Exhibit 99.1
FOR IMMEDIATE RELEASE CONTACT
- --------------------- Greg Adams
COO and CFO
EDGAR(R) ONLINE(R), INC.
(203) 852-5666
gadams@edgar-online.com
EDGAR(R) ONLINE FIRST QUARTER SUBSCRIPTIONS AND DATA SALES INCREASE 23%
TOTAL REVENUES INCREASE 12%
SOUTH NORWALK, Conn. -- May 2, 2006 -- EDGAR(R) Online(R), Inc. (NASDAQ: EDGR),
today announced that its core business - subscription and data sales - increased
23% to $3.8 million for the quarter ended March 31, 2006, compared to $3.1
million for the same quarter last year. EDGAR Online is a leading provider of
value-added business and financial information on global companies to financial,
corporate and advisory professionals.
EDGAR Online reported a 12% increase in total revenue for the quarter ended
March 31, 2006, compared to the same quarter last year, despite a decrease in
the Company's technical services business which ceased in the third quarter of
2005. Deferred revenue increased 26% to $3.9 million in the first quarter of
2006, compared to $3.1 million in the first quarter of 2005. Part of the growth
in deferred revenue is related to the introduction of the I-Metrix suite of
products. Deferred revenue represents amounts already billed to customers that
will be recognized as revenue in future quarters as the Company's subscription
and data products are utilized.
EDGAR(R) Online, Inc.
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Gross margins decreased slightly to 84% for the first quarter of 2006, compared
to 86% for the first quarter of 2005, as a result of the amortization of
capitalized I-Metrix product development costs and the adoption of SFAS 123(R),
described below. The Company expects gross margins to continue to exceed 80% in
future periods.
Susan Strausberg, EDGAR Online's president and CEO, said, "Our partnership with
R.R. Donnelley is more than meeting our expectations. We have begun working with
their global sales and marketing staff to better educate their customers about
the benefits of Interactive Data (XBRL) and our I-Metrix suite of products.
Together, we have produced various new marketing materials to further expand
awareness of our combined offerings. As the SEC gets closer to mandating
Interactive Data, we expect our efforts will translate into increased sales
revenue from our I-Metrix Professional and Xcelerate services."
The Company's first quarter business highlights include the following:
o Sold more than $1.2 million in annual contract value for the I-Metrix
suite of products as of March 31, 2006, compared to $300,000 at
December 31, 2005.
o Entered into a sales and marketing agreement with R.R. Donnelley
(NYSE: RRD) to offer EDGAR Online's I-Metrix suite of eXtensible
Business Reporting Language (XBRL) products to R.R. Donnelley's
customers and prospects.
o Increased the number of companies available in I-Metrix to over 9,000,
including ADRs and private companies.
o Expanded the depth of XBRL U.S. GAAP taxonomies for the consumer and
industrial industries, banking and savings institutions, and insurance
and broker dealer industries, and added XBRL taxonomies for the oil
and gas, utility and real estate industries.
o Enhanced I-Metrix to include earnings estimates, analyst
recommendations and estimated long-term growth rates for companies,
their industries and the S&P 500, as well as introduced new tools in
I-Metrix Professional which allow screening for companies by industry,
sector, SIC and/or trading exchange.
EDGAR(R) Online, Inc.
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o Named by Gartner as a "Cool Vendor" in their March 15, 2006 "Cool
Vendors in the High-Performance Workplace."
Strausberg continued, "In March, the SEC announced the companies that will
participate in the XBRL pilot program to use interactive data in their financial
statement filings. We expect that the companies using our solution will find the
process inexpensive and painless and will communicate their experience to the
SEC, which may lead to quicker adoption of the standard. If public companies
choose to add I-Metrix Professional to the solution, they will also save time
and energy while performing benchmarking, peer, competitive and valuation
analysis tasks. We believe Interactive Data will become a win-win proposition
for the SEC, investors and public issuers."
During the first quarter of 2006, EDGAR Online adopted SFAS 123(R), "Share Based
Payment," which requires the Company to begin recording stock compensation
expense based on the fair value of options granted to employees. The expense is
recognized ratably over the vesting period of the related options and is
included in the same line item as cash compensation expenses of the same
employees. As a result, the Company recorded $263,000 of stock compensation
expense in the first quarter of 2006, which is reflected in operating loss.
Operating loss was ($1.6 million), or ($0.06) per share, for the first quarter
of 2006, compared to an operating loss of ($960,000), or ($0.04) for the same
quarter last year. Net loss for the first quarter was ($1.6 million), or ($0.06)
per share, compared to a net loss of ($944,000), or ($0.04) per share in the
prior year. The increase in operating loss from the prior year reflects the
Company's continued increases in product development and sales and marketing
expenses associated with the I-Metrix suite of products, and the adoption of
SFAS 123(R).
EDGAR(R) Online, Inc.
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At March 31, 2006, cash and equivalents totaled $4.6 million, compared to $5.3
million at December 31, 2005. The Company has no debt other than normal
operating payables and accrued expenses.
KEY FINANCIAL METRICS
(in thousands, except per share amounts)
1Q'06 1Q'05
------- -------
(unaudited)
Seat-based Subscriptions $ 2,260 $ 1,899
Data Sales 1,589 1,241
Technical Services - 230
Advertising and E-commerce 69 133
------- -------
TOTAL REVENUES $ 3,918 $ 3,503
Net Loss $(1,584) $ (944)
Other (Income)/Expense, net (39) (16)
------- -------
Operating Loss $(1,623) $ (960)
Stock Compensation Expense 263 -
Amortization and Depreciation 459 476
------- -------
EBITDA $ (901) $ (484)
Net Loss per share $ (0.06) $ (0.04)
EBITDA per share $ (0.04) $ (0.02)
In addition to disclosing financial results prepared in accordance with GAAP,
the Company discloses information regarding EBITDA. EBITDA is a non-GAAP
financial measure defined as earnings before interest, taxes, depreciation and
amortization. EBITDA also excludes the non-cash charge for stock compensation
expense. As required by the SEC, the Company provides the above reconciliation
to net loss, which is the most directly comparable GAAP measure. The Company
presents EBITDA as it is a common alternative measure of performance that is
used by management as well as investors when analyzing the financial position
and operating performance of the Company by excluding certain non-cash expenses,
such as stock compensation expense, as well as non-operating items that are not
indicative of its core operating results. Further, this non-GAAP financial
measure is one of the primary indicators management uses for planning and
forecasting future periods. As EBITDA is a non-GAAP financial measure, it should
not be considered in isolation or as a substitute for net loss or any other GAAP
measure. Because not all companies calculate EBITDA in the same manner, the
Company's definition of EBITDA might not be consistent with that of other
companies.
EDGAR(R) Online, Inc.
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EDGAR Online will hold its quarterly conference call to review results for the
first quarter ended March 31, 2006 today, Tuesday, May 2, 2006, at 5 p.m. EST.
Susan Strausberg, president and CEO, and Greg D. Adams, COO and CFO, will host
the call. To participate, please call: (800) 811-8830 (toll-free for domestic
callers) or (913) 918-4904 (international callers). The call will also be
broadcast simultaneously over the Internet at
http://www.edgar-online.com/investor/. Investors also have the option of calling
(888) 203-1112 (domestic) or (719) 457-0820 (international), passcode 1610478,
for the teleconference replay, which will be available for approximately one
week beginning at 7 p.m. on May 2, 2006.
ABOUT EDGAR(R) Online, Inc.
EDGAR Online, Inc. (Nasdaq: EDGR), www.edgar-online.com, is a leading provider
of value-added business and financial information on global companies to
financial, corporate and advisory professionals. The Company makes information
and a variety of analysis tools available via online subscriptions and licensing
agreements to a large user base.
"Forward-looking statements" as defined in the Private Securities Litigation
Reform Act of 1995 may be included in this news release. These statements relate
to future events and/or our future financial performance. These statements are
only predictions and may differ materially from actual future events or results.
EDGAR Online, Inc. disclaims any intention or obligation to revise any
forward-looking statements whether as a result of new information, future
developments or otherwise. Please refer to the documents filed by EDGAR Online,
Inc. with the Securities and Exchange Commission, which identify important risk
factors that could cause actual results to differ from those contained in
forward-looking statements, including, but not limited to risks associated with
our ability to (i) increase revenues, (ii) obtain profitability, (iii) obtain
additional financing, (iv) changes in general economic and business conditions
(including in the online business and financial information industry), (v)
actions of our competitors, (vi) the extent to which we are able to develop new
services and markets for our services, (vii) the time and expense involved in
such development activities, (viii) risks in connection with acquisitions (ix)
the level of demand and market acceptance of our services and (x) changes in our
business strategies.
EDGAR(R)is a federally registered trademark of the U.S. Securities and Exchange
Commission. EDGAR Online is not affiliated with or approved by the U.S.
Securities and Exchange Commission.
FINANCIAL TABLES FOLLOW
EDGAR(R) Online(R), Inc.
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EDGAR ONLINE, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except per share amounts)
THREE MONTHS ENDED
MARCH 31,
-----------------------
2006 2005
---------- ----------
(unaudited)
Revenues:
Seat-based subscriptions $ 2,260 $ 1,899
Data sales 1,589 1,241
Technical services - 230
Advertising and e-commerce 69 133
---------- ----------
Total revenues 3,918 3,503
Total cost of sales (includes non-cash
stock-based employee compensation
expense of $12 for the three months
ended March 31, 2006) 616 494
---------- ----------
Gross profit 3,302 3,009
Sales and marketing (includes non-cash
stock-based employee compensation
expense of $70 for the three months
ended March 31, 2006) 1,234 963
Product development (includes non-cash
stock-based employee compensation
expense of $18 for the three months
ended March 31, 2006) 965 548
General and administrative (includes
non-cash stock-based employee
compensation expense of $163 for the
three months ended March 31, 2006) 2,267 1,982
Amortization and depreciation 459 476
---------- ----------
Total operating expenses 4,925 3,969
Operating loss (1,623) (960)
Other income, net 39 16
---------- ----------
Net loss $ (1,584) $ (944)
========== ==========
Weighted average shares outstanding -
basic and diluted 25,064 21,568
Net loss per share - basic and diluted $ (0.06) $ (0.04)
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EDGAR ONLINE, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
MARCH 31, DECEMBER 31,
2006 2005
------------ ------------
(unaudited)
ASSETS
Cash and cash equivalents $ 4,650 $ 5,334
Accounts receivable, net 2,834 2,296
Other assets 525 271
------------ ------------
Total current assets 8,009 7,901
Property and equipment, net 1,201 1,238
Goodwill 2,189 2,189
Intangible assets, net 6,378 6,690
Other assets 1,192 1,237
------------ ------------
Total assets $ 18,969 $ 19,255
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 2,113 $ 2,439
Deferred revenues 3,892 3,450
------------ ------------
Total current liabilities 6,005 5,889
Stockholders' equity:
Common stock 266 262
Treasury stock (1,881) (1,881)
Additional paid-in capital 68,051 66,873
Accumulated deficit (53,472) (51,888)
------------ ------------
Total stockholders' equity 12,964 13,366
Total liabilities and stockholders' equity $ 18,969 $ 19,255
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