Comtex News Network, Inc. (CMTX)

[flemsnopes]

Not very pretty, and the need for reduced expense related to reporting and compliance seems to be obvious. I still think there may be more news to come with respect to the RS and delisting. Stay tuned.



Comtex Reports Third Quarter Fiscal 2010 Results

PR Newswire
NEW YORK, May 14 /PRNewswire-FirstCall/ --

Comtex News Network, Inc. (OTC Bulletin Board: CMTX), a leading provider of economically useful electronic real-time news, content and SmarTrend® market products, today announced financial results for its third fiscal quarter and the nine month period ended March 31, 2010.

For the three months ended March 31, 2010, Comtex revenues increased to $1.9 million from $1.5 million for the three months ended March 31, 2009, representing a 27% increase in revenues. Comtex also reported that revenues for the nine month period ended March 31, 2010, increased to $5.5 million from $4.8 million for the same period of the prior fiscal year. The increases were primarily due to growth in sales of our SmarTrend product and increased advertising revenue.

Comtex reported an operating loss of $(251,000) and a net loss of $(191,000), or ($0.01) per share, for the third quarter ended March 31, 2010, compared to an operating loss of $(50,000) and a net loss of $(33,000), or $0.00 per share, for the three months ended March 31, 2009. For the nine months ended March 31, 2010, Comtex reported an operating loss of $(267,000), and a net loss of $(151,000), or $(0.01) per share, compared to operating income of $24,000, and net income of $39,000, or $0.00 per share, for the nine months ended March 31, 2009. The losses for the periods ended March 31, 2010 were primarily due to increases in the cost of revenues, and increased sales and marketing expenses.

For the nine months ended March 31, 2010, EBITDA (as defined and explained in the accompanying note to the table below), excluding the effects of stock-based compensation, was a negative $(143,000) compared to EBITDA of $147,000 for the nine months ended March 31, 2009. The decrease in EBITDA was primarily due to increased expenses mainly in the areas of product line expansion, sales and marketing.