Exhibit 99.1
EDGAR(R) ONLINE THIRD QUARTER REVENUES INCREASE 17%
SOUTH NORWALK, Conn., Nov. 1 /PRNewswire-FirstCall/ -- EDGAR(R) Online(R),
Inc. (Nasdaq: EDGR), today announced that revenue increased 17% to $4.1 million
for the quarter ended September 30, 2006, compared to $3.5 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.
Total revenue increased 15% to $12.2 million for the nine months ended
September 30, 2006, compared to $10.6 million in the same period last year.
Subscription revenue increased 16% to $7.0 million for the nine months ended
September 30, 2006, compared to $6.0 million in 2005, and data licenses improved
28% to $5.0 million for the nine months ended September 30, 2006, compared to
$3.9 million in 2005. Together, the increases in these segments resulted in a
21% increase in the Company's core business. As of the third quarter of 2006,
the Company will refer to seat-based subscriptions as subscriptions and data
sales as data licenses to better describe the recurring nature of these
products.
"Six years ago, EDGAR Online had the vision of what the future held for
financial reporting and analytical tools and we began to invest in building
next-generation data solutions including technologies like eXtensible Business
Reporting Language (XBRL)," said Susan Strausberg, president and CEO of EDGAR
Online. "Through our I-Metrix suite of products, we introduced XBRL capability
for use today by investors, regulators and companies. The SEC's planned overhaul
of its EDGAR System -- which incorporates XBRL -- validates our market-leading
effort to put the power of interactive data into analysis-ready tools. I-Metrix
already incorporates eight years of XBRL-tagged data for more than 10,000 public
companies and provides multiple solutions for in-depth financial research,
modeling and tracking. When we began this work, we believed in the potential for
a dramatic shift in the delivery of information and are now at the forefront of
bringing best-of-breed solutions to the marketplace."
Gross margins were relatively consistent at 85% for the third quarter of
2006 compared to 86% for the third quarter of 2005, and at 85% for both the nine
months ended September 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 $249,000 of stock compensation expense in the third quarter
of 2006 and $776,000 for the nine months ended September 30, 2006, which are
reflected in operating loss.
Net loss for the third quarter was ($1.5 million) or ($0.06) per share,
which stayed the same as the net loss of ($1.5 million) or ($0.06) per share in
the same quarter last year. Net loss for the nine months ended September 30,
2006 was ($4.4 million) or ($0.17) per share, compared to a net loss of ($3.7
million) or ($0.16) per share in the same period last year. The increase in net
loss for the nine months ended September 30, 2006 from the prior year reflects
the adoption of SFAS 123(R) and the Company's continued increases in product
development and sales and marketing expenses associated with the I-Metrix suite
of products.
Deferred revenue increased 11% to $4.1 million in the third quarter of 2006,
compared to $3.7 million in the third quarter of 2005. Part of the growth in
deferred revenue is related to sales of the I-Metrix suite of products and the
Company's XBRL solutions. 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. At September 30, 2006, cash, cash
equivalents and short term investments totaled $3.9 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)
Three Months Ended Nine Months Ended
-------------------- --------------------
3Q'05 3Q'06 3Q'05 3Q'06
-------- -------- -------- --------
Subscriptions $ 2,102 $ 2,271 $ 6,038 $ 7,017
Data Licenses 1,274 1,719 3,867 4,968
Technical Services 47 - 376 -
Advertising and
E-commerce 42 74 297 196
Total Revenues $ 3,465 $ 4,064 $ 10,578 $ 12,181
Net Loss $ (1,501) $ (1,462) $ (3,720) $ (4,359)
Interest Income, net (52) (38) (99) (114)
Operating Loss (1,553) (1,500) (3,819) (4,473)
Stock Compensation - 249 - 776
Amortization and
Depreciation 500 443 1,445 1,346
EBITDA $ (1,053) $ (808) $ (2,374) $ (2,351)
Net Loss per share $ (0.06) $ (0.06) $ (0.16) $ (0.17)
EBITDA per share $ (0.04) $ (0.03) $ (0.10) $ (0.09)
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 third quarter ended September 30, 2006 today, Wednesday, November 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
(866) 245-6755 (domestic) or (416) 915-1035 (international), passcode 248479,
for the teleconference replay, which will be available for approximately one
week beginning at 7 p.m. on November 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)
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2005 2006 2005 2006
-------- -------- -------- --------
Revenues:
Subscriptions $ 2,102 $ 2,271 $ 6,038 $ 7,017
Data licenses 1,274 1,719 3,867 4,968
Technical services 47 - 376 -
Advertising and e-commerce 42 74 297 196
Total revenues 3,465 4,064 10,578 12,181
Total cost of sales (includes
stock-based employee
compensation expense of $8 for
the three months ended
September 30, 2006 and $30 for
the nine months ended
September 30, 2006) 487 603 1,537 1,828
Gross profit 2,978 3,461 9,041 10,353
Sales and marketing (includes
stock-based employee
compensation expense of $71 for
the three months ended
September 30, 2006 and $213 for
the nine months ended
September 30, 2006) 1,210 1,358 3,495 3,888
Product development (includes
stock-based employee
compensation expense of $14 for
the three months ended
September 30, 2006 and $47 for
the nine months ended
September 30, 2006) 697 926 1,783 2,846
General and administrative
(includes stock-based employee
compensation expense of $156
for the three months ended
September 30, 2006 and $486 for
the nine months ended
September 30, 2006) 2,124 2,234 6,137 6,746
Amortization and depreciation 500 443 1,445 1,346
Total operating expenses 4,531 4,961 12,860 14,826
Operating loss (1,553) (1,500) (3,819) (4,473)
Interest income, net 52 38 99 114
Net loss $ (1,501) $ (1,462) $ (3,720) $ (4,359)
Weighted average
shares outstanding -
basic and diluted 24,957 25,706 23,616 25,392
Net loss per share -
basic and diluted $ (0.06) $ (0.06) $ (0.16) $ (0.17)
EDGAR Online, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
December 31, September 30,
2005 2006
------------ -------------
(unaudited)
Assets
Cash, cash equivalents and investments $ 5,334 $ 3,862
Accounts receivable, net 2,296 2,588
Other assets 271 484
Total current assets 7,901 6,934
Property and equipment, net 1,238 1,047
Goodwill 2,189 2,189
Intangible assets, net 6,690 5,755
Other assets 1,237 1,198
Total assets $ 19,255 $ 17,123
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 2,439 $ 1,802
Deferred revenues 3,450 4,079
Total current liabilities 5,889 5,881
Stockholders' equity:
Common stock 262 270
Treasury stock (1,881) (2,132)
Additional paid-in capital 66,873 69,351
Accumulated deficit (51,888) (56,247)
Total stockholders' equity 13,366 11,242
Total liabilities and stockholders' equity $ 19,255 $ 17,123
SOURCE EDGAR Online, Inc.
-0- 11/01/2006
/CONTACT: Greg Adams, COO and CFO of EDGAR(R) Online(R), Inc.,
+1-203-852-5666, gadams@edgar-online.com /
/Web site: http://www.edgar-online.com /