Datawatch Reports Results for its Second Quarter of Fiscal 2001

Apr 30, 2001, 01:00 ET from Datawatch Corporation

    LOWELL, Mass., April 30 /PRNewswire/ -- DATAWATCH CORPORATION
 (Nasdaq: DWCH) today announced results for its second fiscal quarter. Revenues
 for the quarter ended March 31, 2001 were $5,551,000, down from $7,183,000 in
 the same period of fiscal 2000.  Net loss for the second fiscal 2001 quarter
 was $1,216,000 or $.11 per diluted share which compares to a net loss of
 $88,000 or $.01 per diluted share a year ago.
     Revenues for the six months ended March 31, 2001 were $11,603,000 down
 from $13,893,000 for the same period of fiscal 2000. Net loss for the six
 months ended March 31, 2001 was $1,689,000 or $.17 per diluted share which
 compares to a net loss of $525,000 or $.06 per diluted share for the same
 period of fiscal 2000.
     Commenting on the results, Bruce R. Gardner, Datawatch's President & CEO
 stated: "Orders for our enterprise software products were well below our
 expectations as customers deferred their buying decisions as a result of the
 slowing U.S. economy. Also the reduction of inventories in the primary
 distribution channel for our Monarch product continued throughout most of the
 quarter, with sales by the distributor substantially exceeding the
 distributor's purchases from us.  We believe that these inventory reductions,
 which have adversely affected revenues for the last few quarters, are at an
 end and that future sales by the Company to this channel will more closely
 match distributor sales. Late in the quarter we formally introduced our new
 VortexML product, which provides programming free conversion of text data into
 XML format, and is now available for sale.  We expect this exciting new
 product will make an important contribution to the Company's sales as the year
 progresses.  Finally during the quarter we strengthened our balance sheet with
 the previously announced $1.2 million equity infusion.
     Despite the disappointing results of this quarter we at Datawatch remain
 optimistic about our future. Customers of our enterprise software products are
 experiencing the expected efficiencies in their operations and realizing a
 significant return on their investment. As we make these success stories
 known, the benefits of our software solutions will become increasingly
 apparent and the decision to buy will become considerably easier to justify. I
 refer you to our web site at www.datawatch.com to view our new PSI Inc. user
 story for an example of the benefits we bring to such organizations and the
 kind of ROI they are in fact realizing."
 
     About Datawatch
     Datawatch Corporation, is a leading provider of business
 intelligence/enterprise reporting, data transformation and support center
 solutions that help organizations increase productivity, reduce costs and gain
 competitive advantage.  Datawatch products are used in more than 20,000
 companies, institutions and government agencies worldwide.
     Datawatch works with VARs, integrators, consultants and independent
 software vendors who sell and support Datawatch products.  In addition,
 Datawatch works with OEM customers who embed Datawatch components and
 technologies in their own solutions.   The corporate address for Datawatch is
 175 Cabot Street, Suite 503, Lowell, MA  01854-3633; telephone (978) 441-2200,
 fax (978) 441-1114; http://www.datawatch.com.
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995
     Any statements contained in this press release that do not describe
 historical facts may constitute forward-looking statements as that term is
 defined in the Private Securities Litigation Reform Act of 1995.  Any such
 statements contained herein are based on current expectations, but are subject
 to a number of risks and uncertainties that may cause actual results to differ
 materially from expectations.  The factors that could cause actual future
 results to differ materially from current expectations include the following:
 the Company's dependence on its principal products, risks associated with
 international sales, risks associated with distributor sales, risks associated
 with a possible delisting from the Nasdaq National Market, an unfavorable
 result in any litigation, market acceptance of the new products, dependence on
 the introduction of new products and possible delays in those introductions.
 Further information on factors that could cause actual results to differ from
 those anticipated is detailed in various publicly-available documents, which
 include, but are not limited to, filings made by the Company from time to time
 with the Securities and Exchange Commission, including but not limited to,
 those appearing in the Company's Form 10-K for the year ended September 30,
 2000.  Any forward-looking statements should be considered in light of those
 factors.
 
     Monarch, Monarch/ES, Monarch/ES Report Portal, Q/SM, Quetzal, Quetzal/SC
 and VortexML are trademarks of Datawatch Corporation.
 
 
                     DATAWATCH CORPORATION AND SUBSIDIARIES
                Condensed Consolidated Statements of Operations
                  Amounts in Thousands (except per share data)
                                  (Unaudited)
 
                              Three Months Ended          Six Months Ended
                            03/31/01      03/31/00      03/31/01     03/31/00
 
     Net sales               $5,551        $7,183      $11,603       $13,893
 
     Costs and expenses:
     Cost of sales            1,430         1,934        2,847         3,505
     Product development        524           551          943           956
     Selling, general and
      administration          4,802         4,756        9,490         9,922
     Loss from operations   (1,205)          (58)      (1,677)         (490)
 
     Other income (expense)    (11)          (30)         (12)          (35)
 
     Net loss              $(1,216)         $(88)     $(1,689)        $(525)
 
     Loss per share -basic   $(.11)        $(.01)       $(.17)        $(.06)
 
     Loss per share -diluted $(.11)        $(.01)       $(.17)        $(.06)
 
 
                     DATAWATCH CORPORATION AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheets
                              Amounts in Thousands
                                  (Unaudited)
                                                     March 31,  September 30,
                                                       2001            2000
     ASSETS:
     Cash and investments                              $2,709         $2,044
     Accounts receivable, net                           5,468          7,662
     Inventories                                          292            395
     Prepaid expenses                                   1,323            944
     Total Current Assets                               9,792         11,045
 
     Property and equipment, net                        1,150          1,171
     Other assets                                       1,580          1,357
 
     Total Assets                                     $12,522        $13,573
 
     LIABILITIES AND STOCKHOLDERS' EQUITY:
     Accounts payable and accrued expenses             $3,354         $3,654
     Borrowings under credit lines                        960            960
     Deferred revenue                                   1,898          2,092
     Total Current Liabilities                          6,212          6,706
 
     Stockholders' equity                               6,310          6,867
 
     Total Liabilities & Stockholders' Equity         $12,522        $13,573
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X99714752
 
 

SOURCE Datawatch Corporation
    LOWELL, Mass., April 30 /PRNewswire/ -- DATAWATCH CORPORATION
 (Nasdaq: DWCH) today announced results for its second fiscal quarter. Revenues
 for the quarter ended March 31, 2001 were $5,551,000, down from $7,183,000 in
 the same period of fiscal 2000.  Net loss for the second fiscal 2001 quarter
 was $1,216,000 or $.11 per diluted share which compares to a net loss of
 $88,000 or $.01 per diluted share a year ago.
     Revenues for the six months ended March 31, 2001 were $11,603,000 down
 from $13,893,000 for the same period of fiscal 2000. Net loss for the six
 months ended March 31, 2001 was $1,689,000 or $.17 per diluted share which
 compares to a net loss of $525,000 or $.06 per diluted share for the same
 period of fiscal 2000.
     Commenting on the results, Bruce R. Gardner, Datawatch's President & CEO
 stated: "Orders for our enterprise software products were well below our
 expectations as customers deferred their buying decisions as a result of the
 slowing U.S. economy. Also the reduction of inventories in the primary
 distribution channel for our Monarch product continued throughout most of the
 quarter, with sales by the distributor substantially exceeding the
 distributor's purchases from us.  We believe that these inventory reductions,
 which have adversely affected revenues for the last few quarters, are at an
 end and that future sales by the Company to this channel will more closely
 match distributor sales. Late in the quarter we formally introduced our new
 VortexML product, which provides programming free conversion of text data into
 XML format, and is now available for sale.  We expect this exciting new
 product will make an important contribution to the Company's sales as the year
 progresses.  Finally during the quarter we strengthened our balance sheet with
 the previously announced $1.2 million equity infusion.
     Despite the disappointing results of this quarter we at Datawatch remain
 optimistic about our future. Customers of our enterprise software products are
 experiencing the expected efficiencies in their operations and realizing a
 significant return on their investment. As we make these success stories
 known, the benefits of our software solutions will become increasingly
 apparent and the decision to buy will become considerably easier to justify. I
 refer you to our web site at www.datawatch.com to view our new PSI Inc. user
 story for an example of the benefits we bring to such organizations and the
 kind of ROI they are in fact realizing."
 
     About Datawatch
     Datawatch Corporation, is a leading provider of business
 intelligence/enterprise reporting, data transformation and support center
 solutions that help organizations increase productivity, reduce costs and gain
 competitive advantage.  Datawatch products are used in more than 20,000
 companies, institutions and government agencies worldwide.
     Datawatch works with VARs, integrators, consultants and independent
 software vendors who sell and support Datawatch products.  In addition,
 Datawatch works with OEM customers who embed Datawatch components and
 technologies in their own solutions.   The corporate address for Datawatch is
 175 Cabot Street, Suite 503, Lowell, MA  01854-3633; telephone (978) 441-2200,
 fax (978) 441-1114; http://www.datawatch.com.
 
     Safe Harbor Statement under the Private Securities Litigation Reform Act
 of 1995
     Any statements contained in this press release that do not describe
 historical facts may constitute forward-looking statements as that term is
 defined in the Private Securities Litigation Reform Act of 1995.  Any such
 statements contained herein are based on current expectations, but are subject
 to a number of risks and uncertainties that may cause actual results to differ
 materially from expectations.  The factors that could cause actual future
 results to differ materially from current expectations include the following:
 the Company's dependence on its principal products, risks associated with
 international sales, risks associated with distributor sales, risks associated
 with a possible delisting from the Nasdaq National Market, an unfavorable
 result in any litigation, market acceptance of the new products, dependence on
 the introduction of new products and possible delays in those introductions.
 Further information on factors that could cause actual results to differ from
 those anticipated is detailed in various publicly-available documents, which
 include, but are not limited to, filings made by the Company from time to time
 with the Securities and Exchange Commission, including but not limited to,
 those appearing in the Company's Form 10-K for the year ended September 30,
 2000.  Any forward-looking statements should be considered in light of those
 factors.
 
     Monarch, Monarch/ES, Monarch/ES Report Portal, Q/SM, Quetzal, Quetzal/SC
 and VortexML are trademarks of Datawatch Corporation.
 
 
                     DATAWATCH CORPORATION AND SUBSIDIARIES
                Condensed Consolidated Statements of Operations
                  Amounts in Thousands (except per share data)
                                  (Unaudited)
 
                              Three Months Ended          Six Months Ended
                            03/31/01      03/31/00      03/31/01     03/31/00
 
     Net sales               $5,551        $7,183      $11,603       $13,893
 
     Costs and expenses:
     Cost of sales            1,430         1,934        2,847         3,505
     Product development        524           551          943           956
     Selling, general and
      administration          4,802         4,756        9,490         9,922
     Loss from operations   (1,205)          (58)      (1,677)         (490)
 
     Other income (expense)    (11)          (30)         (12)          (35)
 
     Net loss              $(1,216)         $(88)     $(1,689)        $(525)
 
     Loss per share -basic   $(.11)        $(.01)       $(.17)        $(.06)
 
     Loss per share -diluted $(.11)        $(.01)       $(.17)        $(.06)
 
 
                     DATAWATCH CORPORATION AND SUBSIDIARIES
                     Condensed Consolidated Balance Sheets
                              Amounts in Thousands
                                  (Unaudited)
                                                     March 31,  September 30,
                                                       2001            2000
     ASSETS:
     Cash and investments                              $2,709         $2,044
     Accounts receivable, net                           5,468          7,662
     Inventories                                          292            395
     Prepaid expenses                                   1,323            944
     Total Current Assets                               9,792         11,045
 
     Property and equipment, net                        1,150          1,171
     Other assets                                       1,580          1,357
 
     Total Assets                                     $12,522        $13,573
 
     LIABILITIES AND STOCKHOLDERS' EQUITY:
     Accounts payable and accrued expenses             $3,354         $3,654
     Borrowings under credit lines                        960            960
     Deferred revenue                                   1,898          2,092
     Total Current Liabilities                          6,212          6,706
 
     Stockholders' equity                               6,310          6,867
 
     Total Liabilities & Stockholders' Equity         $12,522        $13,573
 
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X99714752
 
 SOURCE  Datawatch Corporation