Comtex Reports Fourth Quarter and Fiscal 2007 Financial Results
September 24 2007 - 7:15AM
PR Newswire (US)
NEW YORK, Sept. 24 /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 fourth quarter and fiscal year ended June 30, 2007. For the
fourth quarter of fiscal 2007, ended June 30, 2007, Comtex's
revenues were $1.8 million, approximately the same as the fourth
quarter of fiscal 2006. The Company reported $85,000 of operating
income and net income of $86,000, or $0.01 per share for the fourth
quarter of fiscal 2007, compared to a $(198,000) fourth quarter
operating loss and a net loss of approximately $(212,000), or
$(0.02) per share, for the quarter ended June 30, 2006. For the
year ended June 30, 2007, Comtex reported revenues of $7.1 million,
down from $7.7 million for the fiscal year ended June 30, 2006. The
decline in revenues is primarily the result of business
consolidations among clients. For fiscal 2007, Comtex had operating
income of $168,000 and a net loss of $(107,000), or $(0.01) per
share, versus an operating loss of $(364,000) and a net loss of
$(458,000), or $(0.03) per share, in the previous year. The net
loss for the 2007 fiscal year was primarily the result of a
non-cash charge associated with the accounting treatment of the
repayment of the Company's $857,000 Note Payable. During fiscal
2007, in order to save the Company the continuing costs of
servicing its Note Payable, Comtex entered into a Note Repayment
Agreement to settle the Note for a combination of cash and
restricted stock. In accordance with SFAS No. 84, Induced
Conversions of Convertible Debt, the Company recorded a non-cash
expense of $234,336 for this transaction. For fiscal 2007, EBITDA
(as defined and explained in the accompanying note to the table
below), excluding the effects of stock-based compensation, was
approximately $322,000 compared to $690,000 for the previous fiscal
year. For the fourth quarter of fiscal 2007, EBITDA was $119,000
compared to negative EBITDA of $(142,000) for the fourth quarter of
2006. The decline in annual EBITDA is primarily the result of
decreased revenues plus increased operating and other expenses in
the current fiscal year. "During fiscal 2007, besides enhancing its
core news products, Comtex expanded its innovative, new
SmarTrend(R) market product line to include a daily stock market
letter (Morning Call) and selected stock news (SmarTrend
Spotlights), in addition to our banner product, SmarTrend Alerts.
All these products are now available to consumers via subscription
at our new website http://www.mysmartrend.com/," stated Chip Brian,
Comtex's President and CEO. "We are also pleased to have
strengthened our balance sheet by repaying our long term debt
obligations during this past fiscal year," he concluded. 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 now also provides several SmarTrend Alert
products to consumers, including a daily stock market letter
(Morning Call), selected stock news (SmarTrend Spotlights), and
SmarTrend Alerts (via subscription at http://www.mysmartrend.com/).
Comtex has offices in New York City and Alexandria, Virginia.
SmarTrend(R) is a registered trademark 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.
Contact: Amber Gordon 703-797-8011 Comtex News Network, Inc.
Selected Financial Data (amounts in thousands, except per share
amounts) Years Ended Quarters Ended June 30 June 30 (audited)
(unaudited) 2007 2006 2007 2006 Revenues $7,069 $7,677 $1,823
$1,781 Operating Income (Loss) 168 (364) 85 (198) Net (Loss) Income
$(107) $(458) $ 86 $(212) Net (Loss) Income Per Share, Basic and
Diluted $(0.01) $(0.03) $0.01 $(0.02) Weighted Avg. # Shares, Basic
and Diluted 14,238 13,675 15,294 13,700 Reconciliation to EBITDA:
Net (Loss) Income $(107) $(458) $ 86 $(212) Stock-based
compensation 44 772 11 15 Depreciation & Amortization 110 282
22 41 Interest/Other Expense 269 78 - 14 Income Taxes 6 16 - -
EBITDA $322 $690 $119 $(142) 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
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/ http://www.mysmartrend.com/
Copyright