Attached files
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| 8-K - FORM 8-K - COMTEX NEWS NETWORK INC | t67185_8k.htm |
Exhibit
99.1
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Release: IMMEDIATE
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For: Comtex
News Network
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(Symbol: CMTX)
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Contact:
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Amber
Gordon
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agordon@comtex.com
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703-797-8011
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COMTEX
REPORTS SECOND QUARTER FISCAL 2010 RESULTS
NEW YORK,
NY, February 16, 2010 – Comtex
News Network, Inc. (OTC BB: CMTX), a leading provider of economically
useful electronic real-time news, content and SmarTrend®
market products, today announced financial results for its second fiscal quarter
and the six month period ended December 31, 2009.
Comtex
reported revenues increased to $1.8 million for the quarter ended December 31,
2009, from $1.6 million for the three months ended December 31,
2008. The higher quarterly revenues resulted primarily from increased
SmarTrend product
sales. For the six months ended December 31, 2009, Comtex’s revenues
increased to $3.6 million from $3.3 million for the prior year’s
comparable period. The year-to-date increase was primarily due to higher SmarTrend product sales,
offset by reduced database revenues resulting from client consolidations and
pricing pressures within the online news and information industry.
For the
second quarter ended December 31, 2009, Comtex reported an operating loss of
$(153,000) and a net loss of $(126,000), or a ($0.01) per share, compared to
operating income of $43,000 and net income of $47,000, or $0.00 per share, for
the three months ended December 31, 2008. The losses for the three
months ended December 31, 2009, compared to the profits from the previous
period, were primarily due to increases in the cost of revenues, and increased
sales and marketing expenses, slightly offset by the growth of SmarTrend product
sales.
For the
six months ended December 31, 2009, Comtex reported an operating loss of
$(16,000), and net income of $40,000, or $0.00 per share, compared to operating
income of $74,000, and net income of $72,000, or $0.00 per share, for the six
months ended December 31, 2008.
For the
six months ended December 31, 2009, EBITDA (as defined and explained in the
accompanying note to the table below), excluding the effects of stock-based
compensation, was $61,000 compared to EBITDA of $167,000 for the six months
ended December 31, 2008. The decrease in EBITDA was primarily due to
increased expenses mainly in the areas of product line expansion, sales and
marketing.
MORE...
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Comtex
Announces 2nd
Quarter Results
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Page
2
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February
16, 2010
About Comtex
Comtex
(www.comtex.com)
provides real-time news, Comtex SmarTrend®
Alerts and
economically useful information. Comtex customers receive select
content from key sources which is further enhanced with stock tickers and an
extended lexicon of relevant terms. With a specialization in the
financial news and content marketplace, Comtex receives, enhances, combines and
filters news and content received from national and international news bureaus,
agencies and publications, and distributes more than one million total stories
per day. Comtex’s state-of-the-art technology delivers this relevant content and reliable service in real-time. Comtex
also provides several proprietary SmarTrend Alert products to
investors, including a daily stock market letter (Morning Call), selected stock
news (SmarTrend
Spotlights), and SmarTrend Alerts (via
subscription at www.mysmartrend.com). Comtex
has offices in New York City; Boston, Massachusetts; and Alexandria,
Virginia.
SmarTrend® is a
registered trademark of Comtex News Network, Inc.
FINANCIAL
TABLE FOLLOWS
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Comtex
Announces 2nd
Quarter Results
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Page
3
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February
16, 2010
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Comtex
News Network, Inc.
Selected
Financial Data
(unaudited
/ amounts in thousands, except per share amounts)
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Three
Months
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Six
Months
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Ended
December 31
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Ended
December 31
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2009
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2008
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2009
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2008
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Revenues
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$ | 1,792 | $ | 1,653 | $ | 3,605 | $ | 3,316 | ||||||||
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Operating
(Loss) Income
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(153 | ) | 43 | (16 | ) | 74 | ||||||||||
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Net
(Loss) Income
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$ | (126 | ) | $ | 47 | $ | 40 | $ | 72 | |||||||
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(Loss)
Earnings Per Share
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Basic
and Diluted
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$ | (0.01 | ) | $ | 0.00 | $ | 0.00 | $ | 0.00 | |||||||
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Weighted
Avg. # Shares:
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||||||||||||||||
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Basic
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15,794 | 15,446 | 15,794 | 15,583 | ||||||||||||
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Diluted
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15,914 | 15,450 | 15,852 | 15,791 | ||||||||||||
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Reconciliation
to EBITDA:
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Net
(Loss) Income
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$ | (126 | ) | $ | 47 | $ | 40 | $ | 72 | |||||||
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Stock-based
compensation
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- | 35 | - | 35 | ||||||||||||
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Depreciation
and Amortization
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43 | 29 | 77 | 58 | ||||||||||||
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Interest/Other
(Income) Expenses, net
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(27 | ) | (6 | ) | (56 | ) | (11 | ) | ||||||||
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Income
Taxes
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(1 | ) | 1 | - | 13 | |||||||||||
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EBITDA
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$ | (111 | ) | $ | 106 | $ | 61 | $ | 167 |
Please
Note: EBITDA consists of earnings before stock-based
compensation, debt conversion expense, interest expense, interest and other
income, unrealized and realized gains (losses) in marketable securities, income
taxes, and depreciation and amortization. EBITDA is not a term defined by U.S.
generally accepted accounting principles, and as a result, our measure of EBITDA
might not be comparable to similarly titled measures used by other
companies. However, we believe that EBITDA is relevant and useful
information, which is often reported and widely used by analysts, investors and
other interested parties in our industry. Accordingly, we are
disclosing this information to permit a more comprehensive analysis of our
operating performance.
Also Please
Note: Except for the historical information contained herein,
this press release contains forward-looking statements within the meaning of
Section 21E of the Securities and Exchange Act of 1934, as amended, that involve
a number of risks and uncertainties. These forward-looking statements
may be identified by reference to a future period by use of forward-looking
terminology such as “anticipate,” “expect,” “could,” “intend,” “may” and other
words of a similar nature. These statements involve risks and
uncertainties that could cause actual results to differ materially from those
contemplated herein, including the occurrence of unanticipated events or
circumstances relating to the fact that Comtex is in a highly competitive
industry subject to rapid technological, product and price
changes. Other factors include the possibility that demand for the
Company's products may not occur or continue at sufficient levels, changing
global economic and competitive conditions, technological risks and other risks
and uncertainties, including those detailed in the Company's filings with the
Securities and Exchange Commission. Comtex undertakes no obligation
to update or revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
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