Desktop Data Announces Third Quarter Results And Record Revenues.BURLINGTON Burlington, town, Canada Burlington, town (1991 pop. 129,575), SE Ont., Canada, on Lake Ontario. First settled (1798) by Mohawk Loyalist Joseph Brandt, Burlington's economy was built on the shipment of wheat, lumber, and quarried rock by waterway. , Mass.--(BUSINESS WIRE)--Oct. 15, 1997--Desktop Data, Inc. (Nasdaq:DTOP DTOP Departamento de Transportacion y Obras Publicas (Puerto Rico) DTOP Digital Topographic Data ) today announced third quarter 1997 revenue of $10.8 million, a 24% increase over the third quarter of 1996 and the Company's thirty-first consecutive quarter of record revenues. The Company also reported net income for the third quarter of $553,000 or $0.06 per share, after provision for income taxes at a 32% rate compared to net income of $1,202,000 for the third quarter of 1996, after provision for income taxes at an 11% rate. For the nine months ended September September: see month. 30, 1997, Desktop Data reported revenue of $31.3 million, a 30% increase from $24.1 million for the same period in 1996. Net income for the first nine months of 1997 was $2.0 million or $0.23 per share after provision for income taxes at a 35% rate versus net income of $3.1 million or $0.35 per share, after provision for income taxes at an 11% rate for the same period in 1996. 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. was $7.6 million for the nine months ended September 30, 1997 compared to $7.2 million for the same period in 1996. Accompanying the Company's financial results, Desktop Data increased its customer total to 410 NewsEDGE customers at September 30, 1997, up 10% from September 30, 1996. The number of authorized users authorized user Radiation physics A person who, having satisfied the applicable training and experience requirements, is granted authority to order radioactive material and accepts responsibility for its safe receipt, storage, use, transfer and disposal at September 30, 1997, increased 54% from the prior year to 169,438 and average users per customer increased 37% from the prior year to 369. Desktop Data's average revenues per customer increased 16% to $73,806 for the first nine months of 1997, compared to $63,435 for the same period in 1996. "Desktop Data is investing to grow its business and expand its leadership in the delivery of real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. news over customer intranets, LANs and WANs", said Don McLagan, President of Desktop Data. "I am especially pleased with our third quarter results because we have continued our strong growth, sustained our profitability and generated substantial cash while we invest for the future." The Company's investments have resulted in recent announcements of new technology, news content, software partners and international management promotions to extend and enhance the NewsEDGE services: -- Eight Software Vendors Join Desktop Data's Alliance Partner Program as NewsOBJECTS - Technology Gains Momentum (October October: see month. 6, 1997, www.desktopdata.com/appfinal.com) -- Desktop Data Launches NewsEDGE WebCast (September 30, 1997, www.desktopdata.com/newebcast.htm) -- Desktop Data Honored hon·or n. 1. High respect, as that shown for special merit; esteem: the honor shown to a Nobel laureate. 2. a. Good name; reputation. b. as one of New England's "Fast 50" (September 16, 1997, www.desktopdata.com/fast_50.htm) -- Desktop Data Adds Comprehensive Industry Coverage from IAC (1) (InterApplication Communications) The interprocess communications capability in the Macintosh starting with System 7.0. Many IAC events take place behind the scenes. to NewsEDGE Service (September 15, 1997, www.desktopdata.com/iac_new.htm) -- Desktop Data Adds Key Russian Russian associated in some way with Russia. Russian blue a breed of cats with short, dense, silver-tipped blue-colored coat and vivid green eyes. , Eastern European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. Media to NewsEDGE Service (September 15, 1997, www.desktopdata.com/isi.htm) -- Desktop Data, Inc. Announces Appointments to Expand Worldwide Operations (August 14, 1997, www.desktopdata.com/wwo.htm) "News is leading the conversion to intranet delivery of what industry sources identify as the $46 billion business-to-business  This article or section needs copy editing for grammar, style, cohesion, tone and/or spelling.You can assist by [ editing it] now. information industry," said Don McLagan. "We are investing internally and exploring other opportunities to keep Desktop Data at the forefront of this significant growth opportunity." Certain of the above statements are 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 risks and uncertainties. Actual results could differ materially as a result of a variety of factors, including, but not limited to, technology change, competitive development and risk factors listed from time to time in the Company's SEC reports. Founded in 1988, Desktop Data, Inc. is the independent leader in enterprise delivery of real-time news and information. Desktop Data operates as a value-added val·ue-add·ed adj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: news integrator (1) In electronics, a device that combines an input with a variable, such as time, and provides an analog output; for example, a watt-hour meter. (2) See systems integrator. to organizations. The Company's unique combination of diverse, authoritative content, innovative on-line delivery technologies, and customization and support services support services Psychology Non-health care-related ancillary services–eg, transportation, financial aid, support groups, homemaker services, respite services, and other services empower empower verb To encourage or provide a person with the means or information to become involved in solving his/her own problems its clients to transform news and information into a centrally-managed, competitive business resource. Desktop Data'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. , NewsEDGE, is used by over 160,000 business professionals in more than 400 corporations, financial institutions and government offices worldwide. NewsEDGE is also an Active Channel in Microsoft (Microsoft Corporation, Redmond, WA, www.microsoft.com) The most successful and influential software company. Microsoft's software and Intel's hardware pioneered the PC and revolutionized the computer industry. Corp.'s Internet Explorer Microsoft's Web browser, which comes with Windows starting with Windows 98. Commonly called "IE," versions for Mac and Unix are also available. Internet Explorer is the most widely used Web browser on the market. It has also been the browser engine in AOL's Internet access software. (IE) 4.0 environment. Desktop Data is headquartered in Burlington, Massachusetts Burlington is a town in Middlesex County, Massachusetts, United States. The population was 22,876 at the 2000 census. History Burlington was first settled in 1641 and was officially incorporated on February 28, 1799. , with sales offices throughout North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). .For more information, contact us at our web site www.desktopdata.com
DESKTOP DATA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands)
September 30, December 31,
1997 1996
ASSETS
Current assets:
Cash and cash equivalents $ 29,220 $ 10,735
Short-term investments
(U.S. agencies & T.Notes) 13,157 18,120
Accounts receivable 4,865 4,948
Prepaid expenses and deposits 2,569 1,814
Total current assets 49,811 35,617
Long-term investments (U.S. T.Notes) -- 7,928
Property and equipment, net 5,591 4,640
Other assets 143 142
Total assets $ 55,545 $ 48,327
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 2,149 $ 878
Accrued expenses 6,053 3,572
Deferred revenue, current 15,122 13,631
Obligation under capital leases, current 34 34
Total current liabilities 23,358 18,115
Obligation under capital leases, noncurrent 12 38
Deferred revenue, noncurrent 2 190
Stockholders' equity:
Common stock 87 86
Additional paid-in capital 31,925 31,782
Retained earnings (deficit) 161 (1,884)
Total stockholders' equity 32,173 29,984
Total liabilities & stockholders'
equity $ 55,545 $ 48,327
-0-
DESKTOP DATA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(in thousands, except per share data and other operating data)
Three Months Ended Nine Months Ended
September 30, September 30,
1997 1996 1997 1996
Subscription and royalty
revenues $10,218 $ 8,062 $29,227 $22,457
Other revenues 630 690 2,086 1,645
Total revenues 10,848 8,752 31,313 24,102
Cost of revenues 3,424 2,409 9,600 6,519
Customer support expenses 1,372 898 3,852 2,547
Development expenses 1,345 1,024 3,817 3,184
Sales and marketing expenses 3,886 3,199 10,973 8,649
General and administrative
expenses 583 359 1,560 1,124
Total costs and expenses 10,610 7,889 29,802 22,023
Income from operations 238 863 1,511 2,079
Interest income, net 575 490 1,640 1,370
Income before provision
for income taxes 813 1,353 3,151 3,449
Provision for income taxes 260 151 1,107 384
Net income $ 553 $ 1,202 $ 2,044 $ 3,065
Net income per common and
common equivalent share $ 0.06 $ 0.14 $ 0.23 $ 0.35
Weighted average number of
common and common equivalent
shares outstanding 8,792 8,795 8,750 8,811
-0-
Nine Months Ended
September 30,
1997 1996
Other Operating Data:
Installed customers at end of period 410 373
Authorized users at end of period 169,438 110,298
Average users per customer 369 270
Average revenues per customer $ 73,806 $ 63,435
-0-
DESKTOP DATA, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(in thousands)
Nine Months Ended
September 30,
1997 1996
Cash flows from operating activities:
Net income $ 2,044 $ 3,065
Adjustments to reconcile net
income to net cash provided by
operating activities:
Depreciation 1,152 664
Changes in assets and liabilities:
Accounts receivable 83 (884)
Prepaid expenses and deposits (755) (687)
Accounts payable 1,271 339
Accrued expenses 2,481 613
Deferred revenue 1,303 4,078
Net cash provided by operating activities 7,579 7,188
Cash flows from investing activities:
(Increase) decrease in investments, net 12,891 (15,051)
Purchases of property and equipment (2,103) (2,838)
Increase in other assets -- (149)
Net cash provided (used) by investing
activities 10,788 (18,038)
Cash flows from financing activities:
Proceeds from exercise of stock options 81 124
Proceeds from stock issuance under
employee stock purchase plan 63 154
Payments on obligation under capital leases (26) (22)
Net cash provided by financing activities 118 256
Increase (decrease) in cash and cash
equivalents 18,485 (10,594)
Cash and cash equivalents, beginning of period 10,735 19,301
Cash and cash equivalents, end of period $ 29,220 $ 8,707
CONTACT: Desktop Data, Inc. Mr. Edward Edward killed his father at his mother’s instigation. [Br. Balladry: Edward in Benét, 302] See : Patricide R. Siegfried, Vice President and CFO See Chief Financial Officer. Mr. Donald L. McLagan, President 781 229-3000 |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion