Datastream Systems, Inc. Reports Second Quarter Results; Company delivers $0.08 EPS on third quarter of sequential revenue growth.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. -- 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 32% over the second quarter of 2003 Company delivers 15th 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
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 second quarter ended June June: see month. 30, 2004. Total revenues for the second quarter of 2004 were $23.8 million compared with $23.4 million for the second quarter of the prior year. Total software license revenues for the second quarter of 2004 increased to $6.5 million from $6.3 million in the second quarter of the prior year. Operating income for the second quarter of 2004 grew 32% to $2.34 million compared with operating income of $1.77 million for the same period last year. Net income for the second quarter of 2004 grew to $1.54 million compared with net income of $252,462 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 $0.08 for the second quarter of 2004 compared to $0.01 for the same period last year. A portion of the increase in net income and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. is the result of a non-operating charge of $1.5 million recognized in the second quarter of 2003 related to a write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. on an investment. Sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen , second quarter 2004 total revenues increased 3% from first quarter 2004 revenues of $23.1 million. Second quarter 2004 software license revenues remained stable compared to first quarter 2004 software license revenues of $6.5 million. Operating income for the second quarter of 2004 increased 25% from $1.87 million in the first quarter 2004. Net income for the second quarter 2004 increased 18% from $1.31 million in the first quarter of 2004. Datastream 7i(TM) license revenue was $4.3 million in the second quarter of 2004, a 19% increase in Datastream 7i license revenue from the same quarter of 2003 and a 2% increase from the first quarter of 2004. For the second quarter 2004, Datastream 7i license revenue represented 66% of the company's license revenue mix, compared to 58% in 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 with Datastream 7i. 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, "We are very pleased to see continued execution resulting in profitability, and we are encouraged that a key driver of our growth in profits is increased license sales of Datastream 7i." The company's cash and cash equivalents totaled $46.4 million at June 30, 2004, an increase of 14% from $40.8 million at June 30, 2003 and an increase of 1% from $46.0 million at March 31, 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 second quarter 2004, a decrease of one day from the second quarter of 2003 and flat compared to the first quarter of 2004. Net cash provided by operating activities for the second quarter 2004 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.2 million, representing the fifteenth In music, a fifteenth (sometimes abbreviated 15ma) is the interval between one musical note and another with one-quarter or quadruple the frequency. It corresponds to two octaves. It is the fourth harmonic. consecutive quarter of positive operating cash flow. 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. For the third quarter 2004, the company expects revenues to range between $22.5 and $23.5 million and diluted earnings per share to range between $0.05 and $0.07. 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 July July: see month. 28, 2004 until 11:59 p.m. EDT on July 30, 2004. The dial-in number for the replay is 1-800-428-6051 and the pass code is 347222. 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 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 December: see month. 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 Six Months Ended
June 30, June 30,
2004 2003 2004 2003
----------- ----------- ----------- -----------
Revenues:
Software product $ 6,544,443 $ 6,271,635 $13,001,218 $12,793,281
Services and
support 17,286,280 17,116,924 33,916,345 33,379,510
----------- ----------- ----------- -----------
Total revenues 23,830,723 23,388,559 46,917,563 46,172,791
Cost of revenues:
Cost of software
product 211,261 382,218 699,029 602,948
Cost of services
and support 7,276,509 7,550,852 14,133,502 15,109,137
----------- ----------- ----------- -----------
Total cost of
revenues 7,487,770 7,933,070 14,832,531 15,712,085
----------- ----------- ----------- -----------
Gross profit 16,342,953 15,455,489 32,085,032 30,460,706
Operating expenses:
Sales and
marketing 7,320,988 7,975,082 14,650,290 15,226,354
Research and
development 3,515,524 3,019,990 6,907,897 5,890,310
General and
administrative 3,167,053 2,690,858 6,313,735 6,196,952
----------- ----------- ----------- -----------
Total operating
expenses 14,003,565 13,685,930 27,871,922 27,313,616
----------- ----------- ----------- -----------
Operating income 2,339,388 1,769,559 4,213,110 3,147,090
Other income
(loss), net 141,175 (1,355,687) 282,064 (1,259,635)
----------- ----------- ----------- -----------
Income before income
taxes 2,480,563 413,872 4,495,174 1,887,455
Income tax expense 942,614 161,410 1,643,962 677,255
----------- ----------- ----------- -----------
Net income $ 1,537,949 $ 252,462 $ 2,851,212 $ 1,210,200
=========== =========== =========== ===========
Basic net income
per share $ 0.08 $ 0.01 $ 0.14 $ 0.06
=========== =========== =========== ===========
Diluted net income
per share $ 0.08 $ 0.01 $ 0.14 $ 0.06
=========== =========== =========== ===========
Basic weighted
average number of
common shares
outstanding 20,019,775 20,085,679 20,111,735 20,051,459
Diluted weighted
average number of
common shares
outstanding 20,314,956 20,762,635 20,461,822 20,472,336
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)
ASSETS
June 30, December 31,
2004 2003
Cash and cash equivalents $ 46,373,995 $ 44,874,599
Accounts receivable, net 16,816,245 17,422,089
Unbilled revenue 1,594,249 1,089,540
Other assets 4,688,710 4,758,283
------------ ------------
Total current assets 69,473,199 68,144,511
Investment 501,983 501,983
Property and equipment, net 11,528,831 11,238,830
Deferred income taxes, net 2,893,429 4,049,011
Other intangible assets 56,354 104,252
------------ ------------
Total assets $ 84,453,796 $ 84,038,587
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
June 30, December 31,
2004 2003
Unearned revenue $ 16,845,297 $ 16,842,539
Other current liabilities 11,690,734 11,869,654
Stockholders' equity 55,917,765 55,326,394
------------ ------------
Total liabilities and stockholders'
equity $ 84,453,796 $ 84,038,587
============ ============
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(unaudited)
Six Months Ended
June 30,
2004 2003
----------- -----------
Cash flows from operating activities:
Net income $ 2,851,212 $ 1,210,200
Adjustments to reconcile net income to net
cash
provided by operating activities:
Depreciation 1,470,419 1,838,078
Other operating activity adjustments 1,280,900 4,270,677
----------- -----------
Net cash provided by operating activities 5,602,531 7,318,955
Net cash used in investing activities (1,776,644) (2,289,827)
Net cash provided by (used in) financing
activities (1,959,991) 964,372
Foreign currency translation adjustment (366,500) 90,907
----------- -----------
Net increase in cash and cash equivalents 1,499,396 6,084,407
Cash and cash equivalents at beginning of
period 44,874,599 34,721,471
----------- -----------
Cash and cash equivalents at end of period $46,373,995 $40,805,878
=========== ===========
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion