Captaris, Inc. (formerly AVT Corporation), is a provider of unified communications and mobile business solutions for medium and large enterprises.

Captaris, Inc. (autrefois AVT Corporation), est un fournisseur de communications unifiées et de solutions mobiles d'affaires pour les moyennes et grandes entreprises .

Total revenue for the fourth quarter was $25.2 million, a 2% increase over the prior year's fourth quarter and a 3% increase over the preceding quarter. Revenue by category compared to the fourth quarter of 2005 was as follows:

     --   Software revenue was $9.3 million, a decrease of $427,000 or 4%
     --   Maintenance, support and service revenue was $9.5 million, an
          increase of $901,000 or 10%
     --   Hardware revenue was $6.5 million, an increase of $86,000 or 1%

Gross profit was $17.4 million, or comparable with the same quarter last year, and gross margin was 68.8%, down from 70.5% in the same quarter last year.

Total operating expenses were $15.1 million for the fourth quarter of 2006, a decrease of approximately $2.8 million, or 16%, from total operating expenses of $17.8 million for the same quarter last year. The decline in operating expenses reflects continued effective cost controls and the results of actions initiated in the fourth quarter of 2005 to reduce the Company's operating cost structure.

"Our strong earnings reflect the improved execution and increased operating leverage we are achieving as our business expands," said David P. Anastasi, President and CEO of Captaris. "As we significantly improved our cost structure, we also made significant progress toward other key goals in 2006, including strategic product development and expanding our market presence. We are excited about our growth prospects in 2007 and are well positioned to leverage our solid customer base and portfolio of attractive technologies to expand our business."

The Company recognized stock-based compensation expense of $201,000 in the fourth quarter of 2006, compared to a benefit of $7,000 in the fourth quarter of 2005. Amortization of intangible assets for the fourth quarter of 2006 was $693,000, including $481,000 in cost of revenue and $212,000 in operating expenses, compared to $868,000 in the fourth quarter of 2005, including $481,000 in cost of revenue and $387,000 in operating expenses. Depreciation was $697,000 in the fourth quarter of 2006, compared to $867,000 in the fourth quarter of 2005.

Operating income in the fourth quarter of 2006 was $2.3 million, compared to an operating loss of $427,000 in the fourth quarter of 2005, and operating income of $2.0 million in the third quarter of 2006.

Net income for the fourth quarter of 2006 was $2.2 million, or $0.08 per basic and diluted share, compared to net income of $44,000, or break even per share, in the same quarter last year and $1.6 million or $0.06 per share in the third quarter of 2006.

For the year ended December 31, 2006, total revenue of $92.0 million increased $5.6 million or 6%; operating expenses of $60.4 million decreased $7.3 million or 11%; and net income of $4.0 million increased $8.0 million compared to 2005.

Cash flow from operations was $1.9 million in the fourth quarter of 2006, compared to $1.6 million in the fourth quarter in 2005. For the year ended December 31, 2006, cash flow from operations was $13.9 million, an increase of $12.5 million compared to cash from operations of $1.4 million in 2005.

Consolidated cash, cash equivalents and investment balances as of December 31, 2006 totaled $59.4 million, an increase of $2.5 million from September 30, 2006, and an increase of $7.8 million from December 31, 2005. Deferred revenue at December 31, 2006 was $25.9 million, an increase of $2.1 million over the preceding quarter and an increase of $3.7 million from December 31, 2005.
 

Captaris Reports Solid Second Quarter 2006 Financial Results 
  Q2 Revenue of $22.6 Million up 6.7% Year-Over-Year
  Net Income of $28,000 or Breakeven Per Share
  Company Announces Additional Spending Reductions of $2.0 Million Annually
BELLEVUE, Wash., Aug. 3 /PRNewswire-FirstCall/ -- Captaris, Inc. (Nasdaq: CAPA), a leading provider of software products that automate document-centric business processes, today reported financial results for its second quarter ended June 30, 2006.
Total revenue for the second quarter was $22.6 million, a 6.7% increase over the second quarter of 2005 and a 15.6% increase over the preceding quarter. Revenue by category compared to the second quarter of 2005 is as follows:
    * Software revenue was $8.2 million, an  increase of $130,000
    * Hardware revenue was $5.4 million, an increase of $100,000
    * Maintenance, support and service revenue was $9.0 million, an increase
      of $1.2 million
Gross profit was $15.9 million, up $1.4 million or 9.5%, compared to the same quarter last year, and gross margin was 70.1%, compared to 68.3% in the same quarter last year.
Total operating expenses were $16.1 million for the second quarter of 2006, a decrease of approximately $800,000, or 4.7%, compared to total operating expenses of $16.9 million for the second quarter of 2005. The decline in operating expenses was a result of effective cost control in the quarter and actions the Company took in the fourth quarter of 2005 to reduce its operating cost structure.