QuoteMedia, Inc. (OTCBB: QMCI), a leading provider of market data, corporate news, and financial applications, announced financial results for the three and six months ended June 30, 2006. These results reflect a 54% increase in second quarter revenues, to $852,871 from $554,605 in 2005. Revenue for the six months ended June 30, 2006 increased 69%, to $1,691,137 from $998,028 in 2005. Net cash flow from operations for the six months ended June 20, 2006 was $357,625, compared to net cash flow from operations of $206,288 for the same fiscal period in 2005. At June 30, 2006 the company's cash balance was $734,958, an increase of $64,880 from the balance at December 31, 2005.
The losses reported for the three and six month periods ended June 30, 2006 were $118,423 and $190,435, respectively. These figures include $44,907 and $78,762, respectively, of stock-based compensation which was required to be expensed for the first time under SFAS 123(R), an accounting treatment recently mandated by the S.E.C which came into effect as of January 1, 2006. In accordance with generally accepted accounting principles in effect at that time, the accounting for the losses of $61,423 and $131,223 reported respectively for the comparative periods of 2005 was not subject to these recently imposed treatments and, therefore, does not include a similar provision for stock-based compensation expense.
At June 30, 2006, QuoteMedia's deferred revenue balance was $253,853 compared to $154,391 at June 30, 2005, an increase of 64%. Deferred revenue represents payments received in advance from customers that will be recognized as revenue in future quarters when the services are performed.
"The second quarter results of the Company are particularly gratifying," says Robert J. Thompson, Chairman of the Board of QuoteMedia, Inc. "During the quarter the Company has continued its strong financial performance while concurrently funding and accomplishing a major portion of its extraordinary technology expansion and reconfiguration program. This program, announced during the first quarter of 2006, is being undertaken in preparation for our entry into the raw financial data feed provisioning and direct access trading markets, anticipated late this year. We are pleased to report that QuoteMedia is right on schedule to substantially complete this strategically important program by the end of the third quarter.
"During the next several quarters we expect to incur and to expense, as we have during the quarters ended March 31 and June 30, 2006, significant additional development, pre-start-up and front-end marketing costs, as we position QuoteMedia to compete profitably in the under-serviced data feed and direct access trading marketplaces. Concurrently, we expect our revenues and net operating cash flow to continue to expand, based on existing committed contracts and contracts in active negotiation."
About QuoteMedia, Inc.
QuoteMedia is a leading software developer and 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, NASDAQ level 2, TSX/TSXV market depth, SEC 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, Forbes.com, Scotia Capital, Business Wire, Southwest Securities, Regal Securities, Automated Financial Systems, FBR Direct, AIM Trimark, Zacks Investment Research, ChoiceTrade, QTrade, Schaeffer's Investment Research, WallStreet*E, 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.