Comtex Reports Earnings for 1st Quarter Fiscal 2005
November 15 2004 - 11:25AM
PR Newswire (US)
Comtex Reports Earnings for 1st Quarter Fiscal 2005 ALEXANDRIA,
Va., Nov. 15 /PRNewswire-FirstCall/ -- Comtex News Network, Inc.,
(OTC:CMTX) (BULLETIN BOARD: CMTX) , a leading provider of
economically useful electronic real-time news and content, today
announced earnings for the first quarter of its 2005 fiscal year.
For the quarter ended September 30, 2004, the Company reported
operating income of $131,000 and net income of $96,000, or $0.01
per share, versus last year's first quarter operating loss of
$228,000 and net loss of $252,000, or $0.02 loss per share. For the
first quarter of fiscal 2005, revenues were $2 million compared to
$2.1 million for the first quarter of fiscal 2004. The return to
profitability was largely due to decreased operating expenses,
particularly in the areas of general / administrative costs and
technical operations costs, partially offset by increased sales and
marketing expenses and decreased revenues. The decline in revenues
resulted primarily from business closures and continuing
consolidation among clients. C.W. Gilluly, Comtex's Chairman and
Interim CEO, stated, "We are pleased Comtex has returned to
profitability. Our top priority now is to develop new business and
create new, economically useful news and information products for
our clients." About Comtex Comtex (http://www.comtex.com/) provides
real-time news and economically useful information to businesses
whose customers need more than just facts. Customers receive
categorized content compiled from thousands of 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 thousands of 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 has offices in New York City
and Alexandria, Virginia. Comtex News Network, Inc. Selected
Financial Data (unaudited) (amounts in thousands, except per share
amounts) Three Months Ended September 30 2004 2003 Revenues $1,987
$2,173 Operating Income (Loss) 131 (228) Net Income (Loss) $96
$(252) Basic Earnings (Loss) Per Share $0.01 $(0.02) Diluted
Earnings (Loss) Per Share $0.01 $(0.02) Weighted Avg. # Shares:
Basic 13,599 13,508 Diluted 14,707 13,508 Reconciliation to EBITDA:
Net Income (Loss) $96 $(252) Stock-based compensation -- 28
Depreciation & Amortization 180 252 Interest/Other Expense 35
23 Income Taxes -- -- EBITDA $311 $ 51 Please Note: 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.
Also 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. DATASOURCE:
Comtex News Network, Inc. CONTACT: Amber Gordon of Comtex News
Network, Inc., +1-703-820-2000, ext. 8011, Web site:
http://www.comtexnews.com/
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