--(Marketwire - Aug 15, 2011) - Document Capture Technologies, Inc. (OTCBB: DCMT), an IP-driven leader in the design, development, manufacture and sale of advanced imaging technologies for over a decade, today announced Q2 2011 revenues of $3.8 million up 17% over Q2 2010. For the first six months 2011 revenues were $7.4 million up 10% over the same period 2010.

Q2 EBITDA (earnings before interest, taxes, depreciation and amortization) was ($35,000) versus $306,000 for Q2 2010. Operating expenses for the quarter were $1.7 million, flat against Q1 2011 and up from $1.3 million for Q2 2010. As in Q1, the rise is attributable to continued strategic investment spending against growth and product expansion.

DCT's balance sheet at June 30, 2011 continues to reflect impressive strength with no debt, cash on hand of $1.3 million and working capital of $4.6 million versus $3.0 million at June 30, 2010. Borrowing capacity remained strong with an availability of $1.478 million.

"DCT's strong Q2 revenue numbers mark the seventh consecutive positive growth quarter," said David P.Clark, Chief Executive Officer of Document Capture. "As a result of both business already booked and anticipated, we expect to see continued revenue growth for the balance of 2011. Management believes DCT is on track for a record third quarter and full year 2011."

Conference Call Details

Interested participants should register for the call 10 minutes prior to 4:30 pm Eastern on Monday, August 15th, 2011. Dial 877-407-8035 when calling within the United States, or 201-689-8035 when calling internationally.

Following the call, there will be an open question and answer session with the participants.

Playback will be available until August 30th, 2011. To listen to the playback, dial 877-660-6853 when calling within the United States, or 201-612-7415 when calling internationally. Use Account number 286 in conjunction with replay ID number 376951.

This conference call is also available via webcast and can be accessed by clicking here.

About Document Capture Technologies
Document Capture Technologies (OTCBB: DCMT) is a worldwide leader in the design, development, manufacturing, and sale of USB powered mobile page-fed document capture platforms. DCMT provides more than 30 different products across multiple distinct categories, which are distributed globally through private label solutions to leading Tier 1 OEMs, VARs and other system integrators, including Brother, Burroughs Payment Systems, Digital Check, NCR and Qualcomm.

For additional information, please see Document Capture Technologies' corporate website: www.docucap.com.

This press release is neither an offer to sell nor the solicitation of an offer to buy any securities of DCMT.

Forward-Looking Statements

Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on current expectations and are subject to a number of known and unknown risks, uncertainties and other factors beyond the Company's control that could cause actual events and results to differ materially from these statements. These risks include, without limitation, that there can be no assurance that any strategic opportunities will be available to the Company and that any strategic opportunities may only be available on terms not acceptable to the Company. These statements are not guarantees of future performance, and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. DCMT undertakes no obligation to update publicly any forward-looking statements.

*The Company is providing a non-generally accepted accounting principles financial measure, EBITDA (specifically defined by the Company as operating earnings before interest, taxes, depreciation included in operating expenses and amortization), because (i) the Company believes that this figure is helpful in allowing individuals to assess the ongoing financial performance of the business; (ii) the Company uses EBITDA, along with other GAAP measures, as a measure of profitability because EBITDA helps the Company compare its performance on a consistent basis by removing from its operating results the impact of non-cash expenses; and (iii) non-GAAP performance measures provide an additional analytical tool to clarify the Company's results from operations and helps the Company to identify underlying trends in its results of operations.

EBITDA is a non-GAAP measure and has limitations because it does not include all items of income and expense that impact the Company's operations. Management compensates for these limitations by also considering the Company's GAAP results. The non-GAAP financial measure the Company uses is not prepared in accordance with, and should not be considered an alternative to, measurements required by GAAP. Following is a reconciliation of operating income (loss) to EBITDA (in thousands):

Three Months Ended
June 30,
Six Months Ended
June 30,
2011 2010 2011 2010
Operating (loss) income $ (393 ) $ 15 $ (922 ) $ 109
Adjustments:
Depreciation included in operating expenses 14 10 25 30
Stock-based compensation cost - options 324 249 646 419
Fair value of common stock and warrants issued for services rendered
20

32

41

72
EBITDA $ (35 ) $ 306 $ (210 ) $ 630

Contact Information

  • Contact:
    Document Capture Technologies, Inc.
    David P. Clark
    CEO
    408-213-3701
    Email Contact