SOURCE: Document Capture

Document Capture

April 18, 2011 06:00 ET

Document Capture Releases Letter to Shareholders

Future Growth Driven by Debt-Free Status, Strong Cash Position, Management Depth

SANTA CLARA, CA--(Marketwire - Apr 18, 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 released a Letter to Shareholders from Chief Executive Officer, David. P. Clark.

Dear Fellow Shareholders,

I thought it worthwhile to review and highlight why DCT is well positioned to capitalize on both domestic and global profit opportunities in the burgeoning image capture market. DCT's innovative products, financial strength, leadership and vision are discussed below; I feel that this discussion will show why we believe that our current share price significantly undervalues our progress to date and our growth potential in 2011 and beyond.

DCT is significantly more than just a manufacturer. We are a product and software developer.

Salient metrics (at December 31, 2010):

  • Cash and cash equivalents per common share of approximately $0.11, or 28%, of current share price ($0.40)
  • DCT is debt-free
  • Revenue rose by 29% to $14.8 million in FY2010 versus 2009
  • Approximate FY2010 revenue per share; $0.72
  • Current market capitalization approximately $8.5 million
  • EBITDA* increased four-fold in 2010 to $1.6 million, excluding non-recurring expenses
  • Working capital rose 100% to $4.8 million compared to December 31, 2009
  • Shares outstanding decreased by 3 million as a result of our ongoing 2010 stock repurchase program

In summary, DCT is in a strong financial position. For a replay of DCT's fiscal 2010 Earnings Conference Call, kindly click here.

Our proprietary software development provides a seamless operational link between the scanner and data-collecting device by developing a unique customized interface based upon specific client needs. That fact is one of many that creates a competitive barrier that markedly separates us from both our competitors and a simple commodity type business.

Our direction in 2011:

Recently, the Company commissioned an Executive Information Overview® by Crystal Research Associates LLC, available here. It provides an in-depth discussion of Document Capture's business and product lines.

From The Crystal Report:

"DCT's USB-powered scanners include smart functionalities, software support and innovative security features. Going forward, the Company is also working to introduce next-generation autonomous products that incorporate capabilities such as Wi-Fi and Bluetooth connectivity with the ability to upload scanned documents to mobile devices (e.g., smartphones) or cloud-based solutions."

In 2011, DCT intends to significantly increase R&D to drive the introduction of new products, and develop tailored software and innovative image capture solutions to address our customers' needs. At the same time, we will continue to be vigilant about reducing costs wherever possible, whether administrative or by sourcing the finest components at the lowest cost. Further, we continue to explore opening new revenue streams through new or expanded business and carefully sourced global opportunities.

Working with global partners that include NCR (also a major shareholder), Brother, Burroughs and Qualcomm, we intend to leverage those key partnerships while developing new relationships with like-caliber customers.

New leadership:

Contiguous to our impressive metrics is the quality of our new leadership. With the recent addition of highly focused and experienced senior management, DCT expects to focus significant resources on marked and sustained growth. Under the guidance of DCT's President, Craig Weber, SVP of Sales Jacques vonBechmann, and Product and Business Development Manager Karl Etzel, as well as our committed and highly-skilled technical, engineering and support teams, DCT will continue to lead the image capture sector by delivering the most advanced hardware and software solutions.

All in all, I look forward to a very productive 2011 and beyond for Document Capture Technologies and our shareholders.

I thank you for your attention and support and look forward to bringing you more and substantive news as developments warrant. For the latest information, please bookmark our website: www.docucap.com.

Best regards,

David P. Clark
CEO
Document Capture Technologies

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 five distinct categories, which are distributed globally through private label solutions to leading Tier 1 OEMs, VARs and other system integrators, including NCR, Qualcomm, Burroughs and Brother.

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.

Company Contacts:
Document Capture Technologies, Inc.
David P. Clark
CEO
dct.ir@docucap.com

*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):

Year Ended
December 31,
20102009
Operating loss$(367)$(300)
Adjustments:
Depreciation included in operating expenses4958
Stock-based compensation cost - options940525
Fair value of common stock and warrants issued for services rendered 74111
EBITDA$696$394
Non-recurring operating expenses901-
EBITDA before non-recurring expenses$1,597$394

Contact Information

  • Company Contacts:
    Document Capture Technologies, Inc.
    David P. Clark
    CEO
    Email Contact