TUSTIN, Calif., March 31, 2004 (PRIMEZONE) -- VillageEDOCS (OTCBB:VEDO) announced today its financial results for the year ended December 31, 2003.
Net sales for the year ended December 31, 2003 increased 17% to $1,882,027, as compared to net sales for 2002 of $1,611,546. As a result of increased sales, cost of sales increased by $116,427 to $920,410 as compared to $803,983 for 2002. As a percentage of sales cost of sales improved during 2003 by one percentage point, decreasing to 49% as compared to 50% of sales for 2002.
Net sales increased as a result of increased sales activities in growing revenue from existing clients, penetrating clients with higher margins, and eliminating sales to less profitable clients. Cost of sales remained flat relative to sales, reflecting no negative change in equipment leasing, maintenance, operations staff, or telecommunications costs.
Gross profit for the year ended December 31, 2003 increased 19%, or $154,054, to $961,617 from the gross profit of $807,563 for the year ended December 31, 2002. The gross margin for 2003 was 51% as compared to 50% for 2002. Operating expenses for the year ended December 31, 2003 increased by $530,341 to $2,365,560 compared to $1,835,219 for the year ended December 31, 2002, an increase of 29%. Included in operating expenses for 2003 and 2002 were non-cash expenses incurred in connection with equity transactions. Excluding these non-cash charges and depreciation and amortization, operating expenses in 2003 increased by $382,342 to $1,993,424 compared to $1,611,082 in 2002. Interest expense for the year ended December 31, 2003 increased by $397,812 to $661,659 compared to $263,847 for the year ended December 31, 2002.
As a result of the above factors, net loss for the year ended December 31, 2003 increased by 63%, or $814,042, to $2,106,345 ($0.07 per share) from the net loss of $1,292,303 ($0.05 per share) reported for the year ended December 31, 2002.
"We made VillageEDOCS a stronger company in 2003. Our business performed solidly despite downturns in several industries. We grew and strengthened our primary document delivery service," said Mr. Mason Conner, President and CEO of VillageEDOCS. "I believe the mid-year correction of our sales and marketing focus to create faster top line revenue growth began a time of rapid and meaningful changes that we believe will result in profitability during the first half of 2004 for the Company's document delivery services."
Mr. Conner continued, "Overall, we made tremendous progress on the strategy of long-term growth. The VillageEDOCS team has made substantive progress in the strategic repositioning of VillageEDOCS while continuing to execute at a high level in the document delivery service. In February 2004, we announced the acquisition of Tailored Business Systems, Inc. ("TBS"). TBS provides tax and utilities billing solutions in the government sector. This initial transaction marks the first of several other planned transactions. We believe our vision of a multi-business growth company bound together by a common document delivery vision, complementary business solutions, common culture with strong values, and broad financial contributions will result in a fast-growing stable business enterprise."
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.
Contact Information: Phone: 714.734.1030, Fax: 714.734.1040, email: info@villageEDOCS.com, Corporate Website: www.villageedocs.com Service Website: www.villagefax.net
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.