LINE, a thinly traded Online Brokerage Sector Stock with a small float may qualify for further discussion here. Earnings out today:
OnlineTrading.com Announces Record Revenues and Earnings For Fiscal Year Ending January 2000
BOCA RATON, Fla., March 30 /PRNewswire/ -- OnlineTrading.com (Nasdaq: LINE - news) for the year ended January 31, 2000, reported record revenues of $11,690,840, an increase of 95% when compared to $5,992,064 of revenues for the year ended January 31, 1999. Net income for the year ended January 31, 2000, was $1,080,506, or $0.10 per share (diluted), as compared to net income of $107,943, or $0.01 per share (diluted), for the year ended January 31, 1999.
The Company reported record revenues of $4,012,943 for the fourth quarter ended January 31, 2000, an increase of 82% when compared to the $2,203,594 of revenues for the three-month period ended January 31, 1999. The Company also reported net income for the quarter of $157,529, or $0.01 per share (diluted), as compared to net income of $196,419, or $0.02 per share (diluted), for the three-month period ended January 31, 1999. The net income for the fourth quarter was impacted by increased investment in product development ($279,000) and professional fees ($87,000) incurred in connection with the Company's pending merger with Omega Research, Inc. and the Company's December 1999 purchase of the material assets of Newport Discount Brokerage, Inc.
``The final quarter of this fiscal year was the most eventful one in our history. In December, we acquired the customer accounts of Newport Discount Brokerage, Inc., and in January 2000, we signed an agreement to merge with Omega Research, Inc.,' said Steven zum Tobel, President of OnlineTrading.com. Mr. zum Tobel further commented on the Company's performance by stating, ``Our fourth quarter earnings were affected by our increased investment in product development. We have already begun working toward technological integration with Omega Research for products and services we intend to launch later this year. We are all very excited about the pending merger with Omega Research, Inc. which is expected to close in June 2000, and we have begun the process of ramping up operations and technology to accommodate the projected growth anticipated from our planned new products and services.'
About OnlineTrading.com
OnlineTrading.com is a SEC and NASD registered brokerage firm that specializes in providing wealthy active individuals and small to mid-sized institutions trade executions via an institutional-styled trading desk and the Internet. OnlineTrading.com's principal client software product, O.R.D.E.R.S.(TM), allows users to execute trades before and after market hours while providing users in real time with: position summaries, realized and unrealized trading P&Ls, buying power, open orders, trading logs, and average costs of positions acquired. The system also includes a real-time quote machine with the ability to view multiple Nasdaq Level II quotes, an ECN book, tickers, real time charts, time and sales, analytical tools, and the ability to incorporate instantaneous news. The Company also has a staff of registered representatives available via telephone as well as online for support to its customers.
About Omega Research, Inc.
Founded in 1982, Omega Research, Inc. (Nasdaq: OMGA - news) is a leading provider of branded real-time trading tools for the active trader. Omega Research's principal client software products currently include TradeStation©2000i, OptionStation©2000i, RadarScreen(TM)2000i, and Omega Research ProSuite(TM)2000i.
WindowOnWallStreet.com, Omega Research's new online service, offers traders award-winning tools including powerful analytical charting, as well as Nasdaq Level II, time & sales, quote lists, option chains, market leaders, streaming news, Internet SmartSearch, live ticker, portfolio management, Profit/Loss tracking, discussion forums and wireless access. Window On WallStreet and its Financial Data Cast Network(TM) (FDCN) were acquired by Omega Research in late October 1999 as part of Omega Reseach's evolving Internet strategy. FDCN is widely recognized as one of the Internet's most sophisticated streaming real-time quote services. Later this year, Omega Research intends to launch TradeStation.com, a service dedicated to serving the needs of the active trader.
On January 20, 2000, Omega Research and OnlineTrading.com announced a definitive agreement to merge the two companies in an all-stock combination. The consummation of the merger is subject to satisfaction of certain conditions, including, without limitation, approval by the shareholders of each Omega Research and OnlineTradinginc.com Corp., NASD regulatory requirements, the registration of the new holding company's shares with the SEC and the listing of such shares with The Nasdaq National Market. The strategic combination of these two companies is expected to create a seamlessly integrated trading platform that will deliver a best-of-breed solution to the active online trader: powerful trading strategy tools, streaming real-time market quotes and news, and high-speed electronic online order execution.
onlinetradinginc.com corp.
Condensed Statements of Income
Unaudited Audited
Three Months Ended Year Ended
01/31/00 01/31/99 01/31/00 01/31/99
Revenues $4,012,943 $2,203,594 $11,690,840 $5,992,064
Expenses 3,709,577 1,901,565 9,908,110 5,832,041
Income Before
Income Taxes 303,366 302,029 1,782,730 160,023
Provision for
Income Taxes 145,837 105,610 702,224 52,080
Net Income $157,529 $196,419 $1,080,506 $107,943
Earnings Per Share
- Basic and Diluted $0.01 $0.02 $0.10 $0.01
This press release contains statements that are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words `believes,' ``plans,' ``estimates,' ``expects,' `intends,' ``anticipates,' ``may,' ``will,' ``should,' ``could,' ``upcoming' and similar expressions, to the extent used, are intended to identify forward-looking statements. All forward- looking statements are based largely on current expectations and beliefs concerning future events that are subject to substantial risks and uncertainties. Actual results may differ materially from the results suggested herein. Factors that may cause or contribute to such differences include, but are not limited to, the Company's ability to develop and successfully market the products and services described in this press release (and the costs associated therewith); their acceptance in the marketplace; technical difficulties or errors in the products and/or services; market pressure to lower substantially commissions on the equity trades described as a result of such services being provided at low or no additional costs by brokerages, financial institutions and other financial companies to their customers, or for other market reasons; the Company's customer and active prospect base containing a substantially lower number of interested subscribers than the Company anticipates; the failure to consummate the pending merger with Omega Research, Inc. at all (or on a timely basis) due to regulatory issues or other reasons; difficulty integrating the two companies from technology, operational and marketing aspects; potential NASD or other broker-dealer regulatory issues arising from the merger and/or the conduct of a brokerage business; the success (and cost) of new marketing strategies as a result of the merger; unfavorable critical reviews; increased competition (including product and price competition); the level of market demand for real-time decision support tools, real-time data and/or on-line brokerage services and/or website services generally; the scalability, performance failures and reliability of Omega Research's real-time data services; the entrance of new competitors into the market; timing and significance of additional new product and service introductions by the Company and its competitors; general economic and market factors, including changes in securities and financial markets; the adequacy of working capital, cash flows and available financing to fund the new business model with Omega Research; and other risks and uncertainties indicated from time to time in the Company's releases and filings, including, without limitation, filings with the Securities and Exchange Commission and OnlineTrading.com's other press releases.
onlinetradinginc.com corp.
Statements of Income
Year Ended Three Months Ended
January 31, January 31,
Audited Unaudited
2000 1999 2000 1999
Revenues:
Commissions $9,471,435 $5,525,427 $3,421,274 $1,818,049
Investment gains
(losses) 1,129,493 328,495 259,766 338,783
Interest
- revenue
sharing 295,934 102,121 49,815 40,313
Interest
and dividends 603,978 36,021 267,088 6,449
Other revenues 190,000 -- 15,000 --
Total Revenues 11,690,840 5,992,064 4,012,943 2,203,594
Expenses:
Employee
compensation
and benefits 5,340,165 3,356,688 1,656,519 1,209,286
Clearing and
other transaction
costs 3,012,284 2,002,055 1,147,255 554,956
Occupancy and
administrative 1,093,248 406,814 499,240 120,390
Product
development 279,387 -- 279,387 --
Interest expense 51,863 36,566 32,258 9,127
Depreciation 131,163 29,918 94,918 7,806
Total Expenses 9,908,110 5,832,041 3,709,577 1,901,565
Income (loss)
before income
taxes 1,782,730 160,023 303,366 302,029
Income tax
provision (benefit) 702,224 52,080 145,837 105,610
Net income
(loss) $1,080,506 $ 107,943 $ 157,529 $ 196,419
Earnings
Per Share:
Basic and Diluted $0.10 $0.01 $0.01 $0.02
SOURCE: OnlineTradinginc.com Corp.
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