NEWS RELEASE

 

TRACK DATA REPORTS FOURTH QUARTER AND ANNUAL RESULTS

Brooklyn, New York – March 23, 2005 – Track Data Corporation (Nasdaq: TRAC) today announced results for its fourth quarter and year ended December 31, 2004.

The Company’s one for five stock split became effective on February 28, 2005. All per share information in this release has been adjusted to reflect the stock split.

Revenues for the fourth quarter ended December 31, 2004 were $10,276,000 compared to $9,990,000 for the same period in 2003, an increase of 3%. Net income for the fourth quarter of 2004 was $374,000, or $.04 per share, before an after-tax gain on sales of Innodata common stock of $3,085,000, or $.32 per share. Net income for the fourth quarter of 2003 was $790,000, or $.08 per share, before an after-tax gain on sales of Innodata common stock of $599,000, or $.06 per share. Reported net income for the fourth quarter of 2004 was $3,459,000, or $.36 per share, compared to $1,389,000, or $.14 per share, for the comparable period in 2003. The Company continues to experience declines in revenues from its market data services to the professional market. Management expects this trend to continue through 2005, negatively impacting revenues and profits. Revenues from Track ECN and the Company’s Newsware division increased in the fourth quarter of 2004, offsetting the decline in the professional market data revenues; however, these increased revenues did not offset the reduction in profits. Revenues from the non-professional market declined in the fourth quarter of 2004 compared to 2003 due to reduced trading volume and market data revenues.

Revenues for the year ended December 31, 2004 were $40,093,000 compared to $40,881,000 for the same period in 2003, a decrease of 2%. Net income for the 2004 period was $1,668,000, or $.17 per share, before an after-tax gain on sales of Innodata common stock of $3,532,000, or $.36 per share. Net income for the 2003 period was $2,459,000, or $.25 per share, before an after-tax gain on sales of Innodata common stock of $387,000, or $.04 per share. Reported net income for 2004 was $5,200,000, or $.53 per share, compared to $2,846,000, or $.29 per share, for the comparable period in 2003. The decline in revenues was due to the factors set forth above.

Track Data is a New York-based financial services company that provides direct access brokerage, real-time financial market data, news, and research to institutional and individual investors through dedicated telecommunication lines and the Internet.

For professional investors, Track Data Securities offers proTrack, a direct access trading platform with fully integrated market data. proTrack offers unbiased trade routing, allowing clients control over where their orders are sent. proTrack is also available to broker-dealers under a service bureau arrangement as an execution platform.

The Company also owns and operates the Track ECN, an electronic communications network that allows traders to display and match limit orders for stocks. Track ECN offers subscribers the highest published rebate in the industry.

(continued)

 

 

For individual investors, Track Data Securities offers myTrack and TrackTrade, both fully integrated, Internet-based online trading and market data systems. Each platform offers direct access online trading, allowing users the choice of where to route their equity and options orders. myTrack and TrackTrade offer continuous, dynamic streams of live market data powered by application-based software and a constant server connection similar to systems used by professionals.

For all investors, the Company’s NewsWare division offers NewsWatch, a PC-based application that aggregates news from thousands of sources. Featuring real-time full text filtering and complex queries, its real-time alerting functions allow users to choose topics of interest and be among the first to know when news breaks.

For additional information, please contact Rafi Reguer, Vice President, Corporate Communications, at
718-522-0222 or by e-mail: rafi_reguer@trackdata.com.

Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "plan," "anticipate" and other similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. These forward-looking statements are based largely on the Company's current expectations and are subject to a number of risks and uncertainties, including without limitation, volatility in the stock market, changes in external market factors including the economy, changes in the Company's business or growth strategy or an inability to execute its strategy due to changes in its industry and other risks and uncertainties indicated from time to time in the Company's filings with the Securities and Exchange Commission, including the Company's Forms 10-K, 10-Q, S-3 and S-8. Actual results could differ materially from the results referred to in the forward-looking statements.

FINANCIAL HIGHLIGHTS

 

Three Months Ended

Year Ended
 

December 31,

December 31,
 

2004

2003

2004

  

2003

Revenues

$10,276,000

$9,990,000

$40,093,000

  

$40,881,000

Net income

3,459,000 (A)

1,389,000 (a)

5,200,000

(B)

2,846,000 (B)

Basic and diluted income per share

$.36

$.14

$.53

  

$.29

(A) Includes a gain on sale of securities (including sales of Innodata common stock), after taxes, of $3,382,000 in 2004 and $792,000 in 2003.

(B) Includes a gain on sale of securities (including sales of Innodata common stock), after taxes, of $4,439,000 in 2004 and $1,559,000 in 2003.