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Datawatch Corporation Reports Results for Third Quarter 2010
Chelmsford, MA - August 10, 2010 - 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), 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.
