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QuoteMedia, Inc. (OTCQB:QMCI), a provider of market data and cloud-based financial applications, announced financial results for the fiscal year ended December 31, 2013.
These results reflect a 4% decrease in year-over-year revenue, from $9,870,769 in 2012 to $9,436,598 in 2013.
“We overcame some adversity this year,” says Robert J. Thompson, Chairman of the Board of QuoteMedia, Inc. “When Penson Worldwide, Inc., one of our largest clients, filed for Bankruptcy in January of 2013, we lost not only revenue for services provided to Penson, but also to a host of Penson’s correspondent brokerage clients. This had a major impact on our revenue in 2013. Nevertheless, we have been successful in adding new clients and growing existing relationships to help offset the loss of this major client and associated revenue streams.
“Our decrease in revenue is also partly due to the expiration of a large non-cash barter arrangement on June 30, 2012. In the first half of 2012, pursuant to this arrangement, we recorded revenue of $180,000, for providing portfolio management services to a major media client in exchange for advertising credits. So while our top line revenue no longer includes this $180,000 in barter revenue, we are also no longer incurring the offsetting $180,000 advertising expense. Therefore, the expiration of this non-cash barter arrangement had no impact on our bottom line or cash flow.”
“In 2014 we will maintain our focus on marketing Quotestream for deployments by brokerage firms to their retail clients and continue our expansion into the investment professional market with Quotestream Professional. Our deployment of native applications for the iPhone, Android and BlackBerry mobile devices is an important new development that we are planning to exploit this year. We also plan to continue the growth of our Data Feed Services client base and to increase the sales of our Interactive Content and Data Applications, particularly in the context of large-scale enterprise deployments encompassing solutions ranging across several product lines. Broad expansion of data and news coverage is also a priority for 2014.
“Important new development projects for 2014 include completion of trade integration capabilities, allowing our Quotestream applications to interact with our brokerage clients’ back-end trade execution and reporting platforms to enable on-the-fly trade execution and tracking of holdings. Additionally, we will be adding transactional and enhanced reporting functionality to our portfolio management systems. In 2014 we are also launching new web content solutions and data feed products using new dynamically updating data delivery mechanisms, proprietary content libraries and advanced HTML5 solutions. This allows for unprecedented levels of customization and functionality for our clients.
“Additionally, since the fourth quarter of 2013, the U.S. dollar has appreciated approximately 10% versus the Canadian dollar. This will result in lowering both our reported Canadian dollar revenues and expenses in 2014 compared to 2013 once translated into U.S. dollars. Approximately 29% of our revenues and 36% of our expenses are in Canadian dollars, so while the appreciation of the U.S. dollar will lower revenues figures compared to 2013, it will positively impact our bottom line in 2014.
“While the loss of revenue from the Penson contract and its affiliate companies and correspondents, and the relative strength of the U.S. dollar versus the Canadian dollar will continue to impact our reported revenue in 2014; we anticipate that we will return to positive revenue growth in the second half of 2014, based on new product deployments that have been recently completed or are near completion. Additionally, our new development projects have the potential to provide significant revenue opportunities. Overall, we are very excited about 2014.”
