Datastream Systems, Inc. Reports Fiscal 2003 and Fourth Quarter Results.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)--Feb. 4, 2004 -- 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. grows 40% over fourth quarter 2002, resulting in highest profits since 1999 -- License sales grow 11% over the third quarter 2003 -- Company raises guidance for the first quarter of 2004 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 fourth quarter and fiscal year ended December December: see month. 31, 2003. Total revenues for the fourth quarter of 2003 were $22.8 million compared with $23.6 million for the fourth quarter of the prior year, a decrease of 3%. Total software license revenues for the fourth quarter of 2003 decreased 7% to $6.9 million compared to $7.4 million for the fourth quarter of the prior year. Operating income for the fourth quarter of 2003 grew 40% to $2.1 million compared with operating income of $1.5 million for the same period last year. Net income for the fourth quarter of 2003 grew 25% to $1.5 million compared with net income of $1.2 million for the same period last year. Basic and 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 were $0.07 per share for the fourth quarter of 2003 compared with $0.06 per share 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 , fourth quarter 2003 total revenues increased 2% from third quarter 2003 revenues of $22.4 million. Fourth quarter 2003 software license revenues increased 11% from third quarter 2003 total software license revenues of $6.2 million. Operating income for the fourth quarter increased 17% from $1.8 million in the third quarter 2003. Fourth quarter 2003 net income increased 25% from $1.2 million, or $0.06 per share, in the third quarter of 2003. For the fiscal year 2003, total revenues were $91.4 million compared with $90.0 million for the fiscal year 2002, a growth of 2%. Total software license revenues for the fiscal year 2003 were $25.9 million compared to $26.0 million for fiscal year 2002. Operating income for the fiscal year 2003 grew 209% to $7.1 million compared with operating income of $2.3 million for the same period last year. Net income for the fiscal year 2003 grew 117% to $3.9 million compared with net income of $1.8 million for fiscal year 2002. "We are pleased to conclude our 2003 year with another strong quarter of profitability and cash flow, making 2003 our strongest year of income in four years," stated 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. "With the most recent release of Datastream 7i, which includes a SQL Server An earlier relational DBMS from Sybase and from Microsoft. Sybase introduced SQL Server in 1988 for various Unix versions. In that same year, with help from IBM, Sybase created an OS/2 version that Microsoft licensed and branded as Microsoft SQL Server. version, we are encouraged by our prospects for continued growth in profitability." The Company's cash and cash equivalents totaled $44.9 million at December 31, 2003, an increase of 29% from $34.7 million at December 31, 2002 and a 6% increase from $42.5 million at September September: see month. 30, 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 69 days for the fourth quarter of 2003 and 2002 and 67 days for the third quarter 2003. Net cash provided by operating activities for the fourth quarter 2003 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.8 million, representing the 13th 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 sales were $3.9 million in the fourth quarter of 2003, representing a 7% decrease in Datastream 7i license revenue from the same quarter of 2002 and flat compared to the third quarter of 2003. Datastream 7i license revenue represented 57% of the Company's license revenue mix in the fourth quarter of 2003 and 2002. Datastream 7i license sales include Datastream 7i and Datastream 7i Buy. For the fiscal year 2004, the Company expects to grow license revenue approximately 10%, total revenues around 5% and total expenses about 3%, resulting in operating income growth of approximately 30% and earnings per share of $0.28 to $0.32. For the first quarter of 2004, the Company is raising its $0.04 to $0.06 earnings per share guidance up to $0.05 to $0.07, with revenues of about $23 million. Conference Call Datastream will host a conference call today at 9:00 a.m., EST EST electroshock therapy. EST abbr. electroshock therapy 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., EST on February February: see month. 4, 2004, until 11:59 p.m., EST on February 6, 2004. The dial-in number for the replay is 1-800-428-6051 and the pass code is 286206. 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., EST 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 including statements regarding Datastream's prospects for continued growth in profitability, growth in license revenue, total revenue and total expenses, growth in operating income, financial outlook for the first quarter 2004 and for fiscal year 2004 and any other statements that necessarily depend on future events. 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 certain of the Company's strategic relationships, including those with suppliers of maintenance, repair and operations Maintenance management or Maintenance, (MRO'), is fixing any sort of mechanical or electrical device should it become out of order or broken (repair) as well as performing the routine actions which keep the device in working order (maintenance) or prevent trouble parts; the ability of the Company to: sell larger and more complex software solutions, successfully transition to the development of further Internet-based products, successfully implement an application service provider business model, enhance its current products and develop new products 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, 2002. 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") or its subsidiaries. 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 Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
----------- ----------- ----------- -----------
Revenue:
Software product $ 6,910,701 $ 7,355,652 $25,914,680 $26,026,478
Services and
support 15,925,058 16,260,642 65,482,935 63,975,770
----------- ----------- ----------- -----------
Total revenues 22,835,759 23,616,294 91,397,615 90,002,248
Cost of revenue:
Cost of software
product 660,775 385,898 1,545,337 1,246,353
Cost of services
and support 6,982,243 7,639,846 29,300,373 31,510,472
----------- ----------- ----------- -----------
Total cost of
revenues 7,643,018 8,025,744 30,845,710 32,756,825
----------- ----------- ----------- -----------
Gross profit 15,192,741 15,590,550 60,551,905 57,245,423
Operating expenses:
Sales and
marketing 7,463,774 8,188,060 29,695,540 33,381,381
Research and
development 3,171,077 2,733,792 12,421,439 10,682,960
General and
administrative 2,426,354 3,154,844 11,349,760 10,886,174
----------- ----------- ----------- -----------
Total operating
expenses 13,061,205 14,076,696 53,466,739 54,950,515
----------- ----------- ----------- -----------
Operating income 2,131,536 1,513,854 7,085,166 2,294,908
Other income
(expense), net 128,481 275,078 (1,047,441) 543,121
----------- ----------- ----------- -----------
Income before income
taxes 2,260,017 1,788,932 6,037,725 2,838,029
Income tax
expense 800,896 632,169 2,139,740 997,538
----------- ----------- ----------- -----------
Net income $ 1,459,121 $ 1,156,763 $ 3,897,985 $ 1,840,491
=========== =========== =========== ===========
Basic net income
per share $ 0.07 $ 0.06 $ 0.19 $ 0.09
=========== =========== =========== ===========
Diluted net income
per share $ 0.07 $ 0.06 $ 0.19 $ 0.09
=========== =========== =========== ===========
Basic weighted
average number of
common shares
outstanding 20,216,253 20,095,222 20,136,124 20,138,137
Diluted weighted average
number of common
shares
outstanding 20,625,713 20,438,647 20,589,252 20,557,985
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)
ASSETS
Dec. 31, Dec. 31,
2003 2002
Cash and cash equivalents $44,874,599 $34,721,471
Accounts receivable, net 17,422,089 18,116,426
Unbilled revenue, net 1,089,540 2,003,107
Other assets 4,471,713 3,999,399
----------- -----------
Total current assets 67,857,941 58,840,403
Investment 502,143 2,000,000
Property and equipment, net 11,238,829 10,696,968
Deferred income taxes, net 4,098,198 5,287,633
Other intangible assets 104,093 83,758
----------- -----------
Total assets $83,801,204 $76,908,762
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Dec. 31, Dec. 31,
2003 2002
Unearned revenue $16,842,539 $15,105,756
Other current liabilities 11,869,654 12,261,724
Stockholders' equity 55,089,011 49,541,282
----------- -----------
Total liabilities and stockholders' equity $83,801,204 $76,908,762
=========== ===========
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(unaudited)
Twelve Months Ended
December 31,
2003 2002
----------- -----------
Cash flows from operating activities:
Net income $ 3,897,985 $ 1,840,491
Adjustments to reconcile net income
to net cash provided from operating
activities:
Depreciation 3,304,027 3,962,947
Other operating activity
adjustments 5,257,761 7,308,840
----------- -----------
Net cash provided by operating
activities 12,459,773 13,112,278
Net cash used in investment
activities (3,956,389) (2,628,365)
Net cash provided by (used in)
financing activities 808,076 (585,297)
Foreign currency translation
adjustment 841,668 (574,084)
----------- -----------
Net increase in cash and cash equivalents 10,153,128 9,324,532
Cash and cash equivalents at beginning of
period 34,721,471 25,396,939
----------- -----------
Cash and cash equivalents at end of
period $ 44,874,599 $ 34,721,471
=========== ===========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion