Datastream Systems, Inc. Reports Fourth Quarter and Fiscal 2002 Results; Datastream 7i Revenue Growth Drives Datastream's Most Profitable Quarter in Over Three Years.Business/Technology Editors 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, 2003 Company delivers ninth consecutive quarter of positive cash flow from operations 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 ) a leading provider of enterprise asset management (EAM (1) (Enterprise Asset Management) The management and control of the information technology assets within the enterprise. The asset management repository includes a description of the asset as well as contract information pertaining to its acquisition. ) solutions, today announced results for the Company's fourth quarter and fiscal year ended December December: see month. 31, 2002. Total revenues for the fourth quarter of 2002 were $23.6 million compared with $21.8 million for the fourth quarter of the prior year, representing an 8% increase. Total software license revenues for the fourth quarter of 2002 were $7.4 million compared to $6.8 million for the fourth quarter of the prior year, representing a 9% increase. Net income for the fourth quarter 2002 was $1.2 million compared with $246,823 for the same period last year, an increase of more than 350%. Earnings per share were $0.06 per share compared with $0.01 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 2002 total revenues increased 7% from third quarter 2002 revenues of $22.0 million. Fourth quarter 2002 software license revenues increased 23% from third quarter 2002 total software license revenues of $6.0 million. Net income for the fourth quarter 2002 increased more than 225% from net income of $340,733, or $0.02 per share, in the third quarter of 2002. Total revenues were $90.0 million for the fiscal year ended December 31, 2002, compared with $89.5 million for the fiscal year ended December 31, 2001. Software license revenue for the fiscal year ended December 31, 2002 was $26.0 million compared with $25.8 for the same period last year. Net income was $1.8 million, or $0.09 per share for the fiscal year ended December 31, 2002 compared to a net loss of $(14.5) million, or $(0.71) per share for the year ended December 31, 2001. 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, "The fourth quarter was the capstone for 2002, with revenue and license growth led by 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). This success drove improved profitability and 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. , and we expect the upcoming March release of Datastream 7i to continue to deliver increased returns to both customers and shareholders." The Company's cash and cash equivalents totaled $34.7 million at December 31, 2002, an increase of 7% from $32.4 million at September September: see month. 30, 2002 and a 37% increase from $25.4 million at December 31, 2001. 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 2002, the best result since the second quarter of 1996, and represents an improvement of two days over the third quarter 2002 and three days over the fourth quarter in 2001. Net cash provided by operating activities for the fourth quarter 2002 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.6 million, representing the ninth consecutive quarter of positive operating cash flow. Datastream 7i license sales grew to $4.1 million in the fourth quarter 2002, representing a 37% increase from the third quarter 2002 and a 28% increase in license revenue from the same quarter 2001. For the fourth quarter 2002, Datastream 7i license revenue represented 56% of the Company's license revenue mix, up from 47% of the license revenue mix for the same quarter of 2001. Conference Call Datastream will host a conference call today at 4:45 p.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 1-800-360-9865 and ask for the Datastream teleconference. For international callers, the dial-in number is 1-973-694-6836. The replay will be available from 6:00 p.m., EST on February February: see month. 4, 2003 until 11:59 p.m., EST on February 6, 2003. The dial-in number for the replay is 1-800-428-6051 and the pass code is 247107. 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 4:45 p.m., EST at www.datastream.net/investor. About Datastream Systems, Inc. Datastream Systems, Inc. (NASDAQ: DSTM) provides enterprise asset management (EAM) software, automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and supporting services to organizations worldwide, including more than 60 percent of the Fortune 500. Customers rely on Datastream's products and services to drive down operating costs operating costs npl → gastos mpl operacionales and improve productivity through better management of capital assets capital assets n. equipment, property, and funds owned by a business. (See: capital, capital account) . Datastream's flagship product, Datastream 7i(TM), was the first product in its class to combine 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 architecture with broad EAM functionality. Datastream 7i integrates with the company's iProcure(TM) industrial procurement network to provide customers with a complete EAM solution that maximizes return on investment in capital assets, while minimizing the total cost of application ownership. Datastream was founded in 1986 and has customers in more than 140 countries. For more information, please visit www.datastream.net. Datastream, iProcure and Datastream 7i are marks of Datastream Systems, Inc. (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. 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 made by Mr. Blackwell, that involve a number of risks and uncertainties. Factors that could cause actual results to differ materially include, but are not limited to: the ability of the Company to sell larger and more complex software solutions; the ability of the Company to successfully transition to the development of further Internet-based products; the Company's ability to successfully implement an application service provider business model; increasing competition in the markets in which the Company competes; the ability of the Company to enhance its current products and develop new products that address technological and market developments; 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; and other risk factors listed from time to time in the Company's SEC reports, including, but not limited to the "Risk Factors" contained in the Company's 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, 2001. With respect to the forward-looking statements contained in this news release, Datastream seeks the protections afforded by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. The Company 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.
Consolidated Statement of Operations
(unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2002 2001 2002 2001
Software product $ 7,355,652 $ 6,835,466 $26,026,478 $25,782,578
Services and
support 16,260,642 14,966,824 63,975,770 63,742,715
Total revenues 23,616,294 21,802,290 90,002,248 89,525,293
Cost of software
product 385,898 224,708 1,246,353 1,383,492
Cost of services
and support 7,639,846 7,906,143 31,510,472 33,881,038
Cost of sales 8,025,744 8,130,851 32,756,825 35,264,530
Gross profit 15,590,550 13,671,439 57,245,423 54,260,763
Operating
expenses:
Sales &
marketing 8,188,060 8,751,308 33,381,381 36,228,614
Research &
development 2,733,792 2,569,779 10,682,960 12,383,942
General &
administration 3,154,844 2,263,118 10,886,174 9,816,331
Goodwill
amortization - - - 2,266,247
Goodwill
impairment - - - 9,785,330
Operating
expenses 14,076,696 13,584,205 54,950,515 70,480,464
Operating income
(loss) 1,513,854 87,234 2,294,908 (16,219,701)
Other income, net 275,078 158,038 543,121 622,429
Income (loss)
before provision
(benefit) for
income taxes 1,788,932 245,272 2,838,029 (15,597,272)
Provision
(benefit) for
income taxes 632,169 (1,551) 997,538 (1,078,023)
Net income(loss)$ 1,156,763 $ 246,823 $1,840,491 $(14,519,249)
Basic net income
(loss)
per share $ .06 $ .01 $ .09 $ (.71)
Diluted net
income (loss)
per share $ .06 $ .01 $ .09 $ (.71)
Basic weighted
average common
shares
outstanding 20,095,222 20,141,668 20,138,137 20,403,166
Diluted weighted
average common
shares
outstanding 20,438,647 20,327,749 20,557,985 20,403,166
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Balance Sheet
(unaudited)
ASSETS
December 31, December 31,
2002 2001
Cash and cash equivalents $34,721,471 $25,396,939
Accounts receivable, net 18,116,426 17,483,350
Unbilled receivables, net 2,003,107 2,675,670
Income tax receivable 594,647 981,488
Other current assets 3,404,752 4,115,547
Total current assets 58,840,403 50,652,994
Investments 2,000,000 2,000,000
Net property and equipment 10,696,968 12,031,550
Deferred income taxes, net 5,287,633 6,664,009
Other intangible 83,758 68,750
Total assets $ 76,908,762 $71,417,303
LIABILITIES AND STOCKHOLDERS' EQUITY
December 31, December 31,
2002 2001
Deferred revenue $15,105,756 $12,330,840
Other current liabilities 12,261,724 10,462,939
Total stockholders' equity 49,541,282 48,623,524
Total liabilities and
stockholders' equity $76,908,762 $71,417,303
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Summary Consolidated Statement of Cash Flows
(unaudited)
Twelve Months Ended
December 31,
2002 2001
Cash flow from operating
activities:
Net income (loss) $1,840,491 $ (14,519,249)
Adjustments to reconcile net
income to net cash
provided by operating
activities:
Depreciation 3,962,947 4,440,513
Goodwill amortization - 2,266,247
Goodwill impairment - 9,785,330
Other operating activities 7,318,838 12,679,937
Net cash provided by operating
activities 13,122,276 14,652,778
Net cash used in investment
activities (2,628,365) (2,516,414)
Net cash used in financing
activities (595,295) (1,382,489)
Foreign currency translation
adjustment (574,084) (844,451)
Net increase in cash and cash
equivalents 9,324,532 9,909,424
Cash and cash equivalents at
beginning of period 25,396,939 15,487,515
Cash and cash equivalents at
end of period $ 34,721,471 $ 25,396,939
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