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Datawatch Corporation Reports Results for Fourth Quarter and Fiscal Year 2009
Chelmsford, MA - November 19, 2009 - Datawatch Corporation (NASDAQ-CM: DWCH), a leader in Business Intelligence (BI) and Enterprise Information Management (EIM), today announced results for its fourth quarter and fiscal year ended September 30, 2009.
Revenues for the quarter ended September 30, 2009 were $4,559,000, when compared to $5,315,000 for the quarter ended September 30, 2008. Revenues for the twelve months ended September 30, 2009 were $19,618,000, as compared to $23,030,000 in the comparable period of fiscal 2008. Net income for the fourth quarter of fiscal 2009 was $253,000, or $0.04 per diluted share, as compared to net income of $296,000, or $0.05 per diluted share, for the fourth quarter of fiscal 2008. Net loss for the twelve months ended September 30, 2009 was $(4,940,000), or $(0.83) per diluted share, as compared to net income of $717,000, or $0.12 per diluted share, for the twelve months ended September 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, the Company's non-GAAP net income for the twelve months ended September 30, 2009 would have been $1,142,000, or $0.19 per diluted share.
As of September 30, 2009, the Company had $5,649,000 in net cash and cash equivalents, an increase of $764,000, or 16 percent, compared to September 30, 2008.
Commenting on the fourth quarter and fiscal 2009 results, President and CEO Ken Bero said, "Revenue comparisons to the fourth quarter and fiscal year 2008 continue to be affected by the weakened economy. In the United Kingdom, our second largest market, the weaker British pound versus the U.S. dollar exchange rate reduced both revenues and expenses in fiscal 2009 as compared to the prior year. The business environment worldwide continues to be very difficult, with expenditures remaining tightly controlled. While the economy has adversely impacted our Monarch™ Desktop and Services business this year, enterprise license and new maintenance revenues have risen when compared to fiscal 2008."
"We continue to proactively manage our business. Income from operations for this year, excluding the Q2 non-cash goodwill and trademark impairment charge was double that of 2008," added Bero. "As a result, the Company continued to improve its cash position and has no debt on the balance sheet. Despite the difficult economic environment, we have continued to invest in our key product offerings, positioning us to meet the needs and demands of our customers now and in the future."
In Q4, the Company introduced Datawatch Dashboards™, a fully interactive dashboard solution that gives users a visual overview of operational performance as well as the ability to monitor specific business processes and events. In addition, Datawatch recently introduced Monarch V10.5. With Monarch V10.5, users now have the ability to create and export Microsoft Office Excel spreadsheets that contain a copy of the original source data simplifying compliance, auditability and eliminating spreadsheet-induced uncertainty. Monarch V10.5 is also compatible with the new Windows 7 operating system.
As previously announced, Datawatch will host a live webcast to discuss its fourth quarter and fiscal year 2009 results today at 2:00 p.m. (EST). The webcast can be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=150889. 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.
