MarketWatch.com going public?
Data Broadcasting plans to sell to the public a stake of MarketWatch.com, a joint venture with CBS Broadcasting.
Although the company said the percentage to be sold has not yet been determined, it expects shortly to file a registration statement. The registration of the offering is subject to stock market and other conditions.
Shares of Data Broadcasting were up 5.56 percent to 4.75 on the news. The stock has traded as high as 9.13 and as low as 4 during the past 52 weeks.
The company announced that its share of losses from the MarketWatch joint venture amounted to $600,000. These losses are expected to grow during fiscal 1999 as the venture expands its operations to increase audience reach on the Internet.
Data Broadcasting is a provider of real-time market data to individual investors and traders. The company reports that it delivers real-time stock quotes, financial and sports news, and gaming information to about 1 million users via PCs, wireless FM, cable, satellite, and via the Internet .
The company also reported a loss from continuing operations and a net loss of $400,000, or 1 cent per share, on revenues of $21.6 million. These results included $1 million of other items in the current fourth quarter, which covered professional fees related to potential acquisitions, the relocation of certain operations in California and the settlement of a sales tax audit.
For the full year, Data Broadcasting's revenues were $89.9 million, income from continuing operations was $3 million, or 9 cents per share, and the net loss was $4.8 million, or 14 cents per diluted share. The net loss included a second quarter loss on discontinued operations of $7 million, or 21 cents per share, which was primarily due to an additional noncash write-down of net assets for the ISN business, being accounted for as a discontinued operation.
For the corresponding prior-year period, revenues were $92.5 million, income from continuing operations was $5.4 million, or 16 cents per diluted share, and the net loss was $18.3 million, or 54 cents per diluted share.