Message #3 From:
Stock News Bot Date: May 5, 2005 08:04:22 AM
HYPR HyperFeed Technologies Reports First Quarter 2005 Results
HyperFeed Technologies Reports First Quarter 2005 Results
CHICAGO
HyperFeed Technologies, Inc.
Tom Wojciechowski, 312-913-2800
twojciechowski@hyperfeed.com
or
Scanlon Corporate Communications
Lonny White, 312-822-9299
lonny@scanloncc.com
HyperFeed Technologies, Inc. (OTCBB:HYPR), a provider of ticker plant technologies, smart order routing and managed data and hosting services to the financial community, today reported results for the first quarter ended March 31, 2005.
HyperFeed's revenue for the quarter ended March 31, 2005 was $0.9 million, versus $0.8 million in the same quarter in 2004, representing an increase of 14.7%. Paul Pluschkell, President and CEO of HyperFeed, commented, "Our sales growth is in line with our projections. Since January 2004, we have entered into over twenty agreements to provide our technology and services to high quality institutions in various sales channels within the financial services industry. These agreements provided for an aggregate of $17.7 million in payments to HyperFeed during their initial terms. This has been reduced to $13.1 million resulting from a termination of a contract in fourth quarter 2004, due to an expected acquisition of Telerate by Reuters. As a result of the accounting treatment of the subscription-based revenue payment terms provided by these agreements, we have recognized only $6.9 million of revenue through the end of the first quarter 2005. Most of the remaining balance of payments provided during the initial term of these agreements is expected to become due during fiscal 2005 and 2006."
Mr. Pluschkell further commented, "Our recent acquisition of Focus Technology Group and their Smart Order Routing Trading Technology (SORTT) product positions us to take advantage of changes in the market we expect to be caused by proposed SEC Regulations for the National Market System (REG-NMS). SORTT, combined with our market-leading low latency HTPX platform, also provides us a complete, broker and data-neutral tickerplant and order routing solution. These technologies are geared toward helping our customers achieve the best possible executions, and represent a powerful solution at the hands of our demanding trading market."
The Company reported a net loss of ($2.0) million for the first quarter of 2005, or ($0.65) per share, versus a net loss of ($2.2) million, or ($0.73) per share, in the same period in 2004, representing a decrease in the loss of 11.9%. This improvement largely resulted from a $0.1 million increase in revenues and a $0.7 million reduction in operating expenses, offset by increases of $0.3 million in interest expenses and $0.2 million in discontinued operations.
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 with Smart Order Routing and other applications. HyperFeed's extreme low latency processing 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, that includes HVAULT and HBOX software products and managed services, are designed to support low latency yet high value real-time market data; data services for use in receiving and distributing financial content with a competitive edge. Its dynamic Smart Order Routing utilities are aimed at allowing firms to be REG-NMS compliant while offering price improvement in order execution.
Data Delivery Utility (DDU) is a global, highly distributed, fully managed financial content distribution utility with extremely low latency and an end-to-end Service Level Agreement (SLA) - a completely new alternative for reliable market data delivery.
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.(1) 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.
(1)Conform to risk factors in the 2004 10-K.
HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY
Consolidated Balance Sheets (Unaudited)
Assets March 31, December 31,
2005 2004
-------------- -------------
Current Assets
Cash and cash equivalents $ 32,821 $ 193,702
Accounts receivable, less allowance for
doubtful accounts of: 2005: $31,626;
2004: $34,031 339,592 576,092
Notes receivable, less allowance for
doubtful accounts of: 2005: $10,830;
2004: $60,830 90,493 93,798
Prepaid expenses and other current assets 258,533 125,890
Assets related to discontinued operations 57,692 72,270
-------------- -------------
Total Current Assets 779,131 1,061,752
-------------- -------------
Property and equipment
Computer equipment 1,333,491 1,627,021
Communication equipment 783,430 1,031,370
Furniture and fixtures 84,426 106,559
Leasehold improvements 9,260 531,809
-------------- -------------
2,210,607 3,296,759
Less: Accumulated depreciation and
amortization (1,462,472) (2,457,645)
-------------- -------------
Property and equipment, net 748,135 839,114
Intangible assets, net of accumulated
amortization of: 2005: $286,667; 2004:
$229,167 370,833 78,333
Software development costs, net of
accumulated amortization of:
2005: $1,765,606; 2004: $3,016,799 1,767,393 1,686,975
Deposits and other assets 47,029 46,472
-------------- -------------
Total Assets $ 3,712,521 $3,712,646
============== =============
Liabilities and Stockholders' Equity
Current Liabilities
Convertible note payable to affiliate $ 1,095,000 $ ---
Line of credit 500,000 465,000
Accounts payable 863,409 634,299
Accrued expenses 241,058 170,547
Accrued professional fees 220,520 158,225
Accrued compensation 48,512 77,763
Income taxes payable 27,270 27,270
Unearned revenue 213,421 268,042
Liabilities related to discontinued
operations 967,271 849,172
-------------- -------------
Total Current Liabilities 4,176,461 2,650,318
-------------- -------------
Accrued expenses, less current portion 389,367 297,164
-------------- -------------
Total Noncurrent Liabilities 389,367 297,164
-------------- -------------
Total Liabilities 4,565,828 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
3,090,333 shares at March 31, 2005 and
3,064,493 shares at December 31, 2004 3,090 3,065
Additional paid-in capital 46,461,669 46,111,516
Accumulated deficit (47,318,066) (45,349,417)
-------------- -------------
Total Stockholders' Equity (853,307) 765,164
-------------- -------------
Total Liabilities and Stockholders'
Equity $ 3,712,521 $3,712,646
============== =============
HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY
Consolidated Statements of Operations (Unaudited)
For The Three Months Ended
March 31,
2005 2004
--------------- -------------
Revenue
HyperFeed $ 794,181 $ 649,010
HYPRWare 94,873 126,301
--------------- -------------
Total Revenue 889,054 775,311
Direct Costs of Revenue 283,243 463,668
--------------- -------------
Gross Margin 605,811 311,643
--------------- -------------
Operating Expenses
Sales and marketing 343,324 487,847
General and administrative 800,069 1,022,088
Research and development 395,085 323,753
Operations 502,799 678,094
Depreciation and amortization 212,949 214,068
--------------- -------------
Total Operating Expenses 2,254,226 2,725,850
--------------- -------------
Loss from Operations (1,648,415) (2,414,207)
--------------- -------------
Other Income (Expense)
Interest income 38 6,764
Interest expense (297,673) ---
--------------- -------------
Other Income (Expense), Net (297,635) 6,764
--------------- -------------
Loss from Continuing Operations Before
Income Taxes (1,946,050) (2,407,443)
Income tax benefit (expense) --- 71,000
--------------- -------------
Loss from Continuing Operations (1,946,050) (2,336,443)
Discontinued Operations
Loss from discontinued operations (22,599) (190,693)
Income tax benefit (expense) from
discontinued operations --- 73,000
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 (22,599) 113,307
--------------- -------------
Net Loss $(1,968,649) $(2,223,136)
=============== =============
Basic and diluted net income (loss) per
share:
Continuing operations $ (0.64) $ (0.77)
Discontinued operations (0.01) 0.04
--------------- -------------
Basic and diluted net loss per share $ (0.65) $ (0.73)
=============== =============
Basic and diluted weighted-average common
shares outstanding 3,044,553 3,052,906
HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY
Consolidated Statements of Cash Flows (Unaudited)
For The Period Ended
March 31,
2005 2004
-------------- -------------
Cash Flows from Operating Activities:
Net loss $(1,968,649) $(2,223,136)
Adjustments to reconcile net loss to net
cash provided by (used in) operating
activities:
Depreciation and amortization 212,949 214,068
Amortization of software development
costs 258,562 339,490
Provision for doubtful accounts 7,878 4,998
Interest and other expense related to
convertible note payable to affiliate 348,750 ---
Changes in assets and liabilities, net
of effects from dispositions:
Accounts receivable 228,622 (650,778)
Prepaid expenses and other current
assets (132,643) (60,527)
Deposits and other assets (557) ---
Accounts payable 229,110 (35,519)
Accrued expenses 195,758 95,133
Unearned revenue (54,621) 445,000
-------------- -------------
Net cash used in continuing operations (674,841) (1,871,271)
Net cash provided by (used in)
discontinued operations 132,677 (1,183,846)
-------------- -------------
Net Cash Used In Operating Activities (542,164) (3,055,117)
-------------- -------------
Cash Flows from Investing Activities:
Purchase of property and equipment (64,470) (147,031)
Software development costs capitalized (338,980) (334,489)
Purchase of intangible asset (350,000) ---
Repayment of note receivable 3,305 8,334
-------------- -------------
Net Cash Used In Investing Activities (750,145) (473,186)
-------------- -------------
Cash Flows from Financing Activities:
Proceeds from issuance of common stock 1,428 20,661
Proceeds from convertible note payable
to affiliate 1,095,000 ---
Net borrowings under line of credit 35,000 ---
-------------- -------------
Net Cash Provided By Financing Activities 1,131,428 20,661
-------------- -------------
Net decrease in cash and cash equivalents (160,881) (3,507,642)
Cash and cash equivalents:
Beginning of the period 193,702 4,668,038
-------------- -------------
End of the period $ 32,821 $ 1,160,396
============== =============
Supplemental disclosures of noncash
operating activities:
Beneficial conversion feature and
commitment fee related to convertible
note payable to affiliate $ 348,750 $ ---
