PHOENIX, May 14, 2013 (GLOBE NEWSWIRE) -- QuoteMedia, Inc. (OTCQB:QMCI), a leading provider of market data and cloud-based applications, announced financial results for the three months ended March 31, 2013. These results reflect a 7% decrease in first quarter revenues, to $2,383,985 from $2,564,444 in the comparative period in 2012.
"As we indicated when announcing our 2012 year-end results, one of our larger clients, Penson Worldwide Inc., filed for Chapter 11 protection in January 2013 and is currently in the process of liquidating its assets," said Keith Guelpa, President of QuoteMedia, Inc. "The loss of revenue from the Penson Worldwide Inc. contract and its affiliate companies negatively impacted our revenue for the first quarter of 2013. This loss of revenue will continue to impact our results in our next quarter, as well.
"Our decrease in revenue is also due to the expiration of a large non-cash barter arrangement on June 30, 2012. In the first half of 2012, pursuant to this arrangement, we recorded revenue of $90,000 per quarter, for providing portfolio management services to a major media client in exchange for advertising credits. So while our top line revenue no longer includes this $90,000 in barter revenue, we are also no longer incurring the offsetting quarterly $90,000 advertising expense. Therefore, the expiration of this non-cash barter arrangement has had no impact on our bottom line or cash flow.
"We expect a return to healthy revenue growth in the 3rd and 4th quarters based on new product deployments that have been recently completed or are near completion, and on several new opportunities that are emerging for us in the marketplace. In particular, the recent liquidation of AlphaTrade, a competitive provider of web-based market data services, is presenting important opportunities. We are experiencing a significant migration of AlphaTrade's clients to QuoteMedia products, and expect to see increased revenue growth from this opportunity reflected in our 3rd Quarter and 4th Quarter results."
About QuoteMedia
QuoteMedia is a leading software developer and cloud-based syndicator of financial market information and streaming financial data solutions to media, corporations, online brokerages, and financial services companies. The Company licenses interactive stock research tools such as streaming real-time quotes, market research, news, charting, option chains, filings, corporate financials, insider reports, market indices, portfolio management systems, and data feeds. QuoteMedia provides data and services for companies such as the NASDAQ, the OTCBB, TMX Group, Dow Jones & Company, SunGard, U.S. Bank, Broadridge Financial Systems, Ridge Clearing, Regal Securities, JitneyTrade, Southwest Securities, HD Vest, Stockhouse, Zacks Investment Research, General Electric, Dow Chemical, Bombardier, Business Wire, PR Newswire, Marketwire, FolioFN, Captivate Network, ChoiceTrade, Qtrade Financial, CNW Group, Gain Securities, Questrade, Schaeffer's Investment Research, Brean Capital, TradeKing, Suncor, American Financial Group, Virtual Brokers, First Financial Equity Corporation, WebFinance, and others. For more information, please visit: www.quotemedia.com.
Statements about QuoteMedia's future expectations, including future revenue, earnings, and transactions, as well as all other statements in the press release other than historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. QuoteMedia intends that such forward-looking statements be subject to the safe harbors created thereby. These statements involve risks and uncertainties that are identified from time to time in the Company's SEC reports and filings, and are subject to change at any time. QuoteMedia's actual results and other corporate developments could differ materially from that which has been anticipated in such statements.