CLICK HERE to down load PDF file with tables.March 24, 2010
-- 4th Quarter Sales Revenue increased 78%
-- 4th Quarter Gross Profit increases 40%
-- 4th Quarter Net Loss decreases 47%
-- 2009 Sales Revenue increased 49%
-- 2009 Operating Expenses decrease 31%
-- 2009 Net loss decreases 52%
ROCHESTER, NY, March 24, 2010 — Document Security Systems, Inc. (NYSE AMEX: DMC; "DSS"), a leader in patented protection against counterfeiting and unauthorized copying, scanning and photo imaging, reported results for the fourth quarter and year ended December 31, 2009. Management will host a teleconference and web cast today at 4:30 pm ET to discuss the results with the investment community:
Investor Dial-in (Toll Free): (877) 407-9210
Investor Dial-In (International): (201) 689-8049
Live Web Cast: http://www.investorcalendar.com/IC/CEPage.asp?ID=156727
4th Quarter and 2009 Year-End Results
Fourth Quarter Financial Highlights
• Sales of $2.3 million increased 78% compared to the fourth quarter of 2008.
• Operating expenses decreased by 21% compared to the fourth quarter of 2008.
• Net Loss decreased by 47% to $1.1 million compared to $2.1 million in the fourth quarter of 2008.
• Net loss per share of $(0.07) compared to $(0.15) in the fourth quarter of 2008.
• Adjusted EBITDA. (See Reconciliation of GAAP to Non-GAAP Financial Measures table) loss of $189,000 as compared to a loss of $857,000 in the fourth quarter of 2008.
• Improved balance sheet from refinancing of $3.9 million of short-term debt to $2.0 million of equity and $1.9 million of long-term debt.
2009 Financial Highlights
• Sales of $9.9 million increased 49% compared to 2008.
• Gross profit of $3.7 million compared to $3.6 million in 2008, an increase of 1%.
• Operating expenses decreased by 31% compared to 2008.
• Net Loss decreased by 52% to $4.0 million compared to a net loss of $8.3 million in 2008.
• Net loss per share of $(0.27) compared to $(0.59) in 2008.
• Adjusted EBITDA. (See Reconciliation of GAAP to Non-GAAP Financial Measures table) loss of $1,527,000 as compared to a loss of $2,119,000 in 2008.
Robert Fagenson, Chairman of the Board of Document Security Systems, stated: “As we entered 2009, our goals included expanding our sales and product offerings, leveraging our expanded production capacity to attract major end-user customers, continuing to streamline our cost structure and seeking strategic acquisitions. As we enter 2010, believe we have achieved many of those goals. Our recent purchase of Premier Packaging in February 2010 offers significant opportunity to expand use of our technology and positions us in the brand packaging protection market. Furthermore, during the fourth quarter of 2009, we successfully refinanced and converted $3.9 million of short-term debt to equity or longer term debt on more favorable terms significantly improving our balance sheet and working capital position.”
Document Security System’s CEO Patrick White said, “Despite a difficult economic environment for our business partners and licensee’s we still continued to grow and strengthen our business. Our valuable intellectual property holdings continued to grow and show value which further advanced our position in the anti-counterfeiting market that has resulted in wins with well known customers during the year. During 2009, we initiated our entrance into the brand packaging market that culminated in the acquisition of Premier Packaging in February 2010, commenced the divestiture of our Legalstore.com division, strengthened our relationship with a key licensee, and achieved sales successes with several large consumer product companies. Due to these accomplishments along with our lower cost structure the company is well positioned in 2010 and beyond.”
About Document Security Systems, Inc
Document Security Systems is a world leader in the development of optical deterrent technologies that help prevent counterfeiting and brand fraud from the use of the most advanced scanners, copiers and imaging systems in the market. The company’s patented and patent-pending technologies protect valuable documents and printed products from counterfeiters and identity thieves. Document Security Systems’ customers, which include international governments, major corporations and world financial institutions, use its covert and overt technologies to protect a number of applications including, but not limited to, currency, vital records, brand protection, ID Cards, internet commerce, passports and gift certificates. Document Security Systems’ strategy is to become the world’s leading producer of cutting-edge security technologies for paper, plastic and electronically generated printed assets.
More information about Document Security Systems, Inc can be found at www.documentsecurity.com and www.plasticprintingprofessionals.com, www.protectedpaper.com, www.dpirochester.com. and www.premiercustompkg.com.
Safe Harbor Statement
The statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbors created thereby. These forward-looking statements include, but are not limited to, statements regarding expectations for future financial performance, potential sales from new and existing customers, expected benefits from the Company's cost cutting efforts, the potential sale of Legalstore.com, and/or statements preceded by, followed by or that include the words “believes,” “could,” “expects,” “anticipates,” “estimates,” “intends,” “plans,” “projects,” “seeks,” or similar expressions. all of which involve uncertainty and risk. Many of these risks and uncertainties are discussed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2009 filed with the Securities and Exchange Commission (the “SEC”), and in any subsequent reports filed with the SEC, all of which are available at the SEC’s website at www.sec.gov. It is possible the company's future financial performance may differ from expectations due to a variety of factors including, but not limited to, the risks referred to above, and changes in economic and business conditions in the world, increased competitive activity, achieving sales levels to fulfill revenue expectations, consolidation among its competitors and customers, technology advancements, unexpected costs and charges, adequate funding for plans, changes in interest and foreign exchange rates, regulatory and other approvals and failure to implement all plans, for whatever reason. It is not possible to foresee or identify all such factors. Any forward-looking statements in this report are based on current conditions; expected future developments and other factors it believes are appropriate in the circumstances. Prospective investors are cautioned that such statements are not a guarantee of future performance and actual results or developments may differ materially from those projected. The company makes no commitment to update any forward-looking statement included herein, or disclose any facts, events or circumstances that may affect the accuracy of any forward-looking statement.
TABLES FOLLOW.
Tables Available in Full PDF Version downloadable at the link at the top of this page.
