Comtex Reports 4th Quarter and Fiscal Year 2004 Financial Results.ALEXANDRIA, Va. -- 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 ), a leading wholesaler of electronic real-time news and content, today announced financial results for the fourth quarter and fiscal year ended June 30, 2004. For the quarter ended June 30, 2004, Comtex's revenues were $2 million compared to $2.1 million for the last quarter of fiscal 2003. The Company reported net income of approximately $143,000, or $0.01 per share, for the fourth quarter of 2004, versus last year's fourth quarter net loss of $1.1 million, or an $(0.08) loss per share. Revenues were $8.2 million for fiscal 2004, down from $9.3 million for the fiscal year ended June 30, 2003. For the year ended June 30, 2004, the Company had an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1.1 million and a net loss of $1.2 million, or a $(0.09) loss per share, versus an operating loss of $1.2 million and a net loss of $1.3 million, or a $(0.10) loss per share, for the previous fiscal year. The decline in revenues and related gross profit are the direct result of business closures and consolidation among clients, primarily in the Internet and personal investor markets, which were offset by a decrease in 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. of approximately $900,000. For the fourth quarter of fiscal 2004, 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 (as defined and explained in the accompanying note to the table below) increased to $362,000 from negative $(287,000) in the fourth quarter of the prior year. The increase was primarily due to decreased operating and depreciation expenses, and the effect of an impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. charge in the same period of the prior year. For fiscal 2004, EBITDA decreased to a negative $(153,000) from $504,000 for the previous fiscal year. This decrease was primarily the result of a reduction in depreciation and amortization expenses; charges related to the termination of a former lease and the related loss on disposal of assets; an increase in stock-based compensation; and the effect of an impairment charge in the prior year. "Comtex continues to be a leading provider of economically useful news and information," said C.W. Gilluly, Comtex's Chairman and interim 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. . "The new Comtex management team is committed to enhancing our product line, developing and introducing new, exciting products and finding ways to expand our position in the market for actionable Giving sufficient legal grounds for a lawsuit; giving rise to a Cause of Action. An act, event, or occurrence is said to be actionable when there are legal grounds for basing a lawsuit on it. news and information." About Comtex Comtex is a leading wholesaler of real-time news and related content for the world's leading financial and business information distributors. With a specialization A career option pursued by some attorneys that entails the acquisition of detailed knowledge of, and proficiency in, a particular area of law. As the law in the United States becomes increasingly complex and covers a greater number of subjects, more and more attorneys are in the financial news and content marketplace, Comtex receives, enhances, combines, filters and distributes news and content received from more than 10,000 national and international news bureaus, agencies and publications. The resulting news and content products - with embedded Inserted into. See embedded system. stock tickers Stock ticker A letter designation assigned to securities and mutual funds that trade on US financial exchanges. , key words, standardized standardized pertaining to data that have been submitted to standardization procedures. standardized morbidity rate see morbidity rate. standardized mortality rate see mortality rate. metadata, uniform formatting and custom filters - are all designed to meet the exacting standards required by investment professionals. Comtex has offices in Alexandria, Virginia Alexandria is an independent city in the Commonwealth of Virginia. As of the 2000 census, the city had a total population of 128,284. Located along the Western bank of the Potomac River, Alexandria is approximately 6 miles (9.6 kilometers) south of downtown Washington, DC. and New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. . Please Note: Except for the historical information contained herein, this press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 21E of the Securities and Exchange Act of 1934, as amended, that involve a number of risks and uncertainties. These forward-looking statements may be identified by reference to a future period by use of forward-looking terminology such as "anticipate," "expect," "could," "intend," "may" and other words of a similar nature. These statements involve risks and uncertainties that could cause actual results to differ materially from those contemplated herein, including the occurrence of unanticipated events or circumstances relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the fact that Comtex is in a highly competitive industry subject to rapid technological, product and price changes. Other factors include the possibility that demand for the Company's products may not occur or continue at sufficient levels, changing global economic and competitive conditions, technological risks and other risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Comtex undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. FINANCIAL TABLE FOLLOWS
Comtex News Network, Inc.
Selected Financial Data
(amounts in thousands, except per share amounts)
Years Ended Quarters
June 30 Ended June 30
----------------- -----------------
(audited) (unaudited)
----------------- -----------------
2004 2003 2004 2003
-------- -------- ------- ---------
Revenues $ 8,165 $ 9,268 $2,016 $ 2,119
Operating Income (Loss) (1,085) (1,211) 178 (1,089)
Net Income (Loss) $(1,212) $(1,337) $ 143 $(1,117)
----------------- -----------------
Net Income (Loss) Per Share
Basic $ (0.09) $ (0.10) $ 0.01 $ (0.08)
----------------- -----------------
Diluted $ (0.09) $ (0.10) $ 0.01 $ (0.08)
Weighted Avg. # Shares:
Basic 13,564 13,184 13,588 13,227
----------------- -----------------
Diluted 13,564 13,184 14,696 13,227
Reconciliation to EBITDA:
Net Income (Loss) $(1,212) $(1,337) $ 143 $(1,117)
Stock-based compensation 68 2 - -
Depreciation & Amortization 864 1,215 184 303
Impairment Charge - 499 - 499
Interest/Other Expense 127 125 35 28
Income Taxes - - - -
------------------ ----------------
EBITDA $ (153) $ 504 $ 362 $ (287)
Please Note: EBITDA consists of earnings before interest and other expense, interest and other income, income taxes, stock-based compensation, depreciation and amortization and impairment charges. EBITDA is not a term defined by generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting , and as a result, our measure of EBITDA might not be comparable to similarly titled measures used by other companies. However, we believe that EBITDA is relevant and useful information, which is often reported and widely used by analysts, investors and other interested parties in our industry. Accordingly, we are disclosing this information to permit a more comprehensive analysis of our operating performance. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion