POMPANO BEACH, Fla.,
May 15, 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 second
quarter of fiscal 2012, the six and three months ended March 31, 2012.
Financial Highlights
- Revenues for the three months ended March 31, 2012 were approximately $4.7 million, representing a new record high for
Onstream Media. Those second quarter revenues, which were 3.7%
higher than revenues for the second quarter of fiscal 2011, also
represented the seventh consecutive quarter of our revenues
exceeding revenues for the corresponding quarter of the previous
fiscal year.
- Revenues for the six months ended March
31, 2012 were approximately $9.2
million, representing a 5.1% increase from the corresponding
period of fiscal 2011.
- Cash flow from operating activities (before changes in current
assets and liabilities) for the six months ended March 31, 2012 was approximately $181,000, compared to cash used in operating
activities of approximately $44,000
for the six months ended March 31,
2011.
- Gross margin of approximately $3.1
million for the three months ended March 31, 2012, representing 65.5% of total
revenues, was an increase of 3.7% as compared to the year-ago
quarter. Gross margin of approximately $6.0
million for the six months ended March 31, 2012, representing 65.6% of total
revenues, was an increase of 4.3% versus the comparable year-ago
period.
- Onstream's net loss for the three months ended March 31, 2012 was approximately $721,000, a 44.2% decrease as compared to a net
loss of approximately $1.3 million
for the second quarter of fiscal 2011. These losses included
non-cash expenses for depreciation and amortization (approximately
$358,000 and $367,000, for the three months ended March 31, 2012 and 2011, respectively) as well as
other non-cash expenses, which are discussed in more detail
below.
- Onstream's net loss for the six months ended March 31, 2012 was approximately $1.4 million, a 37.2% decrease as compared to a
net loss of approximately $2.2
million for the first six months of fiscal 2011. These
losses included non-cash expenses for depreciation and amortization
(approximately $715,000 and
$753,000, for the six months ended
March 31, 2012 and 2011,
respectively) as well as other non-cash expenses, which are
discussed in more detail below.
Financial Discussion
Our consolidated revenues of approximately $4.7 million for the three months ended
March 31, 2012 represented a new
record high for Onstream Media. Those revenues represented an
increase of $167,000, or 3.7%, over
our revenues for the three months ended March 31, 2011, with such increase due to higher
sales from the Company's Audio and Web Conferencing Services Group.
Those consolidated revenues of approximately $4.7 million for the three months ended
March 31, 2012 also represented an
increase of $142,000, or 3.2%, over
our revenues for the immediately preceding quarter, the three
months ended December 31, 2012.
Audio and Web Conferencing Services Group revenues were
approximately $2.7 million for the
three months ended March 31, 2012, an
increase of approximately $392,000,
or 16.7%, from the corresponding quarter of the prior fiscal year.
This increase resulted from increased audio conferencing revenues
in the Infinite division, which division's revenues of
approximately $2,251,000 for the
second 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 first quarter of fiscal
2012, which in turn was a new record versus the record set in
the fourth quarter of fiscal 2011.
As we announced at the time, the fourth quarter of fiscal 2011
included Infinite's first month ever in excess of 10 million
minutes. We are now pleased to announce that all three months in
the second quarter of fiscal 2012 were in excess of 10 million
minutes, with one month in excess of 11 million minutes.
Digital Media Services Group revenues were approximately
$1.9 million for the three months
ended March 31, 2012, a decrease of
approximately $225,000, or 10.5%,
from the corresponding period of the prior fiscal year, primarily
due to decreases in DMSP and hosting revenues as well as webcasting
division revenues.
Onstream's second quarter fiscal 2012 net loss of approximately
$721,000, or $(0.06) per share, was based on approximately
12.0 million weighted average shares outstanding and represented a
44.2% decrease from the second quarter fiscal 2011 net loss of
approximately $1.3 million, or
$(0.14) per share, which was based on
approximately 9.5 million weighted average shares outstanding.
Onstream's net loss of approximately $1.4
million for the six months ended March 31, 2012 included approximately
$1.6 million of non-cash items
(non-cash expenses, net of non-cash income), resulting in
approximately $181,000 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 $181,000 positive cash flow from operating
activities (before changes in current assets and liabilities) for
the six months ended March 31, 2012
represented an improvement of approximately $225,000, as compared to cash used in operating
activities of approximately $44,000
in the corresponding period of the previous fiscal year. Cash
flow from operating activities (before changes in current assets
and liabilities) was positive for both the first and second
quarters of fiscal 2012.
Onstream's consolidated revenues were approximately $9.2 million for the six months ended
March 31, 2012 representing an
increase of $444,000, or 5.1%, over
our revenues for the six months ended March
31, 2011. This increase was due to higher sales from the
Company's Audio and Web Conferencing Services Group, and in
particular the Infinite division.
Onstream's net loss of approximately $1.4
million, or $(0.12) per share,
for the first six months of fiscal 2012 was based on approximately
11.9 million weighted average shares outstanding and represented a
37.2% decrease from the net loss for the first six months of fiscal
2011 of approximately $2.2 million,
or $(0.24) per share, which was based
on approximately 9.1 million weighted average shares
outstanding.
Management Commentary
Randy Selman, President and Chief
Executive Officer of Onstream Media, stated, "We are pleased to
report new revenue records for the most recently completed fiscal
quarter, continuing such records achieved over our past six
quarters. We were also pleased to continue to report positive cash
flow from operating activities (before changes in current assets
and liabilities) for the first six months of this fiscal year,
continuing the pace set in fiscal 2011 when we reported our first
full fiscal year having positive cash provided by operating
activities (before changes in current assets and liabilities).
Looking forward to the remainder of fiscal 2012, we believe that
our core businesses, including conferencing and webcasting, are
well positioned to continue to drive our revenue growth."
Mr. Selman added, "Although we have seen a recent decline in
webcasting revenues, we believe that the future of this division
will be favorably impacted by the comprehensive update to our
webcasting platform which we expect to release on July 1, 2012. In addition, we recently
implemented a new MarketPlace365 (MP365) pricing model that
establishes MP365 as a value-added platform to assist the customer
in using our webcasting services and more particularly, our webinar
services. This new MP365 pricing model enables the show organizer
to sell inexpensively or give away the exhibitor booths and instead
charge for the webinars as a lead generation tool."
Teleconference
Management will hold a conference call on Wednesday, May 16, 2012 at 4:30 p.m. ET to discuss our financial results for
the six and three months ended March 31,
2012, 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=87123 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=87123.
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:
|
Chris
Faust
|
Jeff
Ramson
|
FastLane
Communications
|
ProActive
Newsroom
|
973-582-3498
|
646-863-6341
|
cfaust@fast-lane.net
|
jramson@proactivecrg.com
|
Financial Tables Follow
ONSTREAM MEDIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
Six
months ended
March
31,
|
Three
months ended
March
31,
|
|
2012
|
2011
|
2012
|
2011
|
|
(unaudited)
|
(unaudited)
|
REVENUE:
|
|
|
|
Audio and web conferencing
|
$
4,262,637
|
$
3,650,516
|
$
2,250,936
|
$
1,841,056
|
Webcasting
|
2,938,070
|
3,008,570
|
1,438,116
|
1,553,733
|
DMSP and hosting
|
921,554
|
1,058,153
|
448,597
|
569,344
|
Network usage
|
949,115
|
947,110
|
469,670
|
481,990
|
Other
|
99,078
|
62,233
|
49,018
|
43,206
|
Total
revenue
|
9,170,454
|
8,726,582
|
4,656,337
|
4,489,329
|
|
|
|
|
|
COSTS OF
REVENUE:
|
|
|
|
|
Audio and web conferencing
|
1,323,744
|
1,167,300
|
678,233
|
567,193
|
Webcasting
|
869,559
|
793,973
|
437,562
|
434,696
|
DMSP and hosting
|
461,734
|
516,600
|
221,940
|
295,095
|
Network usage
|
463,571
|
428,485
|
247,226
|
219,779
|
Other
|
34,735
|
53,937
|
21,294
|
32,298
|
Total
costs of revenue
|
3,153,343
|
2,960,295
|
1,606,255
|
1,549,061
|
|
|
|
|
|
GROSS
MARGIN
|
6,017,111
|
5,766,287
|
3,050,082
|
2,940,268
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
General and administrative:
|
|
|
|
|
Compensation
|
4,106,269
|
4,396,456
|
2,110,393
|
2,285,947
|
Professional fees
|
1,146,523
|
1,009,863
|
540,288
|
467,938
|
Other
|
1,082,436
|
1,057,583
|
560,701
|
526,769
|
Depreciation and amortization
|
714,622
|
753,438
|
358,114
|
367,241
|
Total
operating expenses
|
7,049,850
|
7,217,340
|
3,569,496
|
3,647,895
|
|
|
|
|
|
Loss from
operations
|
(1,032,739)
|
(1,451,053)
|
(519,414)
|
(707,627)
|
|
|
|
|
|
OTHER
EXPENSE, NET:
|
|
|
|
|
Interest expense
|
(385,197)
|
(543,852)
|
(202,349)
|
(243,512)
|
Gain (loss) from adjustment of
derivative
liability to fair value
|
14,951
|
(202,006)
|
(8,100)
|
(340,667)
|
Other income, net
|
29,553
|
8,669
|
9,269
|
1,257
|
|
|
|
|
|
Total
other expense, net
|
(340,693)
|
(737,189)
|
(201,180)
|
(582,922)
|
|
|
|
|
|
Net
loss
|
$
(1,373,432)
|
$
(2,188,242)
|
$
(720,594)
|
$
(1,290,549)
|
|
|
|
|
|
Loss per
share – basic and diluted:
|
|
|
|
|
|
|
|
|
|
Net loss
per share
|
$
(0.12)
|
$
(0.24)
|
$
(0.06)
|
$
(0.14)
|
Weighted
average shares of common
stock outstanding – basic and diluted
|
11,924,999
|
9,118,201
|
11,998,381
|
9,502,669
|
|
|
|
|
|
|
ONSTREAM MEDIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
March
31,
2012
(unaudited)
|
September 30,
2011
|
ASSETS
|
|
|
CURRENT
ASSETS:
|
|
|
Cash and cash equivalents
|
$
335,961
|
$
290,865
|
Accounts receivable, net of allowance for doubtful
accounts
|
2,529,567
|
2,453,390
|
Prepaid expenses
|
437,260
|
580,185
|
Inventories and other current
assets
|
143,098
|
139,099
|
Total
current assets
|
3,445,886
|
3,463,539
|
PROPERTY
AND EQUIPMENT, net
|
2,676,907
|
2,714,676
|
INTANGIBLE
ASSETS, net
|
534,282
|
785,927
|
GOODWILL,
net
|
10,696,948
|
10,696,948
|
OTHER
NON-CURRENT ASSETS
|
104,263
|
104,274
|
Total
assets
|
$
17,458,286
|
$
17,765,364
|
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
CURRENT
LIABILITIES:
|
|
|
Accounts payable
|
$
1,690,984
|
$
1,573,703
|
Accrued liabilities
|
1,429,391
|
1,193,473
|
Amounts due to directors and
officers
|
561,772
|
396,392
|
Deferred revenue
|
77,174
|
96,437
|
Notes and leases payable – current
portion, net of discount
|
1,708,181
|
1,533,966
|
Convertible debentures, net of
discount
|
373,256
|
407,790
|
Total
current liabilities
|
5,840,758
|
5,201,761
|
Notes and
leases payable, net of current portion
|
6,790
|
11,962
|
Convertible debentures, net of discount
|
950,097
|
1,031,870
|
Detachable
warrants, associated with sale of common shares
and Series
A-14 Preferred
|
173,260
|
188,211
|
Total
liabilities
|
6,970,905
|
6,433,804
|
|
|
|
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
|
STOCKHOLDERS' EQUITY:
|
|
|
Series
A-13 Convertible Preferred stock, par value $.0001 per
share,
authorized
170,000 shares, 17,500 and 35,000 issued and
outstanding,
respectively
|
2
|
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,
12,294,909 and 11,779,521 issued and outstanding,
respectively
|
1,229
|
1,177
|
Additional
paid-in capital
|
140,824,741
|
140,291,514
|
Unamortized discount
|
(71,851)
|
(146,418)
|
Accumulated deficit
|
(130,266,782)
|
(128,814,758)
|
Total
stockholders' equity
|
10,487,381
|
11,331,560
|
Total
liabilities and stockholders' equity
|
$
17,458,286
|
$
17,765,364
|
SOURCE Onstream Media Corporation