HyperFeed Q2 losses widen

HyperFeed's revenue for the quarter ended June 30, 2005 was $1.0 million, versus $1.3 million in the same quarter in 2004, representing a decrease of 21.6%. However, revenue in the second quarter of 2004 included revenue from contracts entered into in 2003 and 2004 with Telerate of $0.9 million. Due to the termination of these contracts with Telerate in November 2004 resulting from its acquisition by Reuters in 2005, there is no revenue from Telerate in the second quarter of 2005. HyperFeed had an increase of twenty-seven customers since last year, including Susquehanna International Group, LLP and The Nasdaq Stock Market, Inc. In addition, HyperFeed experienced a 17.5% quarter over quarter growth, from $0.9 million to $1.0 million from the first to the second quarter of 2005.

Paul Pluschkell, President and CEO of HyperFeed, commented, "As a result of our recent exclusive agreement, executed in May 2005, to license globally in perpetuity the source code for both Telerate Trading Room System (TRS) and Active8 technology from Reuters and Telerate, HyperFeed significantly expanded our suite of products this quarter. This should open significant new opportunities to us, as we expect that the financial markets will desire the alternatives we can offer with regard to an agnostic market data platform. HyperFeed has rebranded TRS as HMDP (HyperFeed Market Data Platform) and Active8 as OCC (Open Collaborative Container) and has already expanded into the European markets with our alliance with MarketXS to license and support these products throughout Europe. MarketXS will support HMDP and OCC with its proven TRS and Active8 sales experience, existing installation and support capabilities, and an impressive array of satisfied customers."

Mr. Pluschkell further adds, "With our recent release of HMDP and OCC combined with HTPX, DDU and SORTT, HyperFeed offers a full suite of products and services to address the needs of global enterprise customers. HyperFeed has the resources, technology and partnerships to achieve its goal to create the industry's first collaborative open and agnostic global platform for data, transactions, and platform integration."

HyperFeed reported a net loss of ($2.1) million, or ($0.67) per share, for the quarter ended June 30, 2005, compared to a net loss of ($1.7) million, or ($0.55) per share, for the same period in 2004. Loss from operations in the second quarter of 2005 was ($1.6) million, versus ($1.5) million in the second quarter of 2004.