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Datawatch Corporation Reports Results for Fourth Quarter and Fiscal Year 2010
Chelmsford, MA - November 18, 2010 - Datawatch Corporation (NASDAQ-CM: DWCH ), a leader in Business Intelligence (BI) and Reporting, today announced results for its fourth quarter and fiscal year ended September 30, 2010.
Revenues for the quarter ended September 30, 2010 were $4,275,000, as compared to $4,559,000 for the quarter ended September 30, 2009. Net income for the fourth quarter of fiscal 2010 was $455,000, or $0.07 per diluted share, as compared to $253,000, or $0.04 per diluted share, for the fourth quarter of fiscal 2009. Revenues for the twelve months ended September 30, 2010 were $17,674,000 as compared to $19,618,000 for the twelve months ended September 30, 2009. Net Income for the twelve months ended September 30, 2010 was $380,000, or $0.06 per diluted share, as compared to net loss of $(4,940,000), or $(0.83) per diluted share, for the twelve months ended September 30, 2009. The results for the twelve months ended September 30, 2009 included a $6.4 million goodwill and trademark impairment charge. Excluding the effects of the goodwill and the 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, 2010, the Company had $7,053,000 in net cash and cash equivalents, an increase of $1,404,000, or 25 percent, as compared to September 30, 2009.
Commenting on the fourth quarter and fiscal 2010 results, President and CEO Ken Bero said, "We are pleased with the fourth quarter results and that fiscal year 2010 finished in the black. However, revenue growth is still elusive. While Q4 and full year revenues are below results from 2009, we are seeing positive signs that Monarch Desktop sales are stabilizing even though summer is typically the most difficult sales quarter of the year. Monarch revenues for the fourth quarter remained flat vs. the third quarter 2010 results, with sales in Europe finishing particularly strong. This reinforced the overall trend of stronger Desktop software sales for the entire fiscal 2010 year in Europe. Results from our enterprise products continue to be encouraging."
"While 2010 revenues have declined vs. 2009, we have continued to carefully manage expenses to maintain our profitability and we have grown our cash position for the year. We have no debt," added Bero. "We are investing in our products and plan to grow our portfolio to take advantage of the expanding Business Intelligence (BI) market, one of the growing sectors of the worldwide software market. We are also looking to take advantage of opportunities in targeted vertical markets. For instance, over the past year we invested in and bolstered the company's healthcare offerings and are positioning ourselves to take advantage of the potential growth opportunities in this vertical market."
As previously announced, Datawatch will host a live webcast to discuss its fourth quarter results today at 2:00 p.m. (ET). The webcast can be accessed at: http://www.investorcalendar.com/IC/CEPage.asp?ID=161420. 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.
