Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Business
Intelligence (BI), today announced results for its third quarter
ended June 30, 2010.
Revenues for the quarter ended June 30, 2010 were $4,593,000, as
compared to $4,765,000 for the quarter ended June 30, 2009. Net
income for the third quarter of fiscal 2010 was $222,000, or $0.04
per diluted share, as compared to $275,000, or $0.05 per diluted
share, for the third quarter of fiscal 2009. Revenues for the nine
months ended June 30, 2010 were $13,399,000 as compared to
$15,059,000 for the nine months ended June 30, 2009. Net loss for
the nine months ended June 30, 2010 was $(75,000), or $(0.01) per
diluted share, as compared to net loss of $(5,194,000), or $(0.88)
per diluted share, for the nine months ended June 30, 2009. The
results for the nine months ended June 30, 2009 include a $6.4
million goodwill and trademark impairment charge.
As of June 30, 2010, the Company had $6,072,000 in net cash and
cash equivalents, an increase of $423,000, or 7 percent, compared
to September 30, 2009.
Commenting on the third quarter results, President and CEO Ken
Bero said, “Income from operations was solidly in the black, a
welcome turnaround from the previous two quarters. Our operating
performance resulted from the relative stabilization of revenues
compared to Q2 combined with continued expense management.”
“We achieved solid enterprise software sales with several large
deals coming from our European operations,” added Bero. “Sales of
our desktop BI products were slightly lower as compared to the
previous quarter. However, maintenance revenue was strong
demonstrating that even in these difficult times our customers are
continuing to find tremendous value in their Datawatch solutions.
While operations posted a strong showing for the quarter, net
income was negatively impacted by currency losses resulting from
the translation of Euro based assets into the functional currency
of our subsidiaries in the UK, the British Pound.”
As previously announced, Datawatch will host a live webcast to
discuss its third quarter results today at 2:00 p.m. (EDT). The
webcast can be accessed at:
http://www.investorcalendar.com/IC/CEPage.asp?ID=160526. Please
register at least 15 minutes early to download any necessary audio
software. An archive of the broadcast will be available for 30 days
at the same location.
ABOUT DATAWATCH CORPORATION
Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Business
Intelligence (BI), helps companies make better decisions and solve
business problems by simplifying access to and analysis of
information. Unique among BI vendors, Datawatch transforms the
massive amounts of data and documents generated inside or outside a
company into actionable insight, without any changes needed to
existing systems. Datawatch customers benefit from the right
information, in the right context, at the right time. More than
40,000 organizations worldwide rely on Datawatch products including
its market-leading Monarch report and data mining solutions.
Datawatch is based in Chelmsford, Mass., with offices in London,
Sydney and Manila. For more information, visit
www.datawatch.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
Any statements contained in this press release that do not
describe historical facts may constitute forward-looking statements
as that term is defined in the Private Securities Litigation Reform
Act of 1995. Any such statements, including but not limited to
those relating to results of operations net of any impairment
charges, contained herein are based on current expectations, but
are subject to a number of risks and uncertainties that may cause
actual results to differ materially from expectations. The factors
that could cause actual future results to differ materially from
current expectations include the following: risks associated with
the uncertainty of the current economic climate; risks associated
with fluctuations in quarterly operating results, including results
of large transactions occurring within a particular period;
Datawatch's dependence on its principal products; risks associated
with international sales and operations, including currency
translation risks; risks associated with distributor sales; risks
associated with acquisitions; an unfavorable result in any
litigation; market acceptance of new products; dependence on the
introduction of new products and possible delays in those
introductions. Further information on factors that could cause
actual results to differ from those anticipated is detailed in
various publicly-available documents, which include, but are not
limited to, filings made by Datawatch from time to time with the
Securities and Exchange Commission, including but not limited to,
those appearing in the Company's Annual Report on Form 10-K for the
year ended September 30, 2009 and Form 10-Q for the quarters ended
December 31, 2009 and March 31, 2010. Any forward-looking
statements should be considered in light of those factors.
© 2010 Datawatch Corporation. Datawatch, Monarch and their
respective logos are trademarks or registered trademarks of
Datawatch Corporation in the United States and/or other countries.
All other names are trademarks or registered trademarks of their
respective companies.
DATAWATCH CORPORATION Condensed Consolidated Statements of
Operations Amounts in Thousands (except per share data) (Unaudited)
Three Months Ended Nine Months
Ended June 30, June 30, 2010 2009 2010 2009 REVENUE:
Software licenses and subscriptions $ 2,458 $ 2,605 $ 7,218 $ 8,419
Maintenance and services 2,135 2,160
6,181 6,640 Total revenue 4,593 4,765
13,399 15,059 COSTS AND EXPENSES: Cost of software licenses
and subscriptions 597 574 1,818 1,635 Cost of maintenance and
services 731 783 2,238 2,491 Sales and marketing 1,370 1,510 4,505
5,025 Engineering and product development 627 483 2,045 1,781
General and administrative 981 1,084 2,787 3,268 Impairment of
goodwill and other intangibles - -
- 6,401 Total costs and expenses
4,306 4,434 13,393 20,601
INCOME (LOSS) FROM OPERATIONS 287 331 6 (5,542 )
Other income (expense), net (58 ) (52 ) (59 )
112 INCOME (LOSS) BEFORE INCOME TAXES 229 279
(53 ) (5,430 ) Income tax provision (benefit) 7
4 22 (236 ) NET INCOME
(LOSS) $ 222 $ 275 $ (75 ) $ (5,194 ) Net
income (loss) per share - Basic $ 0.04 $ 0.05 $ (0.01
) $ (0.88 ) Net income (loss) per share - Diluted $ 0.04
$ 0.05 $ (0.01 ) $ (0.88 ) Weighted Average
Shares Outstanding - Basic 5,943 5,924
5,933 5,918 Weighted Average
Shares Outstanding - Diluted 6,074 5,986
5,933 5,918
DATAWATCH CORPORATION Condensed Consolidated Balance Sheets Amounts
in Thousands (Unaudited) June 30, September
30, 2010 2009 Cash and cash equivalents $ 6,072 $ 5,649
Accounts receivable, net 2,902 2,968 Prepaid expenses and other
current assets 459 405 Total current assets 9,433
9,022 Property and equipment, net 359 498 Intangible and
other assets, net 1,755 2,523 $ 11,547 $
12,043 Accounts payable and accrued expenses $ 2,299 $ 2,676
Deferred revenue - current portion 3,696 3,719 Total
current liabilities 5,995 6,395 Total long-term liabilities
362 482 Total shareholders' equity 5,190 5,166
$ 11,547 $ 12,043
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