-----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, VP9/RfXow1B7EiGySFn4DD2a55gLj53NRPY23Gcuxh1On/j0YVhXG7NrhmyQSHWb 72QyjCMO4lWRHfDVM2ZqYg== 0000943374-06-001260.txt : 20060929 0000943374-06-001260.hdr.sgml : 20060929 20060929150001 ACCESSION NUMBER: 0000943374-06-001260 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060928 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060929 DATE AS OF CHANGE: 20060929 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: 061116959 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_earningsrelease092906.txt FORM 8-K 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 28, 2006 ------------------ 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 28, 2006, Comtex News Network, Inc, issued a press release reporting its financial results for the fiscal year and fourth quarter ended June 30, 2006. 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 28, 2006 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: September 29, 2006 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 28, 2006 issued by Comtex News Network, Inc. EX-99 2 exearningsrelease092909.txt PRESS RELEASE COMTEX News Network, Inc. Release: IMMEDIATE For: Comtex News Network (Symbol: CMTX) Contact: Amber Gordon agordon@comtex.com 703-797-8011 COMTEX REPORTS FISCAL 2006 AND FOURTH QUARTER FINANCIAL RESULTS ALEXANDRIA, VA, September 28, 2006 - 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 fiscal year and fourth quarter ended June 30, 2006. For the year ended June 30, 2006, Comtex reported revenues of $7.7 million compared to $8.0 million for the fiscal year ended June 30, 2005. The decline in revenues is primarily the result of business consolidations among clients. For Fiscal 2006, Comtex had an operating loss of $(364,000) and a net loss of $(458,000), or $(0.03) per share, versus operating income of $826,000 and net income of $729,000, or $0.05 per share, in the previous year. The losses were primarily the result of the Company adopting the new accounting rule, SFAS 123R, and recording non-cash stock-based compensation expenses of approximately $772,000. For the quarter ended June 30, 2006, Comtex's revenues declined to $1.8 million from approximately $2 million. The Company posted a $(198,000) fourth quarter operating loss and a net loss of approximately $(212,000), or $(0.02) per share compared to operating income of $427,000 and net income of $431,000, or $0.03 per share, for the quarter ended June 30, 2005. For fiscal 2006, EBITDA (as defined and explained in the accompanying note to the table below), excluding the effects of stock-based compensation, was approximately $690,000 compared to $1.45 million for the previous fiscal year. For the fourth quarter of fiscal 2006, EBITDA was a negative $(142,000) compared to an EBITDA of $545,000 for the fourth quarter of 2005. The decreases are primarily the result of increased operating expenses in the current fiscal year, largely related to professional fees, partially offset by the receipt of local tax refunds in the prior fiscal year. "During fiscal 2006, Comtex has introduced innovative, exciting new financial market trend indicator products, while strengthening core product offerings for our long-term clients," stated Chip Brian, Comtex's President and COO. "We look forward to a national roll-out of Comtex SmarTrend(R) Alert and CSTA(R)Direct during the upcoming year - as well as continued expansion of relevant content to enhance all of our products," Mr. Brian concluded. More..... Comtex Announces Fiscal 2006 Financial Results Page 2 September 28, 2006 About Comtex Comtex (www.comtex.com) provides real-time news, SmarTrend(R) 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. 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. FINANCIAL TABLE FOLLOWS More.... Comtex Announces Fiscal 2006 Financial Results Page 3 September 28, 2006
Comtex News Network, Inc. Selected Financial Data (amounts in thousands, except per share amounts) Years Ended Quarters June 30 Ended June 30 --------------------------------- --------------------------------- (audited) (unaudited) --------------------------------- --------------------------------- 2006 2005 2006 2005 ---- ---- ---- ---- Revenues $ 7,677 $ 7,970 $ 1,811 $ 1,970 Operating (Loss) Income (364) 826 (198) 427 Net (Loss) Income $ (458) $ 729 $ (212) $ 431 --------------------------------- --------------------------------- Net Income (Loss) Per Share Basic $ (0.03) $ 0.05 $ (0.02) $ 0.03 --------------------------------- --------------------------------- Diluted $ (0.03) $ 0.05 $ (0.02) $ 0.03 Weighted Avg. # Shares: Basic 13,675 13,600 13,700 13,600 --------------------------------- --------------------------------- Diluted 13,675 14,678 13,700 14,646 Reconciliation to EBITDA: Net Income (Loss) $ (458) $ 729 $ (212) $ 431 Stock-based compensation 772 - 15 - Depreciation & Amortization 282 624 41 119 Interest/Other Expense 78 97 14 (5) Income Taxes 16 - - - --------------- ---------------- ----------------- -------------- EBITDA $ 690 $ 1,450 $ (142) $ 545 --------------- ---------------- ----------------- --------------
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-----