With lackluster growth this year, DocucorpInternational (NASDAQ:DOCC) has had little traction with its stock, which has spun its wheels at between $6 to $8 per share. In the company's latest earnings conference call, CEO Michael D. Andereck saw little change ahead for 2007, giving investors even less to get excited about.

In the fiscal first quarter, the company's revenues increased from $20.8 million to $21.7 million. During this time, net income increased from $546,000, or $0.05 per share, to $765,000, or $0.07 per share. But software license revenues, which generally lead to ongoing maintenance and service revenues, fell from $2.035 million to $1.876 million.

Docucorp develops software to manage the complete lifecycle of a company's customer data, including statements and billings, correspondence automation, and electronic bill presentment. What's more, Docucorp's software is built to deal with many technology platforms, including those from IBM (NYSE:IBM), Microsoft (NASDAQ:MSFT), and even Linux.

Docucorp focuses on four key industries: insurance, utilities, financial services, and health care. A majority of the revenues come from the insurance industry, which must deal with a "paper blizzard" because of its large number of policyholders and the complex regulations. Automation can be a big help for these companies in realizing cost savings.

Docucorp has spent the past year embroiled in a much-needed restructuring of its sales force. Yet it still lacks a vice president of sales, with no indication when one will be hired. This important position needs a permanent leader, especially since Docucorp is trying to get land software license business.

Despite those issues, the stock still looks undervalued, with an approximate price-to-sales ratio of 1. Even the slowest-growing software companies more typically sport a multiple of two times revenues.

Then again, it's easy for small companies like Docucorp to get lost in the market's noise. In light of the industry's renewed merger activity, and the flurry of companies being taken private, it's a fair bet that value players will start to notice this stock sooner or later.

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Fool contributor Tom Taulli does not own shares mentioned in this article. He is currently ranked 113 out of 13,993 in CAPS. The Fool has a very nice disclosure policy.