Exhibit 99.1
EDGAR(R) ONLINE SECOND QUARTER REVENUES INCREASE 16%
SUBSCRIPTIONS AND DATA SALES INCREASE 22%
SOUTH NORWALK, Conn., Aug. 1 /PRNewswire-FirstCall/ -- EDGAR(R) Online(R),
Inc. (Nasdaq: EDGR), today announced that revenue increased 16% to $4.2 million
for the quarter ended June 30, 2006, compared to $3.6 million for the same
quarter last year, and its core business -- subscription and data sales --
increased 22% for the same period. Second quarter revenues and net loss per
share of ($0.05) were in line with the Company's guidance. 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 16% increase in deferred revenue to $4.2 million in
the second quarter of 2006, compared to $3.6 million in the second quarter of
2005. Part of the growth in deferred revenue is related to sales of the I-Metrix
suite of products, eXtensible Business Reporting Language (XBRL) solutions, and
the Company's partnership with RR Donnelley. Deferred revenue represents amounts
already billed to customers that will be recognized as revenue in future periods
as the Company's subscription and data products are utilized.
Total revenue increased to $8.1 million for the six months ended June 30,
2006, compared to $7.1 million in the same period last year despite a decrease
in the Company's technical services business which ceased in the third quarter
of 2005. Subscription revenue increased 21% to $4.7 million for the six months
ended June 30, 2006, compared to $3.9 million in 2005, and data sales improved
25% to $3.2 million for the six months ended June 30, 2006, compared to $2.6
million in 2005. Together, the increases in these segments resulted in a 22%
increase in the Company's core business.
Susan Strausberg, EDGAR Online's president and CEO, said, "We are very
pleased with our performance this quarter. Data and subscription sales showed
double digit growth over last year and total revenues were at the high end of
our expectations for the quarter. In our third quarter 2005 press release, I
stated that we expected financial success from our I-Metrix efforts would start
to be evident in 2006, and accelerate in 2007 and onward. To date in 2006, we
have recognized over $700,000 of I-Metrix revenues and are confident that the
momentum of our products, solutions and partnership with RR Donnelley and other
channel partners will continue to increase these revenues. In addition, while we
continue to invest heavily in product development, our EBITDA has remained
consistent with the prior year and improved sequentially. I believe this
demonstrates the overall effectiveness of our operations and bodes well for
future success."
Gross margins were consistent at 85% for both the second quarter of 2006 and
2005, and for both the six months ended June 30, 2006 and 2005. The Company
expects gross margins to continue to exceed 80% in future periods.
On January 1, 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 $262,000 of stock compensation expense in the first quarter
of 2006 and $265,000 during the second quarter of 2006, which are reflected in
operating loss.
Net loss for the second quarter was ($1.3 million) or ($0.05) per share,
compared to a net loss of ($1.3 million) or ($0.05) per share in the same
quarter last year. Net loss for the six months ended June 30, 2006 was
($2.9 million) or ($0.12) per share, compared to a net loss of ($2.2 million) or
($0.10) per share in the same period last year. The increase in net loss for the
six months ended June 30, 2006 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).
At June 30, 2006, cash and equivalents totaled $5.1 million compared to $4.6
million at March 31, 2006 and $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)
Quarter Ended Six Months Ended
----------------------- -----------------------
2Q'05 2Q'06 2Q'05 2Q'06
---------- ---------- ---------- ----------
Seat-based Subscriptions $ 2,037 $ 2,486 $ 3,936 $ 4,746
Data Sales 1,352 1,660 2,593 3,249
Technical Services 99 - 329 -
Advertising and E-commerce 122 53 255 122
Total Revenues $ 3,610 $ 4,199 $ 7,113 $ 8,117
Net Loss $ (1,275) $ (1,313) $ (2,219) $ (2,897)
Interest Income, net -31 (37) (47) -76
Operating Loss -1,306 (1,350) (2,266) (2,973)
Stock Compensation - 265 - 527
Amortization and Depreciation 469 444 945 903
EBITDA $ (837) $ (641) $ (1,321) $ (1,543)
Net Loss per share $ (0.05) $ (0.05) $ (0.10) $ (0.12)
EBITDA per share $ (0.03) $ (0.03) $ (0.06) $ (0.06)
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 Online will hold its quarterly conference call to review results for
the second quarter ended June 30, 2006 today, Tuesday, August 1, 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: (866) 585-6398 (toll-free for
domestic callers) or (416) 849-9626 (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
(800) 766-3146 (domestic) or (402) 220-7733 (international), passcode 3090865,
for the teleconference replay, which will be available for approximately one
week beginning at 7 p.m. on August 1, 2006.
About EDGAR(R) Online, Inc.
EDGAR Online, Inc. (Nasdaq: EDGR), http://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 Online, Inc.
Condensed Consolidated Statements of Operations
(in thousands, except per share amounts)
Three Months Six Months
Ended Ended
June 30, June 30,
---------------------- -----------------------
2005 2006 2005 2006
---------- --------- ---------- ----------
(unaudited) (unaudited)
Revenues:
Seat-based subscriptions $ 2,037 $ 2,486 $ 3,936 $ 4,746
Data sales 1,352 1,660 2,593 3,249
Technical services 99 - 329 -
Advertising and e-commerce 122 53 255 122
Total revenues 3,610 4,199 7,113 8,117
Total cost of sales
(includes stock-based
employee compensation
expense of $10 for the three
months ended June 30, 2006
and $22 for the six months
ended June 30, 2006) 556 609 1,050 1,225
Gross profit 3,054 3,590 6,063 6,892
Sales and marketing
(includes stock-based
employee compensation
expense of $72 for the three
months ended June 30, 2006
and $142 for the six months
ended June 30, 2006) 1,322 1,296 2,285 2,530
Product development
(includes stock-based
employee compensation
expense of $16 for the three
months ended June 30, 2006
and $33 for the six months
ended June 30, 2006) 538 955 1,086 1,920
General and administrative
(includes stock-based
employee compensation
expense of $167 for the
three months ended June 30,
2006 and $330 for the six
months ended June 30, 2006) 2,031 2,245 4,013 4,512
Amortization and
depreciation 469 444 945 903
Total operating expenses 4,360 4,940 8,329 9,865
Operating loss (1,306) (1,350) (2,266) (2,973)
Interest income, net 31 37 47 76
Net loss $ (1,275) $ (1,313) $ (2,219) $ (2,897)
Weighted average shares
outstanding - basic and
diluted 24,322 25,089 22,945 25,076
Net loss per share - basic
and diluted $ (0.05) $ (0.05) $ (0.10) $ (0.12)
EDGAR Online, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, June 30,
2005 2006
------------ ------------
(unaudited)
Assets
Cash and cash equivalents $ 5,334 $ 5,085
Accounts receivable, net 2,296 2,607
Other assets 271 420
Total current assets 7,901 8,112
Property and equipment, net 1,238 1,082
Goodwill 2,189 2,189
Intangible assets, net 6,690 6,067
Other assets 1,237 1,148
Total assets $ 19,255 $ 18,598
Liabilities and Stockholders' Equity
Accounts payable and accrued
expenses $ 2,439 $ 2,113
Deferred revenues 3,450 4,217
Total current liabilities 5,889 6,330
Stockholders' equity:
Common stock 262 268
Treasury stock (1,881) (2,061)
Additional paid-in capital 66,873 68,846
Accumulated deficit (51,888) (54,785)
Total stockholders' equity 13,366 12,268
Total liabilities and
stockholders' equity $ 19,255 $ 18,598
SOURCE EDGAR Online, Inc.
-0- 08/01/2006
/CONTACT: Greg Adams, COO and CFO of EDGAR(R) Online(R), Inc.,
+1-203-852-5666, gadams@edgar-online.com/
/First Call Analyst: /
/FCMN Contact: akuzycz@edgar-online.com /
/Web site: http://www.edgar-online.com /
(EDGR)