Daily Journal Stock Price, News & Analysis

Daily Journal Corporation (NASDAQ: DJCO) is a publishing and technology company in the Information sector. According to its public disclosures, Daily Journal Corporation publishes newspapers and web sites covering California and Arizona and produces several specialized information services. Through its subsidiary Journal Technologies, Inc., the company also develops and supplies case management software systems and related products to courts and other justice agencies.

The company reports two primary business segments. The Traditional Business segment encompasses its newspaper publishing, public notice advertising and related advertising services, circulation, and specialized information services. The company has stated that it serves as a newspaper representative specializing in public notice advertising, and that a significant portion of its revenue is generated from this Traditional segment. The Journal Technologies segment includes Journal Technologies, Inc. and Journal Technologies (Canada) Inc., which focus on software and technology offerings for courts and government justice agencies.

Business Segments and Activities

Daily Journal Corporation’s Traditional Business segment publishes newspapers and websites that cover legal, public affairs and other topics in California and Arizona. It also produces specialized information services and earns revenue from advertising and circulation, as well as advertising service fees and other related revenues, as described in its earnings releases. This segment has reported pretax income driven by advertising revenues and circulation, with results affected by factors such as personnel costs, merchant discount fees, promotional expenses, postage, and press repairs and maintenance.

The Journal Technologies segment supplies case management software systems and related products to courts and other justice agencies. Company disclosures describe revenues in this segment from license and maintenance fees, consulting fees, and other public service fees. These activities include work on installation projects for clients, with operating expenses influenced by personnel costs, contractor services, product development, efforts to address technical debt, and third-party hosting fees that are billed to clients.

Technology Focus and Customer Base

In its SEC filings, the company explains that its software products are developed for external use and are licensed to customers, which it describes as almost entirely courts and government agencies. Customers typically arrange for their own hosting based on security and operational needs. Journal Technologies’ offerings include eSeries products and related enhancements, and the company has discussed its approach to software development and accounting under ASC 985-20, Costs of Software to be Sold, Leased or Marketed, emphasizing an agile development methodology.

Daily Journal Corporation has highlighted that Journal Technologies’ growth has come from consulting fees, other public service fees, and recurring license and maintenance revenues. The company has also reported that Journal Technologies expanded its client base by securing multi-year contracts with courts and government agencies, underscoring its focus on long-term relationships in the courts and justice agency sector.

Financial Characteristics and Marketable Securities

In addition to its operating segments, Daily Journal Corporation holds a portfolio of marketable securities. Its earnings releases describe non-operating income that includes realized and unrealized gains on marketable securities, as well as dividends and interest income. The company has reported significant unrealized gains and has noted that it accrues deferred tax liabilities for estimated income taxes that would be due upon the sale of appreciated securities. Proceeds from sales of marketable securities have been used, among other things, to pay down a margin loan balance.

Company communications distinguish between operating income from the Traditional Business and Journal Technologies segments and non-operating income derived from the securities portfolio. Consolidated pretax income and net income therefore reflect both the performance of the publishing and technology operations and the impact of gains and losses on marketable securities.

Accounting Approach and Governance

Daily Journal Corporation has publicly addressed its accounting for software development costs in response to correspondence from Buxton Helmsley USA, Inc. In an 8-K filing and related press releases, the company stated that it has been expensing software development costs for its externally licensed software in accordance with ASC 985-20 and that, after review by its Audit Committee, accountants, and third-party experts, it believes this approach is correct. The company has contrasted its accounting treatment with that of companies capitalizing internal use software under ASC 350-40, noting that its products are largely licensed to courts and government agencies that receive the software and arrange hosting themselves.

The company has also disclosed that it will capitalize development costs when appropriate under applicable accounting standards and will separately disclose material research and development costs. Its public statements emphasize adherence to accounting guidance, audit reviews by national accounting firms, and the role of the Audit Committee in overseeing these matters.

Corporate Structure and Exchange Listing

Daily Journal Corporation is incorporated in South Carolina, as reflected in its SEC filings. The company’s common stock trades on the Nasdaq under the ticker symbol DJCO. Journal Technologies, Inc. and Journal Technologies (Canada) Inc. operate as subsidiaries within the Journal Technologies segment, focusing on software and technology services for justice-related government entities.

Company disclosures also mention initiatives to modernize accounting systems and improve internal controls, including the appointment of a new Chief Financial Officer and Principal Financial Officer for the corporation. These steps are described as part of building the finance team and systems needed for the future.

Role in the Information and Justice Sectors

Through its combination of publishing and technology operations, Daily Journal Corporation occupies a position at the intersection of newspaper publishing, legal information services, and justice system technology. Its Traditional Business provides newspapers, websites, and specialized information services in California and Arizona, while its Journal Technologies segment delivers case management software and related products to courts and justice agencies. The company’s public communications highlight efforts to expand digital publishing, optimize workflows, and develop technology solutions tailored to the needs of courts and government agencies.

Frequently Asked Questions about Daily Journal Corporation (DJCO)

• What does Daily Journal Corporation do?
  

  Daily Journal Corporation publishes newspapers and web sites covering California and Arizona and produces several specialized information services. Through Journal Technologies, Inc., it also supplies case management software systems and related products to courts and other justice agencies.

• What are the main business segments of Daily Journal Corporation?
  

  The company reports two primary segments: the Traditional Business, which includes newspaper publishing, public notice advertising, advertising services, circulation and specialized information services; and Journal Technologies, which includes Journal Technologies, Inc. and Journal Technologies (Canada) Inc., focused on case management software systems and related products for courts and justice agencies.

• How does the Traditional Business generate revenue?
  

  According to the company’s earnings releases, the Traditional Business generates revenue from advertising and circulation as well as advertising service fees and other revenues. It also acts as a newspaper representative specializing in public notice advertising.

• How does Journal Technologies generate revenue?
  

  Journal Technologies’ revenues, as described in company disclosures, come from license and maintenance fees, consulting fees, and other public service fees related to its case management software systems and related products for courts and other justice agencies.

• Who are the primary customers of Journal Technologies?
  

  The company states that the vast majority of its software is licensed to customers that are almost entirely courts and government agencies, which receive the software and typically arrange for hosting based on their own security and operational needs.

• On which exchange is DJCO stock traded?
  

  Daily Journal Corporation’s common stock trades on the Nasdaq under the ticker symbol DJCO, as indicated in its press releases and SEC filings.

• How does Daily Journal Corporation account for software development costs?
  

  In its 8-K and related press releases, the company explains that it accounts for software development costs for its externally licensed software under ASC 985-20 and has been expensing these costs. The Audit Committee, accountants, and third-party experts have reviewed this approach and agreed that it is appropriate. The company has stated that it will capitalize such costs if and when they meet the criteria under applicable accounting standards.

• What role do marketable securities play in Daily Journal Corporation’s results?
  

  The company reports a portfolio of marketable securities that contributes to non-operating income through realized and unrealized gains, as well as dividends and interest income. It also records deferred tax liabilities related to unrealized gains and has used proceeds from securities sales to pay down a margin loan, as described in its earnings releases.

• Does Daily Journal Corporation have international operations?
  

  Company disclosures reference Journal Technologies (Canada) Inc. within the Journal Technologies segment and mention income from foreign operations in their tax disclosures, indicating activity outside the United States associated with that subsidiary.

• What sector and industry is Daily Journal Corporation classified in?
  

  Daily Journal Corporation is classified in the Information sector, with an industry designation of Newspaper Publishers, reflecting its publishing activities alongside its technology operations.