Exhibit 99.1
[COMTEX NEWS NETWORK LOGO]
RELEASE: IMMEDIATE
FOR: COMTEX NEWS NETWORK
(Symbol: CMTX)
CONTACT: Amber Gordon
agordon@comtex.com
703-797-8011
COMTEX REPORTS FIRST QUARTER FISCAL 2007 EARNINGS
ALEXANDRIA, VA, November 14, 2006 - COMTEX NEWS NETWORK, INC. (OTC BB: CMTX), a
leading provider of economically useful electronic real-time news, content and
market trend products, today announced financial results for the first quarter
of its 2007 fiscal year, ended September 30, 2006.
For the quarter ended September 30, 2006, Comtex reported revenues of
$1.7 million compared to $2 million for the first quarter of fiscal year 2006.
The decline in revenues is primarily the result of continued business
consolidations among clients. For the first quarter, Comtex had operating income
of $65,000 and net income of $61,000, or $0.00 per share, versus operating
income of $104,000 and net income of $63,000, or $0.01 per share, in the
previous year. The consistency in net income year over year, despite the
decreased revenue base, is primarily due to decreases in stock based
compensation and interest expense.
For the first quarter of fiscal 2007, EBITDA (as defined and explained
in the accompanying note to the table below), excluding the effects of
stock-based compensation, was approximately $111,000 compared to $327,000 for
the first quarter of the previous year. The decrease is primarily the result of
increased operating expenses in the current fiscal year, largely related to
professional fees, partially offset by the receipt of local tax refunds in the
prior fiscal year.
"The strength of Comtex's brand and popularity of our products is shown
by our strong performance, relative to an industry in which consolidation and
pressure on profit margins have become standard," commented Chip Brian, Comtex's
President and CEO. "We look forward to continuing to introduce innovative, new
COMTEX SMARTREND(R) ALERT and CSTA(R)Direct products this year - and to
strengthening all our financial information products," concluded Mr. Brian.
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 a SMARTREND ALERT product to
consumers, CSTA(R)Direct (WWW.CSTADIRECT.COM), and has offices in New York City
and Alexandria, Virginia.
More ...
Comtex Announces 1st Quarter Fiscal 2007 Financial Results Page 2
November 14, 2006
SMARTREND(R) AND CSTA(R) ARE REGISTERED TRADEMARKS OF COMTEX NEWS NETWORK, INC.
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
MORE ...
Comtex Announces 1st Quarter Fiscal 2007 Financial Results Page 3
November 14, 2006
COMTEX NEWS NETWORK, INC.
SELECTED FINANCIAL INFORMATION
(unaudited)
(amounts in thousand, except per share amounts)
THREE MONTHS ENDED
SEPTEMBER 30
-------------------------
2006 2005
---- ----
Revenues $ 1,751 $ 1,996
Operating Income 65 104
Net Income $ 61 $ 63
-------------------------
Net Income Per Share
Basic $ 0.00 $ 0.01
-------------------------
Diluted $ 0.00 $ 0.01
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Weighted Avg. # Shares:
Basic 13,700 13,600
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Diluted 14,862 14,784
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Reconciliation to EBITDA:
Net Income $ 61 $ 63
Stock Based Compensation 12 117
Depreciation and Amortization 35 106
Interest/Other (Income) Expense (2) 25
Income Taxes 5 16
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EBITDA $ 111 $ 327
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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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