VANCOUVER, B.C., Nov. 14, 2003 (PRIMEZONE) -- Stockgroup Information Systems Inc. (OTCBB:SWEB) (TSX-V:SWB) a financial media and technology company, today announced its third quarter results for the period ending September 30, 2003.
Third Quarter 2003 Operational Highlights
- Revenue increased 32% - Gross profit increased 74% - Gross profit margin increased to 80% compared to 61% in Q3, 2002 - Paid off all outstanding notes to become debt free - Fourth consecutive quarter of increasing revenues and gross profits
Third Quarter 2003 over Third Quarter 2002 (all figures in US dollars)
2003 third quarter revenues were $745,801, up 32% from $563,481 during the same quarter in 2002. Third quarter gross profit is $595,272, up 74% from $341,352 from the same quarter in 2002. Gross profit margin increased to 80% for the third quarter of 2003 compared to 61% for the third quarter of 2002. The net loss for the quarter is ($275,896) ($0.01 per share) compared to ($310,436) ($0.02 per share) in the third quarter of 2002.
As at September 30, 2003 the Company had cash and cash equivalents of $860,064 compared to $553,358 as at June 30, 2003. The Company has no debt except for normal accounts payables having paid off all other debt in September 2003 compared to $1,764,862 of debt at September 30, 2002.
"During Q3 Stockgroup became debt free, institutional investors started buying our shares again, and we began seeing the results of our partnership with Associated Press", said Marcus New, Chairman and CEO of Stockgroup Information Systems Inc. "The Company's results for Q3 represent a continuing trend for Stockgroup as revenues continue to increase incrementally and profitability remains a core focus."
Second Quarter 2003 to Third Quarter 2003 (all figures in US dollars)
2003 third quarter revenues were $745,801, an increase of 8% from the second quarter of 2003 revenue of $688,529. Third quarter gross profit is $595,272 up 16% compared to $512,197 for the quarter ended June 30,2003. Gross profit margin increased to 80% in the third quarter of 2003 compared to 74% in the second quarter of 2003. For the previous quarter ended June 30, 2003, net loss improved to ($275,896) ($0.01 per share) from ($893,737) ($0.04 per share) a 69% decrease in net loss.
Nine Month Period 2003 compared to Nine Month Period 2002 (all figures in US dollars)
For the nine months ended Sept 30, 2003 revenues increased 44% to $2,036,042 compared to $1,413,425 at Sept 30, 2002. The nine-month's period gross profit is $1,551,827, up 81% compared to $857,790 for the same period in 2002. Gross profit margin for the nine-month period ended Sept 30, 2003 is 76% compared to 61% for the same period in 2002.
Third Quarter 2003 Highlights - Completely debt free - Stockgroup announced the early repayment of all outstanding notes. - Revenues continue to increase quarter over quarter - This marks the fourth consecutive quarter of increasing revenues. - Associated Press signs four clients to license Stockgroup Solution - St. Petersburg Times, Orange County Register, Sphere Analytics and DataCall. - Canadian Press licenses CP/Stockgroup Solution to five new customers - Mackenzie Financial, Altamira, Research Capital, Quebec City's Le Soleil, and Sun Media Group.
A summary of the financials is attached. A conference call to discuss these results will be held today, Friday November 14, 2003 at 10:00 a.m. PST. Analysts, investment professionals, shareholders, members of the media and other interested parties wishing to participate may call 1.866.207.8482 (toll free) five minutes prior to the scheduled time. Alternatively, you may listen to a live audio Webcast of the conference call at http://www.stockgroup.com.
The call will be archived at http://www.stockgroup.com. Select `Investors' at the top of the page, and then select `Conference Call' in the navigation bar. This earnings call will be accessible using Windows Media Player for a period of one year.
For full details please view our 10QSB filed today on EDGAR.
ABOUT STOCKGROUP
Stockgroup Information Systems Inc. is a financial media and technology company. It is a leading provider of private labeled Financial Software and Content Systems to media, corporate and financial services companies. Stockgroup employs proprietary technologies which enable its clients to provide financial data streams and news combined with cutting edge fundamental, technical, productivity and disclosure tools to their customers, shareholders and employees at a fraction of the cost of traditional internal methods. Stockgroup is also a provider of Public Company Disclosure and Awareness Products for publicly traded companies. Its financial Web sites including www.stockhouse.com, www.stockhouse.ca and www.smallcapcenter.com are state-of-the-art online research centers for the investment community. To find out more about Stockgroup (OTCBB: SWEB, TSX-V: SWB), visit our website at www.stockgroup.com
Signed:
/s/ Marcus New
Marcus New, CEO
The TSX Venture Exchange has neither approved nor
disapproved this news release.
This release contains "forward looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact and may be "forward looking statements." Forward looking statements are based on expectations, estimates and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through the use of words such as "expects", "will," "anticipates," "estimates," "believes," or statements indicating certain actions "may," "could," or "might" occur.
Stockgroup Information Systems Inc.
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED - Expressed in U.S. Dollars)
Three Months Ended Nine Months Ended
------------------------ ------------------------
September September September September
30, 2003 30, 2002 30, 2003 30, 2002
----------- ----------- ----------- -----------
REVENUE
Revenues $ 745,801 $ 563,481 $ 2,036,044 $ 1,413,425
Cost of
revenues 150,529 222,129 484,215 555,635
----------- ----------- ----------- -----------
Gross profit $ 595,272 $ 341,352 $ 1,551,829 $ 857,790
EXPENSES
Sales and
marketing $ 220,877 $ 135,930 $ 545,692 $ 365,441
Product
Development 9,341 25,687 24,243 62,864
General and
administrative 630,677 432,314 1,727,564 1,209,362
----------- ----------- ----------- -----------
$ 860,895 $ 593,931 $ 2,297,499 $ 1,637,667
----------- ----------- ----------- -----------
LOSS FROM
OPERATIONS $ (265,623) $ (252,579) $ (745,670) $ (779,877)
Interest income 134 19 134 187
Interest expense
ordinary (8,803) (8,603) (33,450) (18,485)
Interest on
conversion of
8% convertible
notes (note 2) -- (33,966) (860,351) (86,296)
Interest on
conversion of
3% convertible
debentures -- -- -- (160,209)
Loss on warrants
liability -- -- -- (55,000)
Gain on
restructuring
of convertible
notes -- -- -- 1,088,586
Other income (1,604) (15,307) 1,521 (13,028)
----------- ----------- ----------- -----------
NET LOSS $ (275,896) $ (310,436) $(1,637,816) $ (24,122)
=========== =========== =========== ===========
BASIC AND DILUTED
LOSS PER SHARE:
Net loss $ (0.01) $ (0.02) $ (0.07) $ 0.00
=========== =========== =========== ===========
Weighted average
shares
outstanding
for the period 29,246,784 15,880,948 24,688,123 13,518,419
=========== =========== =========== ===========
The Accompanying Notes Are An Integral Part
Of These Unaudited Financial Statements.