NEW YORK, May 14 /PRNewswire-FirstCall/ -- Comtex News
Network, Inc. (OTC Bulletin Board: CMTX), a leading provider of
economically useful electronic real-time news, content and
SmarTrend® market products, today announced financial
results for its third fiscal quarter and the nine month period
ended March 31, 2010.
For the three months ended March 31,
2010, Comtex revenues increased to $1.9 million from $1.5
million for the three months ended March 31, 2009, representing a 27% increase in
revenues. Comtex also reported that revenues for the nine month
period ended March 31, 2010,
increased to $5.5 million from
$4.8 million for the same period of
the prior fiscal year. The increases were primarily due to growth
in sales of our SmarTrend product and increased advertising
revenue.
Comtex reported an operating loss of $(251,000) and a net loss of $(191,000), or ($0.01) per share, for the third quarter ended
March 31, 2010, compared to an
operating loss of $(50,000) and a net
loss of $(33,000), or $0.00 per share, for the three months ended
March 31, 2009. For the nine
months ended March 31, 2010, Comtex
reported an operating loss of $(267,000), and a net loss of $(151,000), or $(0.01) per share, compared to operating income
of $24,000, and net income of
$39,000, or $0.00 per share, for the nine months ended
March 31, 2009. The losses for
the periods ended March 31, 2010 were
primarily due to increases in the cost of revenues, and increased
sales and marketing expenses.
For the nine months ended March 31,
2010, EBITDA (as defined and explained in the accompanying
note to the table below), excluding the effects of stock-based
compensation, was a negative $(143,000) compared to EBITDA of $147,000 for the nine months ended March 31, 2009. The decrease in EBITDA was
primarily due to increased expenses mainly in the areas of product
line expansion, sales and marketing.
About Comtex
Comtex (www.comtex.com) provides real-time news, Comtex
SmarTrend® Alerts and economically useful information.
Comtex customers receive select content from key sources
which is further enhanced with stock tickers and an extended
lexicon of relevant terms. With a specialization in the
financial news and content marketplace, Comtex receives, enhances,
combines and filters news and content received from national and
international news bureaus, agencies and publications, and
distributes more than one million total stories per day.
Comtex's state-of-the-art technology delivers this
relevant content and reliable service in
real-time. Comtex also provides several proprietary
SmarTrend Alert products to investors, including a daily
stock market letter (Morning Call), selected stock news
(SmarTrend Spotlights), and SmarTrend Alerts
(via subscription at www.mysmartrend.com). Comtex has offices
in New York City; Boston, Massachusetts; and Alexandria, Virginia.
FINANCIAL
TABLE FOLLOWS
|
|
Comtex News Network,
Inc.
Selected Financial
Data
(unaudited / amounts
in thousands, except per share amounts)
|
|
|
|
|
Three
Months
|
|
Nine
Months
|
|
|
Ended
March 31
|
|
Ended
March 31
|
|
|
2010
|
2009
|
|
2010
|
2009
|
|
|
|
|
|
|
|
|
Revenues
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$
1,901
|
$
1,492
|
|
$
5,506
|
$
4,808
|
|
Operating
(Loss) Income
|
(251)
|
(50)
|
|
(267)
|
24
|
|
Net
(Loss) Income
|
$
(191)
|
$
(33)
|
|
$
(151)
|
$
39
|
|
|
|
|
|
|
|
|
(Loss)
Earnings Per Share
|
|
|
|
|
|
|
Basic and Diluted
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$
(0.01)
|
$
0.00
|
|
$
(0.01)
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$
0.00
|
|
|
|
|
|
|
|
|
Weighted
Avg. # Shares:
|
|
|
|
|
|
|
Basic
|
15,794
|
15,446
|
|
15,794
|
15,583
|
|
Diluted
|
15,794
|
15,446
|
|
15,794
|
15,653
|
|
|
|
|
|
|
|
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Reconciliation
to EBITDA:
|
|
|
|
|
|
|
Net
(Loss) Income
|
$
(191)
|
$
(33)
|
|
$
(151)
|
$
39
|
|
Stock-based
compensation
|
-
|
-
|
|
-
|
35
|
|
Depreciation
and Amortization
|
47
|
30
|
|
124
|
88
|
|
Interest/Other
(Income) Expenses, net
|
(61)
|
(18)
|
|
(117)
|
(29)
|
|
Income
Taxes
|
1
|
1
|
|
1
|
14
|
|
EBITDA
|
$
(204)
|
$
(20)
|
|
$
(143)
|
$
147
|
|
|
|
|
|
|
|
Please Note: EBITDA consists of earnings before
stock-based compensation, debt conversion expense, interest
expense, interest and other income, unrealized and realized gains
(losses) in marketable securities, income taxes, and depreciation
and amortization. EBITDA is not a term defined by U.S. 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 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.
SmarTrend® is a registered trademark of Comtex News Network,
Inc.
Contact:
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Amber
Gordon
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agordon@comtex.com
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703-797-8011
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SOURCE Comtex News Network, Inc.