PC DOCS revenues, marketshare jump despite distractions
Despite management turnover and Open Text's unsolicited merger bid, PC DOCS (Nasdaq: DOCSF) managed 50% gains in revenue and profits in Q2 '99.
More distractions loom, however, as another unsolicited offer has been launched by Australian accounting software developer Solution 6.
PC DOCS Q2 '99 revenue represents a 52% increase over Q2 '98 revenue. Net income of $1.4 million compares with $977,000 in Q2 '98.
During the quarter PC DOCS was named a leader in the worldwide business process-centric EDM software market according to a new IDC report.
PC DOCS also released new technologies to be incorporated in future versions of DOCSFulcrum, including software to index and categorize information, and an application for creating and managing libraries of legal precedents.
New in Q2 '98 are cost-cutting measures that should save the company about $10 million over the next 12 months, according to PC DOCS Group CEO Ruben Osten.
The company has also invested heavily in R&D expected to result in several new products by the end of June, added Osten.
Neither a recently rejected "merger" bid from KM platform vendor Open Text nor a top-level management shuffle significantly impacted Q2 business, as PC DOCS signed blue-chip customers GTE Corp, Westpac Banking Corp., Mississippi Chemical Corporation and NATO Headquarters.
Soon after dispatching Open Text's unsolicited bid, a new one has surfaced from Australian accounting software provider Solution 6.
PC DOCS, which was preparing to acquire Solution 6, recently broke off negotiations. Solution 6 subsequently launched the counter-proposal.
While both technologies (workgroup document management vs. HR/backoffice functions) and markets served (PC DOCS is mainly US-based, Solution 6 is mostly international) appear complementary, it is expected PC DOCS will reject the offer due to its nature.