Message #8 From:
NewsBot Date: August 3, 2005 11:00:00 PM
HYPR News HyperFeed Technologies Reports Second Quarter 2005 Results
CHICAGO--(BUSINESS WIRE)--Aug. 4, 2005--HyperFeed Technologies, Inc. (OTCBB:HYPR), a provider of ticker plant technologies, data distribution, smart order routing and managed data services to the financial community, today reported results for the second quarter ended June 30, 2005.
HyperFeed's revenue for the quarter ended June 30, 2005 was $1.0 million, versus $1.3 million in the same quarter in 2004, representing a decrease of 21.6%. However, revenue in the second quarter of 2004 included revenue from contracts entered into in 2003 and 2004 with Telerate of $0.9 million. Due to the termination of these contracts with Telerate in November 2004 resulting from its acquisition by Reuters in 2005, there is no revenue from Telerate in the second quarter of 2005. HyperFeed had an increase of twenty-seven customers since last year, including Susquehanna International Group, LLP and The Nasdaq Stock Market, Inc. In addition, HyperFeed experienced a 17.5% quarter over quarter growth, from $0.9 million to $1.0 million from the first to the second quarter of 2005.
Paul Pluschkell, President and CEO of HyperFeed, commented, "As a result of our recent exclusive agreement, executed in May 2005, to license globally in perpetuity the source code for both Telerate Trading Room System (TRS) and Active8 technology from Reuters and Telerate, HyperFeed significantly expanded our suite of products this quarter. This should open significant new opportunities to us, as we expect that the financial markets will desire the alternatives we can offer with regard to an agnostic market data platform. HyperFeed has rebranded TRS as HMDP (HyperFeed Market Data Platform) and Active8 as OCC (Open Collaborative Container) and has already expanded into the European markets with our alliance with MarketXS to license and support these products throughout Europe. MarketXS will support HMDP and OCC with its proven TRS and Active8 sales experience, existing installation and support capabilities, and an impressive array of satisfied customers."
Mr. Pluschkell further adds, "With our recent release of HMDP and OCC combined with HTPX, DDU and SORTT, HyperFeed offers a full suite of products and services to address the needs of global enterprise customers. HyperFeed has the resources, technology and partnerships to achieve its goal to create the industry's first collaborative open and agnostic global platform for data, transactions, and platform integration."
HyperFeed reported a net loss of ($2.1) million, or ($0.67) per share, for the quarter ended June 30, 2005, compared to a net loss of ($1.7) million, or ($0.55) per share, for the same period in 2004. Loss from operations in the second quarter of 2005 was ($1.6) million, versus ($1.5) million in the second quarter of 2004.
About HyperFeed Technologies, Inc.
HyperFeed Technologies, Inc. (OTCBB:HYPR) is a leading provider of enterprise-wide tickerplant and transaction technology software and services enabling financial institutions to process and use high performance exchange data. HyperFeed's extreme low latency processing and data distribution combined with smart order routing for transactions provides institutions, exchanges, content providers, and value-added resellers with fast, flexible, and smart utilities to power their trading systems.
HyperFeed's HTPX platform includes HVAULT and HBOX tickerplant software products and managed services. Data Delivery Utility (DDU) is HyperFeed's global, highly distributed, fully managed financial content distribution utility with extremely low latency and an end-to-end Service Level Agreement (SLA). A recent addition is HyperFeed's dynamic Smart Order Routing utilities aimed at allowing firms to be REG-NMS compliant while offering price improvement in order execution.
HMDP (HyperFeed Market Data Platform) is a market data distributor based on the TRS technology, and OCC (Open Collaborative Container) is the Active8 display container connecting to HyperFeed's HMDP market data system. Two more Active8 and TRS products are MADgrid, HyperFeed's market data distribution platform with the first on-demand virtual market data solution, and Dashboard, the easy-to-use interface for MADgrid.
MADgrid, Dashboard, HMDP and OCC are not Reuters products or supported by Reuters. TRS, Active8 and Telerate are registered trademarks of Reuters.
Safe Harbor Disclosure
The statements made herein that are not historical in nature are intended to be and are identified as "forward looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, particularly in reference to statements regarding our expectations, plans and objectives. Forward-looking statements may be impacted by a number of factors, risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Our filings with the Securities and Exchange Commission identify factors that could cause material differences. Among these factors are our ability to: i) successfully execute our new business model; ii) fund our business either through continuing operations or external financing; iii) successfully attract, retain and integrate key employees; iv) compete successfully against competitive products and services; v) deliver and maintain performance standards according to the terms and conditions of our customer contracts; vi) maintain relationships with key suppliers and providers of market data; vii) maintain our existing customer base while diversifying the Company's presence in the financial institutional marketplace; viii) develop, complete and introduce new product and service initiatives in a timely manner and at competitive price and performance levels; ix) manage the timing of the development and introduction of new products or enhanced versions of existing products; x) gain the market's acceptance of new products; and xi) respond to the effect of economic and business conditions generally. The Company cautions readers that forward-looking statements, including and without limitation, those relating to the Company's future business prospects, revenues, working capital, liquidity, income and margin are subject to certain risks and uncertainties that could cause actual results to differ materially from those indicated by the forward-looking statements due to any number of risk factors.
HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY
Consolidated Balance Sheets (Unaudited)
Assets June 30, December 31,
2005 2004
------------- -------------
Current Assets
Cash and cash equivalents $ 176,870 $ 193,702
Accounts receivable, less allowance for
doubtful accounts of: 2005: $41,204;
2004: $34,031 368,035 576,092
Notes receivable, less allowance for
doubtful accounts of: 2005: $10,830;
2004: $60,830 90,493 93,798
Prepaid expenses and other current assets 186,234 125,890
Assets related to discontinued operations 57,094 72,270
------------- -------------
Total Current Assets 878,726 1,061,752
------------- -------------
Property and equipment
Computer equipment 1,381,448 1,627,021
Communication equipment 783,430 1,031,370
Furniture and fixtures 84,426 106,559
Leasehold improvements 9,260 531,809
------------- -------------
2,258,564 3,296,759
Less: Accumulated depreciation and
amortization (1,603,797) (2,457,645)
------------- -------------
Property and equipment, net 654,767 839,114
Intangible assets, net of accumulated
amortization of: 2005: $341,250; 2004:
$229,167 316,250 78,333
Licensed and developed software costs, net
of accumulated amortization of:
2005: $2,019,252; 2004: $3,016,799 2,896,782 1,686,975
Deposits and other assets 47,060 46,472
------------- -------------
Total Assets $ 4,793,585 $ 3,712,646
============= =============
Liabilities and Stockholders' Equity
Current Liabilities
Convertible note payable to affiliate $ 2,805,000 $ ---
Line of credit 500,000 465,000
Accounts payable 1,076,384 634,299
Accrued expenses 597,629 170,547
Accrued professional fees 124,000 158,225
Accrued compensation 87,447 77,763
Income taxes payable 27,270 27,270
Unearned revenue 173,243 268,042
Liabilities related to discontinued
operations 810,420 849,172
------------- -------------
Total Current Liabilities 6,201,393 2,650,318
------------- -------------
Accrued expenses, less current portion 1,081,707 297,164
------------- -------------
Total Noncurrent Liabilities 1,081,707 297,164
------------- -------------
Total Liabilities 7,283,100 2,947,482
------------- -------------
Stockholders' Equity
Preferred stock, $.001 par value;
authorized 5,000,000 shares; none issued
and outstanding --- ---
Common stock, $.001 par value; authorized
50,000,000 shares; issued and outstanding
3,090,900 shares at June 30, 2005 and
3,064,493 shares at December 31, 2004 3,091 3,065
Additional paid-in capital 46,890,132 46,111,516
Accumulated deficit (49,382,738) (45,349,417)
------------- -------------
Total Stockholders' Equity (2,489,515) 765,164
------------- -------------
Total Liabilities and Stockholders' Equity $ 4,793,585 $ 3,712,646
============= =============
HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY
Consolidated Statements of Operations (Unaudited)
For The Three Months For The Six Months
Ended June 30, Ended June 30,
2005 2004 2005 2004
------------ ------------ ------------ ------------
Revenue
HyperFeed $ 957,744 $ 1,218,168 $ 1,751,925 $ 1,867,178
HYPRWare 86,785 114,250 181,658 240,551
------------ ------------ ------------ ------------
Total Revenue 1,044,529 1,332,418 1,933,583 2,107,729
Direct Costs of
Revenue 278,754 457,797 561,997 921,465
------------ ------------ ------------ ------------
Gross Margin 765,775 874,621 1,371,586 1,186,264
------------ ------------ ------------ ------------
Operating Expenses
Sales and
marketing 505,447 490,894 848,771 978,741
General and
administrative 737,814 662,908 1,537,883 1,684,996
Research and
development 336,320 419,773 731,405 743,526
Operations 542,449 602,586 1,045,248 1,280,680
Depreciation and
amortization 195,907 201,240 408,856 415,308
------------ ------------ ------------ ------------
Total Operating
Expenses 2,317,937 2,377,401 4,572,163 5,103,251
------------ ------------ ------------ ------------
Loss from
Operations (1,552,162) (1,502,780) (3,200,577) (3,916,987)
------------ ------------ ------------ ------------
Other Income
(Expense)
Interest income 44 1,443 82 8,207
Interest expense (495,504) (267) (793,177) (267)
------------ ------------ ------------ ------------
Other Income
(Expense), Net (495,460) 1,176 (793,095) 7,940
------------ ------------ ------------ ------------
Loss from Continuing
Operations Before
Income Taxes (2,047,622) (1,501,604) (3,993,672) (3,909,047)
Income tax
benefit (expense) --- (65,000) --- 6,000
------------ ------------ ------------ ------------
Loss from
Continuing
Operations (2,047,622) (1,566,604) (3,993,672) (3,903,047)
Discontinued
Operations
Loss from
discontinued
operations (17,050) (169,829) (39,649) (360,522)
Income tax benefit
(expense) from
discontinued
operations --- 65,000 --- 138,000
Gain on
disposition of
discontinued
operations --- --- --- 375,000
Income tax expense
from gain on
disposition of
discontinued
operations --- --- --- (144,000)
------------ ------------ ------------ ------------
Income (Loss) from
Discontinued
Operations (17,050) (104,829) (39,649) 8,478
------------ ------------ ------------ ------------
Net Loss $(2,064,672) $(1,671,433) $(4,033,321) $(3,894,569)
============ ============ ============ ============
Basic and diluted
net income (loss)
per share:
Continuing
operations $ (0.66) $ (0.52) $ (1.30) $ (1.28)
Discontinued
operations (0.01) (0.03) (0.01) 0.01
------------ ------------ ------------ ------------
Basic and diluted
net loss per
share $ (0.67) $ (0.55) $ (1.31) $ (1.27)
============ ============ ============ ============
Basic and diluted
weighted-average
common shares
outstanding 3,090,333 3,058,892 3,084,390 3,055,900
HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows (Unaudited)
For The Six Months Ended
June 30,
2005 2004
------------ ------------
Cash Flows from Operating Activities:
Net loss $(4,033,321) $(3,894,569)
Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
Depreciation and amortization 408,856 415,308
Amortization of licensed and developed
software costs 512,208 658,910
Provision for doubtful accounts 17,456 9,996
Gain on sale of equipment --- (4,888)
Interest and other expense related to
convertible note payable to affiliate 776,250 ---
Changes in assets and liabilities, net of
effects from dispositions:
Accounts receivable 190,601 (1,031,629)
Prepaid expenses and other current
assets (60,344) (116,250)
Deposits and other assets (587) ---
Accounts payable 442,085 189,280
Accrued expenses 187,084 22,722
Unearned revenue (94,799) 888,710
------------ ------------
Net cash used in continuing operations (1,654,511) (2,862,410)
Net cash used in discontinued operations (23,576) (857,794)
------------ ------------
Net Cash Used In Operating Activities (1,678,087) (3,720,204)
------------ ------------
Cash Flows from Investing Activities:
Purchase of property and equipment (112,427) (190,418)
Licensed and developed software costs
capitalized (722,015) (676,236)
Proceeds from sale of equipment --- 26,000
Purchase of intangible asset (350,000) ---
Repayment of note receivable 3,305 20,835
------------ ------------
Net Cash Used In Investing Activities (1,181,137) (819,819)
------------ ------------
Cash Flows from Financing Activities:
Proceeds from issuance of common stock 2,392 35,014
Proceeds from convertible note payable to
affiliate 2,805,000 ---
Net borrowings under line of credit 35,000 200,000
------------ ------------
Net Cash Provided By Financing Activities 2,842,392 235,014
------------ ------------
Net decrease in cash and cash equivalents (16,832) (4,305,009)
Cash and cash equivalents:
Beginning of the period 193,702 4,668,038
------------ ------------
End of the period $ 176,870 $ 363,029
============ ============
Supplemental disclosures of noncash operating
activities:
Beneficial conversion feature and commitment
fee related to convertible note payable to
affiliate (Note 5) $ 776,250 $ ---
Supplemental disclosures of noncash investing
and financing activities:
Acquisition of licensed software utilizing
long-term commitment (Note 4) $ 1,000,000 $ ---
