Comtex Relevant Reliable Real-Time Release: Immediate
For: Comtex News Network
(Symbol: CMTX)
Contact: Amber Gordon
agordon@comtex.com
703-820-2000 x8011
COMTEX REPORTS THIRD QUARTER FISCAL 2005 EARNINGS
Alexandria, VA, May 16, 2005 - Comtex News Network, Inc., (OTC BB: CMTX), a
leading provider of economically useful electronic real-time news and content,
today announced fiscal 2005 third quarter and year-to-date earnings.
For the quarter ended March 31, 2005, the Company reported operating
income of $109,000 and net income of $82,000, or $0.01 per share, versus last
year's third quarter operating loss of $(26,000) and net loss of $(68,000), or
($0.00) per share. Revenues were $1.9 million for both periods.
For the nine months ended March 31, 2005, the Company reported
operating income of $400,000 and net income of $298,000, or $0.02 per share,
versus last year's nine month operating loss of $(1.3) million and net loss of
$(1.4) million, or ($0.10) loss per share. Revenues for the nine months ended
March 31, 2005 were $6 million compared to $6.1 million for the same period of
fiscal 2004.
Comtex's continued profitability was largely due to decreased operating
expenses, particularly in the areas of general / administrative costs and
technical operations costs, partially offset by increased sales / marketing
expenses and, by decreased revenues. The decline in revenues resulted primarily
from continuing business contractions within the electronic news marketplace.
C.W. Gilluly, Comtex's Chairman and Interim CEO, stated, "Comtex
management is focused on developing and introducing innovative, economically
useful news and information products for our clients. We are pleased to report
profitability during this time of product development."
About Comtex
Comtex (www.comtex.com) provides real-time news and economically useful
information to businesses whose customers need more than just facts. 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 has offices in New
York City and Alexandria, Virginia.
Financial Table Follows
More...
Comtex: Reports 3rd Quarter FY 2005 Earnings Page 2
May 16, 2005
Comtex News Network, Inc.
Selected Financial Data
(unaudited)
(amounts in thousands, except per share amounts)
Three Months Ended Nine Months Ended
March 31 March 31
----------------------------------- -----------------------------------
2005 2004 2005 2004
---- ---- ---- ----
Revenues $ 1,927 $ 1,962 $ 6,000 $ 6,149
Operating Income (Loss) 109 (26) 400 (1,263)
Net Income (Loss) $ 82 $ (68) $ 298 $ (1,355)
----------------------------------- -----------------------------------
Net Earnings (Loss) Per Share
Basic $ 0.01 $ 0.00 $ 0.02 $ (0.10)
----------------------------------- -----------------------------------
Diluted $ 0.01 $ 0.00 $ 0.02 $ (0.10)
----------------------------------- -----------------------------------
Weighted Avg. # Shares:
Basic 13,600 13,588 13,600 13,560
----------------------------------- -----------------------------------
Diluted 14,745 13,588 14,736 13,560
----------------------------------- -----------------------------------
Reconciliation to EBITDA:
Net Income (Loss) $ 82 $ (68) $ 298 $ (1,355)
Stock-based compensation - 16 - 68
Depreciation & Amortization 177 197 505 679
Interest/Other Expense 27 42 102 92
Income Taxes - - - -
----------------------------------- -----------------------------------
EBITDA $ 286 $ 187 $ 905 $ (516)
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.
# # #