COMTEX NEWS NETWORK, INC. Release: IMMEDIATE
For: Comtex News Network
(Symbol: CMTX)
Contact: Amber Gordon
agordon@comtex.com
703-797-8011
COMTEX REPORTS THIRD QUARTER FISCAL 2009 RESULTS
NEW YORK, NY, May 13, 2009 - Comtex News Network, Inc. (OTC BB: CMTX), a leading
provider of economically useful electronic real-time news, content and
SmarTrend(R) market products, today announced financial results for its third
fiscal quarter and the nine month period ended March 31, 2009.
Comtex reported revenues of $1.5 million, an operating loss of ($50,000)
and a net loss of ($33,000), or $0.00 per share, for the third quarter ended
March 31, 2009, compared to revenues of $1.8 million, operating income of
$232,000, and net income of $244,000, or $0.02 per share, for the three months
ended March 31, 2008. The decrease was primarily due to reduced customer
spending caused by industry consolidations and current economic conditions, plus
marginal increases in sales and marketing expenses.
For the nine months ended March 31, 2009, Comtex reported revenues of $4.8
million, $24,000 of operating income, and net income of $39,000, or $0.00 per
share, compared to revenues of $5.4 million, $797,000 of operating income and
net income of $754,000, or $0.05 per share, for the nine months ended March 31,
2008. The decrease in net income was primarily due to the reduced revenues
caused by industry consolidations coupled with a one time pick up of revenue of
approximately $181,000 from prior periods recorded in the nine months ended
March 31, 2008. Net income for the period ended March 31, 2009 also reflected an
increase in operating expenses, offset by the extinguishment of an accrued
liability of $138,000 in October 2008.
For the nine months ended March 31, 2009, EBITDA (as defined and explained
in the accompanying note to the table below), excluding the effects of
stock-based compensation, was $147,000 compared to EBITDA of $858,000 for the
nine months ended March 31, 2008. The decrease in EBITDA was primarily due to
reduced revenues, as discussed above, and increased operating expenses mainly in
technical operations, sales, and marketing.
Chip Brian, Comtex's President and CEO, stated, "Our third quarter results
were consistent with our expectations and continued to be impacted by
contracting budgets among certain of our customers. During these difficult
economic conditions, the strength of our business model allows us to manage the
short term challenges our business faces, while continuing to build and
strengthen our growing SmarTrend product line and customer base."
Comtex Announces 3rd Quarter Results Page 2
May 13, 2009
About Comtex
Comtex (www.comtex.com) provides real-time news, Comtex SmarTrend(R) 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), market analysis and its flagship
product, SmarTrend Alerts (via subscription at www.mysmartrend.com). Comtex has
offices in New York City; Boston, Massachusetts; and Alexandria, Virginia.
SmarTrend(R) is a registered trademark of Comtex News Network, Inc.
FINANCIAL TABLE FOLLOWS
Comtex Announces 3rd Quarter Results Page 3
May 13, 2009
Comtex News Network, Inc.
Selected Financial Data
(unaudited / amounts in thousands, except per share amounts)
Three Months Nine Months
Ended March 31 Ended March 31
--------------------------------- ---------------------------------
2009 2008 2009 2008
--------------------------------- ---------------------------------
Revenues $ 1,492 $ 1,770 $ 4,808 $ 5,426
Operating (Loss) Income (50) 232 24 797
Net (Loss) Income $ (33) $ 244 $ 39 $ 754
--------------------------------- ---------------------------------
Earnings Per Share:
Basic and Diluted $ 0.00 $ 0.02 $ 0.00 $ 0.05
--------------------------------- ---------------------------------
Weighted Avg. # Shares:
Basic 15,446 15,294 15,583 15,294
--------------------------------- ---------------------------------
Diluted 15,446 15,460 15,653 15,467
--------------------------------- ---------------------------------
Reconciliation to EBITDA:
Net (Loss) Income $ (33) $ 244 $ 39 $ 754
Stock-based compensation - - 35 3
Depreciation and Amortization 30 19 88 59
Interest/Other (Income) Expenses, net (18) (12) (29) 37
Income Taxes, net 1 - 14 5
--------------------------------- ---------------------------------
EBITDA $ (20) $ 251 $ 147 $ 858
--------------------------------- ---------------------------------
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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