Comtex Reports Second Quarter Fiscal 2007 Financial Results
February 14 2007 - 6:45AM
PR Newswire (US)
NEW YORK, Feb. 14 /PRNewswire-FirstCall/ -- Comtex News Network,
Inc. (OTC:CMTX) (BULLETIN BOARD: CMTX) , a leading provider of
economically useful electronic real-time news, content and
SmarTrend(R) market products, today announced financial results for
the second quarter and six month periods ended December 31, 2006.
For the six months ended December 31, 2006, Comtex reported
revenues of $3.5 million compared to $3.9 million for the six
months ended December 31, 2005. The decline in revenues is
primarily the result of continued business consolidations within
our clients' markets and among clients. For the six month period,
Comtex reported operating income of $21,000 and a net loss of
$(12,000), or $(0.00) per share, versus an operating loss of
$(58,000) and a net loss of $(121,000), or $(0.01) per share,
incurred during the first half of fiscal year 2006. For the quarter
ended December 31, 2006, Comtex reported revenues of $1.7 million
compared to $1.9 million for the three months ended December 31,
2005. For the second quarter, Comtex narrowed its operating loss to
$(54,000) from an operating loss of $(162,000) incurred during the
second quarter of fiscal year 2006. The net loss for the quarter
decreased to $(73,000), or $(0.01) per share, from a net loss of
$(184,000), or $(0.01) per share, for the comparable quarter of the
previous year. For the six months ended December 31, 2006, EBITDA
(as defined and explained in the accompanying note to the table
below), excluding the effects of stock-based compensation, was
approximately $108,000 compared to $561,000 for the first six
months of the previous year. The decrease is the net result of
decreased revenues and reduced cost of revenues, partially offset
by decreased stock based compensation and depreciation, increased
operating costs, and other items. "Comtex continues to work with
its long-term client base to provide products that meet their
changing needs," said Chip Brian, Comtex's President and CEO. "We
are developing new Comtex SmarTrend(R) Alert products and we
continue to strive towards achieving profitability across all
product lines," concluded Mr. Brian. About Comtex Comtex
(http://www.comtex.com/) provides real-time news, Comtex
SmarTrend(R) 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 a SmarTrend Alert product to consumers,
CSTA(R)Direct (http://www.cstadirect.com/), and has offices in New
York City and Alexandria, Virginia. SmarTrend(R) and CSTA(R) are
registered trademarks of Comtex News Network, Inc. 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. Comtex News
Network, Inc. Selected Financial Data (unaudited / amounts in
thousands, except per share amounts) Three Months Six Months Ended
December 31 Ended December 31 2006 2005 2006 2005 Revenues $1,699
$1,933 $3,450 $3,929 Operating (Loss) Income (54) (162) 21 (58) Net
Loss $(73) $(184) $(12) $(121) Net Loss Per Share Basic and Diluted
$(0.01) $(0.01) $(0.00) $(0.01) Weighted Avg. # Shares: Basic and
Diluted 13,702 13,700 13,701 13,650 Reconciliation to EBITDA: Net
Loss $(73) $(184) $(12) $(121) Stock-based compensation 11 321 23
438 Depreciation & Amortization 29 75 64 181 Interest/Other
Expense 22 22 31 47 Income Taxes (3) - 2 16 EBITDA $(14) $234 $108
$561 Please Note: EBITDA consists of earnings before interest and
other expense, interest and other income, income taxes, stock-based
compensation, depreciation and amortization and impairment charges.
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. DATASOURCE: Comtex News Network, Inc.
CONTACT: Amber Gordon of Comtex News Network, Inc.,
+1-703-797-8011, Web site: http://www.comtex.com/
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