TUSTIN, Calif., May 18, 2004 (PRIMEZONE) -- VillageEDOCS (OTCBB:VEDO) announced today its financial results for the quarter ended March 31, 2004.
Net sales for the three months ended March 31, 2004 were $915,445, a 108% increase over net sales for prior year quarter of $438,790. The increase in the 2004 quarter resulted from an increase of $163,379 in revenue from the Company's electronic document delivery services (which resulted from growth in the number of clients) as well as the addition of $313,276 in revenue contributed by Tailored Business Systems, Inc. ("TBS") from February 17, 2004 (the date of acquisition) through the end of the quarter.
Gross profit for the 2004 quarter increased 153% to $571,152 as compared to $225,592 for the prior year quarter. Gross profit margin for the 2004 quarter was 62% as compared with 51% for the 2003 quarter. Of the overall increase of $345,560, $107,876 is attributable to the increase in sales volume for the Company's electronic document delivery services, and $237,684 is attributable to TBS.
Operating expenses for the 2004 quarter increased by 13% to $718,635 from the $638,630 reported in the three months ended March 31, 2003, an increase of $80,005. Product and technology development decreased $45,221 to $91,073 from the $136,294 reported in the prior year quarter because of a reduction in staff. Sales and marketing decreased by $34,471 to $167,754 from the $202,225 reported in the prior year quarter due to a reduction in sales management staff and a small decrease in spending on sales lead generation programs. General and administrative increased by $192,549 to $418,807 from the $226,258 reported in the prior year quarter. The overall increase was comprised of a $28,484 decrease from the electronic document delivery service and a $221,033 increase attributable to TBS. Depreciation and amortization expense increased $7,148 to $41,001 from the $33,853 reported in the 2003 quarter. The overall increase was comprised of a 12% decrease from electronic document delivery services (due to disposal of certain capitalized equipment during the fourth quarter of 2003) and the addition of depreciation from equipment owned by TBS.
The operations of the electronic document delivery business resulted in operating income of $21,650, and the operations of TBS resulted in operating income of $43,703. Corporate operations reported an operating loss of $212,836 for an overall operating loss of $147,483.
Net loss for the three months ended March 31, 2004 was $261,917, or $0.01 per share, compared to a net loss of $708,123, or $0.02 per share, for the three months ended March 31, 2003 on weighted average shares of 33,543,178 and 30,498,583, respectively.
"We are excited to report income from operations from both reportable segments of the Company. During the first quarter we completed our first acquisition (see Press Release of February 18, 2004 describing the acquisition of Tailored Business Systems, Inc.), and Mr. Kolassa joined us as President of the TBS subsidiary (see Press Release of April 28, 2004). We are pleased with the significant contribution that the entire team at TBS made to our revenues and bottom line during the quarter. At the same time, the electronic document delivery business reached the goal of break-even (on an operating income basis) for the first time in its history," said Mr. Mason Conner, President and CEO of VillageEDOCS.
Mr. Conner continued, "Achieving this quarter's milestones has been very rewarding for all of our employees and shareholders. For the remainder of 2004, we will continue to focus on further increasing the value of the Company by growing our existing business lines. In addition we will continue to execute our 2004 plan to acquire additional profitable businesses."
About VillageEDOCS
VillageEDOCS is a leading provider of comprehensive business-to-business electronic document management and delivery services for organizations with mission-critical needs, including major corporations, government agencies and non-profit organizations. For further information, visit our website at www.villageedocs.com.
Cautionary Statement Regarding Forward-Looking Information
All statements in this press release that do not directly and exclusively relate to historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements represent the Company's plans, intentions, expectations and belief and are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected or expressed herein. These include uncertainties in the market, competition, legal, regulatory initiatives, success of marketing efforts, availability, terms and deployment of capital, and other risks detailed in the Company's SEC reports, of which many are beyond the control of the Company. The Company assumes no obligation to update or alter the information in this news release. Investors are cautioned not to put undue reliance on any forward-looking statements. For these statements, we claim the protection of the safe harbor for forward-looking statements contained in Section 21E of the Exchange Act.