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Datawatch Corporation Reports Results for Third Quarter 2009
Chelmsford, MA - August 4, 2009 - Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Enterprise Information Management (EIM) and Business Intelligence (BI), today announced results for its third quarter ended June 30, 2009.
Revenues for the quarter ended June 30, 2009 were $4,765,000, down by 17 percent when compared to $5,775,000 for the quarter ended June 30, 2008. Revenues for the nine months ended June 30, 2009 were $15,059,000, as compared to $17,715,000 in the comparable period of fiscal 2008. Net income for the third quarter of fiscal 2009 was $275,000, or $0.05 per diluted share, as compared to net income of $91,000, or $0.02 per diluted share, for the third quarter of fiscal 2008. Net loss for the nine months ended June 30, 2009 was $(5,194,000), or $(0.88) per diluted share, as compared to net income of $421,000, or $0.07 per diluted share, for the nine months ended June 30, 2008. During the second quarter of fiscal year 2009, the Company recorded a non-cash impairment charge of approximately $6.4 million related to the full impairment of its goodwill and an indefinite lived trademark. Excluding the effects of the goodwill and trademark impairment charge, net of tax, the Company's net income for the nine months ended June 30, 2009 would have been $889,000, or $0.15 per diluted share.
As of June 30, 2009, the Company had $5,444,000 in net cash and cash equivalents, an increase of $998,000, or 22 percent, compared to June 30, 2008.
Commenting on the third quarter results, President and CEO Ken Bero said, "While the economy has continued to impact overall sales, the downward trend in U.S. Monarch sales we experienced in Q2 leveled off in Q3. International Monarch sales, however, saw a quarter on quarter decline. On the Enterprise side of the business, we successfully launched our new Service Management offering, Visual QSM for the Web. We are excited about this product's potential and have already had several existing customers purchase Visual QSM upgrades in the United Kingdom and Australia. We continue to build momentum with our Enterprise Business Intelligence products. While the average deal size in Q3 vs. Q2 was lower, we completed more deals. Finally, we had stronger Q3 Services revenues. Comparisons to fiscal year 2008 revenues and expenses during the comparable period last year have continued to be impacted by the sustained weakness of the British Pound vs. the US dollar. The UK is our second largest market and the Pound has remained substantially below its last year's value."
"Income from operations, excluding the effects on last quarter for the goodwill and trademark impairment charge, was again solidly in the black," added Bero. "Our performance on this score was positive; exceeding Q3 results as compared to a year ago on less revenue. The Company continues to improve its cash position and to carefully manage expenses. Datawatch has no debt on the balance sheet. During the quarter, we adjusted our headcount to meet the lower expected revenues. Finally, we continue to invest in our key product offerings; the lifeblood of our business. We believe that our business intelligence products are especially valuable to our customers as they help companies improve operational efficiencies in these difficult times. We believe that our solutions position us well during this turbulent period and for continued growth as the economy turns around."
As previously announced, Datawatch will host a live webcast to discuss its third quarter 2009 results today at 2:00 p.m. (EST). The webcast can be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=147543. 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), the leader in report activation, helps companies make better decisions and solve business problems by getting more value from their current reports. Only Datawatch empowers end users to unlock the static information contained in existing reports from any internal or external source into dynamic data formats or applications, including Excel, without IT intervention or changes to existing reporting processes or infrastructure. Companies worldwide rely on Datawatch products including its market-leading Monarch desktop report activation software. Founded in 1985, 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, 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; the volatility of Datawatch’s stock price; limitations on the effectiveness of internal controls; rapid technological change; competition in the software industry; Datawatch's dependence on its principal products; proprietary software technology and software license agreements; risks associated with international sales; risks associated with indirect distribution channels; the adequacy of Datawatch’s sales returns reserve; risks associated with a subscription sales model; risks associated with acquisitions; Datawatch’s dependence on the introduction of new products and possible delays in those introductions; Datawatch’s dependence on its ability to hire and retain skilled personnel; and uncertainty and additional costs that may result from evolving regulation of corporate governance and public disclosure. 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, 2010. Any forward-looking statements should be considered in light of those factors.
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Investor Contact:
Datawatch Investor Relations
investor@datawatch.com
(978) 441-2200 ext. 8323
Media contacts:
Jena Coletti
Greenough Communications
jcoletti@greenoughcom.com
Phone: (617) 275-6528
Lisa G. Kilpatrick
Manager, Marketing Communications & Public Relations
lisa_kilpatrick@datawatch.com
Phone: (978) 441-2200, ext. 8240
Fax: (978) 453-4443
© 2012 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.
