NEWS
RELEASE
TRACK
DATA REPORTS FOURTH QUARTER AND ANNUAL
RESULTS
Brooklyn,
New York - March 30, 2006 - Track Data Corporation
(Nasdaq: TRAC) today announced results for its fourth quarter and year ended
December 31, 2005.
The
Company’s one for five stock split became effective on
February 28, 2005. All per share information in this release has been
retroactively adjusted to reflect the stock split.
Revenues
for the fourth quarter ended December 31, 2005 were
$8,709,000 compared to $10,276,000 for the same period in 2004, a decrease
of
15%. Net income for the fourth quarter of 2005 was $256,000, or $.03 per
share,
compared to $3,459,000, or $.36 per share, for the comparable period in 2004.
The 2005 period includes an after-tax gain of $247,000, or $.03 per share,
from
the sale of investments in private companies. The 2004 period includes an
after-tax gain on sales of Innodata common stock of $3,085,000, or $.32 per
share. The Company continues to experience declines in revenues from its
market
data services to the professional market. Management expects this trend to
continue through 2006, negatively impacting revenues and profits. Revenues
from
the non-professional market declined in the fourth quarter of 2005 compared
to
2004 due to significantly reduced trading volume and market data revenues.
Revenues
for the year ended December 31, 2005 were $36,094,000
compared to $40,093,000 for the same period in 2004, a decrease of 10%. Net
loss
for the year ended December 31, 2005 was $(37,000), or $(.00) per share,
compared to net income of $5,200,000, or $.53 per share, for the comparable
period in 2004. The 2005 period includes an after-tax gain of $887,000, or
$.10
per share, from the sale of Innodata and Edgar Online common stock and
investments in private companies. The 2005 period also includes after-tax
income
of $369,000, or $.04 per share, from telecommunications credits and the reversal
of a judgment on sales taxes assessed. The 2004 period includes an after-tax
gain on sales of Innodata common stock of $3,532,000, or $.36 per share.
The
decline in revenues was due principally to the factors set forth above. Revenues
from Track ECN increased by $1.9 million in 2005 compared to 2004, somewhat
offsetting the decline in the professional market data revenues; however,
these
increased revenues did not offset the reduction in profits due to very low
margins realized from ECN business.
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.
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, 8-K, 10-Q, S-3 and S-8. Actual
results could differ materially from the results referred to in the
forward-looking
|
Three
Months Ended
|
Year
Ended
|
|||||||||
|
December
31,
|
December
31,
|
|||||||||
|
2005
|
2004
|
2005
|
2004
|
|||||||
|
Revenues
|
$8,709,000
|
$10,276,000
|
$36,094,000
|
$40,093,000
|
||||||
|
Net
income (loss)
|
256,000
|
(A)
|
3,459,000
|
(B)
|
(37,000
|
)
|
(A)(C)(D)
|
5,200,000
|
(C)
|
|
|
Basic
and diluted income (loss) per share
|
$.03
|
$.36
|
$(.00
|
)
|
$.53
|
|||||
|
(A)
Includes an after-tax gain on the sale of an interest in a
private company of $247,000.
|
||||||||||
|
(B)
Includes an after-tax gain on sales of Innodata common
stock of $3,085,000.
|
||||||||||
|
(C)
Includes an after-tax gain on sales of Innodata and Edgar
Online common stock of $640,000 in 2005 and $3,532,000 in 2004.
|
||||||||||
| (D) Includes after-tax income of $369,000 from telecommunications credits and the reversal of a judgment on sales taxes assessed. | ||||||||||