Message #10 From:
Stock News Bot Date: November 7, 2005 10:08:00 AM
HYPR News HyperFeed Technologies Reports Third Quarter 2005 Results
CHICAGO--(BUSINESS WIRE)--Nov. 7, 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 third quarter ended September 30, 2005.
HyperFeed's revenue for the quarter ended September 30, 2005 was $1.4 million, versus $2.1 million in the same quarter in 2004, representing a decrease of 31.8%. Revenue in second quarter 2004 included $1.3 million from Telerate, who terminated its contract in November 2004 as a result of its acquisition by Reuters. During the current quarter, HyperFeed entered into thirteen agreements, directly and through channel partners, that provide $2.9 million in total contract value, a 122.9% increase over the $1.3 million of revenue from agreements entered into in the third quarter 2004. HyperFeed expects to recognize $2.6 million of the current quarter contract value principally over the next two to three years.
Paul Pluschkell, President and CEO of HyperFeed, commented, "We posted the best quarter yet for customer gains giving HyperFeed a total of 41 customers, more than double the number in 2004. In addition, HyperFeed experienced a 26.1% quarter over quarter revenue growth for the three quarters of 2005."
HyperFeed reported a net loss of ($2.6) million, or ($0.84) cents per share, for the quarter ended September 30, 2005, compared to a net loss of ($0.6) million, or ($0.22) cents per share for the same period in 2004. Loss from operations in the third quarter of 2005 was ($1.8) million, versus ($0.6) million in third quarter 2004.
Paul Pluschkell further commented, "As the only widely deployed data platform to support content from Bloomberg, Reuters, Telerate, Telekurs and Comstock, there has been encouraging global market interest for our newly acquired Market Data Platform and desktop application, known as HMDP and OCC. HyperFeed and its partners have a program to contract the existing 25,000 users onto HMDP and OCC. Our approach offers data agnostic software whereby clients and content providers have the same access to high level support, promoting an equal integration platform. Since acquiring the licenses in June of this year, this program is beginning to pay off as we have successfully signed a European distribution partner and contracted with a large market data provider to integrate their data feed with our Market Data platform."
The Company borrowed the remaining $1.4 million of the $6.0 Convertible Note in October 2005. On November 1, 2005, PICO elected to convert the full amount borrowed and related accrued interest into 4,546,479 shares of the Company's common stock at a conversion rate of $1.36 per share. As a result of the conversion, PICO owns 80.1% of the Company's common stock.
About HyperFeed
HyperFeed Technologies, Inc. is a leading provider of enterprise-wide ticker plant 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 ticker plant 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 September 30, December 31,
2005 2004
------------- -------------
Current Assets
Cash and cash equivalents $ 19,903 $ 193,702
Accounts receivable, less allowance for
doubtful accounts of: 2005: $51,441;
2004: $34,031 346,779 576,092
Notes receivable, less allowance for
doubtful accounts of: 2005: $10,830;
2004: $60,830 90,493 93,798
Prepaid expenses and other current assets 248,829 125,890
Assets related to discontinued operations 55,593 72,270
------------- -------------
Total Current Assets 761,597 1,061,752
------------- -------------
Property and equipment
Computer equipment 1,414,485 1,627,021
Communication equipment 783,430 1,031,370
Furniture and fixtures 88,389 106,559
Leasehold improvements 9,260 531,809
------------- -------------
2,295,564 3,296,759
Less: Accumulated depreciation and
amortization (1,732,701) (2,457,645)
------------- -------------
Property and equipment, net 562,863 839,114
Intangible assets, net of accumulated
amortization of: 2005: $392,083; 2004:
$229,167 265,417 78,333
Licensed and developed software costs, net
of accumulated amortization of:
2005: $2,355,842; 2004: $3,016,799 2,994,764 1,686,975
Deposits and other assets 47,124 46,472
------------- -------------
Total Assets $ 4,631,765 $ 3,712,646
============= =============
Liabilities and Stockholders' Equity
Current Liabilities
Convertible note payable to affiliate $ 4,595,000 $ ---
Line of credit 500,000 465,000
Accounts payable 1,175,036 634,299
Accrued expenses 746,211 170,547
Accrued professional fees 145,500 158,225
Accrued compensation 98,935 77,763
Income taxes payable 27,270 27,270
Unearned revenue 217,139 268,042
Liabilities related to discontinued
operations 228,928 849,172
------------- -------------
Total Current Liabilities 7,734,019 2,650,318
------------- -------------
Accrued expenses, less current portion 1,059,669 297,164
------------- -------------
Total Noncurrent Liabilities 1,059,669 297,164
------------- -------------
Total Liabilities 8,793,688 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
3,094,326 shares at September 30, 2005 and
3,064,493 shares at December 31, 2004 3,094 3,065
Additional paid-in capital 47,824,294 46,111,516
Accumulated deficit (51,989,311) (45,349,417)
------------- -------------
Total Stockholders' Equity (4,161,923) 765,164
------------- -------------
Total Liabilities and Stockholders' Equity $ 4,631,765 $ 3,712,646
============= =============
HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY
Consolidated Statements of Operations (Unaudited)
For The Three Months Ended For The Nine Months Ended
September 30, September 30,
2005 2004 2005 2004
-------------- ------------ ------------ ------------
Revenue
HyperFeed $ 1,317,862 $ 1,953,808 $ 3,069,787 $ 3,820,986
HYPRWare 88,982 107,512 270,640 348,063
------------- ------------ ------------ ------------
Total Revenue 1,406,844 2,061,320 3,340,427 4,169,049
Direct Costs of
Revenue 440,053 372,017 1,002,050 1,293,482
------------- ------------ ------------ ------------
Gross Margin 966,791 1,689,303 2,338,377 2,875,567
------------- ------------ ------------ ------------
Operating Expenses
Sales and
marketing 454,864 473,572 1,303,635 1,452,313
General and
administrative 833,772 656,513 2,371,655 2,341,509
Research and
development 462,713 378,357 1,194,118 1,121,883
Operations 841,444 528,858 1,886,692 1,809,538
Depreciation and
amortization 179,739 253,256 588,595 668,564
------------- ------------ ------------ ------------
Total Operating
Expenses 2,772,532 2,290,556 7,344,695 7,393,807
------------- ------------ ------------ ------------
Loss from
Operations (1,805,741) (601,253) (5,006,318) (4,518,240)
------------- ------------ ------------ ------------
Other Income
(Expense)
Interest income 70 1,204 152 9,411
Interest expense (923,634) (790) (1,716,811) (1,057)
------------- ------------ ------------ ------------
Other Income
(Expense), Net (923,564) 414 (1,716,659) 8,354
------------- ------------ ------------ ------------
Loss from
Continuing
Operations Before
Income Taxes (2,729,305) (600,839) (6,722,977) (4,509,886)
Income tax
benefit
(expense) 47,000 (23,000) 47,000 (17,000)
------------- ------------ ------------ ------------
Loss from
Continuing
Operations (2,682,305) (623,839) (6,675,977) (4,526,886)
Discontinued
Operations
Loss from
discontinued
operations (2,268) (62,181) (41,917) (422,703)
Income tax
benefit from
discontinued
operations 1,000 23,000 1,000 161,000
Gain on
disposition of
discontinued
operations 125,000 --- 125,000 375,000
Income tax
expense from
gain on
disposition of
discontinued
operations (48,000) --- (48,000) (144,000)
------------- ------------ ------------ ------------
Income (Loss) from
Discontinued
Operations 75,732 (39,181) 36,083 (30,703)
------------- ------------ ------------ ------------
Net Loss $ (2,606,573) $ (663,020) $(6,639,894) $(4,557,589)
============= ============ ============ ============
Basic and diluted
net income (loss)
per share:
Continuing
operations $ (0.87) $ (0.21) $ (2.16) $ (1.48)
Discontinued
operations 0.03 (0.01) 0.01 (0.01)
------------- ------------ ------------ ------------
Basic and diluted
net loss per
share $ (0.84) $ (0.22) $ (2.15) $ (1.49)
============= ============ ============ ============
Basic and diluted
weighted-average
common shares
outstanding 3,090,900 3,061,733 3,086,584 3,057,858
HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows (Unaudited)
For The Nine Months Ended
September 30,
2005 2004
------------ ------------
Cash Flows from Operating Activities:
Net loss $(6,639,894) $(4,557,589)
Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
Depreciation and amortization 588,595 668,564
Amortization of licensed and developed
software costs 848,798 985,798
Provision for doubtful accounts 27,693 49,762
Gain on sale of equipment --- (6,708)
Interest and other expense related to
convertible note payable to affiliate 1,553,165 ---
Changes in assets and liabilities, net of
effects from dispositions:
Accounts receivable 201,620 (22,765)
Prepaid expenses and other current
assets 29,069 (74,536)
Deposits and other assets (652) 390
Accounts payable 540,737 130,720
Accrued expenses 346,616 (100,998)
Unearned revenue (50,903) 337,712
------------ ------------
Net cash used in continuing operations (2,555,156) (2,589,650)
Net cash used in discontinued operations (603,567) (955,019)
------------ ------------
Net Cash Used In Operating Activities (3,158,723) (3,544,669)
------------ ------------
Cash Flows from Investing Activities:
Purchase of property and equipment (149,428) (204,526)
Licensed and developed software costs
capitalized (1,156,587) (955,330)
Proceeds from disposal of equipment --- 32,698
Purchase of intangible asset (350,000) (127,500)
Provision for doubtful notes receivable --- 10,830
Repayment of note receivable 3,305 33,336
------------ ------------
Net Cash Used In Investing Activities (1,652,710) (1,210,492)
------------ ------------
Cash Flows from Financing Activities:
Proceeds from issuance of common stock 7,634 38,212
Proceeds from convertible note payable to
affiliate 4,595,000 ---
Net borrowings under line of credit 35,000 195,000
------------ ------------
Net Cash Provided By Financing Activities 4,637,634 233,212
------------ ------------
Net decrease in cash and cash equivalents (173,799) (4,521,949)
Cash and cash equivalents:
Beginning of the period 193,702 4,668,038
------------ ------------
End of the period $ 19,903 $ 146,089
============ ============
Supplemental disclosures of noncash operating
activities:
Beneficial conversion feature and commitment
fee related to convertible note payable to
affiliate $ 1,705,173 $ ---
Supplemental disclosures of noncash investing
and financing activities:
Acquisition of licensed software utilizing
long-term commitment $ 1,000,000 $ ---
