OMGA
Yesterday....
2 good wires came out that should boost this up.
I can't see it going down from here.
First....Take a look at its chart
chart4.bigcharts.com
Here are the wires:
Tuesday February 17, 7:31 am Eastern Time
Company Press Release
SOURCE: Omega Research, Inc
.
Omega Research Announces Record Revenues and Earnings For the Year Ended December 31, 1997
Fourth Quarter Earnings in Line With Previous Earnings Outlook Announcement
MIAMI, Feb. 17 /PRNewswire/ -- Omega Research, Inc. (Nasdaq: OMGA - news) today reported revenues and earnings for the fourth quarter and the year ended December 31, 1997.
Net revenues for the year ended December 31, 1997 were a record $29.2 million, a 64% increase over the $17.8 million in net revenues reported for the prior year.
Proforma net income for the year ended December 31, 1997, reflecting proforma income taxes as if the Company had been a C corporation subject to federal and state corporate income taxes for all periods presented and exclusive of a non-recurring tax credit of $1.2 million recorded during the third quarter of 1997, increased by 27% to a record $5.5 million compared to the $4.3 million reported for fiscal 1996. Proforma net earnings per share (on a fully diluted basis) in 1997 increased to $0.26 as compared to $0.21 for the year ended December 31, 1996.
Commenting on fourth quarter performance, Salomon Sredni, Omega Research's Chief Financial Officer said, ''As explained in our January 6, 1998 press release, slower than anticipated demand led to lower than anticipated fourth quarter revenues and net income. We believe that slower demand was due, in part to customer delays in decision making (in anticipation of new product releases during the second quarter of 1998) as well as greater than expected lost sales as a result of December's curtailed business days. We expect that the major upgrade releases scheduled for the second quarter of this year will expand our revenues, income and overall growth rate.''
Net revenues for the fourth quarter of 1997 were $6.4 million, a 34% increase over the $4.7 million in net revenues for the same period in the prior year. Proforma net income was $465,000 in the fourth quarter of 1997 compared to $1.0 million in the same period of the prior year. Proforma earnings per share (on a fully diluted basis) was $0.02 in the 1997 fourth quarter compared to $0.05 in the prior year quarter.
During the third quarter of 1997, the Company recognized a non-recurring tax credit of $1.2 million as a result of a deferred income tax credit (the ''FAS 109 Credit'') of approximately $3.0 million which was partially offset by a $1.8 million provision for income taxes payable. Since 1988, and until September 1997, the Company elected for its earnings to be taxed directly to the Company's shareholders as an S corporation under the Internal Revenue Code of 1986, as amended. On September 30, 1997, the Company terminated its S corporation election, and, as a result, recognized the FAS 109 Credit to record net deferred tax assets arising from book and tax basis differences that arose primarily as a result of accounts receivable reserves. The $1.8 million income tax provision relates to federal and state income taxes owed by the Company as a result of S corporation taxable earnings, a portion of which was recognized by the Company, for tax purposes, in 1997 and the balance of which will be recognized during 1998.
Ralph L. Cruz, Omega Research's Co-Chairman and Co-CEO commented, ''With the major upgrade releases planned for our premium products in the second quarter of the year, we expect record revenues and profits in 1998. Last week we previewed the next generation of TradeStation and OptionStation to our Solution Providers at Omega Research Developers Conference '98. The conference was attended by numerous Omega Research Solution Providers from throughout the United States and Europe. Their reaction to the new capabilities and improvements in our products was extremely enthusiastic. We believe that the years of work devoted to produce these major upgrades will result in both meaningful upgrade revenue and new sales as our target market becomes familiar with the many exciting new functionalities in the products. Additionally, in 1998, we plan to continue to increase our research and development capabilities with the resources necessary to further enhance and expand our award-winning product lines.''
Founded in 1982, and headquartered in Miami, Florida, Omega Research, Inc. is a leading provider of real-time investment analysis software for the Windows operating system. With the 1991 release of its flagship product, TradeStation, the Company pioneered the concept of utilizing the power of the personal computer to enable investors to historically test the profitability of their own investment strategies and then computer-automate those strategies to generate real-time buy and sell signals. Omega Research's other principal products are OptionStation and SuperCharts.
This press release contains statements that are forward-looking and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words ''believes,'' ''estimates, '' plans,'' ''expects,'' ''intends,'' ''anticipates,'' ''may,'' ''prospect'' and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. The statements in this press release regarding expected performance and product releases during 1998 are based on current expectations and beliefs concerning future events that are subject to risks and uncertainties. Actual results may differ materially from the results suggested herein and from the results historically experienced. Factors that may cause or contribute to such differences and impact future events include, but are not limited to, the Company meeting its timetable for the anticipated second quarter upgrade release of its premium products, customer acceptance of such upgraded products, the Company's ability to market effectively such upgraded products, the introduction of competitive products in the market or increased customer acceptance of recently introduced competitive products, changes in conditions in the financial markets, and the Company's ability to attract and retain high-quality product development personnel, as well as those discussed in the Company's filings with the Securities and Exchange Commission including the risk factors set forth in the Company's Prospectus dated September 30, 1997.
OMEGA RESEARCH, INC.
Statements of Income
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
NET REVENUES:
Licensing fees $ 5,254,663 $ 3,750,877 $24,364,990 $13,943,234
Other revenues 1,100,054 992,260 4,861,284 3,876,928
Total net
revenues 6,354,717 4,743,137 29,226,274 17,820,162
OPERATING EXPENSES:
Cost of licensing
fees 446,059 373,961 1,848,993 1,716,884
Product development 540,076 342,474 1,890,392 1,041,131
Sales and marketing 3,291,973 1,472,205 11,272,290 5,617,931
General and
administrative 1,507,283 855,389 5,420,760 2,421,638
Total operating
expenses 5,785,391 3,044,029 20,432,435 10,797,584
Income from
operations 569,326 1,699,108 8,793,839 7,022,578
OTHER INCOME, net 128,629 12,185 146,474 59,436
Income before
income taxes 697,955 1,711,293 8,940,313 7,082,014
PROVISION (BENEFIT) FOR
INCOME TAXES 233,000 -- (934,000) --
Income before
proforma income
taxes 464,955 1,711,293 9,874,313 7,082,014
PROFORMA INCOME TAXES:
Proforma income
taxes(a) -- 675,961 3,255,732 2,797,396
Nonrecurring tax credit -- -- 1,167,000 --
Proforma net
income $ 464,955 $ 1,035,332 $ 5,451,581 $ 4,284,618
PROFORMA NET EARNINGS
PER SHARE $ 0.02 $ 0.05 $ 0.26 $ 0.21
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING 22,877,000 20,541,000 20,885,000 20,541,000
(a) The Company was treated as an S corporation for federal and state
income tax purposes prior to September 30, 1997. Proforma income
taxes have been provided as if the Company had been a C corporation
for all periods prior to September 30, 1997.
OMEGA RESEARCH, INC.
Balance Sheets
December 31, December 31,
1997 1996
ASSETS:
CURRENT ASSETS:
Cash and cash equivalents $12,323,515 $ 141,633
Marketable securities 1,014,590 --
Accounts receivable, net 9,438,218 4,357,048
Inventories 146,821 92,188
Other current assets 520,537 5,690
Deferred income taxes 2,963,O00 --
Total current assets 26,406,681 4,596,559
PROPERTY AND EQUIPMENT, net 971,511 1,085,112
OTHER ASSETS 91,626 121,657
Total Assets $27,469,818 $ 5,803,328
LIABILITIES AND SHAREHOLDERS' EQUITY:
CURRENT LIABILITIES:
Accounts payable $ 1,119,202 $ 482,662
Accrued expenses 608,947 485,189
Income taxes payable 509,000 --
Total current liabilities 2,237,149 967,851
SHAREHOLDERS' EQUITY:
Common stock 222,461 194,800
Additional paid-in capital 23,745,251 2,517
Retained earnings 1,264,957 4,638,160
Total shareholders' equity 25,232,669 4,835,477
Total liabilities and
shareholders' equity $27,469,818 $ 5,803,328
SOURCE: Omega Research, Inc.
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Tuesday February 17, 12:55 pm Eastern Time
Company Press Release
Top 20 Internet Plays to Keep an Eye on in 1998
LOS ANGELES--(BUSINESS WIRE)--Jan. 6, 1998--The Internet Stock Review Tuesday announced a list of 20 stocks to watch for 1998.
The Internet Stock Review additionally announced that it will launch a Web site devoted to the coverage of Internet-related publicly traded companies. The site will provide direct links to Web sites of these companies, an easy-to-use and -peruse price and performance listing of Internet-related stocks and commentary from various Wall Street analysts who provide coverage on these stocks.
If you would like to be advised of the launch of the Internet Stock Review Web site and would like to receive a complimentary subscription to the newsletter, send an e-mail to indexao@pipeline.com . Place the word ''launch'' in the subject line.
Listed below are companies that the review believes investors should call to request an investor package (phone numbers are included) and companies whose progress should be monitored. The Internet Stock Review will be following and reporting on their progress in the coming year.
Alliance Entertainment -- $0.05 (OTC:AETTQ - news)
Alliance is the largest independent distributor of music in the nation. Sales of $500 million and a $2 million market cap. Compare with N2K. Watch for its emergence from bankruptcy and into the Internet. -- 212/935-6662 -- aent.com
Brilliant Digital -- $5 (AMEX:BDE - news).
Down from $10; the review saw its ''multipath'' movie product -- which enables viewers and game players to change the outcome of what they are watching midstream -- at the Cruttenden Roth conference and was amazed. First Boston likes it. Reported earnings of $0.11 in third quarter in November. Relatively unknown. -- 818/346-3653 -- bde.com.au
Computer Access International -- $3.50 (OTC:CPAQ - news).
A rapidly growing acquirer of midsized ($1 million to $5 million) computer outlet and repair stores. Rapidly growing sales of computers via the Internet division will surprise many. The only publicly traded growth-by-acquisition player in its industry. A real comer; reported sales of $25 million and earnings of $1.3 million in November. Unknown. One of the review's favorites. -- 888/735-0280 -- computeraccess.com
CMG -- $29 (Nasdaq:CMGI - news)
Something like a closed-end venture-capital fund of Internet stocks. Invested $2 million in Lycos the year before it went public, which is now worth more than $100 million. Invested $1.7 million in Brookline Technology and sold it for $70 million worth of AOL. These guys are geniuses. Not a household name; Intel just bought under 5 percent. Long-term keeper. One of the review's favorites. -- 508/684-3600 -- cmgi.com
CKS Group -- $14 (Nasdaq:CKSG - news)
Specializing in Web-based advertising and Web-site design, CKS had a market cap of $530 million one day in early November and $193 million the next day, when it plunged from $36 to $13. This is still the advertising agency of the future. Interpublic owns 15 percent. Clients include GM, McDonald's, etc. Reported sales of $133 million, up 51 percent from $88 million last year during December. Merrill upgraded it in late November after the carnage. The review thinks it's a bargain at less than two times sales. -- 408/366-5100 -- cks.com
Cybercash -- $13 (Nasdaq:CYCH - news)
Down from $24, it's still not cheap at 55 times sales! But it is everywhere. Wake the review up when it's over. Well known, to say the least, it traded at $60 in the summer of 1996. -- 703/620-4200 -- cybercash.com
CNET -- $25 (Nasdaq:CNWK - news)
The review will go on record saying this is cheap at 12 times sales. This is the NBC of the future. Best Web sites, best talent and best marketers. Amerindo Advisors (one of the smartest technology investors) just bought 700,000 at $25. If the review were CBS, NBC, DIS, etc., it would buy CNET out now, before having to pay $2 billion instead of a few hundred million. Reminds the review of AOL five years back. One of the review's favorites. -- 415/395-7800 -- cnet.com
Go2Net -- $8 (Nasdaq:GNET - news)
Visit its Web site(s) and then decide. The review uses Yahoo! every day and used it every day when it was selling for $10 (now $60) and didn't buy. Would you use GNET every day? Reported sales of $250,000 for the year and has a market cap of $30 million. An up-and-comer. Not cheap, but the best never are. -- 206/447-1595 -- go2net.com -- metacrawler.com -- playsite.com -- stocksite.com
Guitar Center -- $23 (Nasdaq:GTCR - news).
OK, guitars aren't sexy. But nine-months sales of $205 million (up 41 percent) are, and the review believes Guitar Center will be a major beneficiary of Internet sales. -- 818/735-8800 -- guitarcenter.com
Interactive Buyer Network -- $0.32 (OTC:IBNL - news)
Operates a business-to-business ''private network'' service for major corporations looking for vendors, and for vendors looking for major corporations. Charges each $990 per year to subscribe. Has signed up BF Goodrich, Stone Container, Warner Bros., Disney and 7Up/RC Bottling. Needs to first sign up corporations (thousands), then vendors (tens of thousands). Thinks it can have 4,250 subscribers by 1998. No one has heard of it. -- 414/966-7691
iMall -- $0.60 (OTC:IMAL - news)
Another cheapy -- but it just raised $20 million in a private placement during December. If this is a penny stock, that's a lot of pennies. Traded at $4.50 in early March 1997. With 60 million shares outstanding, the review would expect a reverse split. Check the Web site and then decide. With 18 million hits in October 1997, it should be able to accident itself into success. Lives a life of obscurity; even its own Web site doesn't mention that it's public. Hello? One of the review's favorites. -- 818/509-3600 -- imall.com
InfoInteractive -- $0.60 (Alberta:IIA or IIA.AL)
OK, it's Canadian. But imagine this: You're at home on the Internet (you have only one line). Someone calls you, and a box pops up on your screen with caller ID. You see the name and can choose ''Take the call'' or ''Have them call back.'' The caller hears, ''The person you are calling is on the line; he sees you are calling and has indicated he will call you back from the number you are calling from,'' or ''The person you are calling is on the line; he sees you are calling and has indicated he would like you to call back in a few moments when the line is free.'' See it live at the company's Web site. As seems to be the norm with Canadian companies, getting financial information (such as shares outstanding) is like trying to pry a bone from a pit bull. -- 800/270-1014, ext. 21 -- interactive.ca
InterVu -- $8.50 (Nasdaq:ITVU - news)
Video over the Internet. Just went public at $9.50 from Josephthal and Cruttenden Roth. NBC purchased 215,000 shares at $9.50. Product is used by NBC, Sony, ML Baseball, Turner Broadcasting, etc. Unknown. -- 619/350-1600, ext. 144 -- intervu.net
Network Solutions -- $15 (Nasdaq:NSOL - news).
Care to register your domain name? Now here's a company that will grow to $100 million in front of your own eyes. Street thinks it can earn $0.47 next year. Sales for nine months were $30 million, vs. $12 million. A real comer; one of the review's favorites. -- 703/742-0400 -- netsol.com
N2K -- $17 (Nasdaq:NTKI - news)
Remember Alliance Entertainment, the old way to distribute records? Well, here is the new way ... $7 million in sales and a $200 million market cap. Sites include Rocktropolis.com, JazzCentralStation.com, ClassicalInsites.com, DavidBowie.com, StonesWorld.com, LeonardBernstein.com and allstarmag.com . Just went public; off from $30. Should lose $3 per share this year -- watch and learn. Strong buy from Unterberg Towbin in mid-December. -- 212/378-5555 -- n2k.com -- musicblvd.com
Omega Research -- $4.50 (Nasdaq:OMGA - news)
Stock charting software. Recently public, it has been ugly, trading down from $11. Has been reporting super numbers, though, as revenues for nine months jumped 75 percent to $22 million, with pro forma earnings of $5 million. Has a couple of good friends (though you couldn't tell by the price action) on the street by the names of Robertson Stephens and Hambrecht & Quist. Unknown. -- 305/551-9991 -- omegaresearch.com
OnSale -- $17.50 (Nasdaq:ONSL - news)
You have to love this one. It seems the only thing better than selling on the Internet is auctioning on the Internet. Sales for nine months were $56 million, up from $6 million. Going once, going twice ... The review wishes there were a few more publicly traded companies in the auction business. Quietly ran from $6 to $30 while an unknown and then plunged to $14 when it became well known, with a secondary from some Wall Street biggies. Once looked rich; now beginning to look cheap at four times sales. Despite an expected loss of $0.63 per share in the coming year, it has garnered five strong buys on the street. -- 415/428-0600 -- onsale.com
Realnetworks -- $14 (Nasdaq:RNWK - news).
Also known as RealAudio. OK, so you're all mad at your broker because he or she didn't get you a piece of this hot new issue at $12.50, which ran to $19. Well, guess what -- it's baack. This is the undisputed leader (at least today) in ''hearing'' things on the Internet. So stop crying and do something about it. Goldman Sachs likes it; the review will watch. -- 206/343-1825 -- real.com -- realplanet.com
Scoop -- $0.87 (Nasdaq:SCPI - news)
Well, there had to be a few casualties somewhere. Just when you thought you were free of earnings concerns, Scoop reports a 51 percent sales increase for nine months, and it trades down. Public at $4.50 through the Shamus Group (who?), it traded to $7 and then submerged to under a buck. The review is still not convinced it has a viable business plan at $29.95 per month to clip articles, but Will watch. Cheap by Internet standards. -- 714/453-8383 -- scoop.com
USWEB -- $11 (Nasdaq:USWB - news)
Probably the most ambitious Internet company -- you build a Web site and USWEB will keep it going. And USWEB means for everyone. If USWEB can pull it off, it'll be a billion-dollar company. In the meantime, while sales have increased from $511,000 to $8 million, it is bleeding red big-time, which is expected. Combine that with a $332 million market cap ... and the review will just watch. It already has a nationwide presence. -- 408/987-3200 -- uswebla.com
To be placed on the complimentary list for The Internet Stock Review, contact Roland Perry at indexao@pipeline.com; write Perry & Co., 468 N. Camden Drive, Suite 200, Beverly Hills, Calif. 90210; or call 310/285-1778. |
