OPTK Optika Inc. (MM)

Optika Inc. Announces 29 Percent Year-Over-Year Revenue Growth for Q1 2004 License Revenue Increases 52 Percent Over Q1 2003; Strong ECM Market Momentum Drives Expanded Customer and Reseller Base COLORADO SPRINGS, Colo., April 7 /PRNewswire-FirstCall/ -- Optika(R) Inc. , a leading Enterprise Content Management (ECM) provider of imaging, workflow, collaboration and records management software, today reported financial results for its first quarter of fiscal 2004, ended March 31,2004. Revenue for the first quarter was $5.6 million, an increase of 29 percent from the $4.3 million reported in the first quarter of 2003, and up 1 percent from the $5.6 million reported in the fourth quarter of 2003. Net loss for the first quarterwas $79,000, or a basic net loss of $0.01 per share. This compares with a net loss of $558,000, or a basic net loss of $0.07 per share in first quarter of 2003, and net income of $279,000, or basic net income of $0.03 per share in the fourth quarter of2003. First quarter 2004 net loss includes charges of $417,000 associated with the proposed merger with Stellent Inc. Excluding these merger-related charges, first quarter non-GAAP net income was $338,000, or basic net income of $0.04 per share. The company generated approximately $350,000 of cash during the first quarter of 2004. "Our license revenue growth of 52 percent year-over-year is a testament to our focus on delivering solutions that tightly integrate with leading ERP systems," said Mark K. Ruport, president, CEO and chairman of Optika. "Our commitment to increasing sales coverage and providing high-quality software products that deliver measurable ROI, combined with the rising momentum of the enterprise content management market, placesOptika in a unique position to take advantage of the growth opportunities in front of us." In the first quarter of 2004, many new and existing customers purchased Acorde(TM) software, including Ingenix, Inc., Granite Construction Incorporated, VerizonWireless, Badger Mutual Insurance, City of Seattle, and Louisville Gas & Electric. In addition, a number of Optika customers purchased Acorde Records Management(TM), including Entergy-Koch and Southern LINC. Optika also continued to grow its reseller program, and added several new Advantage Partners in the first quarter, including Aston Business Solutions (Ann Arbor, Mich.), ePartners, Inc. (Dallas), American MicroImaging (Los Angeles), Idea Integration (Jacksonville, Fla.), Imaging Solutions Company (Wichita, Kan.), and DigiTec Companies (Houston). These partners contribute to the strategic focus of Optika in leveraging financial systems. For example, Aston Business Solutions is the Microsoft Global Partner of The Year for 2003. Idea Integrationis a Microsoft Certified Partner, a PeopleSoft Consulting Partner, an Oracle Certified Partner, a SAP Services Partner, and an expert in Geographic Information Systems (GIS). Merger Agreement with Stellent Inc. On Jan. 12, 2004 the company announced it entered into a definitive merger agreement with Stellent, Inc. (NASDAQ:STEL). As previously announced, the transaction is expected to close in the second quarter. "Awareness of Optika and our solutions in the marketplace has increased after the announced proposed merger with Stellent, resulting in greater demand for Optika's products with existing and potential customers in the first quarter," said Mr. Ruport. "We expect the combined company will realize revenue and expense synergies, deliveringaccelerated growth and profitability, which we believe will result in increased shareholder value." Optika Outlook "Over the last year we have increased our license revenue while also generating a substantial amount of cash from operations," said Steven M. Johnson, chief financial officer of Optika. "We have created a solid foundation for our business, and we expect to continue to grow revenue and maintain profitability in the second quarter." Conference Call Optika management will hold a conference call to discuss the company's first quarter financial results on April 8 at 9:00 a.m. Eastern Time. To access the conference call, dial 973-582-2767 by 8:50 a.m. Eastern Time. A replay of the conference call will be available until April 22. To access the recording, dial 973-341-3080, passcode: 4651054. A live webcast of the conference call will also be available via the investor relations section of the company's Web site at http://www.optika.com/. About Optika Headquartered in Colorado Springs, Colo., Optika Inc. is a leading provider of imaging, workflow, collaboration and records management software. Optika's Acorde(TM) family of Enterprise Content Management (ECM) solutions allows companies to streamline their business processes, eliminate paper and increase operational efficiencies. The company's more than 2,000 customers worldwide include The Home Depot, Merrill Lynch, Georgia-Pacific, Bayer Corporation, Turner Broadcasting Systems, Airborne Express, and SBC Communications. For more information about Optika and the Acorde product family, contact the company at 719-548-9800 or visit http://www.optika.com/. NON-GAAP FINANCIAL MEASUREMENTS The non-GAAP net income and basic net income per share amounts supplement the corresponding financial measurement computed in accordance with generally accepted accounting principles (GAAP) and excludes merger related costs. The Company has provided this non-GAAP financial measure to assist investors to better understand the Company's core operating performance and to enhance comparisons of its core operating performance with historical periods and the operating performance of its competitors. Items excluded from non-GAAP financial measurements are also excluded by management in its evaluationof the core operating performance of the Company and in its evaluation of trends between fiscal periods. In addition, the Company prepares and maintains all budgets and forecasts of future periods on a basis consistent with this non-GAAP financial measurement. Investors should consider non-GAAP measures in addition to, and not as a substitute for, or as superior to, measures of financial performance prepared in accordance with GAAP. CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This document contains forward-looking statements that are subject to risks, uncertainties and other factors that could be deemed forward-looking statements and could cause actual results to differ materially from those referred to in the forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. For example, statements of expected synergies, industry ranking, timing of closing, market or customer needs, organizational structure and execution of integration plans are all forward-looking statements. Risks, uncertainties and assumptions include the possibility that the Stellent/Optika merger does not close or that the companies may be required to modify aspects of the transaction to achieve regulatory approval or that prior to the closing of the proposed merger, the businesses of the companies suffer due to uncertainty; the market for the sale of certain products and services may not develop as expected; that development of these products and services may not proceed as planned; that Optika and Stellent are unable to transition customers, successfully execute their integration strategies, or achieve planned synergies; lack of market acceptance of the Stellent and Optika suite of products, failure of the market for enterprise content management software to develop and grow as quickly as expected; delays and difficulties in introducing new products and enhancements to address the needs of specific vertical markets; the introduction of new products or services by competitors that could delay or reduce sales; the failure of reseller and OEM programs to develop as expected; the impact of world and geopolitical events on sales cycles and transaction closure rates; and actual or perceived declining economic conditions that could negatively affect sales and profits; other risks that are described from time to time in Stellent and Optika's Securities and Exchange Commission reports. If any of these risks or uncertaintiesmaterializes or any of these assumptions proves incorrect, Stellent and Optika's results could differ materially from either company's expectations in these statements. All forward-looking statements in this press release are made as of the date hereof, based on information available to Optika as of the date hereof, and Optika assumes no obligation to update or revise any of its forward-looking statements even if experience or future changes show that the indicated results or events will not be realized. ADDITIONAL INFORMATION AND WHERE TO FIND IT In connection with the proposed merger, Stellent (NASDAQ:STEL)and Optika have filed a joint proxy statement/prospectus with the Securities and Exchange Commission. INVESTORS AND SECURITY HOLDERS OF STELLENT AND OPTIKA ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT MATERIALS BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT STELLENT, OPTIKA AND THE PROPOSED MERGER. Investors and security holders may obtain without charge copies of the joint proxy statement/prospectus and other relevant materials, and any other documents filed by Stellent or Optika with the Securities and Exchange Commission at the SEC's web site at http://www.sec.gov/ . A free copy of the joint proxy statement/prospectus and other relevant materials, and any other documents filed by Stellent or Optika with the SEC, may also be obtained from Stellent and Optika. In addition, investors and security holders may access copies of the documents filed with theSEC by Stellent on Stellent's website at http://www.stellent.com/. Investors and security holders may obtain copies of the documents filed with the SEC by Optika on Optika's website at http://www.optika.com/. INFORMATION CONCERNING PARTICIPANTS Eachof Stellent and Optika and their respective officers and directors may be deemed to be participants in the solicitation of proxies from their respective stockholders in favor of the transaction. Information about the directors and executive officers of Stellent may be found in Stellent's definitive proxy statement for its 2003 annual meeting of shareholders and in Stellent's annual report on Form 10-K for the fiscal year ended March 31, 2003. Information about the directors and officers of Optika may be found in Optika's definitive proxy statement for its 2003 annual meeting of stockholders and in Optika's annual report on Form 10-K for the fiscal year ended December 31, 2003. In addition, information regarding the interests of Optika's officersand directors in the transaction are included in the joint proxy statement/prospectus. Optika Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) Quarter Ended March 31, March 31, 2004 2003 Revenues: Licenses $1,873 $1,231 Maintenance and other 3,749 3,115 Total revenues 5,622 4,346 Cost of revenues: Licenses 170 180 Maintenance and other 1,047 925 Total cost of revenues 1,217 1,105 Gross profit 4,405 3,241 Operating expenses: Sales and marketing 2,384 2,227 Research and development 1,164 1,191 General and administrative 570 399 Merger expenses 417 -- Total operating expenses 4,535 3,817 Loss from operations (130) (576) Other income 5118 Loss before income taxes (79) (558) Income taxes -- -- Net loss $(79) $(558) Basic and diluted loss per common share $(0.01) $(0.07) Weighted average number of common shares outstanding 9,370 8,351 Condensed Consolidated BalanceSheets (Unaudited) (in thousands) March 31, December 31, Assets 2004 2003 Current assets: Cash and cash equivalents $4,283 $3,929 Restricted cash and cash equivalents 100 100 Short-term investments 5,153 5,153 Accounts receivable, net 4,475 4,696 Other current assets 462 523 Total current assets 14,473 14,401 Property and equipment, net 678 683 Intangible assets, net 559 584 Goodwill 1,166 1,166 Other assets 126 221 $17,002 $17,055 Liabilities and stockholders' equity Current liabilities: Accounts payable and accrued expenses $2,288 $2,763 Deferred revenues 6,703 6,358 Total current liabilities 8,991 9,121 Total stockholders' equity 8,011 7,934 $17,002 $17,055 DATASOURCE: Optika Inc. CONTACT: Jim Fanucchi of Summit IR Group Inc., +1-408-404-5400, or , for Optika Inc.; or Betty Wiggins of Optika Inc., +1-719-260-4388, or Web site: http://www.optika.com/

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