Comtex Reports Fiscal 2005 and 4th Quarter Earnings.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 provider of economically useful electronic real-time news, content and market alerts, today announced financial results for the fourth quarter and fiscal year ended June 30, 2005. For the year ended June 30, 2005, Comtex reported operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. of $826,000 and net income of $729,000, or $0.05 per share, versus 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, for the previous fiscal year. Fiscal 2005 revenues were $8.0 million compared to $8.2 million for the fiscal year ended June 30, 2004. The decline in revenues is the direct result of consolidation among clients, primarily in the Internet and personal investor markets. Increases in operating and net income are primarily the result of decreases in technical and general and administrative expenses, partially offset by increased sales and marketing expenses. Additionally, there were no expenses related to the settlement with our former landlord and the related loss on disposal of assets, nor stock-based compensation in the current period. In addition, during fiscal 2005 the company accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. a refund TO REFUND. To pay back by the party who has received it, to the party who has paid it, money which ought not to have been paid. 2. On a deficiency of assets, executors and administrators cum testamento annexo, are entitled to have refunded to them legacies receivable of $151,000 in connection with prior periods' business license fees. For the quarter ended June 30, 2005, Comtex's revenues were basically unchanged from the previous year at approximately $2 million. The Company reported fourth quarter net income of $431,000 (which included a refund receivable of $151,000 as discussed above), or $0.03 per share, compared to $143,000, or $0.01 per share, for the fourth quarter of 2004. For fiscal 2005, 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 $1.4 million from negative EBITDA of $(153,000) for the previous fiscal year. This increase was primarily the result of a reduction in depreciation and amortization expenses; and there were no charges related to the termination of a former lease and the related loss on disposal of assets, nor stock-based compensation, as explained above. For the fourth quarter of fiscal 2005, EBITDA increased to $545,000 from $362,000 in the fourth quarter of the prior year. "Comtex continues to be a leading provider of economically useful news and information, and we have introduced several dynamic new products during the last year," said Chip Brian, Comtex's President and COO (Cell Of Origin) See mobile positioning. . "We remain committed to enhancing our existing products, 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 (www.comtex.com) provides real-time news, SmarTrend(SM) Alerts and economically useful information to businesses whose customers need more than just facts. Comtex customers receive select content from key sources which is further enhanced with stock tickers Stock ticker A letter designation assigned to securities and mutual funds that trade on US financial exchanges. and an extended lexicon of relevant terms. 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 and filters news and content received from national and international news bureaus, agencies and publications, and distributes more than one million total stories per day. Comtex's state-of-the-art technology delivers this relevant content and reliable service in real-time. Comtex (OTC BB:CMTX) has offices in 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. and 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. . SmarTrend(SM) and CSTA (Computer Supported Telephony Application) An international standard interface between a network server and a telephone switch (PBX) established by the European Computer Manufacturers Association (ECMA). (SM) are service marks of Comtex News Network, Inc. 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 a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , 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 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 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)
----------------- -----------------
2005 2004 2005 2004
---- ---- ---- ----
Revenues $ 7,970 $ 8,165 $ 1,970 $ 2,016
Operating Income (Loss) 826 (1,085) 427 178
Net Income (Loss) $ 729 $(1,212) $ 431 $ 143
----------------- -----------------
Net Income (Loss) Per Share
Basic $ 0.05 $ (0.09) $ 0.03 $ 0.01
----------------- -----------------
Diluted $ 0.05 $ (0.09) $ 0.03 $ 0.01
Weighted Avg. # Shares:
Basic 13,600 13,564 13,600 13,588
----------------- -----------------
Diluted 14,678 13,564 14,646 14,696
Reconciliation to EBITDA:
Net Income (Loss) $ 729 $(1,212) $ 431 $ 143
Stock-based compensation - 68 - -
Depreciation & Amortization 624 864 119 184
Interest/Other Expense 97 127 (5) 35
Income Taxes - - - -
----------------- -----------------
EBITDA $ 1,450 $ (153) $ 545 $ 362
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, 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