COMTEX Second Quarter Fiscal 2001; Revenues Grow 49%; COMTEX Announces 19th Consecutive Profitable Quarter.Business Editors ALEXANDRIA, Va.--(BUSINESS WIRE)--Feb. 13, 2001 COMTEX News Network, Inc., (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB:CMTX CMTX Charcot-Marie-Tooth Disease, X-Linked ) today announced that for the second quarter of fiscal 2001 ended December 31, 2000, revenues increased 49% to $4.3 million, over the second quarter of fiscal 2000. During this six month period, COMTEX's total revenues were approximately $8.5 million, a 60% increase over the first six months of fiscal 2000. "The success of our new business efforts continue to position us well for the future as a significant portion of new accounts become long-term, ongoing customers with an annuity-like revenue stream," said Charles Terry, COMTEX President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "During the quarter, we added approximately $600,000 in revenue from new business. We have made significant inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ in the financial sector and now provide content solutions to more than 50% of the top online brokerages. We also continue to experience growth in the European and PacRim markets. COMTEX has chosen to maintain growth, increase revenues and remain profitable." Terry added. "Over the long-term, we will also benefit from the positive shift we are experiencing toward larger, more stable clients. The current financial environment has benefited COMTEX as established businesses realize the attractiveness of our price/value proposition and choose our complete, cost effective solutions instead of less cost efficient single source solutions. During the quarter, our number of significant accounts grew and we have realized a 59% increase in the number of these accounts from last year. While our quarterly sequential growth rate and profitability levels were reduced due to the loss of smaller, less established clients, we believe we have weathered the storm of 'dot bombs,'" Terry concluded.
Operating Highlights
COMTEX NEWS NETWORK, INC.
STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED
DECEMBER 31, 2000 AND 1999
(UNAUDITED)
Three months ended Six months ended
December 31, December 31,
2000 1999 2000 1999
----------- ----------- ----------- -----------
Revenues $ 4,324,648 $ 2,900,551 $ 8,485,745 $ 5,309,445
Operating
Income 114,825 285,965 601,763 590,444
Net Income $ 112,388 265,590 600,179 542,453
=========== =========== =========== ===========
Basic Earnings
Per Common
Share $ .01 $ .03 $ .06 $ .07
=========== =========== =========== ===========
Weighted
Average Number
of Common
Shares 9,982,881 8,457,025 9,975,516 8,291,063
=========== =========== =========== ===========
Diluted
Earnings Per
Common Share $ .01 $ .02 $ .04 $ .04
=========== =========== =========== ===========
Weighted
Average Number
of Shares
Assuming
Dilution 13,506,070 12,329,142 13,693,579 12,214,684
=========== =========== =========== ===========
New Accounts COMTEX signed 61 new accounts in the quarter ended December 31, 2000, with an increase of 29% in new account revenue from the second quarter of fiscal 2000. New accounts include AB Watley, Clearforest, Porter Novelli Porter Novelli International is a leading, global PR and lobbying firm. It is part of the Omnicom Group of advertising and marketing companies, the world's largest advertising conglomerate. The following article on Porter Novelli was obtained from "Sourcewatch. , and Epson. New Content Acquisitions COMTEX content acquisition increased 25%. COMTEX acquired content from new sources in the second quarter, including ABIX ABIX Air-Britain Information Exchange (UK-based aviation historical society members information website) , AFX AFX atypical fibroxanthoma. , ChinaOnline, Christian Science Christian Science, religion founded upon principles of divine healing and laws expressed in the acts and sayings of Jesus, as discovered and set forth by Mary Baker Eddy and practiced by the Church of Christ, Scientist. Monitor, Datamonitor, Globalnet Financial, Hugin AS, Inman, Midnight Trader, PR Europe, The Deal and Vickers. COMTEX publishing partners are the elite in the content industry. COMTEX strategically targets specific content providers that enhance the core product set. Financial Review During the three months ended December 31, 2000, COMTEX' total revenues increased 49% to $4.3 million, from $2.9 million in the second quarter of last year. The Company earned net income of approximately $112,000 during the three months ended December 31, 2000, compared to a net income of approximately $266,000 for the three months ended December 31, 1999. The Company earned net income of approximately $600,000 during the six months ended December 31, 2000 compared to net income of $542,000 during the six months ended December 31, 1999. The Company's gross margin grew to 73% compared with 68% in the second quarter of the last fiscal year. Gross margin improvements reflect the decrease in data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. costs resulting from the continued implementation of a more cost effective and efficient delivery method for the Company's products. Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were $3.1 million compared to $1.7 million for the three months ended December 31, 1999. The increase in operating expenses is generally due to investments in personnel, operations and infrastructure which can be linked directly to increased levels of new business. In the second quarter the Company proactively recognized reserves for potential write-offs in small Internet accounts. The company believes that it currently maintains careful control over its accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and that reserves taken are sufficient. EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become consists of earnings before interest expense, interest and other income, income taxes and depreciation and amortization. EBITDA for the second quarter was $296,000 as compared to $321,000 in the second quarter of the previous year. EBITDA for the six month period ended December 31, 2000 was $916,000 as compared to $655,000 in the same six months of the previous year. About COMTEX News Network, Inc. COMTEX News Network, Inc. (OTC BB:CMTX), a full service, business-to-business infomediary (INFOrmation interMEDIARY) An information provider that gathers content from several sources and functions as a data aggregator for a target audience. , aggregates and redistributes diverse, real-time global news and information to resellers in the Internet, Wall Street and corporate markets. COMTEX' innovative technology gathers nearly 20,000 stories a day from over 10,000 diverse, global sources to create its subject-specific, value-added headline and vertical-market news products for distribution to over 1100 information services See Information Systems. and re-distributors throughout the world, reaching millions of end users. COMTEX' products include CustomWires(R), Newsroom Enhanced Products and News Solutions. COMTEX also offers Publisher Full-Feeds and Processing Services. Select publishers include AllAfrica, Inc., The Associated Press Associated Press: see news agency. Associated Press (AP) Cooperative news agency, the oldest and largest in the U.S. and long the largest in the world. , Business Wire, Bridge Information Systems, Knight Ridder/Tribune, Newsbytes, ON24, PR Newswire  This article or section is written like an .Please help [ rewrite this article] from a neutral point of view. Mark blatant advertising for , using . , South American Business Information, The Sports Network, UPI UPI abbr. United Press International and Xinhua. Located in Alexandria, VA, COMTEX can be found on the World Wide Web at http://www.comtexnews.net. |
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