POMPANO BEACH, Fla.,
Feb. 21, 2012 /PRNewswire/ --
Onstream Media Corporation (NASDAQ: ONSM), a leading online service
provider of live and on-demand corporate audio and web
communications, virtual event technology and social media
marketing, reported today its financial results for the first
quarter of fiscal 2012, the three months ended December 31, 2011.
Financial Highlights
- Revenues for the three months ended December 31, 2011 topped $4.5 million, representing a 6.5% increase from
the first quarter of fiscal 2011. The fiscal 2012 first quarter
revenues represented a record high as compared to any previous
fiscal first quarter. It also represented the sixth consecutive
quarter of our revenues exceeding revenues for the corresponding
quarter of the previous fiscal year.
- Cash flow from operating activities (before changes in current
assets and liabilities) for the three months ended December 31, 2011 was approximately $110,000, compared to cash used in operating
activities of approximately $127,000
for the three months ended December 31,
2010. This is only the second time in our company's history
that we have achieved a positive operating cash flow result for our
first fiscal quarter.
- Gross margin of approximately $3.0
million for the three months ended December 31, 2011, representing 65.7% of total
revenues, was an increase of 5.0% as compared to the year-ago
quarter.
- Onstream's net loss for the three months ended December 30, 2011 was approximately $653,000, a 27.3% decrease as compared to a net
loss of approximately $898,000 for
the first quarter of fiscal 2011. These losses included non-cash
expenses for depreciation and amortization (approximately
$357,000 and $386,000, for the three months ended December 31, 2011 and 2010, respectively) as well
as other non-cash expenses, which are discussed in more detail
below.
Financial Discussion
Consolidated revenues for the three months ended December 31, 2011 topped $4.5 million, representing an increase of
$277,000, or 6.5%, over our revenues
for the three months ended December 31,
2011 and primarily due to higher sales from the Company's
Audio and Web Conferencing Services Group. Consolidated revenues
for the three months ended December 31,
2011 also represented an increase of $165,000, or 3.8%, over our revenues for the
immediately preceding quarter, the three months ended September 30, 2011.
Audio and Web Conferencing Services Group revenues were
approximately $2.5 million for the
three months ended December 31, 2011,
an increase of approximately $216,000, or 9.4%, from the corresponding period
of the prior fiscal year and primarily a result of increased audio
conferencing revenues in the Infinite division. The Infinite
division's revenues of approximately $2,012,000 for the first quarter of fiscal 2012
represented a new record high for that division, surpassing the
previous high which was just set in the immediately preceding
quarter, the fourth quarter of fiscal 2011.
Digital Media Services Group revenues were approximately
$2.0 million for the three months
ended December 31, 2011, an increase
of approximately $61,000, or 3.1%,
from the corresponding period of the prior fiscal year, primarily
due to an increase in webcasting division revenues.
Onstream's net loss for the three months ended December 30, 2011 of approximately $653,000 included approximately $763,000 of non-cash items (non-cash expenses,
net of non-cash income), resulting in $110,000 positive cash flow from operating
activities (before changes in current assets and liabilities) for
that period. The primary non-cash expenses included in that net
loss were depreciation and amortization and certain items (employee
compensation, professional fees and interest) paid with equity.
The $110,000 positive cash flow
from operating activities (before changes in current assets and
liabilities) for the three months ended December 31, 2011 represented an improvement of
approximately $237,000, as compared
to cash used in operating activities of approximately $127,000 in the corresponding quarter of the
previous fiscal year. This was only the second time in our
company's history this measurement has been positive for the first
fiscal quarter.
Onstream's first quarter fiscal 2012 net loss of approximately
$653,000, or $(0.06) per share was based on 11.9 million
weighted average shares outstanding and represented a 27.3%
decrease from the first quarter fiscal 2011 net loss of
approximately $898,000 or
$(0.10) per share, which was based on
8.7 million weighted average shares outstanding.
Management Commentary
Randy Selman, President and Chief
Executive Officer of Onstream Media, stated, "We are pleased that
we were able to accomplish new revenue records in the most recently
completed fiscal quarter, continuing such records achieved over our
past five quarters. Our first quarter fiscal 2012 revenues
represented 6.5% growth versus the same quarter of the previous
year and 3.8% growth over our revenues for the immediately
preceding quarter, the three months ended September 30, 2011. Looking forward to the
remainder of fiscal 2012, we believe that our core businesses,
including conferencing and webcasting services, will continue to
drive our revenue growth."
Mr. Selman added, "We were also pleased to report positive cash
flow from operating activities (before changes in current assets
and liabilities) of $110,000 for the
three months ended December 31, 2011,
which is only the second time in our company's history that we have
achieved a positive operating cash flow result for our first fiscal
quarter This is of course coming after we reported our first full
fiscal year - 2011 - having positive cash provided by operating
activities (before changes in current assets and liabilities).
Addressing cash flow going forward, based on our results for the
year ended September 30, 2011 and for
the quarter ended December 31, 2011
and expense reductions already implemented by us that will affect
fiscal 2012, we have estimated that even with no increase from
historic revenue levels our operations would result in sufficient
cash flow to adequately fund all but approximately $515,000 of our anticipated ongoing cash
expenditures through September 30,
2012, including capital expenditures and debt service. Since
we expect to see year-over-year increases in gross margin exceeding
that amount for the remaining nine months of fiscal 2012, we expect
our operations to cover all of our cash requirements for the next
fiscal year, although we may still choose to accept additional
financial investment in the company if necessary to finance worthy
initiatives."
Teleconference
Management will hold a conference call on Wednesday, February 22, 2012 at 4:30 p.m. ET to discuss its financial results for
the three months ended December 31,
2011, as well as provide an outlook for the remainder of
fiscal 2012. Management discussion will be followed by an open
Q&A session. Interested parties may listen to the presentation
live online at http://www.visualwebcaster.com/event.asp?id=85337 or
by calling 1-888-645-4404 or 201-604-0169. It is recommended to
dial in approximately 10 to 15 minutes prior to the scheduled start
time. An audio rebroadcast of the conference call will be archived
for one year online at
http://www.visualwebcaster.com/event.asp?id=85337.
About Onstream Media
Onstream Media Corporation (NASDAQ:ONSM) is a leading online
service provider of live and on-demand corporate audio and web
communications, virtual event technology and social media
marketing. Onstream Media's innovative Digital Media Services
Platform (DMSP) provides customers with cost effective tools for
encoding, managing, indexing, and publishing content via the
Internet. The company's MarketPlace365® solution enables
publishers, associations, tradeshow promoters and entrepreneurs to
rapidly and cost effectively self deploy their own online virtual
marketplaces. In addition, Onstream Media provides live and
on-demand webcasting, webinars, web and audio conferencing
services. To date, almost half of the Fortune 1000 companies and
78% of the Fortune 100 CEOs and CFOs have used Onstream Media's
services. Select Onstream Media customers include: AAA, Dell,
Disney, Georgetown University, National
Press Club, PR Newswire, Shareholder.com (NASDAQ), Sony Pictures
and the U.S. Government. Onstream Media's strategic relationships
include Akamai, BT Conferencing, Qwest and Trade Show News Network
(TSNN). For more information, visit Onstream Media at
http://www.onstreammedia.com or call 954-917-6655.
Cautionary Note Regarding Forward Looking Statements
Certain statements in this document and elsewhere by
Onstream Media are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. Such
information includes, without limitation, the business outlook,
assessment of market conditions, anticipated financial and
operating results, strategies, future plans, contingencies and
contemplated transactions of the company. Such forward-looking
statements are not guarantees of future performance and are subject
to known and unknown risks, uncertainties and other factors which
may cause or contribute to actual results of company operations, or
the performance or achievements of the company or industry results,
to differ materially from those expressed, or implied by the
forward-looking statements. In addition to any such risks,
uncertainties and other factors discussed elsewhere herein, risks,
uncertainties and other factors that could cause or contribute to
actual results differing materially from those expressed or implied
for the forward- looking statements include, but are not limited to
fluctuations in demand; changes to economic growth in the U.S.
economy; government policies and regulations, including, but not
limited to those affecting the Internet. Onstream Media undertakes
no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise.
Actual results, performance or achievements could differ materially
from those anticipated in such forward-looking statements as a
result of certain factors, including those set forth in Onstream
Media Corporation's filings with the Securities and Exchange
Commission.
Media Relations:
|
Investor
Relations:
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Chris Faust
|
Jeff Ramson
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FastLane
Communications
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ProActive Newsroom
|
|
973-582-3498
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646-863-6341
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cfaust@fast-lane.net
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jramson@proactivecrg.com
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Financial Tables Follow
ONSTREAM
MEDIA CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
Three months
ended
December 31,
|
|
|
2011
|
2010
|
|
|
(unaudited)
|
|
REVENUE:
|
|
|
|
Audio and web
conferencing
|
$
2,011,701
|
$
1,809,460
|
|
Webcasting
|
1,499,954
|
1,454,837
|
|
DMSP and
hosting
|
472,957
|
488,809
|
|
Network
usage
|
479,445
|
465,120
|
|
Other
|
50,060
|
19,027
|
|
Total revenue
|
4,514,117
|
4,237,253
|
|
|
|
|
|
COSTS OF REVENUE:
|
|
|
|
Audio and web
conferencing
|
645,511
|
600,107
|
|
Webcasting
|
431,997
|
359,277
|
|
DMSP and
hosting
|
239,794
|
221,505
|
|
Network
usage
|
216,345
|
208,706
|
|
Other
|
13,441
|
21,639
|
|
Total costs of
revenue
|
1,547,088
|
1,411,234
|
|
|
|
|
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GROSS MARGIN
|
2,967,029
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2,826,019
|
|
|
|
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OPERATING EXPENSES:
|
|
|
|
General and
administrative:
|
|
|
|
Compensation
|
1,995,876
|
2,110,509
|
|
Professional fees
|
606,235
|
541,925
|
|
Other
|
521,735
|
530,814
|
|
Depreciation and
amortization
|
356,508
|
386,197
|
|
Total operating
expenses
|
3,480,354
|
3,569,445
|
|
|
|
|
|
Loss from operations
|
(513,325)
|
(743,426)
|
|
|
|
|
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OTHER EXPENSE, NET:
|
|
|
|
Interest
expense
|
(182,848)
|
(300,340)
|
|
Gain from
adjustment of derivative
liability to fair value
|
23,051
|
138,661
|
|
Other income,
net
|
20,284
|
7,412
|
|
|
|
|
|
Total other expense,
net
|
(139,513)
|
(154,267)
|
|
|
|
|
|
Net loss
|
$
(652,838)
|
$
(897,693)
|
|
|
|
|
|
Loss per share – basic and
diluted:
|
|
|
|
|
|
|
|
Net loss per share
|
$
(0.06)
|
$
(0.10)
|
|
Weighted average shares of
common stock outstanding – basic and diluted
|
11,852,414
|
8,742,092
|
|
|
|
|
|
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ONSTREAM
MEDIA CORPORATION AND SUBSIDIARIES
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CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
December
31,
2011
|
September
30,
2011
|
|
|
(unaudited)
|
|
|
ASSETS
|
|
|
|
CURRENT ASSETS:
|
|
|
|
Cash and cash
equivalents
|
$
408,547
|
$
290,865
|
|
Accounts
receivable, net of allowance for doubtful accounts
|
2,375,288
|
2,453,390
|
|
Prepaid expenses
|
491,449
|
580,185
|
|
Inventories and other current
assets
|
137,901
|
139,099
|
|
Total current assets
|
3,413,185
|
3,463,539
|
|
PROPERTY AND EQUIPMENT,
net
|
2,721,714
|
2,714,676
|
|
INTANGIBLE ASSETS,
net
|
662,811
|
785,927
|
|
GOODWILL, net
|
10,696,948
|
10,696,948
|
|
OTHER NON-CURRENT
ASSETS
|
104,263
|
104,274
|
|
Total assets
|
$
17,598,921
|
$
17,765,364
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
|
CURRENT LIABILITIES:
|
|
|
|
Accounts payable
|
$
1,771,776
|
$
1,573,703
|
|
Accrued
liabilities
|
1,203,234
|
1,193,473
|
|
Amounts due to
directors and officers
|
472,171
|
396,392
|
|
Deferred revenue
|
82,886
|
96,437
|
|
Notes and leases payable –
current portion, net of discount
|
1,614,694
|
1,533,966
|
|
Convertible
debentures, net of discount
|
729,890
|
407,790
|
|
Total current
liabilities
|
5,874,651
|
5,201,761
|
|
Notes and leases payable, net of
current portion and discount
|
9,787
|
11,962
|
|
Convertible debentures, net of
discount
|
666,379
|
1,031,870
|
|
Detachable warrants, associated
with sale of common shares
and Series A-14
Preferred
|
165,160
|
188,211
|
|
Total liabilities
|
6,715,977
|
6,433,804
|
|
|
|
|
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COMMITMENTS AND
CONTINGENCIES
|
|
|
|
|
|
|
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STOCKHOLDERS'
EQUITY:
|
|
|
|
Series A-13 Convertible
Preferred stock, par value $.0001 per share,
authorized 170,000 shares,
35,000 issued and outstanding
|
3
|
3
|
|
Series A-14 Convertible
Preferred stock, par value $.0001 per share,
authorized 420,000 shares,
420,000 issued and outstanding
|
42
|
42
|
|
Common stock, par value
$.0001 per share; authorized 75,000,000 shares,
11,889,665 and
11,779,521 issued and
outstanding, respectively
|
1,188
|
1,177
|
|
Additional paid-in
capital
|
140,497,369
|
140,291,514
|
|
Unamortized discount
|
(109,179)
|
(146,418)
|
|
Accumulated deficit
|
(129,506,479)
|
(128,814,758)
|
|
Total stockholders'
equity
|
10,882,944
|
11,331,560
|
|
Total liabilities and
stockholders' equity
|
$
17,598,921
|
$
17,765,364
|
|
|
|
|
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SOURCE Onstream Media Corporation