-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Nt1b6ZUxmTMwnu3VO6IkAOeoqlnpgX9eEV6Nyy2VG2BI4BPPDVSJPHk00qga0duY xtcjc1PUZD6MVyJI7giPng== 0000352988-04-000009.txt : 20040217 0000352988-04-000009.hdr.sgml : 20040216 20040217171606 ACCESSION NUMBER: 0000352988-04-000009 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040217 ITEM INFORMATION: Financial statements and exhibits ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20040217 FILER: COMPANY DATA: COMPANY CONFORMED NAME: COMTEX NEWS NETWORK INC CENTRAL INDEX KEY: 0000352988 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-MISCELLANEOUS BUSINESS SERVICES [7380] IRS NUMBER: 133055012 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-10541 FILM NUMBER: 04610175 BUSINESS ADDRESS: STREET 1: 625 N. WASHINGTON ST. STREET 2: STE 301 CITY: ALEXANDRIA STATE: VA ZIP: 22314 BUSINESS PHONE: 703-820-2000 MAIL ADDRESS: STREET 1: 625 N. WASHINGTON ST STREET 2: STE 301 CITY: ALEXANDRIA STATE: VA ZIP: 22314 FORMER COMPANY: FORMER CONFORMED NAME: COMTEX SCIENTIFIC CORP DATE OF NAME CHANGE: 19920703 8-K 1 form8-k.txt FORM 8-K DATED 2/17/04 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): February 17, 2004 COMTEX NEWS NETWORK, INC. (Exact name of registrant as specified in its charter) Delaware 0-10541 13-3055012 (State or other (Commission File No.) (Indentification No.) jurisdiction of incorporation) 625 N. Washington St. Ste 301, Alexandria, Virginia 22314 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (703) 820- 2000 4900 Seminary Road, Ste. 800, Alexandria, VA 22311 (Former name or former address, if changed since last report) Item 7. Financial Statements and Exhibits. (a) Not Applicable. (b) Not Applicable. (c) Exhibits. Exhibit No. Description 99.1 Press release dated February 17, 2004 Item 9. Regulation FD Disclosure. The following information is furnished pursuant to this Item 9 and in satisfaction of Item 12, "Disclosure of Results of Operations and Financial Condition." On February 17, 2004, Comtex News Network, Inc. issued a press release disclosing financial results for the second quarter of fiscal year 2004. A copy of the press release is attached as Exhibit 99.1 to this report. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, hereunto duly authorized. COMTEX NEWS NETWORK, INC. DATE: February 17, 2004 By: /S/ C.W. GILLULY C.W. Gilluly Chairman and Interim Chief Executive Officer EXHIBIT INDEX The following Exhibits are filed as part of this report: Exhibit No. Description 99.1 Press Release issued by Comtex News Network, Inc. on February 17, 2004. EX-99 3 exh99.txt EXHIBIT 99 - PRESS RELEASE DATED 2/17/04 EXHIBIT 99.1 COMTEX LOGO Release: IMMEDIATE For: Comtex News Network Contact: Amber Gordon (Symbol: CMTX) 703-820-2000 COMTEX REPORTS 2nd QUARTER FISCAL 2004 FINANCIAL RESULTS ALEXANDRIA, VA, February 17, 2004 - Comtex News Network, Inc., (OTC BB: CMTX), a leading wholesaler of electronic real-time news and content, today announced the financial results for the three and six-month periods ended December 31, 2003. For the quarter ended December 31, 2003, the Company's revenues were $2 million compared to $2.4 million for the second quarter of fiscal 2003. The decline in revenues primarily results from business closures and consolidation among clients. The Company reported an operating loss of $708,000 and a net loss of $1,035,000, or $0.08 loss per share, for the second quarter of fiscal 2004, versus last year's second quarter operating profit of $228,000 and net profit of $182,000, or $0.01 per share. The operating and net losses are primarily due to the termination of an operating lease for office space, the disposal of assets related to office and data center moves, and increased legal fees, as discussed below. The terminated operating lease had $2.6 million in remaining lease obligations and was terminated for $463,000 in settlement- related expenses and additional rent payments. As a result of the lease termination, during the second quarter, the Company reduced its leased office space from one location, comprising approximately 17,000 square feet, to two locations totaling approximately 5,000 square feet. Leased office expense was thereby reduced to $11,000 per month from $40,000 per month, a decrease of 73%. Operating expenses in the comparable period of the prior year included the recovery of accrued legal fees of $394,000 related to a favorable litigation settlement. The recovery of those legal fees reduced the prior year expenses in comparison to this year. Excluding the expenses associated with the terminated lease settlement and legal expense recovery, operating expenses for the second quarter and the six-month periods, respectively, decreased $266,000, or 17%, and $483,000, or 15%, from the comparable prior year periods. In conjunction with the above lease termination and the move of its data center to a third-party hosting facility, the Company also disposed of related furniture and equipment assets. Expenses related to these disposals total approximately $300,000, reported in other expense. C.W. Gilluly, Comtex's Chairman and Interim CEO, said, "The turnaround of Comtex is proceeding, although settling our former office space lease and writing-off various assets increased non- cash expenses and losses during the quarter." Dr. Gilluly also noted, "During this quarter, Comtex opened an office in New York City, expanded relationships with key distributors and established a new banking relationship. All of these factors contribute to increasing the strength of the Company." Revenues for the six months ended December 31, 2003 were $4.2 million, the operating loss was $936,000 and the net loss was $1.3 million, or $0.10 loss per share. Revenues for the prior year six-month period were $4.9 million, the operating loss was $15,000 and the net loss was $85,000, or a loss of $0.01 per share. As with the quarter, the increase in operating and net losses for the six month period are due primarily to the settlement of the liability on the office space lease, the loss on disposal of assets related to office and data center moves, the relative increase in legal fees, and a decrease in revenues and gross profit margins, all partially offset by decreased operating expenses. About Comtex Comtex is a leading wholesaler of real-time news and related content for the world's leading financial and business information distributors. With a specialization in the financial news and content marketplace, Comtex receives, enhances, combines, filters and distributes news and content received from more than 10,000 national and international news bureaus, agencies and publications. The resulting news and content products - with embedded stock tickers, key words, standardized metadata, uniform formatting and custom filters - are all designed to meet the exacting standards required by investment professionals. More information on the company can be found at www.comtex.com. Financial Table Follows Comtex News Network, Inc. Selected Financial Data (unaudited) (amounts in thousands, except per share amounts) Three Months Ended Six Months Ended December 31 December 31 2003 2002 2003 2002 Revenues $ 2,014 $ 2,430 $ 4,187 $ 4,862 Operating (Loss) Income (708) 228 (936) (15) Net (Loss) Income $ (1,035) $ 182 $ (1,287) $ (85) Net (Loss) Earnings Per Share Basic and Diluted $ (0.08) $ 0.01 $ (0.10) $ (0.01) Weighted Avg. # Shares: Basic 13,583 13,142 13,545 13,141 Diluted 13,583 13,296 13,545 13,141 Reconciliation to EBITDA: Net (Loss) Income $ (1,035) $ 182 $ (1,287) $ (85) Stock-based compensation 24 2 52 2 Depreciation & 230 304 483 608 Amortization Interest/Other Expense 327 45 350 70 Income Taxes - - - - EBITDA $ (454) $ 533 $ (402) $ 595
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. # # # -----END PRIVACY-ENHANCED MESSAGE-----