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Onstream Media Corporation Reports Fiscal 2011 Third Quarter Financial Results
Aug 15, 2011 (04:08 PM EDT)
-- Company Achieves Record Cash from Operating Activities (before changes in working capital), as well as Record Revenues, for the Quarter and Year-to-date --
POMPANO BEACH, Fla., Aug. 15, 2011 /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 third fiscal quarter ended June 30, 2011.
The approximately $194,000, or 4.4%, increase in consolidated revenues for the three months ended June 30, 2011 was primarily due to higher sales from the Company's Audio and Web Conferencing Services Group, which were approximately $2.4 million for the three months ended June 30, 2011. This represented an increase of approximately $103,000, or 4.4%, from the corresponding period of the prior fiscal year, primarily a result of increased audio conferencing revenues in the Infinite division.
Digital Media Services Group revenues were approximately $2.2 million for the three months ended June 30, 2011, an increase of approximately $91,000, or 4.4%, from the corresponding period of the prior fiscal year, primarily due to an increase in Webcasting division revenues. Webcasting revenue growth was primarily from a 75.5% growth in revenues from webcasting services provided to the following governmental entities: the State of California, the California State Department of Technology Services, the California State Board of Equalization, the United States Nuclear Regulatory Commission and the Internal Revenue Service.
The approximately $102,000, or 3.3%, increase in consolidated gross margin for the three months ended June 30, 2011 was primarily due to approximately $70,000 additional gross margin from the Webcasting division, corresponding to an approximately $110,000 increase in Webcasting division revenues.
Operating expenses were approximately $3.5 million for the three months ended June 30, 2011, a decrease of approximately $249,000, or 6.6%, from the corresponding period of the prior fiscal year, primarily due to decreased professional fee expense.
Onstream's net loss for the three months ended June 30, 2011 was approximately $486,000, or $(0.05) per share, based on 10.3 million weighted average shares outstanding, as compared to a net loss of approximately $1.1 million, or $(0.14) per share in the year-ago quarter, based on 7.9 million weighted average shares outstanding. Onstream's third quarter fiscal 2011 $486,000 net loss represented a 54.8% decrease from the year-ago third quarter's net loss, and included approximately $1.1 million of non-cash expenses, as well as approximately $283,000 non-cash income from adjustment of derivative liability to fair value. The primary non-cash expenses included in the third quarter fiscal 2011 net loss were depreciation and amortization, employee compensation paid with options and other equity, and professional fees paid with equity.
Onstream recognized a record $328,000 positive cash flow from operating activities (before changes in current assets and liabilities) for the three months ended June 30, 2011, compared to approximately $82,000 in the immediately preceding second quarter and approximately $188,000 for the corresponding quarter of the previous fiscal year. Onstream's $284,000 positive cash flow from operating activities (before changes in current assets and liabilities) for the nine months ended June 30, 2011 represents an improvement of approximately $539,000 from the corresponding nine month period of the previous year.
Randy Selman, President and Chief Executive Officer of Onstream Media, commented, "Revenues in the third quarter of fiscal 2011 represented our second consecutive quarter of record revenues, surpassing the record we set last quarter, which in turn exceeded the previous record revenues going back to the third fiscal quarter of 2008. We are also pleased to report our second consecutive quarter of positive cash flow from operating activities (before changes in current assets and liabilities). Besides being a quarterly and nine-month record, this marks the first time that cash flow from operating activities (before changes in current assets and liabilities) for the first nine months of our fiscal year has been positive."
Selman continued, "In addition to these results generated by our legacy businesses, we now have nine active MarketPlace365® ("MP365") promoter sites, another 29 signed MP365 promoter agreements (for a total of 38) and our network of MP365 sales agents is also expanding. The launch of our MP365 web portal in the third quarter of fiscal 2011 also provides us with an integrated, searchable, and SEO-enhanced (Search Engine Optimization) online directory to market our active and forthcoming MP365 marketplaces."
Selman added, "It is also noteworthy that we strengthened our balance sheet in the third quarter of 2011. Including transactions closed after the June quarter, we have reduced the liability for certain convertible debentures from $1.2 million as of March 31, 2011 to $510,000, via cash payments as well as the issuance of common shares."
Management will hold a conference call on Tuesday, August 16, 2011 at 4:30 p.m. ET to discuss its financial results for the three and nine months ended June 30, 2011. 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=81388 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=81388.
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.
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SOURCE Onstream Media Corporation