-----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, RQ4C1CidCoiu4E2QNeZGrJpIzJe9SrfBAqGRW9t0eSuGpX5WE5zep0jjV48AuMnZ 1mVzT/bTc38aTMpp036mmQ== 0000943374-05-001407.txt : 20051003 0000943374-05-001407.hdr.sgml : 20051003 20051003141317 ACCESSION NUMBER: 0000943374-05-001407 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20050930 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20051003 DATE AS OF CHANGE: 20051003 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: 051116927 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 form8k_100305.txt UNITED STATES 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): September 30, 2005 ------------------ COMTEX NEWS NETWORK, INC. (Exact Name of Registrant as Specified in its Charter) Delaware 0-10541 13-3055012 - ----------------------------- --------------------- ------------------- (State or Other Jurisdiction) (Commission File No.) (I.R.S. Employer of Incorporation) Identification No.) 625 N. Washington Street, Suite 301, Alexandria, Virginia 22314 - ---------------------------------------------------------- ---------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (703) 820-2000 -------------- Not Applicable -------------- (Former Name or Former Address, if Changed Since Last Report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition --------------------------------------------- On September 30, 2005, Comtex News Network, Inc, issued a press release reporting its financial results for the quarter and year ended June 30, 2005. A copy of the press release is attached as Exhibit 99.1 to this report and is being furnished to the SEC and shall not be deemed filed for any purpose. Item 9.01. Financial Statements and Exhibits --------------------------------- (a) Financial Statements of Businesses Acquired. Not applicable (b) Pro Forma Financial Information. Not Applicable (c) Exhibits. Exhibit No. Description ----------- ----------- 99.1 Press release dated September 30, 2005 issued by Comtex News Network, Inc. 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: October 3, 2005 By: /s/C.W. Gilluly ------------------------------------ C.W. Gilluly, Ed.D. Chairman and Interim Chief Executive Officer EXHIBIT INDEX Exhibit Description 99.1 Press release dated September 30, 2005 issued by Comtex News Network, Inc. EX-99.1 2 form8k_ex991-100305.txt COMTEX Release: IMMEDIATE News Network, Inc. For: Comtex News Network (Symbol: CMTX) Contact: Amber Gordon agordon@comtex.com 703-797-8011 COMTEX REPORTS FISCAL 2005 AND 4TH QUARTER EARNINGS ALEXANDRIA, VA, September 30, 2005 - Comtex News Network, Inc. (OTC BB: CMTX), a leading provider of economically useful electronic real-time news, content and market alerts, today announced financial results for the fourth quarter and fiscal year ended June 30, 2005. For the year ended June 30, 2005, Comtex reported operating income of $826,000 and net income of $729,000, or $0.05 per share, versus an operating loss of $1.1 million and a net loss of $1.2 million, or a $(0.09) loss per share, for the previous fiscal year. Fiscal 2005 revenues were $8.0 million compared to $8.2 million for the fiscal year ended June 30, 2004. The decline in revenues is the direct result of consolidation among clients, primarily in the Internet and personal investor markets. Increases in operating and net income are primarily the result of decreases in technical and general and administrative expenses, partially offset by increased sales and marketing expenses. Additionally, there were no expenses related to the settlement with our former landlord and the related loss on disposal of assets, nor stock-based compensation in the current period. In addition, during fiscal 2005 the company accrued a refund receivable of $151,000 in connection with prior periods' business license fees. For the quarter ended June 30, 2005, Comtex's revenues were basically unchanged from the previous year at approximately $2 million. The Company reported fourth quarter net income of $431,000 (which included a refund receivable of $151,000 as discussed above), or $0.03 per share, compared to $143,000, or $0.01 per share, for the fourth quarter of 2004. For fiscal 2005, EBITDA (as defined and explained in the accompanying note to the table below) increased to $1.4 million from negative EBITDA of $(153,000) for the previous fiscal year. This increase was primarily the result of a reduction in depreciation and amortization expenses; and there were no charges related to the termination of a former lease and the related loss on disposal of assets, nor stock-based compensation, as explained above. For the fourth quarter of fiscal 2005, EBITDA increased to $545,000 from $362,000 in the fourth quarter of the prior year. "Comtex continues to be a leading provider of economically useful news and information, and we have introduced several dynamic new products during the last year," said Chip Brian, Comtex's President and COO. "We remain committed to Comtex Announces Fiscal 2005 Financial Results Page 2 September 30, 2005 enhancing our existing products, developing and introducing new, exciting products and finding ways to expand our position in the market for actionable news and information." About Comtex Comtex (www.comtex.com) provides real-time news, SmarTrendSM Alerts 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 (OTC BB: CMTX) has offices in New York City and Alexandria, Virginia. SmarTrendSM and CSTASM are service marks 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. FINANCIAL TABLE FOLLOWS More ... Comtex Announces Fiscal 2005 Financial Results Page 3 September 30, 2005
Comtex News Network, Inc. Selected Financial Data (amounts in thousands, except per share amounts) Years Ended Quarters June 30 Ended June 30 --------------------------------- --------------------------------- (audited) (unaudited) --------------------------------- --------------------------------- 2005 2004 2005 2004 ---- ---- ---- ---- Revenues $7,970 $8,165 $ 1,970 $ 2,016 Operating Income (Loss) 826 (1,085) 427 178 Net Income (Loss) $ 729 $ (1,212) $ 431 $ 143 --------------------------------- --------------------------------- Net Income (Loss) Per Share Basic $ 0.05 $ (0.09) $ 0.03 $ 0.01 --------------------------------- --------------------------------- Diluted $ 0.05 $ (0.09) $ 0.03 $ 0.01 Weighted Avg. # Shares: Basic 13,600 13,564 13,600 13,588 --------------------------------- --------------------------------- Diluted 14,678 13,564 14,646 14,696 Reconciliation to EBITDA: Net Income (Loss) $ 729 $(1,212) $ 431 $ 143 Stock-based compensation - 68 - - Depreciation & Amortization 624 864 119 184 Interest/Other Expense 97 127 (5) 35 Income Taxes - - - - --------------------------------- --------------------------------- EBITDA $ 1,450 $(153) $ 545 $ 362
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. # # # -----END PRIVACY-ENHANCED MESSAGE-----