COMTEX NEWS NETWORK, INC.
Release: IMMEDIATE
For: Comtex News Network
Contact: Amber Gordon (Symbol: CMTX)
703-820-2000
COMTEX REPORTS 1st QUARTER FISCAL 2004 FINANCIAL RESULTS
ALEXANDRIA, VA, November 14, 2003 - Comtex News Network, Inc.,
(OTC BB: CMTX), a leading wholesaler of electronic real-time news
and content, today announced first quarter fiscal 2004 financial
results.
For the quarter ended September 30, 2003, the Company's
revenues were $2.2 million compared to $2.4 million for the first
quarter of fiscal 2003. The Company reported an operating loss
of $228,000 and a net loss of $252,000, or a $0.02 loss per
share, for the first quarter of 2004, versus last year's first
quarter operating loss of $242,000 and net loss of $267,000, or
$0.02 loss per share. The decline in revenues and continuing
losses primarily result from business closures and consolidation
among clients. Despite the decline in revenues, the Company's
losses improved due to decreases in operating expenses.
For the first quarter fiscal 2004, earnings before interest
expense, interest and other income, income taxes, stock-based
compensation and depreciation and amortization ("EBITDA") were
$51,000 versus $62,000 for the quarter ended September 30, 2002.
Steve Ellis, Comtex's Chairman of the Board and CEO, said,
"Our strategy for Comtex's turnaround was launched in the first
quarter and cannot be expected to produce immediate results.
Comtex remains optimistic that our strong product offering and
distributor base will provide the foundation for the Company, in
due course, to return to profitability and achieve growth in
revenue."
About Comtex
Comtex is a 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. www.comtex.com
FINANCIAL TABLE FOLLOWS
Comtex News Network, Inc.
Selected Financial Data
(unaudited)
(amounts in $000's, except per share amounts)
Quarters Ended
September 30,
-----------------
2003 2002
----- -----
Revenues $ 2,173 $ 2,431
Operating Loss (228) (242)
Net Loss $ (252) $ (267)
-------------------
Net Loss Per Share
Basic and Diluted $ (0.02) $ (0.02)
--------------------
Weighted Avg. # Shares:
Basic and Diluted 13,508 13,141
--------------------
Reconciliation to EBITDA:
Net Loss $ (252) $ (267)
Stock Based Compensation 28 -
Depreciation & Amortization 252 304
Interest/Other Expense 23 25
Income Taxes - -
--------------------
EBITDA $ 51 $ 62
Please Note: 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.
Also 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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