EXHIBIT 99.1
COMTEX NEWS NETWORK, INC.
Release: IMMEDIATE
For: Comtex News Network
Contact: Amber Gordon (Symbol: CMTX)
agordon@comtexnews.com
703-797-8011
COMTEX REPORTS 4th QUARTER AND FISCAL YEAR 2003
FINANCIAL RESULTS
ALEXANDRIA, VA, September 25, 2003 - Comtex News Network,
Inc., (OTC BB: CMTX), a leading wholesaler of electronic real-
time news and content, today announced financial results for
the fiscal year ended June 30, 2003.
Revenues were $9.3 million for fiscal 2003, down from
$12.2 million for the fiscal year ended June 30, 2002. For
the year ended June 30, 2003, the Company had an operating
loss of $1.2 million and a net loss of $1.3 million, or a
$0.10 loss per share, versus an operating loss of $1.3 million
and a net loss of $1.4 million, or a $0.12 loss per share, for
the previous fiscal year. The decline in revenues is the
direct result of business closures and consolidation among
clients, primarily in the Internet and personal investor
markets. Comtex reduced overall operating expenses by $2.5
million, net of increases in depreciation and amortization and
a $499,000 write-off resulting from the discontinuation of
certain product offerings and other software.
For the quarter ended June 30, 2003, the Company's
revenues were $2.1 million compared to $2.7 million for the
last quarter of fiscal 2002. The Company reported a net loss
of $1.1 million, or an $0.08 loss per share, for the fourth
quarter of 2003, versus last year's fourth quarter net loss of
$950,000, or a $0.07 loss per share. During the fourth
quarter, as part of its new strategic plan, Comtex
discontinued a product, News Solutions, and recorded the write-
off of certain related assets and other software as noted
above.
For fiscal 2003, earnings before interest, taxes,
depreciation and amortization ("EBITDA"), increased to
$504,000 from a loss of $156,000 for the previous fiscal year.
This increase was primarily the result of certain recovered
expenses and decreased operating expenses (please see table
included below and the accompanying note to table for a
further explanation of EBITDA).
"Comtex holds a position of strength as a wholesaler of
electronic news and content. However, as shown by the fiscal
2003 financial results, Comtex must find ways in which to
improve its financial performance. Beginning in the spring of
2003, Comtex undertook a thorough evaluation of its overall
strategic position, as part of a revitalization of the
Company," said Stephen W. Ellis, Comtex's Chairman, who was
recently appointed CEO. "Our evaluation has resulted in
strategic changes to many areas of the Company, including its
market positioning, product line, pricing and technology."
Mr. Ellis concluded, "The Comtex management team is committed
to finding ways to maximize the Company's value to its
distributors, partners, employees and shareholders."
About Comtex
Comtex is the leading wholesaler of real-time news and related
content for the world's leading financial and business
information distributors. With a specialization in the
financial news and content marketplace, Comtex receives,
enhances, combines, filters and distributes news and content
received from more than 10,000 national and international news
bureaus, agencies and publications. The resulting news and
content products - with embedded stock tickers, key words,
standardized metadata, uniform formatting and custom filters -
are all designed to meet the exacting standards required by
investment professionals. Comtex can be found on the Web at
http://www.comtex.com.
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.
FINANCIAL TABLE FOLLOWS
Comtex News Network, Inc.
Selected Financial Data
(amounts in thousands, except per share amounts)
Years Ended Quarters
June 30 Ended June 30
----------------------- ---------------------
(audited) (unaudited)
------------------------ --------------------
2003 2002 2003 2002
------- ------ ------ ------
Revenues $ 9,268 $ 12,248 $ 2,119 $ 2,684
Operating (Loss) (1,211) (1,277) (1,089) (928)
Net (Loss) $ (1,337) $ (1,361) $ (1,117) $ (950)
----------- ------------ ------------- -----------
Net (Loss) Per Share
Basic $ (0.10) $ (0.12) $ (0.08) $ (0.07)
----------- ------------ ------------- -----------
Diluted $ (0.10) $ (0.12) $ (0.08) $ (0.07)
----------- ------------ ------------- -----------
Weighted Avg. # Shares:
Basic 13,184 11,349 13,227 13,092
----------- ------------ ------------- -----------
Diluted 13,184 11,349 13,227 13,092
----------- ------------ ------------- -----------
Reconciliation to EBITDA:
Net (Loss) $ (1,337) $ (1,361) $ (1,117) $ (950)
Stock-based compensation 2 7 - -
Depreciation & Amortization 1,215 1,114 303 313
Impairment Charge 499 - 499 -
Interest/Other Expense 125 84 28 22
---------- ------------ ----------- ------------
EBITDA $ 504 $ (156) $ (287) $ (615)
Please Note: EBITDA consists of earnings before interest and other expense,
interest and other income, income taxes, stock-based compensation, depreciation
and amortization and impairment charges. EBITDA is not a term defined by
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.
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