VALUE SOFTWARE STOCK EXCELLENT EARNINGS TODAY
STOCK SHOULD GO TO $8 AGAIN TODAY!
Datawatch Corporation Reports Results for Third Quarter Fiscal 2005
Monday July 25, 8:25 am ET
Revenue Grows 19% in Third Quarter, and 10% for the Nine Months Year-to-Date
LOWELL, Mass., July 25 /PRNewswire-FirstCall/ -- Datawatch Corporation (Nasdaq: DWCH - News), a leading provider of business intelligence, data transformation and IT support solutions, today announced results for its third fiscal quarter of 2005.
Revenues for the quarter ended June 30, 2005 were $5,619,000, up by 19% when compared to $4,709,000 for the quarter ended June 30, 2004. Net income for the third quarter fiscal 2005 was $330,000 or $0.06 per diluted share, compared to net income of $100,000, or $0.02 per diluted share, for the third quarter fiscal 2004.
Revenues for the nine months ended June 30, 2005 were $15,815,000, up by 10.5% when compared to $14,311,000 for the nine months ended June 30, 2004. Net income for the nine months ended June 30, 2005 was $183,000 or $0.03 per diluted share, compared to net income of $819,000, or $0.14 per diluted share, a year ago.
As of June 30, 2005, the Company had $4.4 million in cash and marketable securities, an increase of $0.8 million or 23% from the second quarter, and no long-term debt.
Commenting on the third quarter's results, president and CEO Robert Hagger said, "We are excited by the progress being made at Datawatch. A good result was achieved in our third fiscal quarter by significant improvements to revenue and net income, compared to the same period last year."
"The increase in sales is attributable mainly to license revenue generated by the successful launch of Monarch V8. Monarch is used in 95% of the Fortune 1,000 companies as a desktop report-mining tool for legacy data. Now with added capabilities to easily extract, analyze and export data from PDF files, as well as HTML files, reports, databases and spreadsheets, the market for this product has expanded. The new version was launched late in March 2005, prior to our successful user conference in San Diego, California."
"Revenue from Enterprise-scale Business Intelligence and Service Management products was up by only 3% compared to the same quarter last year, partly due to a shift from our traditional licensing model towards a subscription licensing model. In spite of this shift, recognized revenue increased by 7% for the fiscal year-to-date. Nine new subscription orders were taken in the quarter, helping to add to the growing subscription revenue stream of $129,000 for the quarter as compared to $3,000 in the same period last year, and $307,000 year-to-date versus $10,000 last year."
"We continue to invest in growing the business over the medium term. Sales and marketing expenses for the first nine months of this fiscal year was $6.5 million versus $5.5 million a year ago, and research and development expenses increased $681,000. We are very pleased by this quarter's results and satisfied with our year-to-date position."
