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[whyme2005]

DWCH $4.3 REPORTS 11C/SHARE NET INCOME...CC AT 2PM

Analysts expected 6c/share....

DWCH will fly after the initial profit taking, and morte so after today's CC at 2:00 PM.....only 2.4M shares on the float, and almost $5M cash with no debt!!!

DWCH is the next CKCM....here is the report:

Datawatch Corporation Reports Earnings for its Fourth Quarter and Fiscal 2005

Thursday November 17, 8:47 am ET

Datawatch Announces Q4 Revenue Growth of 13% and Year-on-Year Revenue Growth of 11%; Cash Grows to Over $4.9 Million

LOWELL, Mass., Nov. 17 /PRNewswire-FirstCall/ -- Datawatch Corporation (Nasdaq: DWCH - News), a leading provider of Business Intelligence, Data Transformation and Business Service Management solutions, today announced results for its fourth quarter and fiscal year ended September 30, 2005.

Revenues for the quarter ended September 30, 2005 were $5,697,000, an increase of 13% from $5,024,000 for the same period of fiscal 2004. Net income for the fourth fiscal 2005 quarter was $617,000, or $0.11 per diluted share, compared to $266,000, or $0.05 per diluted share, a year ago.

Revenues for the year ended September 30, 2005 were $21,512,000, an increase of 11% from $19,335,000 for fiscal 2004. Net income for fiscal 2005 was $800,000, or $0.14 per diluted share, compared to $1,085,000, or $0.19 per diluted share a year ago.

Increases to expenses in fiscal 2005 versus 2004 were due to additional investments in sales, marketing and research and development, and a customer trend towards subscription based sales that have a higher up-front cost of sales and project implementation.

The company recorded a benefit for income taxes of $22,000 for fiscal 2005 and $127,000 for fiscal 2004 for the realization of deferred tax assets, primarily related to domestic net operating loss carry forwards. In September 2005, the company recorded a charge for the acceleration of unvested stock- options of $47,000 in order to minimize future non-cash compensation expense related to stock-based compensation which will be required commencing with the first quarter FY2006 by the FAS123® accounting guidance. The company's cash position at September 30, 2005 was $4.9 million compared with $4.3 million at September 30, 2004.

Commenting on the fiscal 2005 results, president and CEO Robert Hagger said, "I am pleased by the consistent revenue increases, and with the company's ability to generate a significant level of positive cash flow. Fiscal 2004 revenue was up by 9% on 2003, and fiscal 2005 revenue up by a further 11% on 2004. In addition to four consecutive years of profitability, and significant investments in acquisitions, product development, sales, and marketing, our net cash position also remains strong at $4.9 million."


"Datawatch has expanded its data and information management offerings to meet the rapidly increasing demand in the Business Intelligence market, especially for executive dashboards and scorecards," continued Hagger. "From individual desktop applications through to full enterprise-wide information access, analysis and distribution systems, Datawatch is providing easy to implement solutions that deliver a strong return on investment for our customers. We eagerly look forward to an exciting fiscal 2006."

Datawatch previously announced that the company will present and discuss its fourth quarter results today at 2 p.m. (EST) in a live conference call broadcast via the Internet at http://www investorcalendar com/IC/CEPage.asp?ID=96121. Listeners are recommended to go to the website at least 15 minutes early to register and download any necessary audio software. An archived replay of the broadcast will be available for 30 days at the same location.

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