SOURCE: Document Capture Technologies

Document Capture Technologies

November 15, 2010 16:01 ET

Document Capture Continues Exceptional Sales Growth With YTD Revenues Up 28%

YTD Positive EBITDA* of $690,000 vs. Loss in Same Period 2009

SANTA CLARA, CA--(Marketwire - November 15, 2010) - Document Capture Technologies, Inc. (OTCBB: DCMT), an IP-driven leader in the design, development and sale of next-generation mobile scanning technologies, today announced Q3 2010 sales of $3.5 million, an increase of 19% over the same period 2009, and year-to-date sales of $10.3 million, an increase of 28% over 2009.

Year-to-date EBITDA increased to $690,000 versus a loss of $6,000 for the same period 2009.

Year-to-date net loss improved 40% to a loss of $305,000 from a loss of $505,000 for the same period 2009. Operating expenses were impacted in Q3 2010 by a one-time expense of $400,000 related to emphasizing the Company's exposure within the Healthcare market. Cash on hand increased to $3.9 million at September 30, 2010. Working capital strengthened to $6.4 million compared to $3.0 million in Q2 2010 and $2.1 million for Q3 2009.

"The Company closed Q3 with strong numbers which reflect our continued, impressive growth as well as our mandate to deliver consistent shareholder value," said David P. Clark, Chief Executive Officer of DCMT. "While operating costs were higher due to a one-time expense of $400,000, we are confident that this investment will significantly enhance revenues from our healthcare related initiatives."

DCMT and its licensees lead the small footprint USB-powered scanner market by capitalizing on the rapidly increasing markets for faster, easier-to-use products with increased security; and targeting the critical public and corporate demand for state-of-the-art information, identity and financial transaction protection.

Conference Call Details:

Interested participants should register for the call 10 minutes prior to 4:30 pm Eastern Standard Time on Monday, November 15, 2010 by dialing 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 November 29, 2010. 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 360819.

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 solutions. DCT provides more than 30 different products across five distinct categories, which are distributed globally through private label solutions to leading Tier 1 OEMs, VARs and other system integrators, including NCR, Burroughs, Qualcomm, and Brother.

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

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. Document Capture 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   Nine Months Ended  
    September 30,   September 30,  
    2010     2009   2010     2009  
                               
Operating (loss) income   $ (194 )   $ 4   $ (85 )   $ (573 )
Adjustments:                              
  Depreciation included in operating expenses     10       19     40       46  
  Stock-based compensation cost - options     244       112     663       410  
  Fair value of common stock and warrants issued for services rendered     -       -     72       111  
EBITDA   $ 60     $ 135   $ 690     $ (6 )

Contact Information

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