Telescan Expects Weak 1st Quarter But Record Full-Year Results From Rising
Internet-Related Revenue
HOUSTON, April 22 /PRNewswire/ --Telescan Inc. (Nasdaq: TSCN - news) said today the Company expects revenue for the first quarter ended March 31,
1998, to be less than expected because of temporary contract delays for Telescan to build and maintain customized Internet websites for financial institutions using
its proprietary databases and technology. The Company said, however, it expects record full-year revenue and earnings with increases in Internet-related new
business as well as previously announced Internet alliances with such companies as Citibank, Time Inc. New Media, Web Street Securities and Standard & Poor's.
Telescan Chairman and Chief Executive Officer David Brown said, ''The work we already have begun for Citibank as well as pending and recent launches for other
major Internet projects -- including ones for Web Street Securities, FORTUNEInvestor and Standard & Poor's Daily Dividend Record -- bode well for the second
quarter and the full year. I firmly believe that our shareholders will benefit from Telescan's proprietary software and Internet technology.''
Telescan said it expects first-quarter revenue to be approximately $3.0 million, which will result in a projected quarterly loss of approximately $0.07 per share,
compared with revenue of $3.6 million and earnings of $0.02 per share a year earlier. Unforeseen delays in executing contracts resulted in lower licensing and new
development fees, while recurring revenue was steady and Wall Street City(R) website revenue continued to grow.
Brown said he expects Internet-related business will account for fully 50% of revenue by year-end as more and more leading financial institutions turn to Telescan to
develop customized Internet offerings because of the Company's superior patented technology. He noted that Telescan has begun work for Citibank under a master
agreement that was announced in March. The agreement calls for Telescan to provide Citibank with Telescan's proprietary Internet technology.
He said that the Company's selection for third-party alliances by some of the world's leading financial institutions is a ''tribute to the unique proprietary Internet
technology Telescan has developed to provide the highest quality online services as well as valuable, proprietary financial analytical tools.''
In March, Telescan reached an exclusive agreement with Web Street Securities, an Internet discount brokerage firm, in which Web Street provides real-time stock
quotes to Telescan's Wall Street City website and Wall Street City is directly linked to Web Street for on-line trade executions. Telescan also will develop and
manage financial content for an Internet site catering to executives under an agreement reached in March with Information Highway Inc., based in Vancouver, British
Columbia.
Also in March, Telescan and Standard & Poor's jointly launched the Daily Dividend Record on the Internet. Standard & Poor's provides the data for its renowned
dividend record service and marketing for the service, while Telescan manages the website and provides billing and customer service support.
In the second quarter, Telescan and Time Inc. New Media expect to launch FORTUNEInvestor, a website that combines Fortune Magazine editorial content with
Telescan's comprehensive stock and mutual fund information and analytical tools.
Meanwhile, Wall Street City, Telescan's investor supersite, continues to gain in popularity and advertising support. The website now receives more than 5.6 million
page views a month and was cited as one of the top 10 investment websites by Barron's. Monthly advertising has grown fourfold over the past year.
The estimates of results for the first quarter of 1998 are based upon information currently available to the company and are subject to completion and final review.
The company expects to release final information on operating results for the quarter on April 29.
Telescan, based in Houston, is an industry leader in providing innovative solutions for online technology, data retrieval and Internet services. The company develops
and operates major online networks and Internet sites serving the financial, publishing, entertainment and technology-transfer industries. Its Wall Street City supersite
is the only Internet-based financial website to give its users the ability to do technical analysis, build multiple portfolios and link stocks to an innovative, personalized
stock ticker.
''Safe Harbor'' statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release
that may be considered forward-looking statements may be subject to certain risks and uncertainties that could cause the actual results to differ materially from those
projected, including uncertainties in the market, pricing, competition, procurement and manufacturing efficiencies, and other risks detailed from time to time in the
company's SEC reports. The company assumes no obligation to update the information in this release. |
