|
PureBytes Links
Trading Reference Links
|
Omega Research to Launch TradeStation.com, the Internet's First Real-Time
Decision Support Portal for the Active Trader
BusinessWire, Monday, November 08, 1999 at 16:28
MIAMI--(BUSINESS WIRE)--Nov. 8, 1999--
Subscription-Based Internet Portal Targets Millions of On-Line Traders
Announces Re-Launch of WindowOnWallStreet.com;
New Business-to-Business Opportunities;
Discloses International Data Redistribution Agreement
Omega Research, Inc. (NASDAQ:OMGA), the leading provider of
real-time investment analysis tools for the active trader, today
announced that it expects to begin to serve the huge on-line trading
community with the launch early next year of TradeStation.com, the
Internet's first streaming real-time decision support portal for the
active trader. Today's move marks Phase One of Omega Research's
transformation into the leading provider of web-based real-time
decision support solutions for the active trader.
TradeStation.com, the first of several one-of-a-kind Internet
portals from Omega Research, will integrate the streaming real-time
data capabilities of the recently acquired Financial Data Cast Network
with a new browser-based version of Omega Research's powerful, award
winning TradeStation(R) software, which is used by more than 40,000
active traders and industry professionals around the world.
TradeStation uses intraday and daily price, volume and other
event-related movements in the securities markets to allow traders to
create custom trading strategies; back test the historical
profitability of those strategies; and then automate those strategies
to generate real-time buy and sell signals.
TradeStation.com will deliver all the power of TradeStation along
with fully integrated streaming real-time market information. The site
is designed to provide value to visitors, but only subscribers will
have full access to the portal's wide array of content, educational
tools, community forums, and, of course, access to the web's most
powerful streaming real-time decision support tool.
Bill Cruz, co-chairman of the board and co-chief executive
officer of Omega Research, said, "With 5.4 million on-line brokerage
accounts currently open, on-line brokers plan to spend $2 billion next
year on advertising to capture their share of the additional 15
million on-line accounts Forrester Research expects by 2003. While the
on-line trading revolution has given investors the power to place
their own trades, a major issue remains -- what and when to buy and
sell. TradeStation.com responds to this huge and growing need.
"With demand for real-time decision support tools expected to
take off, TradeStation.com will give active traders a proven,
professional level decision support tool capable of using streaming
real-time market information to help them make objective buy and sell
decisions in real-time. We believe no one in our industry has better
decision support tools or is as well positioned as Omega Research to
translate this opportunity into profitable growth.
"Every month more than 20,000 new prospects contact us about our
software, but with TradeStation priced at $2,400, and users paying an
additional $150 to $200 a month to a third-party vendor for real-time
data, most of these potential users were priced out of the market. But
by seamlessly integrating both decision support and streaming
real-time market data for one value packed monthly fee, we can offer
an affordable TradeStation.com to the millions of current on-line
traders, who are just now beginning to recognize that real-time
decision support tools can help them make more profitable trading
decisions."
Mr. Cruz said, "Given Omega Research's customer base of
high-volume traders we see a business-to-business opportunity here to
help brokers attract and retain these valuable customers. These are
customers who want and expect the very best tools and execution. We
believe a premiere offering like TradeStation.com can help brokers
attract and retain their most profitable customers, which could
translate into third-party partnerships or broker-subsidized
subscriptions for the kind of mega-volume customers Omega Research has
always attracted."
Launch of New WindowOnWallStreet.com
"We also see a large-scale opportunity in offering a new, more
basic solution directly to traders," Mr. Cruz said. "So today we are
also announcing the re-launch of WindowOnWallStreet.com, which will be
up and running in about a month. For the millions of traders and
investors who believe, for the moment at least, that streaming
real-time quotes, charts and news is all they need, we believe this
competitively priced, subscriber-based Internet tool will become the
product of choice. The re-launch of WindowOnWallStreet.com will give
us a significant pool of on-line traders, who will be hot linked to
TradeStation.com once it is launched. We are confident that, over
time, these savvy traders will recognize how TradeStation.com's
powerful decision support tools can help them trade more profitably."
Business-To-Business Opportunity
Mr. Cruz continued, "We believe that within a year or so every
trader and investor will expect streaming real-time quotes, charts and
news, not as a premium, but as a core offering. Brokers and others
anxious to stay one step ahead of customer expectations are actively
looking for third-party solutions. The acquisition of Window On
WallStreet has given us the ability to provide such a
business-to-business solution at a very attractive per user price. We
believe it is quite likely that we will be announcing some of these
strategic alliances in the near future.
"With TradeStation.com and WindowOnWallStreet.com, we have two
distinctive but complementary paths to reach the on-line trader. Both
will offer streaming real-time best-of-breed quotes, charts and news,
but only TradeStation.com will process and translate real-time data
into user-defined, executable trading strategies. We believe nothing
else out there will match the decision support capabilities of
TradeStation.com."
Discloses International Data Redistribution Agreement
"Nasdaq's announcement last week that it will launch in Europe in
2000 and Japan in 2001 leaves little doubt that the on-line trading
revolution and demand for real-time information will invariably become
a global phenomenon. Recognizing this emerging global opportunity,
Omega Research is pleased to disclose that it has in place an
international data redistribution agreement with S&P Comstock, which
will allow our Financial Data Cast Network to supplement local data
feeds and provide coverage for virtually all of the world's most
important exchanges. With international customers in 40 countries and
our TradeStation brand well recognized among active investors and
professional traders around the world, this agreement adds another
exciting dimension to our go-to-market strategy," Mr.
Cruz said.
Ongoing Commitment to 2000i Product Line and New Window On WallStreet
Customers
"While we are extremely excited about what our first Internet
portal can offer existing customers, we want to emphasize our ongoing
commitment to current users of our 2000i product line and to the many
Window on WallStreet customers who have recently joined the Omega
Research family. In this regard, we are pleased to announce that our
forthcoming 2000i Service Pack 4 will be released, on schedule, later
this quarter as a free upgrade for all our loyal registered 2000i
customers."
Accelerating Growth
Mr. Cruz continued, "Operating results were strong for the first
nine months of 1999: year over year revenues, before factors related
to the Window On WallStreet acquisition, grew 48 percent to $31.2
million, while net income rose 145 percent to $4.5 million. It is from
this position of strength that we will seek to transform Omega
Research from a successful software company to the Internet's leading
provider of real-time decision support tools for active traders.
Understandably this will require some up-front transition costs, and a
considerable shift, ultimately for the better, in the Company's
revenue stream.
"To ensure our success, we will immediately begin making
significant investments which will extend into year 2000. This will
entail an increase in research and development spending and
infrastructure outlays to add server capacity and development
personnel. We will also offer substantial incentives to Omega Research
and Window On WallStreet customers to accelerate their migration to
our Internet offerings, and accelerate and redirect marketing and
advertising resources to launch these new initiatives. As a result, we
expect to incur losses near-term through at least the next several
quarters.
"The acquisition of Window On WallStreet was a linchpin in our
Internet strategy," he noted. "Our consolidated fourth quarter 1999
results will reflect the financial impact of this essential
acquisition, including transaction costs and anticipated fourth
quarter losses at Window on WallStreet."
"Our new Internet strategy will also impact fourth quarter
results for the consolidated enterprise," said Gregg F. Stewart, chief
financial officer of Omega Research. "Our new strategy eliminates the
expected release of SuperCharts 2000i and will result in
discontinuance of several unprofitable Window On WallStreet products.
We are confident our loyal SuperCharts users and Window On WallStreet
customers will find our new services a superior solution, and we will
offer them generous incentives to upgrade to our new offerings.
"In the fourth quarter we will record a one-time charge of
approximately $1.3 million, for acquisition-related transaction costs.
Under pooling of interests accounting, we must also absorb Window On
Wallstreet's fourth-quarter operating losses. In all, we expect to
generate a consolidated fourth quarter loss of approximately 5 to 7
cents per share. After restating the first nine months of 1999 to
reflect the pooling, consolidated proforma net revenues and net income
will be approximately $33.9 million and $2.1 million, respectively, on
an unaudited basis. Within the next 60 days Omega Research will file
Form 8-K with the SEC to provide additional details on historical
proforma results."
Mr. Cruz concluded, "For the next several quarters our business
will focus on three things, building subscribers, building
subscribers, and building subscribers. While short-term profits will
take a back seat for awhile, we sincerely believe our investment will
ultimately yield tremendous long-term value for our shareholders.
"As I hope we have communicated here, opportunity is pounding at
our door, and we intend to answer the call. We have carefully thought
through our decision to reshape Omega Research, and we believe we have
put together nearly all of the critical pieces to make that happen.
While change always entails risk, every business must ultimately
decide to either lead, follow, or be swept away by the next wave of
change. We have clearly decided to ride the crest of that wave."
About Omega Research
{snip}
NOTE: Today at 4:45 PM EST, Omega Research will host an analyst
conference call to discuss the Company's Internet Strategy. The
conference call will be broadcast live, on-line from the
Company's "corporate" page at www.omegaresearch.com and at
www.streetfusion.com. A rebroadcast of the call will be
accessible at these websites from approximately 8:00 p.m.,
November 8, 1999, to approximately 6:00 p.m., November 11, 1999.
This press release contains statements that are forward looking
and are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. When used in this press
release the words "believes," "plans," "estimates," "expects,"
"intends," "anticipates, "may," "will," "should," "could" and similar
expressions are intended to identify forward-looking statements. All
forward-looking statements are based largely on current expectations
and beliefs concerning future events that are subject to substantial
risks and uncertainties. Actual results may differ materially from the
results suggested herein and from the results historically
experienced. Factors that may cause or contribute to such differences
include, but are not limited to, the Company's ability to effectuate
its Internet strategy and to develop and market the products and
services described in this press release (and the cost associated
therewith), their acceptance in the marketplace (due to technical
difficulties or errors in the product or service, unfavorable critical
reviews, increased competition, their cost, or other reasons), the
level of market demand for real-time decision support tools, the
scalability and reliability of the Financial Data Cast Network, the
extent by which the new business model impacts net software licensing
fees, the impact that the transition to a subscription-based Internet
business model may have on the Company's current customer base,
financial statement (including the level of returns and bad debts on
current receivables) and existing relationships, the Company's ability
to develop relationships with third parties to execute its
business-to-business strategy, timing and significance of additional
new product introductions by the Company and its competitors, the
level of product and price competition, general economic and market
factors, including changes in securities financial markets, results of
operations for the remainder of the 1999 fourth quarter and year 2000
(and the impact that this press release will have on those results),
the adequacy of working capital, cash flows and available financing to
fund the new business model, and other risks and uncertainties
indicated from time to time in the Company's filings with the
Securities and Exchange Commission including, but not limited to,
Omega Research's December 31, 1998 Annual Report on Form 10-K, as well
as other press releases.
CONTACT: Omega Research, Inc., Miami
Investor Relations:
Gregg F. Stewart, Chief Financial Officer,
Vice President of Finance & Treasurer
305/485-7004
Business to Business Opportunities:
Window On WallStreet
David Barnes, Executive Vice President
972/470-4726
or
Window On WallStreet
Sean Davis, Senior Vice President
972/470-4742
International Opportunities:
Omega Research
Kevin Feuerlicht, International Sales
305/485-7412
Web Advertising:
Omega Research
Janette Perez, Executive Vice President of Marketing
and Sales
305/485-7401
|