CHICAGO, March 10 /PRNewswire-FirstCall/ -- HyperFeed Technologies,
Inc. (OTC:HYPR) (BULLETIN BOARD: HYPR) , a provider of ticker plant
technologies, data distribution, smart order routing, and managed
data services to the financial community, today reported results
for the year ended December 31, 2005. The audit of the HyperFeed's
financial statements is still in process and, as a result, the
results contained in this press release should be considered
preliminary. HyperFeed's revenue in 2005 was $4.3 million versus
$6.0 million in 2004, representing a decrease of 28% year over
year. Due to Moneyline Telerate's acquisition by Reuters, Telerate
terminated their contract with HyperFeed at the end of 2004.
HyperFeed had recognized $3.6 million of revenue from Telerate in
2004 and no revenue in 2005. The Company reported a net loss of
$9.2 million in 2005, or $2.40 per share, versus net loss of $5.0
million, or $1.62 per share, in 2004. During 2005, HyperFeed
acquired the assets of Focus Technology Group LLC, including its
Smart Order Routing Technology for Traders, and entered into an
agreement to license Telerate's TRS and Active8 technology. Net
cash and cash equivalents of $0.3 million at December 31, 2005
increased $0.1 million from $0.2 million at December 31, 2004. The
Company's majority stockholder, PICO Holdings, Inc. ("PICO"), has
committed to lend the Company $5.0 million under a secured
convertible promissory note, which it expects to issue in March
2006. HyperFeed has had preliminary discussions with PICO to
provide additional financing, which HyperFeed believes is necessary
to continue to fund its business plan over the next twelve months.
Management believes that this additional funding will be adequate
for HyperFeed to continue as a going concern; however, there is no
assurance that the funding will be obtained or at an adequate level
for HyperFeed to continue as a going concern. Any additional
financing will be subject to HyperFeed's Board approval. Since
January 2004, HyperFeed has signed contracts valued at an aggregate
of $11.7 million in payments to HyperFeed during their initial
terms, of which $4.3 million was recognized in 2004, $2.5 million
was recognized in 2005, and $2.4 million is expected to be
recognized in 2006. Under HyperFeed's current business model, it
has entered into renewable license agreements that provide for
subscription-based payment terms; that is, periodic rather than
up-front payments of license fees, which we believe has the effect
of building a less volatile revenue base that provides consistent
growth with the addition of each new customer. In May 2005,
HyperFeed Technologies entered into an exclusive agreement with
Moneyline Telerate and Reuters Limited to license globally in
perpetuity the source code for both Telerate's Trading Room System
("TRS") and Active8 technology. Under the terms of the license,
HyperFeed is entitled to use and further develop the TRS technology
and the Active8 technology to offer its own market data platform
and associated data display workstation worldwide. In August 2005,
HyperFeed entered into a $1.5 million exclusive, multi-year
distributor agreement with MarketXS, a leading European provider of
real-time market data technology and trading solutions, that gives
MarketXS the right to license, distribute, and support HyperFeed's
HMDP and OCC products in Europe, the Middle East, and Africa.
HyperFeed plans to provide software upgrades, maintenance and
second level support, while MarketXS is expected to provide
European development, technical sales, and first level maintenance
support. In January 2006, HyperFeed expanded its global presence by
opening an office in London, England. Mr. Paul Pluschkell,
President and CEO of HyperFeed, said, "We have continued expanding
into new markets with our subscription-based business model. We are
making inroads into European markets with our HMDP and OCC
products, while our extremely low latency HSOURCE product is
already in use with several hedge funds. With our current suite of
products, we believe we can penetrate all levels of the market,
providing everything from a fully managed ticker plant to an ultra
low latency feed handler to data distribution to market snapshot
software for REG-NMS compliance. We believe there are vast
opportunities open for the global and open trading environment we
can provide." Mr. Pluschkell adds, "As a PICO subsidiary, we have
more management and financial support available for our business
model. This year we have signed thirty additional contracts valued
at $4.2 million, of which we could recognize $1.5 million of
revenue in 2006. We have made significant advances in number of
customers with a total of 55 contracts through December 31, 2005.
This is a 90% increase over the 29 contracts we had at the end of
2004." HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY Consolidated
Balance Sheets December 31 2005 2004 (Unaudited) (Audited) ASSETS
Current assets: Cash and cash equivalents $302,171 $193,702
Accounts receivable, less allowance for doubtful accounts of: 2005:
$101,309; 2004: $34,031 191,656 576,092 Notes receivable, less
allowance of: 2005: $10,830; 2004: $60,830 90,493 93,798 Prepaid
expenses and other current assets 64,351 125,890 Assets related to
discontinued operations 57,094 72,270 Total current assets 705,765
1,061,752 Property and equipment Computer equipment 1,511,660
1,627,021 Communication equipment 737,993 1,031,370 Furniture and
fixtures 74,853 106,559 Leasehold improvements 9,260 531,809
2,333,766 3,296,759 Less: accumulated depreciation and amortization
(1,798,168) (2,457,645) Property and equipment, net 535,598 839,114
Other intangible assets, net of accumulated amortization of: 2005:
$432,917; 2004: $229,167 224,583 78,333 Software development costs,
net of accumulated amortization of: 2005: $2,709,165; 2004:
$3,016,799 3,102,182 1,686,975 Deposits and other assets 47,390
46,472 Total assets $4,615,518 $3,712,646 LIABILITIES AND
STOCKHOLDERS' EQUITY Current liabilities: Line of credit
$$1,310,000 $465,000 Accounts payable 1,423,756 634,299 Accrued
expenses 272,342 170,547 Accrued professional fees 189,975 158,225
Accrued compensation 80,279 77,763 Income taxes payable 12,014
27,270 Unearned revenue 245,774 268,042 Liabilities related to
discontinued operations 533,548 849,172 Total current liabilities
4,067,688 2,650,318 Noncurrent liabilities Accounts payable, less
current portion 815,625 - Accrued expenses, less current portion
287,347 297,164 Total current liabilities 1,102,972 297,164 Total
liabilities 5,170,660 2,947,482 Stockholders' Equity Preferred
stock, $.001 par value; authorized 5,000,000 shares; issued and
outstanding: Series A and B 5% convertible: 0 shares at December
31, 2005 and 2004 - - Common stock, $.001 par value; authorized
50,000,000 shares; issued and outstanding: 7,641,889 shares at
December 31, 2005 and 3,064,493 shares at December 31, 2004 7,642
3,065 Additional paid-in capital 54,004,205 46,111,516 Accumulated
deficit (54,566,989) (45,349,417) Total stockholders' equity
(555,142) 765,164 Total liabilities and stockholders' equity
$4,615,518 3,712,646 HYPERFEED TECHNOLOGIES, INC. AND SUBSIDIARY
Consolidated Statements of Operations For the following years ended
December 31 2005 2004 2003 (Unaudited) (Audited) (Audited) Revenue
HyperFeed $3,918,162 $5,512,172 $1,029,340 HYPRWare 351,456 454,916
570,623 Total revenue 4,269,618 5,967,088 1,599,963 Direct costs of
revenue 1,443,084 1,585,129 1,537,323 Gross margin 2,826,534
4,381,959 62,640 Operating expenses Sales and marketing 1,773,026
1,827,304 614,845 General and administrative 3,106,668 3,021,341
3,121,500 Research and development 1,779,386 1,441,472 1,827,975
Operations 2,745,599 2,236,969 186,706 Depreciation and
amortization 756,881 870,330 997,729 Total operating expenses
10,161,560 9,397,416 6,748,755 Loss from operations (7,335,026)
(5,015,457) (6,686,115) Other income (expense) Interest income
1,297 9,427 20,381 Interest expense (1,921,095) (4,151) (1,636) Net
other income (1,919,798) 5,276 18,745 Loss from continuing
operations before income taxes (9,254,824) (5,010,181) (6,667,370)
Income tax benefit (207,000) (12,000) (2,612,000) Loss from
continuing operations (9,047,824) (4,998,181) (4,055,370)
Discontinued operations Income (loss) from discontinued operations,
net of taxes (benefit) of 2005: $(3,000); 2004: $(180,000); 2003:
$(29,000) (504,748) (266,780) 1,329,343 Gain on disposition of
discontinued operations, net of taxes of 2005: $210,000, 2004:
$192,000; 2003: $2,681,000 335,000 308,000 4,326,845 Income from
discontinued operations (169,748) 41,220 5,656,188 Net income
(loss) available for common stockholders $(9,217,572) $(4,956,961)
$1,600,818 Basic and diluted net income (loss) per share available
for common stockholders: Continuing operations $(2.36) $(1.63)
$(1.43) Discontinued operations (0.04) 0.01 1.99 Basic net income
(loss) per share available for common stockholders $(2.40) $(1.62)
$0.56 Basic and diluted weighted-average common shares outstanding
3,835,902 3,059,176 2,844,751 DATASOURCE: HyperFeed Technologies,
Inc. CONTACT: Tom Wojciechowski of HyperFeed, +1-312-913-2800, or ;
or Media, Thor Harris of Artin Arts, +1-201-206-0903, or , for
HyperFeed Technologies, Inc. Web site: http://www.picoholdings.com/
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