Record revenues lift Document Sciences
Shares of Document Sciences Corp. (Nasdaq: DOCX) are trading in positive territory, following news the Carlsbad, Calif.-based customer communications management company reported record first-quarter revenues, accompanied by a wider loss.
Revenues for the three-months ended March 31 were $8.2 million, an increase of 5% from $7.8 million in first quarter of 2006, Document Sciences said before the opening bell.
“The first quarter represented our eleventh consecutive quarter of year-over-year quarterly revenue growth,” company CEO and President Jack McGannon said. “However, increased spending in sales and marketing and additional research and development costs associated with additional staffing and our acquisition of CambridgeDocs drove our loss for the quarter.”
Document Sciences completed its acquisition of Cambridge, Mass.-based CambridgeDocs, a provider of document transformation and repurposing technology, during the quarter.
The net loss was $1.54 million, or $0.35 per share, compared with a net loss of $0.46 million, or $0.11 per share, during the same quarter of 2006. Analyst estimates were unavailable.
Looking ahead, McGannon said he expects the company to further improve its revenue performance as the year progresses, as six- to twelve-month sales cycles come to a closure.
Also today, Document Sciences announced a modified “Dutch auction” tender offer to purchase up to 850,000 shares of its common stock at a price per share not greater than $6.50, but not less than $6.00, with a maximum aggregate purchase price of $5,525,000. The tender is set to close on June 15 at 5 p.m. ET.
A modified “Dutch auction” allows stockholders to indicate how many shares and at what price(s) within the specified share price range they wish to purchase.
At 1:25 p.m. ET shares were up $0.34, or 6%, to $6.34. The 52-week high is $7.25, set on Feb. 21. The 52-week low of $5.54 was reached on June 29, 2006.
