Comtex Reports 63% Increase in Fourth Quarter Revenues, Exceeding Internal Estimates.Business Editors/Hi-Tech Writers ALEXANDRIA, Va.--(BUSINESS WIRE)--Sept. 14, 2000 Quarterly 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 Increases Significantly, Gross Margin At 70% Top-line Growth Expected to Continue in Fiscal 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 fourth quarter ended June 30, 2000, revenues increased 63% to $3.7 million, gross margin reached 70% of revenue, and EBITDA increased significantly to $336,000 from $128,000. Net income for the quarter increased 181% to $244,000, or $0.02 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. For the fiscal year ended June 30, 2000, revenues increased 64% to $12.4 million, gross margin was 70% of revenues and EBITDA increased to $1.4 million from $647,000. Net income increased 142% to $1.1 million, or $0.09 per fully diluted share. The above results for the quarter and year ended June 30, 2000 exclude a one-time client payment of $250,000 in the fourth quarter ended June 30, 2000. "Our business model works. Because we have longstanding relationships with clients and understand their content and technology needs, we have been able to consistently grow our top line. Because of the success of our business model, we have been able to show continuous increases in both EBITDA and net income. In fact, this is our 17th consecutive profitable quarter ," noted Charlie Terry, 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. of COMTEX News Network, Inc. "The growth we have experienced throughout this fiscal year reflects the inherent demands for our news products as information usage on the web continues to explode (1) To break down an assembly into its component pieces. Contrast with implode. (2) To decompress data back to its original form. and as our customers require news content to attract and retain their end-users," Terry added. "This growth rate also reflects our success at adding new contracts at a record pace while simultaneously growing revenues with existing clients. During the quarter, COMTEX added 78 new distribution partners, reflecting both the success of our marketing programs and the popularity of our topically-based aggregated news products. To capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. our growth opportunity, we have already expanded our sales force," Terry noted. "Approximately 80% of revenues from our existing client base are annuity-based," Mr. Terry explained. "With similar retention and growth of this base and the productivity of the expanded sales organization, we expect our top line growth for fiscal 2001 to continue at a similar pace as fiscal 2000." OPERATING HIGHLIGHTS COMTEX grows its business by offering existing and new customers constant improvements in content and technology enhancements. Highlights for the quarter and the year include: New Systems Increase Content Processing Capacity. During fiscal 2000, COMTEX launched its new real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. content processing system, Equinox equinox (ē`kwĭnŏks), either of two points on the celestial sphere where the ecliptic and the celestial equator intersect. The vernal equinox, also known as "the first point of Aries," is the point at which the sun appears to cross the . This new system brings important advantages to COMTEX and our customers including increased capacity of up to 100,000 stories per day and multiple output formats including XML XML in full Extensible Markup Language. Markup language developed to be a simplified and more structural version of SGML. It incorporates features of HTML (e.g., hypertext linking), but is designed to overcome some of HTML's limitations. . Additionally, the new processing platform provides for easy addition of new publishers, content value-adds and the inclusion of multimedia and foreign language content. New Content Enhances Financial, Government And Business Information. During the fourth quarter, COMTEX added new content from publishers supplying thousands of stories each day and expanding our content offering. COMTEX signed additional content sources for more comprehensive financial, government and business information news, including: Briefing.com, Federal Information & News Dispatch A dispatch or dispatches can refer to:
78 New Customers Added - Highest Quarterly Total To Date. During the quarter, COMTEX expanded its presence in the market by securing deals with 78 new distribution partners, expanding its valued distribution network to over 750 points, including: - Asiagateway.com - iBolsa - Business.com - iBoost Technology - Choicecontent.com - Invest.com - eNow.com - MarketXS.com - e-Tenants.com - MyCity.com - Earthramp.com - PowerAdz.com - Fresher Information Corporation - Qtrade Investor - FundsXpress Financial Network - RealTime Traders.com - GeneralSearch.com - VertiSoft Corporation - GoInvest.com - WeVest.com - Hyperion Solutions Corporation - Yourst.com FINANCIAL HIGHLIGHTS Quarter ended June 30, 2000. On an as reported basis, the company's fourth quarter revenues increased 74% to $4.0 million from $2.3 million in the fourth quarter last year, including a one-time client payment for previously unreported content usage during fiscal 2000 and prior years. This reflects a significant increase in business from new accounts as well as continued growth of revenues from existing accounts. At the same time, the company's gross margin grew to 71% of revenues compared with 67% of revenues in the fourth quarter of the last fiscal year. Gross margin improvements reflect the 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. increased to $2.5 million, or 74% over the fourth quarter of fiscal year 1999. The increase in expenses reflects the company's continued investment in the operations and infrastructure of the company to support the rapid growth in revenues and the development of additional products and technology. EBITDA increased from $128,000 to $474,000 while net income in the fourth quarter grew significantly reaching $383,000, or $0.03 per fully diluted share. This compares with net income of $87,000 or $0.01 per fully diluted share in the fourth quarter of the prior year. During the quarter ended June 30, 2000 the company received a one-time client payment of $250,000 for previously unreported content usage during fiscal 2000 and prior years. There was approximately $112,000 in expenses associated with this payment. Year ended June 30, 2000. For the fiscal year, revenues increased 67% to reach $12.6 million from $7.6 million in the prior year, including the one-time client payment for previously unreported content usage during fiscal 2000 and prior years. Gross margin increased to 70% of revenues while EBITDA grew significantly from $647,000 to $1.5 million. Net income for the year increased significantly to $1.2 million, or $0.10 per fully diluted share on a higher number of shares outstanding. This compares to net income of $456,000, or $0.04 per fully diluted share, in the prior year. The company added a record number of new accounts and continued to grow revenues from existing accounts while continuing its investments in operations and infrastructure of the company to support the rapid growth in revenues and the development of additional products and technology. Earlier this month, the Company was named as a codefendant codefendant n. when more than one person or entity is sued in one lawsuit, each party sued is called a codefendant. with other news networks in a lawsuit lawsuit: see procedure; tort. in United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. , Northern District of Alabama Alabama, indigenous people of North America Alabama (ăləbăm`ə), indigenous people of North America whose language belongs to the Muskogean branch of the Hokan-Siouan linguistic stock (see Native American languages). , which seeks damages for trading losses The following contains a list of trading losses which eventually forced major corporations to go bankrupt or restructure parts of their organisation. This list is not exhaustive. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the false press release concerning Emulex Corp. COMTEX had passed through to its distributors the Emulex story with full attribution at·tri·bu·tion n. 1. The act of attributing, especially the act of establishing a particular person as the creator of a work of art. 2. to Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the Wire as the source. The Company intends to ask the Court to dismiss the lawsuit later this month. 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 750 information services See Information Systems. and re-distributors throughout the world, reaching millions of end users. COMTEX' products include CustomWires(R), Newsroom Enhanced Products, Newsroom Direct, 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. Note: All product and company names may be trademarks or registered trademarks of their respective holders. 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. including those about COMTEX' anticipated financial performance for the 2001 fiscal year, demand for the company's products, performance of the sales force, customer retention, etc. 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or relating to 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 and other risks, costs and delays associated with the start-up and operation of major capital projects, changing governmental regulations 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 Tables Follow)
COMTEX News Network, Inc.
Selected Financial Data
(amounts in 000's, except per share amounts)
Years Ended Quarters Ended
June 30 June 30
------------------ ------------------
2000 1999 2000 1999
Revenues 12,645 7,557 3,966 2,281
Cost of
Revenues 3,822 2,814 1,145 764
------------------ ------------------
Gross Profit 8,823 4,743 2,821 1,517
Operating
Expenses 7,514 4,201 2,455 1,409
------------------ ------------------
Operating Income 1,309 542 366 108
Other income
(expense) (67) (86) (1) (21)
------------------ ------------------
Income Before
Income Taxes 1,242 456 365 87
Income Taxes -- -- (18) --
------------------ ------------------
Net Income 1,242 456 383 87
================== ==================
Net Income
Per Share
Basic $ 0.14 $ 0.06 $ 0.04 $ 0.01
================== ==================
Diluted $ 0.10 $ 0.04 $ 0.03 $ 0.01
================== ==================
Weighted Avg
No. Shares:
Basic 9,051 7,984 9,890 8,085
================== ==================
Diluted 12,672 11,344 12,990 12,087
================== ==================
Note: Results for the fourth quarter and year ended June 30, 2000
includes a one-time payment for previously unreported content usage
during fiscal 2000 and prior years of $250,000, less associated
expenses.
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion