Datastream Systems, Inc. Reports Third 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)--Oct. 22, 2003 Company reports highest level of profitability since the second quarter 1999 Datastream
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, 2003. Total revenues for the third quarter of 2003 were $22.4 million compared with $22.0 million for the third quarter of the prior year. Total software license revenues for the third quarter of 2003 increased slightly to $6.2 million compared to $6.0 million for the third quarter of the prior year. Net income for the third quarter of 2003 was $1.2 million compared with net income of $340,733 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 third 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 , third quarter 2003 total revenues decreased 4% from second quarter 2003 revenues of $23.4 million. Third quarter 2003 software license revenues decreased 2% from second quarter 2003 total software license revenues of $6.3 million. Net income for the third quarter 2003 increased from $252,462, or $0.01 per share, in the second 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, "We are pleased with annual growth in revenues, profits and cash, and we believe our product offering gives us opportunities for additional revenue growth." The Company's cash and cash equivalents totaled $42.5 million at September 30, 2003, an increase of 31% from $32.4 million at September 30, 2002 and a 4% increase from $40.8 million at June June: 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 67 days for the third quarter 2003, a decrease of 4 days over the third quarter of 2002 and an increase of 2 days over the second quarter 2003. Net cash provided by operating activities for the third quarter 2003 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.3 million, representing the 12th 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 $3.8 million in the third quarter of 2003, representing a 27% increase in Datastream 7i license revenue from the same quarter of 2002 and a 6% increase from the second quarter of 2003. For the third quarter 2003, Datastream 7i license revenue represented 61% of the Company's license revenue mix, up from 49% of the license revenue mix for the same quarter of 2002. The Company expects to generate earnings per share between $0.05 and $0.08 in the fourth quarter 2003 and between $0.04 and $0.06 in the first quarter 2004. 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 October October: see month. 22, 2003 until 11:59 p.m., EDT on October 24, 2003. The dial-in number for the replay is 1-800-428-6051 and the pass code is 286209. 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 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 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 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 Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
----------- ----------- ----------- -----------
Software product $ 6,210,698 $ 6,040,013 $19,003,979 $18,670,826
Services and support 16,178,367 15,935,403 49,557,877 47,715,128
----------- ----------- ----------- -----------
Total revenues 22,389,065 21,975,416 68,561,856 66,385,954
Cost of software
product 281,614 234,916 884,562 860,455
Cost of services
and support 7,208,993 8,128,439 22,318,130 23,870,626
----------- ----------- ----------- -----------
Total cost of revenues 7,490,607 8,363,355 23,202,692 24,731,081
----------- ----------- ----------- -----------
Gross profit 14,898,458 13,612,061 45,359,164 41,654,873
Operating expenses:
Sales and marketing 7,005,412 8,347,083 22,231,766 25,193,322
Research and
development 3,360,052 2,647,870 9,250,362 7,949,168
General and
administrative 2,726,454 2,216,055 8,923,406 7,731,330
----------- ----------- ----------- -----------
Total operating
expenses 13,091,918 13,211,008 40,405,534 40,873,820
----------- ----------- ----------- -----------
Operating income 1,806,540 401,053 4,953,630 781,053
Other income
(expense), net 83,713 123,156 (1,175,922) 268,043
----------- ----------- ----------- -----------
Income before income
taxes 1,890,253 524,209 3,777,708 1,049,096
Income tax expense 661,589 183,476 1,338,844 365,368
----------- ----------- ----------- -----------
Net income $ 1,228,664 $ 340,733 $ 2,438,864 $ 683,728
=========== =========== =========== ===========
Basic net income per
share $ 0.06 $ 0.02 $ 0.12 $ 0.03
=========== =========== =========== ===========
Diluted net income
per share $ 0.06 $ 0.02 $ 0.12 $ 0.03
=========== =========== =========== ===========
Basic weighted average
number of common
shares outstanding 20,225,325 20,155,027 20,109,414 20,152,443
Diluted weighted
average number
of common shares
outstanding 20,965,681 20,517,169 20,599,767 20,607,078
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(unaudited)
ASSETS
September 30, December 31,
2003 2002
Cash and cash equivalents $42,450,137 $34,721,471
Accounts receivable, net 16,691,163 18,116,426
Unbilled revenue, net 1,383,931 2,003,107
Other assets 4,118,277 3,999,399
----------- -----------
Total current assets 64,643,508 58,840,403
Investment 502,143 2,000,000
Property and equipment, net 11,192,302 10,696,968
Deferred income taxes, net 5,287,633 5,287,633
Other intangible assets 123,147 83,758
----------- -----------
Total assets $81,748,733 $76,908,762
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
September 30, December 31,
2003 2002
Unearned revenue $16,629,447 $15,105,756
Other current liabilities 11,940,429 12,261,724
Stockholders' equity 53,178,857 49,541,282
----------- -----------
Total liabilities and stockholders' equity $81,748,733 $76,908,762
=========== ===========
DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(unaudited)
Nine Months Ended
September 30,
2003 2002
----------- -----------
Cash flows from operating activities:
Net income $ 2,438,864 $ 683,728
Adjustments to reconcile net income to net cash
provided from operating activities:
Depreciation 2,559,328 3,062,209
Other operating activity adjustments 4,615,699 5,757,613
----------- -----------
Net cash provided by operating activities 9,613,891 9,503,550
Net cash used in investment activities (3,083,936) (1,425,648)
Net cash provided by (used in) financing
activities 1,095,644 (190,686)
Foreign currency translation adjustment 103,067 (864,138)
----------- -----------
Net increase in cash and cash equivalents 7,728,666 7,023,078
Cash and cash equivalents at beginning of
period 34,721,471 25,396,939
----------- -----------
Cash and cash equivalents at end of period $42,450,137 $32,420,017
=========== ===========
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