Optio Software Announces Fourth Quarter and Annual Fiscal 2007 Results

Business Wire,  April 4, 2007  

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Fiscal 2007 Marks Optio's Fourth Consecutive Year of Profitability

ALPHARETTA, Ga. -- Optio([R]) Software (OTCBB:OPTO), a leading provider of software solutions dedicated to automating, managing and improving the entire lifecycle of document-intensive processes, today reported financial results for the fourth quarter and for the fiscal year ended Jan. 31, 2007.

"Fiscal 2007 was a year of transition and product expansion for Optio Software," said Wayne Cape, Optio's chairman, president and chief executive officer. "We have invested much of our time and resources toward the development of new technology that will enable our customers to improve the complete lifecycle of document-intensive processes. In the enterprise division we unveiled our next-generation BPM Solution Suite, ProCentra(TM), and released our new document design and automation solution, Optio Design Center(TM) and Optio Document Server(TM)," said Cape.

"In the Healthcare division, we increased the breadth and scope of our electronic health record (EHR) solution suite with two new QuickRecord([R]) modules, Deficiency Managementand QuickTablet(TM). In addition to new product development, Optio recruited new senior executives to oversee sales and services for both the enterprise and healthcare divisions, which we believe will ultimately result in increased revenues and customer satisfaction in the months and years ahead," explained Cape.

Revenue and Cost of Revenue

Total revenue for the fourth quarter of 2007 declined to $7.5 million from $8.2 million in the prior fiscal year quarter.

Software license revenues declined to $2.0 million in the three months ended Jan. 31, 2007, compared to $3.1 million in the three months ended Jan. 31, 2006.

Optio's subscription licensing contracts contributed $641,000 to fourth-quarter revenues, compared to $588,000 in the prior year's same quarter.

Optio's services and maintenance revenue increased to $4.9 million in the three months ended Jan. 31, 2007, from $4.5 million in the three months ended Jan. 31, 2006.

For the fourth quarter, total cost of revenue increased by 5% to $2.0 million from $1.9 million reported during the same quarter in the prior fiscal year.

Total revenue for fiscal 2007 was $28.7 million, compared to $29.6 million in fiscal 2006.

Total cost of revenue for fiscal 2007 was $7.5 million, up from $7.2 million in the prior fiscal year.

Operating Expenses

Total operating expenses were $5.9 million for the three months ended Jan. 31, 2007, up from $5.7 million in the same quarter of fiscal year 2006. Operating expenses for fiscal 2007 decreased 2% to $21.2 million from $21.7 million in fiscal 2006.

Net Income (Loss)

Net loss for the fourth quarter of fiscal 2007 was $303,000 and diluted earnings per share (EPS) were $(0.01), compared to the net income of $738,000 and diluted EPS of $0.03 in the prior-year's quarter. For fiscal 2007, net income was $282,000, or $0.01 diluted EPS, a decline from net income of $898,000 and diluted EPS of $0.04 in fiscal 2006.

"2007 is Optio's fourth consecutive year of profitability, despite our net loss for this quarter," said Cape. "Optio also realized a decrease in days' sales outstanding, as well as an increase in services and maintenance revenue. We continue to invest additional funds in research and development," added Cape. "We believe these accomplishments reflect our commitment to providing customers with leading-edge technology that reduces costs, while improving the way they do business."

Highlights and Business Metrics

* During the fourth quarter, Optio closed several significant contracts in both the enterprise and healthcare divisions, which include many existing customers. Among them are Avery Dennison Corporation and Resurrection Healthcare. Avery Dennison purchased Optio's newly introduced document design and automation solutions, Design Center and Document Server. Resurrection Healthcare purchased Optio's MedEx([R])Suite. Optio also secured a new contract for its Print Manager solution, which will extend the SAP investment of the world's leading manufacturer of aerospace technology.

* Optio won several subscription contracts during the fourth quarter of fiscal 2007, which will contribute over $900,000 in future subscription revenue.

* The overall financial condition of the company remains strong, with approximately $11.9 million in cash and investments as of Jan. 31, 2007, compared to $8.0 million as of January 31, 2006.

* Optio had no outstanding balance on its line of credit as of Jan. 31, 2007.

* Days' sales outstanding declined to 44 from 46 in the prior fiscal quarter.

About Optio Software, Inc.

Optio Software, with 25 years of experience and more than 5,000 clients, worldwide, provides software solutions dedicated to automating, managing and controlling the entire lifecycle of document-intensive processes, while extending the value of their Enterprise Resource Planning (ERP) and Hospital Information Systems (HIS) applications. More than 5,000 organizations rely on Optio Software for innovative business process improvement solutions that allow them to reduce transactional activities and focus on core responsibilities. Headquartered in Alpharetta, Ga., Optio Software maintains European, Middle Eastern and African headquarters in Paris, France and sales offices in the United States, Germany, the United Kingdom and the Netherlands. For more information about Optio Software or to contact a local Optio sales consultant, reach us at 770.576.3500 or visit our website at www.optio.com.