VillageEDOCS, Inc., a SaaS document management provider, announced its financial results for the second quarter and six months ended June 30, 2008. Looks like the company demonstrated a solid performance in the first six months of 2008.
Q2 2008 Highlights
* 2% net revenue increase vs. the same period last year to US$ 3,414,808,
* 17% total operating expenses decrease over Q2 2007,
* 67% decrease in consolidated net loss for Q2 2008 to US$ 156,665 vs. $477,075 in the year ago period. VillageEDOCS also did well in the first half of 2008 when it comes to the net borrowings on lines of credit. They were approximately US$ 95,000 compared to approximately US$ 347,000 during the first half of 2007. More money coming in, less money owed -- seems like VillageEDOCS is moving in the right direction in this sluggish economy.
According to Mason Conner, President and CEO of VillageEDOCS, Inc., the company continues to see positive outcomes from cost controls. Areas for improvement include the boost of sales operations to achieve higher margins on products and services.
Business Unit Performance
A significant net income increase in the first half of 2008 was seen at GoSolutions, Inc., a subsidiary of VillageEDOCS. This unit’s net income in the first half of 2008 soared to US$ 473,980 vs. the same time period last year with US$ 169,685 in net revenue. The GSI unit provides enhanced voice and data delivery services.
Another unit, Tailored Business Systems (TBS), showed a significant revenue increase in Q2 due to a 23% sales increase over the prior year period.
The recent acquisition of Questys Solutions increased the company’s client roster to more than 1,400, adding a critical document management component to its product portfolio.
Gross Profit Margin Can Be Better
Gross profit margin in the first six months of 2008 was 58% compared with 63% in the first half of 2007. The decline is attributed to lower sales at the company’s electronic document delivery service segment, resulting from exposure to the financial services market as well as increases in sales of lower margin (mostly, third-party products).
To address this decrease, the company plans to switch from selling third party products to offering its own proprietary services, which historically have been more profitable.