Wednesday, August 29, 2007
Dicom-ReadSoft report results
A couple of European-based capture specialists recently reported their results of the period ending June 30. For ReadSoft, the period represents the first half of 2007; For Dicom, it's a year-end report for fiscal 2007. ReadSoft reported a strong second quarter with 11% growth, leading to 9% growth through the first six months of 2007. Dicom, meanwhile, reported a flat 12 months of sales, with a slight increase in profitability. Interestingly, although Dicom's Kofax subsidiary is often recognized as the capture market leader, ReadSoft's "transactional-based" processing applications are where Dicom wants to go. Also, it's probably worth noting that ReadSoft does its busienss primarily in Europe, where the Euro is now much stronger than it was against the dollar a couple years ago, while Kofax still does the majority of its business in the U.S. So, a combination of that and the devaluation of the batch capture applicaitons where Kofax reigns sumpreme has hurt its business. Interestingly, maybe because expecations were set low enough, Dicom's stock doesn't seem to have been negatively affected by the year-end financial announcement.