SOURCE: Document Capture Technologies

Document Capture Technologies

March 31, 2011 09:00 ET

Document Capture Reports on Share Buy-Back Program

Company Retires Approximately 3 Million or 13% of Shares Outstanding

SANTA CLARA, CA--(Marketwire - March 31, 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 gave an update on the $2.5 million Share Repurchase Program approved by the Board of Directors on September 10, 2010.

Since inception last fall, DCT has repurchased and retired 2,969,000 shares of the Company's common stock, representing 13% of the shares outstanding when the program was initiated. The Company reserves the right to continue or end the program at any time. DCT currently has 20.5 million shares outstanding.

"Adding shareholder value remains a top priority at DCT; as well as growing the business, which saw a revenue increase of 29% in 2010 over 2009, that includes tactical use of funds," said David P. Clark, Chief Executive Officer of Document Capture. "Repurchasing shares at what the Company believes are significantly undervalued prices, is certainly appropriate and a major strategic benefit to our shareholders as we move into what we expect to be an important growth year for the Company."

Earnings per share (EPS) were $0.01 for 2010. Excluding non-recurring expenses, EBITDA* (earnings before interest, taxes, depreciation and amortization) rose fourfold to $1.6 million versus full year 2009, or the equivalent of $0.08 cents per share (based on 20.5 million shares).

Document Capture continues to hold no debt with working capital at December 31, 2010 of $4.8 million versus $2.4 million at December 31, 2009 a 100% increase. In addition, availability on the Company's line of credit at December 31, 2010 was $1.7 million, giving the Company more than sufficient resources to fund the anticipated growth into 2011 and beyond.

Document Capture's patented technology provides high quality images at extremely low power consumption levels in a compact package. DCT also provides a comprehensive suite of proprietary software development tools that support and facilitate the accelerated integration of their document capture products with new and existing applications. These products are simple to use and interface with any computing device where there is need for a small footprint, lightweight scanner. DCT's standard software supports drivers for Windows7/Vista/XP, Windows CE, Linux and the MAC OS.

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:

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):

    Year Ended December 31,  
    2010     2009  
Operating (loss) income   $ (367 )   $ (300 )
  Depreciation included in operating expenses     49       58  
  Stock-based compensation cost - options     940       525  
  Fair value of common stock and warrants issued for services rendered    
EBITDA   $ 696     $ 394  
  Non-recurring operating expenses     901       -  
EBITDA before non-recurring expenses   $ 1,597     $ 394  

Contact Information

  • Company Contact:

    David P. Clark
    Document Capture Technologies, Inc.
    Email Contact