Tuesday April 29 4:01 PM EDT
Company Press Release
Source: DATAWATCH CORPORATION
DATAWATCH Reports Results For 2nd Fiscal Quarter
WILMINGTON, Mass., April 29 /PRNewswire/ -- DATAWATCH CORPORATION (Nasdaq:DWCH) today
announced a profit for the second fiscal quarter ended March 31, 1997 of $86,000, or $.01 per share, up
from $38,000 in the same period a year earlier. The prior year results included a $450,000 non- recurring
charge for expenses associated with the Company's March 1996 acquisition of WorkGroup Systems Limited.
Revenues for the quarter were $8,197,000, an increase of 9% over the $7,532,000 recorded in the second
quarter a year ago.
Sales for the six months ended March 31, 1997 were $16,416,000, up 15% over $14,297,000 in the same
period of fiscal 1996. A net profit of $508,000, or $.06 per share, for the current six months compares to a
net profit of $103,000 (after the one-time charge), or $.01 per share, a year ago.
Commenting on the results, Thomas R. Foley, DATAWATCH President & CEO said: ``As we previously
announced, revenues for the second fiscal quarter were essentially even with the record levels achieved
during the first fiscal quarter. Revenue shortfalls in Monarch, which were offset by increases in sales of
Queztal, caused this interruption in our top line growth. We expect Monarch sales to be re-energized by a
new direct mail campaign scheduled to begin in the third fiscal quarter.''
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.
DATAWATCH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
Amounts in Thousands (except per share data)
(Unaudited)
Three Months Ended Six Months Ended
03/31/97 03/31/96 03/31/97 03/31/96
Net sales $8,197 $7,532 $16,416 $14,297
Costs and expenses:
Cost of sales 1,455 1,080 2,915 2,155
Product development 655 553 1,315 1,072
Selling, general and
administration 5,951 5,850 11,661 10,965
Income from operations 136 49 525 105
Other income (expense) (42) (8) (9) 1
Provision for income tax 8 3 8 3
Net income $86 $38 $508 $103
Income per share $.01 $.00 $.06 $.01
DATAWATCH CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
Amounts in Thousands (except per share date)
March 31, September 30,
1997 1996
(unaudited) (audited)
ASSETS:
Cash and investments $2,121 $2,489
Accounts receivable, net 8,850 7,768
Inventories 784 481
Prepaid advertising and other expenses 2,498 1,265
Total Current Assets 14,253 12,003
Property and equipment, net 1,984 1,797
Other assets 1,980 1,441
Total Assets $l8,217 $l5,241
LIABILITIES AND STOCKHOLDERS' EQUITY:
Accounts payable and accrued expenses $4,273 $3,978
Borrowings under credit lines --- 637
Deferred revenue 2,417 1,946
Current portion of long-term debt 265 231
Total Current Liabilities 6,955 6,792
Long-term debt 1,672 210
Stockholders' equity 9,590 8,239
Total Liabilities & Stockholders' Equity $18,217 $15,241
SOURCE: DATAWATCH CORPORATION
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