Desktop Data Announces Third Quarter Results And Record Revenues
Burlington, MA - October 15, 1997 - Desktop Data, Inc. (Nasdaq: DTOP) today announced third quarter 1997 revenue of $10.8 million, a 24% increase over the third quarter of 1996 and the Company's thirty-first consecutive quarter of record revenues. The Company also reported net income for the third quarter of $553,000 or $0.06 per share, after provision for income taxes at a 32% rate compared to net income of $1,202,000 for the third quarter of 1996, after provision for income taxes at an 11% rate.
For the nine months ended September 30, 1997, Desktop Data reported revenue of $31.3 million, a 30% increase from $24.1 million for the same period in 1996. Net income for the first nine months of 1997 was $2.0 million or $0.23 per share after provision for income taxes at a 35% rate versus net income of $3.1 million or $0.35 per share, after provision for income taxes at an 11% rate for the same period in 1996. Operating cash flow was $7.6 million for the nine months ended September 30, 1997 compared to $7.2 million for the same period in 1996.
Accompanying the Company's financial results, Desktop Data increased its customer total to 410 NewsEDGE customers at September 30, 1997, up 10% from September 30, 1996. The number of authorized users at September 30, 1997, increased 54% from the prior year to 169,438 and average users per customer increased 37% from the prior year to 369. Desktop Data's average revenues per customer increased 16% to $73,806 for the first nine months of 1997, compared to $63,435 for the same period in 1996.
"Desktop Data is investing to grow its business and expand its leadership in the delivery of real-time news over customer intranets, LANs and WANs", said Don McLagan, President of Desktop Data. "I am especially pleased with our third quarter results because we have continued our strong growth, sustained our profitability and generated substantial cash while we invest for the future."
The Company's investments have resulted in recent announcements of new technology, news content, software partners and international management promotions to extend and enhance the NewsEDGE services:
Eight Software Vendors Join Desktop Data's Alliance Partner Program as NewsOBJECTS - Technology Gains Momentum (October 6, 1997, www.desktopdata.com/appfinal.com) Desktop Data Launches NewsEDGE WebCast (September 30, 1997, www.desktopdata.com/newebcast.htm) DesktopData Honored as one of New England's "Fast 50" (September 16, 1997, www.desktopdata.com/fast_50.htm) Desktop Data Adds Comprehensive Industry Coverage from IAC to NewsEDGE Service (September 15, 1997, www.desktopdata.com/iac_new.htm) Desktop Data Adds Key Russian, Eastern European Media to NewsEDGE Service (September 15, 1997, www.desktopdata.com/isi.htm) Desktop Data, Inc. Announces Appointments to Expand Worldwide Operations (August 14, 1997, www.desktopdata.com/wwo.htm)
"News is leading the conversion to intranet delivery of what industry sources identify as the $46 billion business-to-business information industry," said Don McLagan. "We are investing internally and exploring other opportunities to keep Desktop Data at the forefront of this significant growth opportunity."
Certain of the above statements are forward-looking statements that involve risks and uncertainties. Actual results could differ materially as a result of a variety of factors, including, but not limited to, technology change, competitive development and risk factors listed from time to time in the Company's SEC reports.
Founded in 1988, Desktop Data, Inc. is the independent leader in enterprise delivery of real-time news and information. Desktop Data operates as a value-added news integrator to organizations. The Company's unique combination of diverse, authoritative content, innovative on-line delivery technologies, and customization and support services empower its clients to transform news and information into a centrally-managed, competitive business resource. Desktop Data's flagship product, NewsEDGE, is used by over 160,000 business professionals in more than 400 corporations, financial institutions and government offices worldwide. NewsEDGE is also an Active Channel in Microsoft Corp.'s Internet Explorer (IE) 4.0 environment. Desktop Data is headquartered in Burlington, Massachusetts, with sales offices throughout North America and Europe.
For more information, contact us at our web site www.desktopdata.com. |
