Datastream Systems, Inc. Reports Preliminary Third Quarter Results.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. -- Please replace the release due to multiple revisions. The corrected release reads: DATASTREAM
Antonym: dec. . REPORTS PRELIMINARY THIRD QUARTER RESULTS Datastream Systems, Inc. (Nasdaq: DSTM DSTM Dual Stack Transition Mechanism 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 third quarter ended September September: see month. 30, 2004. Results are preliminary pending the outcome of a review of its Chinese operations which, year to date, represent less than 1% of company revenues. Total revenues for the third quarter of 2004 increased 4% to $23.2 million compared with $22.4 million for the third quarter of the prior year. Total software license revenues increased 5% for the third quarter of 2004 to $6.5 million from $6.2 million in the third 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 third quarter of 2004 decreased 28% to $1.3 million compared with operating income of $1.8 million for the same period last year. Net income for the third quarter of 2004 decreased to $924,000 compared with net income of $1.2 million 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 $0.05 for the third quarter of 2004 compared to $0.06 for the same period last year. Sequentially, third quarter 2004 total revenues decreased 3% from second quarter 2004 revenues of $23.8 million. Third quarter 2004 software license revenues remained stable compared to second quarter 2004 software license revenues of $6.5 million. Operating income for the third quarter of 2004 decreased 43% from $2.3 million in the second quarter 2004. Net income for the third quarter 2004 decreased 38% from $1.5 million in the second quarter of 2004. Datastream 7i(TM) license revenue was $4.5 million in the third quarter of 2004, a 15% increase in Datastream 7i license revenue from the same quarter of 2003 and a 5% increase from the second quarter of 2004. For the third quarter 2004, Datastream 7i license revenue represented 69% of the company's license revenue mix, compared to 62% in the same quarter of 2003, and 66% in the second quarter of 2004. Datastream 7i license revenues for all periods compared include Datastream 7i, Datastream 7i Buy, and third party software sold in conjunction with Datastream 7i. Larry 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, "Because Datastream 7i drives our cash flow and earnings success, we are very encouraged by the continued growth and market acceptance of Datastream 7i." The company's cash and cash equivalents totaled $47.1 million at September 30, 2004, an increase of 11% from $42.5 million at September 30, 2003 and an increase of 2% from $46.4 million at June 30, 2004. 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 third quarter 2004, a decrease of three days from the third quarter of 2003 and flat compared to the second quarter of 2004. Net cash provided by operating activities for the third quarter 2004 was approximately $2.4 million, representing the 16th 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. . In its last Form 10-Q Form 10-Q See 10-Q. Quarterly Report, the company reported that it had been contacted by Chinese government Ever since Republic of China founded in January 1st, 1912, China has had several regional and national governments. List
When a person begins a civil lawsuit, the person enters into a process called litigation. made certain allegations regarding potential tax, revenue recognition and other issues principally related to China. Datastream's Audit Committee is investigating these allegations. Because of the time required to complete this review, the company may not be able to file its Form 10Q on November 9, 2004, the required date. Year to date, the Chinese subsidiary represents less than 1% of company revenues. Given the size of the Chinese subsidiary, the company does not believe that any findings from this review will be significant. 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 1-913-905-1085. The replay will be available from 11:00 a.m., EDT on October 27, 2004, until 11:59 p.m. EDT on October 29, 2004. The dial-in number for the replay is 1-888-203-1112 and the pass code is 902492. For international callers, the dial-in for the replay is 1-719-457-0820. Datastream's conference call will be accessible today via live audio Webcast at 9:00 a.m., EDT at http://www.datastream.net/company/investor.asp. 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 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; the results of an investigation of the Company's Chinese operations could vary from the financial results disclosed herein and the Company may not be able to timely file its Form 10-Q Quarterly Report if the Audit Committee cannot compete its review in time for the auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together to complete their necessary reviews; and other risk factors listed from time to time in Datastream's SEC reports, including, but not limited to the "Risk Factors" contained in 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 Nine Months Ended
September 30, September 30,
2004 2003 2004 2003
----------- ----------- ----------- -----------
Revenues:
Software product $ 6,544,924 $ 6,210,698 $19,546,142 $19,003,979
Services and
support 16,652,391 16,178,367 50,568,736 49,557,877
----------- ----------- ----------- -----------
Total revenues 23,197,315 22,389,065 70,114,878 68,561,856
Cost of revenues:
Cost of software
product 309,743 281,614 1,008,772 884,562
Cost of services
and support 7,401,631 7,208,993 21,535,133 22,318,130
----------- ----------- ----------- -----------
Total cost of
revenues 7,711,374 7,490,607 22,543,905 23,202,692
----------- ----------- ----------- -----------
Gross profit 15,485,941 14,898,458 47,570,973 45,359,164
Operating expenses:
Sales and marketing 6,917,596 7,005,412 21,567,886 22,231,766
Research and
development 3,545,703 3,360,052 10,453,600 9,250,362
General and
administrative 3,393,623 2,734,870 9,661,403 8,995,153
Third party
Sarbanes-Oxley
related costs 289,583 0 335,538 0
----------- ----------- ----------- -----------
Total operating
expenses 14,146,505 13,100,334 42,018,427 40,477,281
----------- ----------- ----------- -----------
Operating income 1,339,436 1,798,124 5,552,546 4,881,883
Other income
(loss), net 176,121 92,129 458,185 (1,104,175)
----------- ----------- ----------- -----------
Income before income
taxes 1,515,557 1,890,253 6,010,731 3,777,708
Income tax expense 591,067 661,589 2,235,029 1,338,844
----------- ----------- ----------- -----------
Net income $ 924,490 $ 1,228,664 $ 3,775,702 $ 2,438,864
=========== =========== =========== ===========
Basic net income
per share $ 0.05 $ 0.06 $ 0.19 $ 0.12
=========== =========== =========== ===========
Diluted net income
per share $ 0.05 $ 0.06 $ 0.19 $ 0.12
=========== =========== =========== ===========
Basic weighted
average number of
common shares
outstanding 19,931,573 20,225,325 20,051,681 20,109,414
Diluted weighted
average number of
common shares
outstanding 20,208,173 20,965,681 20,368,469 20,599,767
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