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Megadata Achieves Net Profitability in FY 2006
Greenwich, CT, January 30, 2007 — Megadata Corporation (OTC: MDTA) announced today that for fiscal year (FY) 2006 the company achieved a net profit of $103,000.
Net profit in FY2006 was $103,000 or $.03/share compared with a loss of $924,000 or $.23/share in the previous year. Year-to-year total revenues were up approximately 13% to $4,314,000 for the fiscal year ended October 31, 2006 over the prior year. EBITDA was $1,568,000 for FY2006, up from $269,000 the previous year. Subscription sales were up approximately 17% to $3,842,000. Total costs and expenses in FY2006 decreased by about 13% or $579,000 to $3,736,000 from $4,315,000 in FY2005.
“FY2006 marked the first year of profitability for the company in many years,” said Jim Barry, Megadata’s President and CEO. “However, due to the timing of both shipments to customers and the manufacturing of PASSUR units, we anticipate the 1st quarter FY2007, while improved sharply over the corresponding FY2006 1st quarter, will be close to breakeven.”
“We’re obviously pleased with the financial results showing profitable operations,” said G.S. Beckwith Gilbert, Megadata’s Chairman of the Board. “The Company continues to grow by providing superior products that make a financial difference to the aviation industry. While growing revenue, the company has also had the opportunity to develop exciting new products as well as the discipline to contain costs; it’s the right combination. We’re looking forward to the continued success of the Company.”
About Megadata
Megadata owns and operates PASSUR, a national network of multiple, live flight information sources feeding a single, integrated database known for independent, complete, timely, and accurate information and solutions for the aviation industry. It includes the unique network of PASSUR radar installations in the US, Canada, Europe, and Asia. The company’s principal business is the delivery of data, application software, and web-delivered collaborative decision tools to the aviation industry and organizations that serve, or are served, by the aviation industry. Megadata distributes its products through a direct sales force, and through premier aviation decision-support technology firms.
The forward-looking statements in this news release relating to management’s expectations and beliefs are based on preliminary information and management assumptions. Such forward-looking statements are subject to a wide range of risks and uncertainties that could cause results to differ in material respects, including those related to customer needs, budgetary constraints, competitive pressures, the success of airline trials, the profitable use of the Company’s owned PASSURs located at major airports, the Company’s maintenance of above average quality of its product and services, as well as potential regulatory changes. Further information regarding factors that could affect the Company’s results is contained in the Company’s SEC filings, including the October 31, 2006 Form 10-K.
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