Datastream Systems, Inc. Reports Second Quarter Results.Business 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)--July 22, 2003 Datastream
A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses 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 second quarter ended June June: see month. 30, 2003. Total revenues for the second quarter of 2003 were $23.4 million compared with $22.8 million for the second quarter of the prior year, representing a 3% increase. Total software license revenues for the second quarter of 2003 were $6.3 million compared to $6.8 million for the second quarter of the prior year, representing a 7% decrease. Net income for the second quarter of 2003 was $1.2 million compared with net income of $372,290 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 $0.06 per share for the second quarter of 2003 compared with $0.02 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 , second quarter 2003 total revenues increased 3% from first quarter 2003 revenues of $22.8 million. Second quarter 2003 software license revenues decreased 3% from first quarter 2003 total software license revenues of $6.5 million. Net income for the second quarter 2003 increased 25% from net income of $957,738, or $0.05 per share, in the first 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, "Although a challenging quarter for us, we are pleased to deliver our fourth consecutive quarter of annual earnings and revenue growth, and we are cautiously optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about our prospects for continued growth from our Asset Performance Management offering." The company's cash and cash equivalents totaled $40.8 million at June 30, 2003, an increase of 9% from $37.3 million at March 31, 2003 and a 32% increase from $31.0 million at June 30, 2002. 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 65 days for the second quarter 2003, an improvement of three days over the first quarter 2003 and eight days over the second quarter of 2002. Net cash provided by operating activities for the second quarter 2003 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $3.4 million, representing the 11th 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 $3.6 million in the second quarter of 2003, representing a 14% decrease from the first quarter of 2003 and a 4% decrease in Datastream 7i license revenue from the same quarter of 2002. For the second quarter 2003, Datastream 7i license revenue represented 58% of the company's license revenue mix, up from 55% of the license revenue mix for the same quarter of 2002. The company expects to generate earnings per share between $0.04 and $0.06 in the third quarter 2003 and earnings per share between $0.20 and $0.24 for the fiscal year 2003. Conference Call Datastream will host a conference call today at 4:45 p.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 6:00 p.m., EDT on July July: see month. 22, 2003 until 11:59 p.m., EDT on July 24, 2003. The dial-in number for the replay is 1-800-428-6051 and the pass code is 286208. 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., 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, 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 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. 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. 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 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 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, 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 SYSTEMS, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
2003 2002 2003 2002
Software
product $ 6,271,635 $ 6,838,414 $ 12,793,281 $ 12,630,813
Services and
support 17,116,924 15,975,126 33,379,510 31,779,725
Total
revenues 23,388,559 22,813,540 46,172,791 44,410,538
Cost of
software
product 382,218 265,404 602,948 625,539
Cost of
services
and support 7,550,852 7,811,020 15,109,137 15,742,187
Cost of sales 7,933,070 8,076,424 15,712,085 16,367,726
Gross
profit 15,455,489 14,737,116 30,460,706 28,042,812
Operating
expenses:
Sales &
marketing 7,975,082 8,926,243 15,226,354 16,846,238
Research &
development 3,019,990 2,624,870 5,890,310 5,301,298
General &
administra-
tion 2,690,858 2,696,492 6,196,952 5,515,275
Operating
expenses 13,685,930 14,247,605 27,313,616 27,662,811
Operating
income 1,769,559 489,511 3,147,090 380,001
Other income,
net 144,849 83,401 240,901 144,887
Income before
provision
for income
taxes 1,914,408 572,912 3,387,991 524,888
Provision
for income
taxes 746,619 200,622 1,262,464 181,893
Net income $ 1,167,789 $ 372,290 $ 2,125,527 $ 342,995
Basic net
income
per share $ .06 $ .02 $ .11 $ .02
Diluted net
income
per share $ .06 $ .02 $ .10 $ .02
Basic
weighted
average
common
shares
outstanding 20,085,679 20,165,733 20,051,459 20,155,510
Diluted
weighted
average
common
shares
outstanding 20,762,635 20,628,580 20,472,336 20,645,798
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)
ASSETS
June 30, December 31,
2003 2002
Cash and cash equivalents $ 40,805,878 $ 34,721,471
Accounts receivable, net 16,992,160 18,116,426
Unbilled receivables, net 1,263,341 2,003,107
Other current assets 3,360,659 3,999,399
Total current assets 62,422,038 58,840,403
Investments 2,000,000 2,000,000
Net property and equipment 11,148,717 10,696,968
Deferred income taxes, net 5,287,633 5,287,633
Other intangible assets 153,757 83,758
Total assets $ 81,012,145 $ 76,908,762
LIABILITIES AND STOCKHOLDERS' EQUITY
June 30, December 31,
2003 2002
Deferred revenue $ 16,740,857 $ 15,105,756
Other current liabilities 11,549,200 12,261,724
Total stockholders' equity 52,722,088 49,541,282
Total liabilities and
stockholders' equity $ 81,012,145 $ 76,908,762
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(unaudited)
Six Months Ended
June 30,
2003 2002
Cash flows from operating activities:
Net income $ 2,125,527 $ 342,995
Adjustments to reconcile net income to
net cash provided from operating
activities:
Depreciation 1,838,078 2,071,502
Other operating activity adjustments 3,355,350 4,341,604
Net cash provided by operating activities 7,318,955 6,756,101
Net cash used in investment activities (2,289,827) (727,796)
Net cash provided by financing activities 964,372 29,136
Foreign currency translation adjustment 90,907 (450,406)
Net increase in cash and cash equivalents 6,084,407 5,607,035
Cash and cash equivalents at
beginning of period 34,721,471 25,396,939
Cash and cash equivalents at end of period$ 40,805,878 $ 31,003,974
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