Document Security Systems Inc (DMC, Financial) filed Quarterly Report for the period ended 2011-06-30.
Document Security Systems Inc. has a market cap of $70.08 million; its shares were traded at around $3.6 with and P/S ratio of 5.24.
For the three months ended June 30, 2011, revenue was $2.9 million which was 14% lower than revenue for the three months ended June 30, 2010. Printing declined 33% which was primarily the result of a 40% decline in sales at the Company s commercial printing division driven by the loss of a large commercial print customer in the second half of 2010 along with a strategic reduction in the level of low profit margin commercial print that the Company has determined does not fit it long-term business model. The Company s packaging revenue declined 11% in the second quarter of 2011 as compared to the second quarter of 2010 due to the timing of orders from certain of the packaging division's largest customers, which the Company believes will be placed by these customers in the third and fourth quarters of 2011. The Company s plastics revenue declined 3% in the second quarter of 2011 as compared to the second quarter of 2010, but were within the expected range of sales for the plastic division. The Company s technology license and digital solutions sales reflect approximately $95,000 in sales from the Company s acquisition of ExtraDev on May 12, 2011.
For the six months ended June 30, 2011, revenue was $5.6 million which was 9% lower than revenue for the six months ended June 30, 2010. Security and commercial printing declined 38% which was primarily the result of a 59% decline in sales at the Company s commercial printing division, driven by the general decline in the Company s commercial printing business that began in the second half of 2010 caused by the loss of a large direct mail customer along with a strategic reduction in the level of low profit margin commercial print that the Company has determined does not fit it long-term business model. The Company s packaging revenue increased 7% in the first half of 2011 as compared to the first half of 2010 due to the fact that the Company acquired its packaging division in February 2010. The Company s plastics revenue increased 6% in the first half of 2011 as compared to the first half of 2010 due to general strength in sales of higher priced cards such as RFID cards and secure driver s licenses. The Company s technology licensing and digital solutions sales reflect approximately $95,000 in sales from the Company s acquisition of ExtraDev on May 12, 2011 and a 22% increase in revenue from technology licenses during the first half of 2011 as compared to 2010.
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Document Security Systems Inc. has a market cap of $70.08 million; its shares were traded at around $3.6 with and P/S ratio of 5.24.
Highlight of Business Operations:
In December 2004, the Company entered into an agreement with the Wicker Family in which Document Security Systems obtained the legal ownership of technology (including patent ownership rights) previously held by the Wicker Family. At that time, the agreement with the Wicker Family provided that the Company would retain 70% of the future economic benefit derived from settlements, licenses or subsequent business arrangements from any infringer of the Wicker patents that Document Security Systems chooses to pursue. The Wicker Family was to receive the remaining 30% of such economic benefit. In February 2005, the Company further consolidated its ownership of the Wicker Family based patents and its rights to the economic benefit of infringement settlements when the Company purchased economic interests and legal ownership from approximately 45 persons and entities that had purchased various rights in Wicker Family technologies over several decades.For the three months ended June 30, 2011, revenue was $2.9 million which was 14% lower than revenue for the three months ended June 30, 2010. Printing declined 33% which was primarily the result of a 40% decline in sales at the Company s commercial printing division driven by the loss of a large commercial print customer in the second half of 2010 along with a strategic reduction in the level of low profit margin commercial print that the Company has determined does not fit it long-term business model. The Company s packaging revenue declined 11% in the second quarter of 2011 as compared to the second quarter of 2010 due to the timing of orders from certain of the packaging division's largest customers, which the Company believes will be placed by these customers in the third and fourth quarters of 2011. The Company s plastics revenue declined 3% in the second quarter of 2011 as compared to the second quarter of 2010, but were within the expected range of sales for the plastic division. The Company s technology license and digital solutions sales reflect approximately $95,000 in sales from the Company s acquisition of ExtraDev on May 12, 2011.
For the six months ended June 30, 2011, revenue was $5.6 million which was 9% lower than revenue for the six months ended June 30, 2010. Security and commercial printing declined 38% which was primarily the result of a 59% decline in sales at the Company s commercial printing division, driven by the general decline in the Company s commercial printing business that began in the second half of 2010 caused by the loss of a large direct mail customer along with a strategic reduction in the level of low profit margin commercial print that the Company has determined does not fit it long-term business model. The Company s packaging revenue increased 7% in the first half of 2011 as compared to the first half of 2010 due to the fact that the Company acquired its packaging division in February 2010. The Company s plastics revenue increased 6% in the first half of 2011 as compared to the first half of 2010 due to general strength in sales of higher priced cards such as RFID cards and secure driver s licenses. The Company s technology licensing and digital solutions sales reflect approximately $95,000 in sales from the Company s acquisition of ExtraDev on May 12, 2011 and a 22% increase in revenue from technology licenses during the first half of 2011 as compared to 2010.
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