Comtex News Network, Inc. (OTCBB: CMTX) today announced their financial earnings for the third fiscal quarter and the nine month period ended March 31, 2008. The company is a leader in providing economically useful electronic real-time news, content, and SmarTrend® market products.
Numbers showed an operating income of $232,000 and a net income of $244,000, or $0.02 per share for the fiscal third quarter of 2008. Both numbers increased from last year’s numbers of $61,000 and a net loss of $181,000 for the third quarter of last year. The significant growth is due to decreases in both fixed product costs and overhead expenses. The company’s revenues for both the quarter ended March 31, 2008 and last year’s third quarter stayed at $1.8 million.
For the first nine months ended March 31, 2008, the company reported an operating income of $797,000 and net income of $754,000, or $0.05 per share. These numbers were compared to an operating income of $83,000 and a net loss of $192,000 for the previous year. Revenues for the nine months ended March 31, 2008 were $5.4 million, a slight rise from last year’s comparative number of $5.2 million. The increase was caused primarily by an unrecognized $181,000 of revenue, and an increase in sales to existing clients.
Lastly, the company reported EBITDA (excluding the effects of stock-based compensation) of approximately $858,000 for the nine months ended March 31, 2008, compared to $204,000 for the nine month period of last year. The increase resulted from the collection and recognition of revenue from prior periods, the reversal of accrued expenses related to a legal settlement, and reductions in both fixed product costs and overhead expenses.
“Comtex’s third quarter fiscal 2008 financial results show increased profit margins, working capital and stockholders’ equity, while revenues remained basically unchanged. Comtex is well positioned to capitalize on the convergence of content and technology to create innovative new products and services,” stated Chip Brian, President and CEO of Comtex.
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