EX-99.1 2 form8k_ex991-051705.txt Comtex Relevant Reliable Real-Time Release: Immediate For: Comtex News Network (Symbol: CMTX) Contact: Amber Gordon agordon@comtex.com 703-820-2000 x8011 COMTEX REPORTS THIRD QUARTER FISCAL 2005 EARNINGS Alexandria, VA, May 16, 2005 - Comtex News Network, Inc., (OTC BB: CMTX), a leading provider of economically useful electronic real-time news and content, today announced fiscal 2005 third quarter and year-to-date earnings. For the quarter ended March 31, 2005, the Company reported operating income of $109,000 and net income of $82,000, or $0.01 per share, versus last year's third quarter operating loss of $(26,000) and net loss of $(68,000), or ($0.00) per share. Revenues were $1.9 million for both periods. For the nine months ended March 31, 2005, the Company reported operating income of $400,000 and net income of $298,000, or $0.02 per share, versus last year's nine month operating loss of $(1.3) million and net loss of $(1.4) million, or ($0.10) loss per share. Revenues for the nine months ended March 31, 2005 were $6 million compared to $6.1 million for the same period of fiscal 2004. Comtex's continued profitability was largely due to decreased operating expenses, particularly in the areas of general / administrative costs and technical operations costs, partially offset by increased sales / marketing expenses and, by decreased revenues. The decline in revenues resulted primarily from continuing business contractions within the electronic news marketplace. C.W. Gilluly, Comtex's Chairman and Interim CEO, stated, "Comtex management is focused on developing and introducing innovative, economically useful news and information products for our clients. We are pleased to report profitability during this time of product development." About Comtex Comtex (www.comtex.com) provides real-time news and economically useful information to businesses whose customers need more than just facts. 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 has offices in New York City and Alexandria, Virginia. Financial Table Follows More... Comtex: Reports 3rd Quarter FY 2005 Earnings Page 2 May 16, 2005 Comtex News Network, Inc. Selected Financial Data (unaudited) (amounts in thousands, except per share amounts)
Three Months Ended Nine Months Ended March 31 March 31 ----------------------------------- ----------------------------------- 2005 2004 2005 2004 ---- ---- ---- ---- Revenues $ 1,927 $ 1,962 $ 6,000 $ 6,149 Operating Income (Loss) 109 (26) 400 (1,263) Net Income (Loss) $ 82 $ (68) $ 298 $ (1,355) ----------------------------------- ----------------------------------- Net Earnings (Loss) Per Share Basic $ 0.01 $ 0.00 $ 0.02 $ (0.10) ----------------------------------- ----------------------------------- Diluted $ 0.01 $ 0.00 $ 0.02 $ (0.10) ----------------------------------- ----------------------------------- Weighted Avg. # Shares: Basic 13,600 13,588 13,600 13,560 ----------------------------------- ----------------------------------- Diluted 14,745 13,588 14,736 13,560 ----------------------------------- ----------------------------------- Reconciliation to EBITDA: Net Income (Loss) $ 82 $ (68) $ 298 $ (1,355) Stock-based compensation - 16 - 68 Depreciation & Amortization 177 197 505 679 Interest/Other Expense 27 42 102 92 Income Taxes - - - - ----------------------------------- ----------------------------------- EBITDA $ 286 $ 187 $ 905 $ (516)
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. # # #