Home | Business News | Browse by Publication | B | Business Wire

Scan-Optics Announces Fourth Quarter and Year End Profit, Debt Restructuring and Restatement of 2002 Financial Statements.

Article Excerpt
Business Editors/High-Tech Writers

MANCHESTER, Conn.--(BUSINESS WIRE)--March 30, 2004

Scan-Optics, Inc. (OTCBB: SOCR), a leader in information capture and customer service solutions for government, insurance, order fulfillment, proxy, health claims, test scoring and other paper-intensive businesses, today announced financial results for the fourth quarter and year ended December 31, 2003, restatement of 2002 financial results and a restructuring of its secured debt.

For the fourth quarter ended December 31, 2003, total revenues were $8.5 million, compared to $6.4 million in the fourth quarter of 2002. The Company reported net income for the quarter of $.6 million or $.07 per diluted share, compared to net income of $.2 million, or $.03 per diluted share, for the same period in 2002. Total revenues for the year were $32.1 million, compared to $29.3 million for 2002. The Company reported net income for the year of $1 million or $.13 per diluted share, compared to $.9 million, or $.13 per diluted share, for 2002. During the fourth quarter of 2003, the Company determined that $.2 million previously recorded as liabilities were no longer due or have been settled for amounts less than previously recorded which resulted in an increase in net income. The Company also reported an income tax benefit of $.2 million in the fourth quarter of 2003 due to the reduction of potential tax exposures associated with certain state and foreign exposure items.

The 2002 consolidated financial statements have been restated to reflect a change in the application of generally accepted accounting principles relating to the reduction of certain liabilities to which the Company is no longer obligated, which increased 2002 net income by $.1 million or $.02 per diluted share,...