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Thursday December 17, 12:20 pm Eastern Time
Company Press Release
Market Guide Reports Record Revenue and Profits for Its Third Quarter and Nine Months
Direct Internet revenue increases 143% in the current quarter compared to a year ago.
LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Dec. 17, 1998-- Market Guide Inc. (Nasdaq: MARG - news), today announced record revenues and earnings for the third quarter and nine months ended November 30, 1998 versus comparable periods ended November 30, 1997.
Revenues for the third quarter ended November 30, 1998 rose 41% to a record $2,464,427 compared with revenues of $1,743,295 for the same period in fiscal 1998. Net income totaled $209,050 or $0.04 per share compared with net income of $17,493 or $0.00 per share for the same period in fiscal 1998, and the previous record third quarter net income of $173,693 in fiscal 1996.
Revenues for the first nine months of fiscal 1999 ended November 30, 1998 increased 44% to $7,024,702 compared with revenues of $4,868,621 for the same period in fiscal 1998. Net income totaled $587,430 or $0.12 per share compared with a net loss of $106,225 or ($0.02) per share in the same period in fiscal 1998, and the previous record nine months net income of $352,299 in fiscal 1996.
Internet revenues and profits continued to grow at a faster rate than the overall corporate average in the third quarter. This reflects our servicing of over sixty (up from more than 40 in the sequentially prior quarter) Internet redistribution agreements, ''co-branded'' arrangements and advertising fees generated at Market Guide's web site (www.marketguide.com). Market Guide's previously announced decision to make its website free to all users since May 1998 has resulted in an 11% compound monthly increase in traffic compared to levels experienced prior to the commencement of the promotion. Market Guide has decided to extend the promotion.
Market Guide's core base of sales through its vendor channels continues to contribute to corporate growth and produce solid profitability. It is expected that, over time, as Internet revenues grow, vendor revenue will represent a declining percentage of total Company revenues. Market Guide for WindowsTM (MGW) revenues increased nearly 17% in the current quarter compared to the same period one year ago.
Total company-wide operating expenses for the third quarter and nine months increased 31% and 29%, totalling $2,234,042 and $6,366,693, respectively. Increased expenses reflect costs associated with a higher employee count, increased royalty payments to third parties for the content they provide primarily for the Market Guide Internet site, higher overhead expenses, and increased CreditRisk Monitor operating expenses.
The CreditRisk Monitor (CRM) client roster and quarterly revenue continue to increase steadily, however operating expenses continue to exceed recognizable revenue. CRM sales are recognized over the clients' subscription period and expenses are recorded as incurred. This accounting practice effectively defers revenue recognition until the service is actually provided during the subscription period. For the quarter and nine months ended November 30, 1998, operating losses from CRM totalled $211,402 and $640,362, respectively.
As previously reported in earlier press releases, Market Guide has entered into an option agreement to sell its CreditRisk Monitor division to New Generations Foods, Inc. on or before January 31, 1998. Exercise of the option is at the discretion of New Generation Foods and is dependent, in part, on New Generation Food's ability to raise financing to fund the initial payment to Market Guide upon exercise of the option and to fund CRM's future working capital requirements. Market Guide emphasizes that there can be no assurance that New Generation Foods will conclude the transaction.
Commenting on the reported results, Homi Byramji, president and CEO of Market Guide, stated, ''The record revenues and profits were due, in part, to a 25% increase in quarterly Internet revenue on a sequential quarterly basis compared to the second quarter of the current fiscal year. Growth in quarterly revenues also reflected the introduction of many new vendor partners in the current quarter including CNNfn, Data Downlink, MyTrack, and Wall Street Source. I continue to expect that Market Guide will achieve record revenues and earnings for the full year ending February 28, 1999 and that we are well positioned to continue our rapid growth.''
Selected Financial Information for Market Guide Inc.
For the three months For the nine months
ended ended
Nov. 30, Nov. 30, Nov. 30, Nov. 30,
1998 1997 1998 1997
Revenues $2,464,427 $1,743,295 $7,024,702 $4,868,621
Net Income 209,050 17,493 $587,430 (106,225)
Earnings per Share:
Basic $0.04 $0.00 $0.12 $(0.02)
Diluted $0.04 $0.00 $0.12 $(0.02)
Weighted Average Shares
Outstanding:
Basic 4,769,487 4,713,709 4,754,247 4,710,560
Diluted 4,969,587 4,753,709 4,965,964 4,741,287
Market Guide Inc., the benchmark for quality financial information, is the leader in providing the broadest coverage of professional grade financial data over the Internet. Market Guide supplies more professional Web sites with quality investment data than any other database and software company. Market Guide specializes in the compilation, integration, display and delivery of a superior quality database of descriptive and analytic information on over 11,000 publicly traded domestic and foreign corporations. Well known to professional investors for 15 years, the company distributes its services through more than 90 on-line vendors and independent finance oriented websites including, ADP, AltaVista, America Online (NYSE: AOL - news), Bridge Information Systems, Briefing.com, CNNfn, DBC (Nasdaq: DBCC - news), FactSet Research Systems, Individual Investor Group (Nasdaq: INDI - news), One Source, PC Quote (Amex: PQT - news), Pointcast, Quote.com, Reuters (Nasdaq: RTRSY - news), The Motley Fool, Track Data (Nasdaq: TRAC - news), Wall Street Source, Waterhouse Securities and Yahoo! (Nasdaq: YHOO - news), as well as through its own web site - The Market Guide Investment Center (http://www.marketguide.com).
Safe Harbor Statement: Certain statements in this press release, including statements prefaced by the words ''anticipates'', ''estimates'', ''believes'', ''expects'' or words of similar meaning, constitute ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
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Contact:
Market Guide Inc.
Jeffrey S. Geisenheimer
Vice President
Chief Financial Officer
(516) 327-2400 ext. 105
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Related News Categories: banking, computers, earnings, internet, ISDEX, publishing
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