Tomorrow may be painful based on DWCH press release after the bell today. This explains the downward trend in the stock over the last several weeks. I just hope that it's already built into the current stock price.
DATAWATCH Announces Expected Second Quarter Results
WILMINGTON, Mass. -- DATAWATCH CORPORATION (Nasdaq: DWCH) today announced that revenues for the second fiscal quarter ended March 31, 1997 are expected to be essentially level with the $8.2 million reported in the first fiscal quarter. As a result, profits for the second quarter will be down from the $.05 per share earned in the preceding quarter, as expenses during the second quarter increased as planned. Both revenues and earnings will be below analysts' expectations.
Commenting on the expected results, Thomas R. Foley, DATAWATCH President & CEO said: "A decline in Monarch revenues from the prior quarter was offset by an equivalent gain in WorkGroup Systems' sales of Quetzal, resulting in flat total revenues in the quarter. The entire decline in Monarch is attributable to lower 'upgrade' revenues from our installed base. Growth in acquisition of new customers, which was expected to replace those revenues, fell short of expectations. Monarch revenues are principally driven by direct mail and we believe that the shortfall in sales to new customers was due in part to stale promotional materials, which have since been 'refreshed' for promotions beginning in the current quarter. We expect that the introduction of this entirely new Monarch mail campaign will re-energize this segment of our business."
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 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: the Company's dependence on its principal products, acceptance of the Company's promotional materials including the new Monarch materials, dependence on the introduction of new products and possible delays in those introductions. Further information on factors that could cause actual results to differ from those anticipated is detailed in various publicly-detailed documents, which include, but are not limited to, filings made by the Company from time to time with the Securities and Exchange Commission, including but not limited to, those appearing in the Company's Form 10-K for the year ended September 30, 1996. Any forward-looking statements should be considered in light of those factors.
DATAWATCH CORPORATION develops, markets and distributes advanced software products for the personal computer market. DATAWATCH's principal products are: Monarch(TM), a report mining tool that provides data access, translation and reporting capability to users of networked PCs; Virex(R) and VET, which detect, repair and monitor for virus infections for both Apple Macintosh and IBM compatible PC's, respectively; netOctopus(TM), a system and network administration tool for Macintosh and IBM-compatible PC networks; and Q- Support(TM) (marketed as Quetzal internationally), a Windows-based help desk and asset management system that provides IS support centers with an integrated, full-service solution in a multi-user, networked environment.
NOTE: Datawatch and Virex are registered trademarks of Datawatch Corporation. Monarch, netOctopus and Q-Support are trademarks of Datawatch Corporation. All other company or product names are trademarks or registered trademarks of their respective owners.
/CONTACT: Bruce R. Gardner of DATAWATCH, 508-988-9700, Ext. 816/
"Copyright(c) 1997, PR Newswire"
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