-----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, EfGtG3T8ZphQjrFZeetgpLrsKxy6Zvny3s61eXrn2VllXcWQEiaYUQ670kMpCmgT ees7y8kjKQPZHG3wuoUTJw== 0000943374-09-000668.txt : 20090513 0000943374-09-000668.hdr.sgml : 20090513 20090513153025 ACCESSION NUMBER: 0000943374-09-000668 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20090513 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090513 DATE AS OF CHANGE: 20090513 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: 09822171 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_051309.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): May 13, 2009 ------------ 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 May 13, 2009, the Registrant issued a press release reporting its financial results for the period ended March 31, 2009. 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) Shell Company Transactions. Not Applicable (d) Exhibits. Exhibit No. Description 99.1 Press release regarding earnings, dated May 13, 2009, 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: May 13, 2009 By: /s/ Paul J. Sledz ------------------------------------ Paul J. Sledz Treasurer EXHIBIT INDEX Exhibit Description 99.1 Press release regarding earnings, dated May 13, 2009, issued by Comtex News Network, Inc. EX-99.1 2 ex99-1_051309.txt COMTEX NEWS NETWORK, INC. Release: IMMEDIATE For: Comtex News Network (Symbol: CMTX) Contact: Amber Gordon agordon@comtex.com 703-797-8011 COMTEX REPORTS THIRD QUARTER FISCAL 2009 RESULTS NEW YORK, NY, May 13, 2009 - Comtex News Network, Inc. (OTC BB: CMTX), a leading provider of economically useful electronic real-time news, content and SmarTrend(R) market products, today announced financial results for its third fiscal quarter and the nine month period ended March 31, 2009. Comtex reported revenues of $1.5 million, an operating loss of ($50,000) and a net loss of ($33,000), or $0.00 per share, for the third quarter ended March 31, 2009, compared to revenues of $1.8 million, operating income of $232,000, and net income of $244,000, or $0.02 per share, for the three months ended March 31, 2008. The decrease was primarily due to reduced customer spending caused by industry consolidations and current economic conditions, plus marginal increases in sales and marketing expenses. For the nine months ended March 31, 2009, Comtex reported revenues of $4.8 million, $24,000 of operating income, and net income of $39,000, or $0.00 per share, compared to revenues of $5.4 million, $797,000 of operating income and net income of $754,000, or $0.05 per share, for the nine months ended March 31, 2008. The decrease in net income was primarily due to the reduced revenues caused by industry consolidations coupled with a one time pick up of revenue of approximately $181,000 from prior periods recorded in the nine months ended March 31, 2008. Net income for the period ended March 31, 2009 also reflected an increase in operating expenses, offset by the extinguishment of an accrued liability of $138,000 in October 2008. For the nine months ended March 31, 2009, EBITDA (as defined and explained in the accompanying note to the table below), excluding the effects of stock-based compensation, was $147,000 compared to EBITDA of $858,000 for the nine months ended March 31, 2008. The decrease in EBITDA was primarily due to reduced revenues, as discussed above, and increased operating expenses mainly in technical operations, sales, and marketing. Chip Brian, Comtex's President and CEO, stated, "Our third quarter results were consistent with our expectations and continued to be impacted by contracting budgets among certain of our customers. During these difficult economic conditions, the strength of our business model allows us to manage the short term challenges our business faces, while continuing to build and strengthen our growing SmarTrend product line and customer base." Comtex Announces 3rd Quarter Results Page 2 May 13, 2009 About Comtex Comtex (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 also provides several proprietary SmarTrend Alert products to investors, including a daily stock market letter (Morning Call), selected stock news (SmarTrend Spotlights), market analysis and its flagship product, SmarTrend Alerts (via subscription at www.mysmartrend.com). Comtex has offices in New York City; Boston, Massachusetts; and Alexandria, Virginia. SmarTrend(R) is a registered trademark of Comtex News Network, Inc. FINANCIAL TABLE FOLLOWS Comtex Announces 3rd Quarter Results Page 3 May 13, 2009
Comtex News Network, Inc. Selected Financial Data (unaudited / amounts in thousands, except per share amounts) Three Months Nine Months Ended March 31 Ended March 31 --------------------------------- --------------------------------- 2009 2008 2009 2008 --------------------------------- --------------------------------- Revenues $ 1,492 $ 1,770 $ 4,808 $ 5,426 Operating (Loss) Income (50) 232 24 797 Net (Loss) Income $ (33) $ 244 $ 39 $ 754 --------------------------------- --------------------------------- Earnings Per Share: Basic and Diluted $ 0.00 $ 0.02 $ 0.00 $ 0.05 --------------------------------- --------------------------------- Weighted Avg. # Shares: Basic 15,446 15,294 15,583 15,294 --------------------------------- --------------------------------- Diluted 15,446 15,460 15,653 15,467 --------------------------------- --------------------------------- Reconciliation to EBITDA: Net (Loss) Income $ (33) $ 244 $ 39 $ 754 Stock-based compensation - - 35 3 Depreciation and Amortization 30 19 88 59 Interest/Other (Income) Expenses, net (18) (12) (29) 37 Income Taxes, net 1 - 14 5 --------------------------------- --------------------------------- EBITDA $ (20) $ 251 $ 147 $ 858 --------------------------------- ---------------------------------
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 U.S. 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 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. # # # -----END PRIVACY-ENHANCED MESSAGE-----