GREENVILLE, S.C.--(BUSINESS WIRE)--April 28, 2004-- Datastream Systems, Inc. (Nasdaq: DSTM) today announced results for the Company's first quarter ended March 31, 2004.
Total revenues for the first quarter of 2004 were $23.1 million compared with $22.8 million for the first quarter of the prior year. Total software license revenues for the first quarter of 2004 remained stable at $6.5 million compared to the first quarter of the prior year. Operating income for the first quarter of 2004 grew 36% to $1.9 million compared with operating income of $1.4 million for the same period last year. Net income for the first quarter of 2004 grew 36% to $1.3 million compared with net income of $957,738 for the same period last year. Diluted earnings per share was $0.06 for the first quarter of 2004 compared to $0.05 for the same period last year.
Sequentially, first quarter 2004 total revenues increased 1% from fourth quarter 2003 revenues of $22.8 million. First quarter 2004 software license revenues decreased 6% from fourth quarter 2003 total software license revenues of $6.9 million. Operating income for the first quarter of 2004 decreased 10% from $2.1 million in the fourth quarter 2003. Net income for the first quarter 2004 decreased 13% from $1.5 million, in the fourth quarter of 2003.
Larry Blackwell, Datastream's chief executive officer, commented, "After years of investment, we are pleased to see healthy returns on our investments in Datastream 7i-related hosting and e-commerce services, which now represent more than 25% of our operating income. These services demonstrate the unique strengths of our company in establishing a positive foundation for future growth."
The Company's cash and cash equivalents totaled $46.0 million at March 31, 2004, an increase of 23% from $37.3 million at March 31, 2003 and an increase of 2% from $44.9 million at December 31, 2003. Days Sales Outstanding, or DSOs, were at 64 days for the first quarter 2004, a decrease of four days from the first quarter of 2003 and a decrease of five days over the fourth quarter 2003. Net cash provided by operating activities for the first quarter 2004 was approximately $3.4 million, representing the 14th consecutive quarter of positive operating cash flow.
Datastream 7i license revenue was $4.2 million in the first quarter of 2004, a 2% decrease in Datastream 7i license revenue from the same quarter of 2003 and a 2% decrease from the fourth quarter of 2003. For the first quarter 2004, Datastream 7i license revenue represented 65% of the Company's license revenue mix, which was equivalent to the same quarter of 2003. Datastream 7i license revenues for all periods compared include Datastream 7i, Datastream 7i Buy and third party software sold in conjunction with Datastream 7i.
For the fiscal year 2004, the Company reaffirms its expectation of diluted earnings per share to range between $0.28 and $0.32 per share, based on total revenue growth of approximately 5% above fiscal 2003 results. For the second quarter 2004, the Company expects revenues to range between $23.5 and $24.5 million and diluted earnings per share to range between $0.05 and $0.08.
Conference Call
Datastream will host a conference call today at 9:00 a.m., EDT with any and all interested persons to review its performance and discuss its financial expectations and strategic direction. Please dial 1-800-915-4836 and ask for the Datastream teleconference. For international callers, the dial-in number is 1-973-317-5319. The replay will be available from 11:00 a.m., EDT on April 28, 2004 until 11:59 p.m., EDT on April 30, 2004. The dial-in number for the replay is 1-800-428-6051 and the pass code is 347220. For international callers, the dial-in for the replay is 1-973-709-2089. Datastream's conference call will be accessible today via live audio Webcast at 9:00 a.m., EDT at www.datastream.net/investor.
About Datastream Systems, Inc.
Datastream Systems, Inc. (NASDAQ: DSTM) provides Asset Performance Management software and services to enterprises worldwide, including more than 65 percent of the Fortune 500. Datastream's solutions combine world-class asset management functionality with advanced analytics to deliver a powerful platform for optimizing enterprise asset performance.
By using Datastream's solutions, customers can maintain and manage capital assets - such as manufacturing equipment, vehicle fleets and buildings - and create analyses and forecasts so they can take action to improve future performance. Datastream's flagship product, Datastream 7i(TM), delivers a complete Asset Performance Management infrastructure by combining an Internet, web services architecture with broad enterprise asset management functionality, integrated procurement, advanced analytics and multi-site capability.
Datastream was founded in 1986 and has customers in more than 140 countries. For more information, visit www.datastream.net.
