Visual Data Reports First Quarter Results
POMPANO BEACH, Fla., Feb. 18 /PRNewswire/ -- Visual Data Corporation
(Nasdaq: VDAT) today announced financial results for the first quarter ended
December 31, 1998.
For the first quarter of fiscal year 1999, Visual Data reported revenue of
$1,104,065, compared to revenue of $105,756 during the first quarter of fiscal
1998. The Company incurred a net loss of $1,126,408, or $.26 per share during
the first quarter of fiscal 1999, compared to a net loss of $555,209, or
$.18 per share, during first quarter of fiscal 1998.
"We are pleased to note that our EDnet subsidiary, which we acquired
during fiscal 1998, helped us to increase our total revenues during the
recently ended quarter," commented Mr. Randy Selman, President and CEO of
Visual Data. "In addition, though our revenues for the recent quarter do not
yet reflect it, we have also increased our total revenue base with the
addition of a significant number of new clients for several of our library
products. Moreover, changes put into place last year with respect to the
structure of our contracts will actually allow the Company to derive more
revenue over the life of these new client relationships. We therefore expect
our results during the remaining quarters of fiscal 1999 to increasingly
reflect the Company's internal growth, as well as benefit from future
acquisitions we expect to complete."
The Company noted that the net loss reported for the first quarter of
fiscal 1999 does not reflect its portion of the total gain of approximately
$663,000 recognized by its EDnet subsidiary from the sale of EDnet's Internet
Business Solutions (IBS) subsidiary. Rather, the Company recorded its portion
of the gain, which amounted to $338,000, as a reduction of goodwill. The
Company also noted that while its EDnet subsidiary accounted for $1,027,558 of
the total revenues reported for the recently ended first quarter, its total
contract revenue base actually increased compared to the same period last
year. However, accounting policies recently adopted by the Company,
necessitated by changes it enacted in the structure of its client contracts,
now require it to recognize contract revenue over the contract period. The
net effect is a decrease in the amount of revenue recognized from contracts
during their early stages.
Visual Data Corporation, founded in 1993, specializes in the production,
marketing, and distribution of full-motion visual information via the Internet
and various media, including interactive television. The Company also
develops full-motion video libraries containing concise vignettes on a wide
range of topics from business information, travel and education to consumer
products.
COMPARATIVE OPERATING HIGHLIGHTS
(unaudited)
For the First Quarter Ended
December 31,
1998 1997
Revenue $1,104,065 $105,756
Net loss $(1,126,408) $(555,209)
Net loss per common share $(.26) $(.18)
Weighted average shares outstanding 4,280,376 3,057,781
This press release contains forward looking statements which involve
numerous risks and uncertainties. Actual results, performance or achievements
could differ materially from those anticipated in such forward looking
statements as a result of certain factors, including those set forth in the
Company's filings with the Securities and Exchange Commission.
SOURCE Visual Data Corporation
CO: Visual Data Corporation
ST: Florida
IN: CPR
SU: ERN
02/18/99 07:00 EST prnewswire.com |
