Datastream Systems, Inc. Reports First Quarter Results; Quarterly Operating Income Grows 36% over the First Quarter of 2003.Business Editors/High-Tech Writers GREENVILLE Greenville. 1 City (1990 pop. 45,226), seat of Washington co., W Miss., on Lake Ferguson, a deepwater harbor adjoining the Mississippi River; inc. 1886. , S.C.--(BUSINESS WIRE)--April 28, 2004 Company Delivers 14th Consecutive Quarter of Positive Operating Cash Flow Datastream
DSTM Differential Space-Time Modulation DSTM Don't Shoot the Messenger, Inc (Milton, Ontario, Canada) DSTM Directorate of Science, Technology and Medicine DSTM Department Store Type Merchandise ) today announced results for the Company's first quarter ended March 31, 2004. Total revenues for the first quarter of 2004 were $23.1 million compared with $22.8 million for the first quarter of the prior year. Total software license revenues for the first quarter of 2004 remained stable at $6.5 million compared to the first quarter of the prior year. 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. for the first quarter of 2004 grew 36% to $1.9 million compared with operating income of $1.4 million for the same period last year. Net income for the first quarter of 2004 grew 36% to $1.3 million compared with net income of $957,738 for the same period last year. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of was $0.06 for the first quarter of 2004 compared to $0.05 for the same period last year. Sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen , first quarter 2004 total revenues increased 1% from fourth quarter 2003 revenues of $22.8 million. First quarter 2004 software license revenues decreased 6% from fourth quarter 2003 total software license revenues of $6.9 million. Operating income for the first quarter of 2004 decreased 10% from $2.1 million in the fourth quarter 2003. Net income for the first quarter 2004 decreased 13% from $1.5 million, in the fourth quarter of 2003. Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Blackwell Black·well , Elizabeth 1821-1910. British-born American physician who was the first woman to be awarded a medical doctorate in modern times (1849). , Datastream's chief executive officer, commented, "After years of investment, we are pleased to see healthy returns on our investments in Datastream 7i-related hosting and e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. services, which now represent more than 25% of our operating income. These services demonstrate the unique strengths of our company in establishing a positive foundation for future growth." The Company's cash and cash equivalents totaled $46.0 million at March 31, 2004, an increase of 23% from $37.3 million at March 31, 2003 and an increase of 2% from $44.9 million at December December: see month. 31, 2003. Days Sales Outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). , or DSOs, were at 64 days for the first quarter 2004, a decrease of four days from the first quarter of 2003 and a decrease of five days over the fourth quarter 2003. Net cash provided by operating activities for the first quarter 2004 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.4 million, representing the 14th consecutive quarter of positive operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. . Datastream 7i license revenue was $4.2 million in the first quarter of 2004, a 2% decrease in Datastream 7i license revenue from the same quarter of 2003 and a 2% decrease from the fourth quarter of 2003. For the first quarter 2004, Datastream 7i license revenue represented 65% of the Company's license revenue mix, which was equivalent to the same quarter of 2003. Datastream 7i license revenues for all periods compared include Datastream 7i, Datastream 7i Buy and third party software sold in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with Datastream 7i. For the fiscal year 2004, the Company reaffirms its expectation of diluted earnings per share to range between $0.28 and $0.32 per share, based on total revenue growth of approximately 5% above fiscal 2003 results. For the second quarter 2004, the Company expects revenues to range between $23.5 and $24.5 million and diluted earnings per share to range between $0.05 and $0.08. Conference Call Datastream will host a conference call today at 9:00 a.m., EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT with any and all interested persons to review its performance and discuss its financial expectations and strategic direction. Please dial 1-800-915-4836 and ask for the Datastream teleconference. For international callers, the dial-in number is 1-973-317-5319. The replay will be available from 11:00 a.m., EDT on April 28, 2004 until 11:59 p.m., EDT on April 30, 2004. The dial-in number for the replay is 1-800-428-6051 and the pass code is 347220. For international callers, the dial-in for the replay is 1-973-709-2089. Datastream's conference call will be accessible today via live audio Webcast at 9:00 a.m., EDT at www.datastream.net/investor. About Datastream Systems, Inc. Datastream Systems, Inc. (NASDAQ: DSTM) provides Asset Performance Management software and services to enterprises worldwide, including more than 65 percent of the Fortune 500. Datastream's solutions combine world-class world-class adj. 1. Ranking among the foremost in the world; of an international standard of excellence; of the highest order: a world-class figure skater. 2. asset management functionality with advanced analytics to deliver a powerful platform for optimizing enterprise asset performance. By using Datastream's solutions, customers can maintain and manage capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) - such as manufacturing equipment, vehicle fleets and buildings - and create analyses and forecasts so they can take action to improve future performance. Datastream's flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , Datastream 7i(TM), delivers a complete Asset Performance Management infrastructure by combining an 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 , web services (1) Loosely, any online service delivered over the Web. Such usage appears in articles from non-technical sources, but not in IT-oriented publications, because definition #2 below describes the correct use of the term. architecture with broad enterprise asset management functionality, integrated procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. , advanced analytics and multi-site capability. Datastream was founded in 1986 and has customers in more than 140 countries. For more information, visit www.datastream.net. 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. that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to: increasing competition in the markets in which the Company competes; the stability of the Company's strategic relationships with third party suppliers and technologies; the ability of the Company to: sell larger and more complex software solutions, successfully transition to the development of further Internet-based products, successfully manage its international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. , enhance its current products and develop new products and services that address technological and market developments; and other risk factors listed from time to time in Datastream's SEC reports, including, but not limited to the "Risk Factors" contained in the Datastream's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended December 31, 2003. Datastream does not have, and expressly disclaims, any obligation to release publicly any updates or any changes in the Company's expectations or any changes in events, conditions 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 on which any forward-looking statement is based. Datastream and Datastream 7i are marks of Datastream Systems, Inc. ("Datastream" or the "Company"). All other products or Company names mentioned are used for identification purposes only and may be trademarks of their respective owners.
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
Three Months Ended
March 31,
2004 2003
------------------------------
Software product $ 6,456,775 $ 6,521,646
Services and support 16,630,065 16,262,586
------------- -------------
Total revenues 23,086,840 22,784,232
Cost of software product 487,768 220,730
Cost of services and support 6,856,993 7,558,285
------------- -------------
Total cost of revenues 7,344,761 7,779,015
------------- -------------
Gross profit 15,742,079 15,005,217
Operating expenses:
Sales and marketing 7,329,302 7,251,272
Research and development 3,392,373 2,870,320
General and administrative 3,146,682 3,506,094
------------- -------------
Total operating expenses 13,868,357 13,627,686
------------- -------------
Operating income 1,873,722 1,377,531
Other income, net 140,889 96,052
------------- -------------
Income before income taxes 2,014,611 1,473,583
Income tax expense 701,348 515,845
------------- -------------
Net income $ 1,313,263 $ 957,738
============= =============
Basic net income per share $ 0.07 $ 0.05
============= =============
Diluted net income per share $ 0.06 $ 0.05
============= =============
Basic weighted average number of
common shares outstanding 20,203,696 20,017,239
Diluted weighted average number of
common shares outstanding 20,650,665 20,369,362
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)
ASSETS
March 31, December 31,
2004 2003
------------------------------
Cash and cash equivalents $ 45,963,594 $ 44,874,599
Accounts receivable, net 16,374,274 17,422,089
Unbilled revenue 1,365,750 1,089,540
Other assets 3,690,344 4,758,283
------------- -------------
Total current assets 67,393,962 68,144,511
Investment 501,983 501,983
Property and equipment, net 11,181,553 11,238,830
Deferred income taxes, net 4,098,198 4,049,011
Other intangible assets 81,472 104,252
------------- -------------
Total assets $ 83,257,168 $ 84,038,587
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
March 31, December 31,
2004 2003
------------------------------
Unearned revenue $ 18,684,485 $ 16,842,539
Other current liabilities 9,549,943 11,869,654
Stockholders' equity 55,022,740 55,326,394
------------- -------------
Total liabilities and stockholders'
equity $ 83,257,168 $ 84,038,587
============= =============
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(unaudited)
Three Months Ended
March 31,
2004 2003
------------------------------
Cash flows from operating activities:
Net income $ 1,313,263 $ 957,738
Adjustments to reconcile net income
to net cash provided from operating
activities:
Depreciation 740,345 812,156
Other operating activity
adjustments 1,335,372 2,115,627
------------- -------------
Net cash provided by operating
activities 3,388,980 3,885,521
Net cash used in investing activities (683,068) (701,962)
Net cash used in financing activities (1,240,056) (568,547)
Foreign currency translation adjustment (376,861) (57,934)
------------- -------------
Net increase in cash and cash equivalents 1,088,995 2,557,078
Cash and cash equivalents at beginning of
period 44,874,599 34,721,471
------------- -------------
Cash and cash equivalents at end of
period $ 45,963,594 $ 37,278,549
============= =============
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