Datastream Systems, Inc. Announces First Quarter Results

Pro forma EPS exceeds consensus estimates



DSOs at 76 days, best since third quarter 1996



Positive operating cash flow at $4.8 million



MP5i(TM) total revenues grow sequentially third quarter in a row



iProcure transaction value at $7.3 million, a five-fold annual increase



Apr 24, 2001, 01:00 ET from Datastream Systems, Inc.

    GREENVILLE, S.C., April 24 /PRNewswire Interactive News Release/ --
     Datastream Systems, Inc. (Nasdaq:   DSTM), a leading provider of asset
 lifecycle management solutions, today announced results for the first quarter
 ended March 31, 2001.
     Revenues for the first quarter of 2001 were $24.5 million, compared to
 $25.3 million for the same period in 2000, a decrease of 3%.  Pro forma net
 loss for the first quarter 2001 was $487,752, a 79% improvement over a pro
 forma net loss of $2.3 million for the same quarter in 2000.  For the first
 quarter 2001, pro forma net loss was $0.02 per diluted share, exceeding
 consensus estimates and representing an 83% improvement over a pro forma net
 loss of $0.12 per diluted share in the first quarter 2000.  Pro forma net loss
 excludes the effects of amortization of goodwill.
     The company's cash and cash equivalents were $18.6 million at
 March 31, 2001, an increase of $3.2 million from December 31, 2000.  Day's
 Sales Outstanding, or DSOs, were 76 days for the first quarter 2001, an
 improvement of 8 days from fourth quarter 2000.  During the first quarter, the
 Company experienced a positive cash flow from operations of approximately
 $4.8 million, compared to a positive cash flow from operations of
 approximately $1.0 million in the fourth quarter 2000.
     Net loss for the first quarter was $1.2 million compared with a net loss
 of $3.1 million in the same quarter 2000, representing an improvement of 59%.
 Net loss per diluted share in first quarter 2001 was $0.06, over a net loss of
 $0.16 per diluted share for the first quarter of 2000, an improvement of 63%.
     "During the quarter, we made significant progress in fulfilling our
 commitment to generate positive cash flow, driven in part by growth in MP5i
 revenues, improved international operations, and continued success with
 managing our working capital, particularly noted by our DSO trends," said
 Larry Blackwell, Datastream's president and CEO.  "Though we are concerned by
 the general economic environment, we believe that trends with our ASP business
 and advancements with MP5i will position us for continued success."
     MP5i total revenues increased for the third quarter in a row, further
 demonstrating the success of the Company's migration to its Internet-based
 product offering.  First quarter 2001 MP5i revenue totaled $8.3 million, a 12%
 increase from $7.4 million in the fourth quarter 2000 and a 36% increase over
 $6.1 million in the first quarter 2000.
     The total dollar value of e-commerce transactions handled through
 Datastream's iProcure(TM) network in the first quarter 2001 totaled
 $7.3 million, a 33% increase over $5.4 million in the fourth quarter of 2000,
 and over a five-fold increase from $1.2 million in the first quarter of 2000.
 iProcure revenue totaled $762,442 in the first quarter 2001, an increase of
 68% over fourth quarter 2000 revenues of $455,150.
 
     Conference Call
     Datastream will host a conference call today at 4:45 p.m. eastern time
 with any and all interested persons to review its performance and discuss its
 financial expectations and strategic direction.  Please dial 1-800-388-8975
 and ask for the Datastream teleconference.  For international callers, the
 dial in number is 1-973-694-2225.  The replay will be available from 7:00 p.m.
 eastern time on April 24 until 11:00 p.m. eastern time on April 26.  The dial
 in number for the replay is 1-800-428-6051 and the pass code is 174695.  For
 international callers, the dial in for the replay is 1-973-709-2089 and the
 pass code is 174695.  Datastream's conference call will be accessible today
 via live audio Webcast at 4:45 p.m. eastern time at
 www.datastream.net/investor.
 
     About Datastream Systems, Inc.
     Datastream Systems, Inc. (Nasdaq:   DSTM) provides asset lifecycle
 management software and services that help companies maximize the return on
 investment in capital assets.  Through the Datastream Network, Datastream
 customers are able to access products, services and alliances to automate the
 evaluation, purchase, tracking, management and disposal of capital assets.
 The Datastream Network includes the MPX family of enterprise asset management
 software and services and Datastream's iProcure(TM) Marketplace.
     Founded in 1986, Datastream has customers in 129 countries.  Datastream
 products and services are in use by 60 percent of the Fortune 500.  For more
 information, please visit www.datastream.net.
 
     Datastream, MP5i and iProcure are marks of Datastream Systems, Inc. or its
 subsidiaries.  All other products or Company names mentioned are used for
 identification purposes only and may be trademarks of their respective owners.
     This press release contains forward-looking statements, including those
 made by Mr. Blackwell, that involve a number of risks and uncertainties.
 Factors that could cause actual results to differ materially include, but are
 not limited to: the ability of the Company to sell larger and more complex
 software solutions; the ability of the Company to successfully transition to
 the development of further Internet-based products; the Company's ability to
 successfully implement an application service provider business model;
 increasing competition in the markets in which the Company competes; the
 ability of the Company to enhance its current products and develop new
 products that address technological and market developments; the stability of
 certain of the Company's strategic relationships, including those with
 suppliers of maintenance, repair and operations parts; and other risk factors
 listed from time to time in the Company's SEC reports, including, but not
 limited to the "Risk Factors" contained in the Company's Report on Form 10-K
 for the fiscal year ended December 31, 2000.  With respect to the forward-
 looking statements contained in this news release, Datastream seeks the
 protections afforded by the Private Securities Litigation Reform Act of 1995.
 The Company does not have, and expressly disclaims, any obligation to release
 publicly any updates or any changes in the Company's expectations or any
 changes in events, conditions or circumstances on which any forward-looking
 statement is based.
 
 
                   DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
 
                          Pro forma Statement of Loss
                                  (unaudited)
 
                                                      Three Months Ended
                                                           March 31,
                                                      2001           2000
 
 
     Net loss                                     $(1,243,168)    (3,067,778)
      Goodwill amortization                           755,416        755,416
     Pro forma net loss                           $  (487,752)    (2,312,362)
 
     Diluted pro forma net loss per share         $      (.02)          (.12)
 
     Diluted weighted average common
      shares outstanding                           20,497,870     19,602,852
 
 
                   DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
 
                      Consolidated Statement of Operations
                                   (unaudited)
 
                                                       Three Months Ended
                                                             March 31,
                                                       2001           2000
 
 
     Software product                            $  7,433,535      7,552,929
     Services and support                          17,099,353     17,698,015
 
     Total revenues                                24,532,888     25,250,944
      Cost of software product                        666,839        462,141
      Cost of services and support                  8,999,948     10,569,107
 
     Cost of sales                                  9,666,787     11,031,248
      Gross profit                                 14,866,101     14,219,696
     Operating expenses:
     Sales & marketing                              9,915,845     11,476,286
     Research & development                         3,372,705      4,227,046
     General & administration                       2,461,537      3,006,895
     Goodwill amortization                            755,416        755,416
 
     Operating expenses                            16,505,503     19,465,643
     Operating loss                                (1,639,402)    (5,245,947)
     Other income, net                                 93,442        130,235
      Loss before provision
       for income taxes                            (1,545,960)    (5,115,712)
      Provision for income taxes                     (302,792)    (2,047,934)
       Net loss                                  $ (1,243,168)    (3,067,778)
     Diluted net loss per share                  $       (.06)          (.16)
 
     Diluted weighted average common
      shares outstanding                           20,497,870     19,602,852
 
 
                   DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
 
                                 Balance Sheet
 
                                     ASSETS
 
                                                    March 31,    December 31,
                                                      2001           2000
                                                   (unaudited)
 
 
     Cash and cash equivalents                   $ 18,641,249     15,487,515
     Accounts receivable, net                      20,852,119     22,939,649
     Unbilled receivables                           2,195,248      2,065,745
     Income tax receivable                         10,091,855      9,504,889
     Other current assets                           6,421,310      6,764,069
     Total current assets                          58,201,781     56,761,867
 
     Investments, non-current                       2,000,000      2,000,000
     Net property and equipment                    14,314,672     14,125,640
     Goodwill                                      11,296,161     12,051,577
     Other intangible                                 275,000        343,750
 
     Total assets                                $ 86,087,614     85,282,834
 
 
 
                      LIABILITIES AND STOCKHOLDERS EQUITY
 
                                                    March 31,    December 31,
                                                     2001           2000
                                                   (unaudited)
 
     Deferred revenue                            $ 12,742,202     10,174,327
     Other current liabilities                     12,888,893     14,502,757
     Long term debt, less current portion                  --          8,116
     Total stockholders' equity                    60,456,519     60,597,634
 
     Total liabilities and stockholders' equity  $ 86,087,614     82,282,834
 
 
 
                   DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
 
                  Summary Consolidated Statement of Cash Flows
                                  (unaudited)
 
                                                      Three Months Ended
                                                          March 31,
                                                      2001           2000
 
 
     Cash flows from operating activities:
     Net loss                                    $ (1,243,168)    (3,067,778)
     Adjustments to reconcile net income to net cash
     provided from operating activities:
       Depreciation                                 1,242,015      1,272,672
       Goodwill amortization                          755,416        755,416
       Other operating activity adjustments         4,044,436      2,692,999
     Net cash provided by operating activities      4,798,699      1,653,309
 
     Net cash used in investment activities        (1,431,044)    (3,993,133)
 
     Net cash provided by (used in) financing
      activities                                      404,381      5,206,953
 
     Foreign currency translation adjustment         (618,302)      (180,234)
 
     Net increase in cash and cash equivalents      3,153,734      2,686,895
     Cash and cash equivalents at beginning of
      period                                       15,487,515     17,912,797
 
     Cash and cash equivalents at end of period  $ 18,641,249     20,599,692
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X21018785
 
 

SOURCE Datastream Systems, Inc.
    GREENVILLE, S.C., April 24 /PRNewswire Interactive News Release/ --
     Datastream Systems, Inc. (Nasdaq:   DSTM), a leading provider of asset
 lifecycle management solutions, today announced results for the first quarter
 ended March 31, 2001.
     Revenues for the first quarter of 2001 were $24.5 million, compared to
 $25.3 million for the same period in 2000, a decrease of 3%.  Pro forma net
 loss for the first quarter 2001 was $487,752, a 79% improvement over a pro
 forma net loss of $2.3 million for the same quarter in 2000.  For the first
 quarter 2001, pro forma net loss was $0.02 per diluted share, exceeding
 consensus estimates and representing an 83% improvement over a pro forma net
 loss of $0.12 per diluted share in the first quarter 2000.  Pro forma net loss
 excludes the effects of amortization of goodwill.
     The company's cash and cash equivalents were $18.6 million at
 March 31, 2001, an increase of $3.2 million from December 31, 2000.  Day's
 Sales Outstanding, or DSOs, were 76 days for the first quarter 2001, an
 improvement of 8 days from fourth quarter 2000.  During the first quarter, the
 Company experienced a positive cash flow from operations of approximately
 $4.8 million, compared to a positive cash flow from operations of
 approximately $1.0 million in the fourth quarter 2000.
     Net loss for the first quarter was $1.2 million compared with a net loss
 of $3.1 million in the same quarter 2000, representing an improvement of 59%.
 Net loss per diluted share in first quarter 2001 was $0.06, over a net loss of
 $0.16 per diluted share for the first quarter of 2000, an improvement of 63%.
     "During the quarter, we made significant progress in fulfilling our
 commitment to generate positive cash flow, driven in part by growth in MP5i
 revenues, improved international operations, and continued success with
 managing our working capital, particularly noted by our DSO trends," said
 Larry Blackwell, Datastream's president and CEO.  "Though we are concerned by
 the general economic environment, we believe that trends with our ASP business
 and advancements with MP5i will position us for continued success."
     MP5i total revenues increased for the third quarter in a row, further
 demonstrating the success of the Company's migration to its Internet-based
 product offering.  First quarter 2001 MP5i revenue totaled $8.3 million, a 12%
 increase from $7.4 million in the fourth quarter 2000 and a 36% increase over
 $6.1 million in the first quarter 2000.
     The total dollar value of e-commerce transactions handled through
 Datastream's iProcure(TM) network in the first quarter 2001 totaled
 $7.3 million, a 33% increase over $5.4 million in the fourth quarter of 2000,
 and over a five-fold increase from $1.2 million in the first quarter of 2000.
 iProcure revenue totaled $762,442 in the first quarter 2001, an increase of
 68% over fourth quarter 2000 revenues of $455,150.
 
     Conference Call
     Datastream will host a conference call today at 4:45 p.m. eastern time
 with any and all interested persons to review its performance and discuss its
 financial expectations and strategic direction.  Please dial 1-800-388-8975
 and ask for the Datastream teleconference.  For international callers, the
 dial in number is 1-973-694-2225.  The replay will be available from 7:00 p.m.
 eastern time on April 24 until 11:00 p.m. eastern time on April 26.  The dial
 in number for the replay is 1-800-428-6051 and the pass code is 174695.  For
 international callers, the dial in for the replay is 1-973-709-2089 and the
 pass code is 174695.  Datastream's conference call will be accessible today
 via live audio Webcast at 4:45 p.m. eastern time at
 www.datastream.net/investor.
 
     About Datastream Systems, Inc.
     Datastream Systems, Inc. (Nasdaq:   DSTM) provides asset lifecycle
 management software and services that help companies maximize the return on
 investment in capital assets.  Through the Datastream Network, Datastream
 customers are able to access products, services and alliances to automate the
 evaluation, purchase, tracking, management and disposal of capital assets.
 The Datastream Network includes the MPX family of enterprise asset management
 software and services and Datastream's iProcure(TM) Marketplace.
     Founded in 1986, Datastream has customers in 129 countries.  Datastream
 products and services are in use by 60 percent of the Fortune 500.  For more
 information, please visit www.datastream.net.
 
     Datastream, MP5i and iProcure are marks of Datastream Systems, Inc. or its
 subsidiaries.  All other products or Company names mentioned are used for
 identification purposes only and may be trademarks of their respective owners.
     This press release contains forward-looking statements, including those
 made by Mr. Blackwell, that involve a number of risks and uncertainties.
 Factors that could cause actual results to differ materially include, but are
 not limited to: the ability of the Company to sell larger and more complex
 software solutions; the ability of the Company to successfully transition to
 the development of further Internet-based products; the Company's ability to
 successfully implement an application service provider business model;
 increasing competition in the markets in which the Company competes; the
 ability of the Company to enhance its current products and develop new
 products that address technological and market developments; the stability of
 certain of the Company's strategic relationships, including those with
 suppliers of maintenance, repair and operations parts; and other risk factors
 listed from time to time in the Company's SEC reports, including, but not
 limited to the "Risk Factors" contained in the Company's Report on Form 10-K
 for the fiscal year ended December 31, 2000.  With respect to the forward-
 looking statements contained in this news release, Datastream seeks the
 protections afforded by the Private Securities Litigation Reform Act of 1995.
 The Company does not have, and expressly disclaims, any obligation to release
 publicly any updates or any changes in the Company's expectations or any
 changes in events, conditions or circumstances on which any forward-looking
 statement is based.
 
 
                   DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
 
                          Pro forma Statement of Loss
                                  (unaudited)
 
                                                      Three Months Ended
                                                           March 31,
                                                      2001           2000
 
 
     Net loss                                     $(1,243,168)    (3,067,778)
      Goodwill amortization                           755,416        755,416
     Pro forma net loss                           $  (487,752)    (2,312,362)
 
     Diluted pro forma net loss per share         $      (.02)          (.12)
 
     Diluted weighted average common
      shares outstanding                           20,497,870     19,602,852
 
 
                   DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
 
                      Consolidated Statement of Operations
                                   (unaudited)
 
                                                       Three Months Ended
                                                             March 31,
                                                       2001           2000
 
 
     Software product                            $  7,433,535      7,552,929
     Services and support                          17,099,353     17,698,015
 
     Total revenues                                24,532,888     25,250,944
      Cost of software product                        666,839        462,141
      Cost of services and support                  8,999,948     10,569,107
 
     Cost of sales                                  9,666,787     11,031,248
      Gross profit                                 14,866,101     14,219,696
     Operating expenses:
     Sales & marketing                              9,915,845     11,476,286
     Research & development                         3,372,705      4,227,046
     General & administration                       2,461,537      3,006,895
     Goodwill amortization                            755,416        755,416
 
     Operating expenses                            16,505,503     19,465,643
     Operating loss                                (1,639,402)    (5,245,947)
     Other income, net                                 93,442        130,235
      Loss before provision
       for income taxes                            (1,545,960)    (5,115,712)
      Provision for income taxes                     (302,792)    (2,047,934)
       Net loss                                  $ (1,243,168)    (3,067,778)
     Diluted net loss per share                  $       (.06)          (.16)
 
     Diluted weighted average common
      shares outstanding                           20,497,870     19,602,852
 
 
                   DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
 
                                 Balance Sheet
 
                                     ASSETS
 
                                                    March 31,    December 31,
                                                      2001           2000
                                                   (unaudited)
 
 
     Cash and cash equivalents                   $ 18,641,249     15,487,515
     Accounts receivable, net                      20,852,119     22,939,649
     Unbilled receivables                           2,195,248      2,065,745
     Income tax receivable                         10,091,855      9,504,889
     Other current assets                           6,421,310      6,764,069
     Total current assets                          58,201,781     56,761,867
 
     Investments, non-current                       2,000,000      2,000,000
     Net property and equipment                    14,314,672     14,125,640
     Goodwill                                      11,296,161     12,051,577
     Other intangible                                 275,000        343,750
 
     Total assets                                $ 86,087,614     85,282,834
 
 
 
                      LIABILITIES AND STOCKHOLDERS EQUITY
 
                                                    March 31,    December 31,
                                                     2001           2000
                                                   (unaudited)
 
     Deferred revenue                            $ 12,742,202     10,174,327
     Other current liabilities                     12,888,893     14,502,757
     Long term debt, less current portion                  --          8,116
     Total stockholders' equity                    60,456,519     60,597,634
 
     Total liabilities and stockholders' equity  $ 86,087,614     82,282,834
 
 
 
                   DATASTREAM SYSTEMS, INC. AND SUBSIDIARIES
 
                  Summary Consolidated Statement of Cash Flows
                                  (unaudited)
 
                                                      Three Months Ended
                                                          March 31,
                                                      2001           2000
 
 
     Cash flows from operating activities:
     Net loss                                    $ (1,243,168)    (3,067,778)
     Adjustments to reconcile net income to net cash
     provided from operating activities:
       Depreciation                                 1,242,015      1,272,672
       Goodwill amortization                          755,416        755,416
       Other operating activity adjustments         4,044,436      2,692,999
     Net cash provided by operating activities      4,798,699      1,653,309
 
     Net cash used in investment activities        (1,431,044)    (3,993,133)
 
     Net cash provided by (used in) financing
      activities                                      404,381      5,206,953
 
     Foreign currency translation adjustment         (618,302)      (180,234)
 
     Net increase in cash and cash equivalents      3,153,734      2,686,895
     Cash and cash equivalents at beginning of
      period                                       15,487,515     17,912,797
 
     Cash and cash equivalents at end of period  $ 18,641,249     20,599,692
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X21018785
 
 SOURCE  Datastream Systems, Inc.