[November 20, 2009] VillageEDOCS Posts 3Q Results Tweet Nov 21, 2009 (Close-Up Media via COMTEX) -- VillageEDOCS announced its financial results for the third quarter of 2009. "While the weakness in the economy has clearly impacted our results, thanks to cost controls and a strong base of recurring revenue, we believe we have excelled in working with the resources available to us during a challenging year," said Mason Conner, CEO of VillageEDOCS. "We continue to focus on sales from higher margin products, bolstering our recurring revenue streams, and controlling expenses while directing more resources to sales, marketing, and client services." In a release dated November 19, the company stated: Third Quarter and Nine Months 2009 Results - Net revenue from external customers for the three months ended September 30, was $3,659,351, a 14 percent decrease compared to net revenue for the prior year quarter of $4,273,114. Revenue from Integrated Communications decreased 19 percent due to decreases in user subscription fees and revenue from corporate clients. Revenue decreased at Government Accounting Solutions by 12 percent due to decreases in revenue from printing, software, maintenance, and hardware sales. These decreases were partially offset by an increase in revenue from online services. Revenue from Electronic Document Delivery Services decreased 14 percent due to a decrease in outbound revenue as a result of customer attrition and reduced usage volumes. Revenue from Electronic Content Management decreased 9 percent due to lower software sales compared to the prior year quarter. - Net revenue from external customers for the nine months ended September 30, was $11,593,193, a 6 percent increase over net revenue for the prior year period of $10,965,907. Revenue from Integrated Communications decreased 1 percent due to decreases in user subscription fees and revenue from corporate clients. Revenue from Government Accounting Solutions decreased 11 percent due to decreases in revenue from printing, software, maintenance, and hardware sales. These decreases were partially offset by an increase in revenue from online services. Revenue from Electronic Document Delivery Services decreased 7 percent due to a decrease in outbound revenue as a result of customer attrition and reduced usage volumes. Revenue from Electronic Content Management increased 273 percent due to comparing nine months in the 2009 period with two months in the 2008 period (from August 1, 2008, the date of acquisition). On a pro forma basis, the revenue from Electronic Content Management for the nine months ended September 30, 2008 was $2,244,951. - Gross profit for the three months ended September 30, decreased 19 percent to $2,119,946 as compared to $2,611,500 for the 2008 quarter. The decrease in the 2009 quarter of $491,554 resulted from decreases of $59,062, $48,838, $97,381 and $286,273 from Electronic Document Delivery Services, Government Accounting Solutions, Electronic Content Management, and Integrated Communications, respectively. Gross profit margin for the 2009 and 2008 quarters was 58 percent and 61 percent, respectively. - Gross profit for the nine months ended September 30, increased 8 percent to $7,025,708 as compared to $6,521,256 for the 2008 period. The increase in the 2009 period of $504,452 resulted from an increase of $715,170 from Electronic Content Management (nine months in 2009 compared to two months in 2008), which was offset by decreases of $63,059, $130,703, and $16,956 from Electronic Document Delivery Services, Government Accounting Solutions, and Integrated Communications, respectively. Gross profit margin for the 2009 and 2008 nine month periods was 61 percent and 59 percent, respectively. - During the three months ended September 30, the operating expenses of Corporate, Electronic Document Delivery Services, and Integrated Communications decreased 21 percent, 18 percent, and 3 percent, respectively. Operating expenses of Government Accounting Solutions increased by 16 percent compared to the 2008 quarter. Operating expenses of Electronic Content Management increased 47 percent compared to the 2008 quarter as a result of comparing three months in 2009 compared with two months (from the August 1, date of acquisition) in the 2008 quarter. - On a consolidated basis, operating expenses in the 2009 quarter included $47,191 in compensation expense related to the vesting of stock options, compared to $98,604 in the 2008 quarter. - During the nine months ended September 30, the operating expenses of Corporate, Electronic Document Delivery Services, and Government Accounting Solutions decreased 22 percent, 14 percent, and 1 percent, respectively. Operating expenses of Integrated Communications increased 5 percent. Electronic Content Management incurred $1,527,721 of operating expenses which are not comparable to the 2008 period because of the date of acquisition. - On a consolidated basis, operating expenses in the 2009 period included $154,250 in compensation expense related to the vesting of stock options, compared to $221,016 in the 2008 period. - Net loss for the quarter ended September 30, 2009 was $281,157, compared to a net income of $318,800, for the quarter ended September 30, 2008. Basic and diluted loss per share for the quarter ended September 30 was $0.00 and $0.00 per share, respectively, based on weighted average shares of 193,046,613 and 193,046,613, respectively. Basic and diluted net income per share for the quarter ended September 30, 2008 was $0.00 and $0.00 per share, respectively, based on weighted average shares of 167,118,739 and 201,883,203, respectively. - Net loss for the nine months ended September 30, 2009 was $733,931, compared to a net loss of $332,700, for the nine months ended September 30, 2008. Basic and diluted loss per share for the nine months ended September 30, 2009 and 2008 was $0.00 in each of the respective periods on weighted average shares of 188,460,464 and 157,606,078, respectively. - Adjusted earnings for the third quarter of 2009 decreased to $68,654 from $586,530 for the 2008 quarter. Adjusted earnings for the nine months ended September 30 decreased to $479,187 from $712,207 for the 2008 period. VillageEDOCS (VEDO) provides the MessageVision Platform (MVP). The MessageVision Platform is a SaaS offering that ships business information electronically and manages it by capturing, forming and delivering information using business process management and communication. ((Comments on this story may be sent to [email protected])) [ Back To TMCnet.com's Homepage ]