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DATA BROADCASTING POSTS 20 PERCENT NET INCOME RISE IN FIRST QUARTER BEFORE TAX CHANGE BENEFIT

 NEW YORK, Nov. 15 /PRNewswire/ -- Data Broadcasting Corp. (NASDAQ: DBCC) today announced net income before the benefit of a tax accounting change of $677,000, equal to $0.04 per share, on record revenues of $14.8 million for its first quarter ended Sept. 30, 1993. This income represents a 20 percent increase over the comparable prior- year quarter. Net income per primary share of $0.04 before the tax change benefit is based on 20 percent more shares outstanding in the present quarter, compared with the prior-year's quarter where net income per share also equaled $0.04. The increased number of shares arose primarily from the conversion of 43 percent of the company's Series B Debentures.
 Current first quarter net income, including a one-time gain of $250,000, or $0.01 per share, resulting from the company's adoption of the tax accounting standard SFAS No. 109, totaled $927,000, or $0.05 per share. Net income also benefited from lower interest and income tax expense. Prior-year first quarter net income equaled $566,000, or $0.04 per share.
 The record revenues in the first quarter, up 10 percent from $13.4 million a year ago, mark the company's fifth consecutive record sales period.
 The company said revenue gains have been fueled by a full year of subscriber growth at its DBC West operation, which provides financial market and other data to individual consumers. Over the past 12 months, the subscriber count for Signal/MarketWatch PC-based services increased 21 percent, and the QuoTrek subscriber base for information delivered over wireless hand-held FM receivers was up 25 percent.
 Additionally, the company's Shark Information Services unit, which serves the professional investing community, increased its total terminal count by 3 percent over the past year, with premium trader terminals up 14 percent.
 "We are pleased with Data Broadcasting's financial performance and continued growth in subscribers and terminals," said Co-Chairmen and Co- Chief Executive Officers Alan Hirschfield and Allan Tessler. "Although total costs and expenses increased from a year ago, these partially represent our continued investment in marketing, product enhancements, research and development and other areas that will support our future growth. To a degree, expense levels a year ago are not comparable since some expenses were previously subsidized by the FNN Estate. We are now seeing a more stabilized expense structure than that represented in our initial quarter of operations."
 The executives added, "Since we commenced operations as Data Broadcasting five quarters ago, total stockholders' equity has increased 42 percent to $21.3 million, and notes payable and other debt, including current maturities, have been reduced 67 percent to $5.5 million."
 Data Broadcasting Corp. is a leading provider of real-time financial market data and news to the private and professional investment communities via wireless broadcast and cable television signals and telecommunications networks. The company utilizes proprietary technology to deliver information to approximately 24,000 clients, principally under the "Signal," "QuoTrek" and "Shark" trademarks.
 DATA BROADCASTING CORP. AND SUBSIDIARIES
 Summary Statements of Operations
 (Unaudited)
 (In thousands, except per share data)
 First Quarter Ended
 Sept. 30,
 1993 1992
 Net revenues $14,783 $13,428
 Total costs and expenses 13,526 12,029
 Income from operations
 before interest and
 other income (expense) 1,257 1,399
 Income before income taxes 1,204 1,187
 Provision for income taxes 527 621
 Net income before cumulative
 effect of a change in
 accounting principle 677 566
 Cumulative effect of a change in
 accounting principle 250 ---
 Net income $927 $566
 Net income per share:
 Primary --
 Income before cumulative
 effect of a change in
 accounting principle $0.04 $0.04
 Cumulative effect of change in
 accounting for income taxes 0.01 ---
 Net income $0.05 $0.04
 Fully diluted --
 Income before cumulative effect
 of a change in accounting
 principle $0.03 $0.03
 Cumulative effect of change in
 accounting for income taxes 0.01 ---
 Net income $0.04 $0.03
 Weighted average number of common
 shares and common equivalent
 shares outstanding:
 Primary 19,308 16,061
 Fully diluted 22,351 21,060
 -0- 11/15/93
 /CONTACT: Stephen W. Ellis, CFO, Data Broadcasting, 212-208-7705; or Cecilia A. Wilkinson or Ina McGuinness of Pondel Parsons & Wilkinson, 310-207-9300/
 (DBCC)


CO: Data Broadcasting Corp. ST: New York IN: TLS SU: ERN

JL-LM -- LA023 -- 4235 11/15/93 09:05 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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