PowerPole
18 years ago
Internap to Acquire VitalStream...
Internap Network Services Corporation (NASDAQ: INAP), a leading provider of performance network services over the Internet, today announced it has reached a definitive agreement to acquire VitalStream Holdings, Inc. (NASDAQ: VSTH). VitalStream is a leader in audio and video streaming services and a global provider of integrated rich media content delivery services that enable businesses to broadcast digital media content to worldwide audiences via the Internet.
"The marketplace for content delivery services is rapidly expanding as the needs for companies to integrate streaming audio and video into their Web presence become more critical and more complex. The combination of VitalStream's content delivery services and our high performance intelligent route control solutions positions us to create the market leading platform for distribution of rich media content and advertising," said James P. DeBlasio, chief executive officer of Internap. "We will offer our combined customers a wider range of complementary products providing peak website performance, global scalability and new revenue opportunities including content monetization and on-line advertising. Together, we expect to become a formidable force in the rapidly growing streaming media and content delivery market."
Under the terms of the transaction, Internap will issue approximately 11.9 million shares of common stock in respect of outstanding VitalStream common shares, which will represent approximately 26% of the combined company's shares. This is an exchange ratio of 0.5132 Internap shares for every VitalStream share. In addition, Internap will assume VitalStream's currently outstanding stock option plans. Based on the closing price of Internap's stock on October 11, 2006, the transaction is valued at an aggregate purchase price of approximately $217 million. The acquisition is expected to close by the first quarter of 2007.
"Internap's acquisition of VitalStream is a business combination that creates a scalable public company with complementary product lines and accelerated growth potential. We believe that this is an exciting value proposition for our customers including unparalleled distribution, network quality and customized solutions, as well as a unique alternative for investors," said Jack Waterman, chairman and chief executive officer of VitalStream. "The new Internap will offer turnkey digital media broadcasting solutions for web users of all sizes. By uniting our two organizations, customers will have a complete solution to realize the full on-line potential of their digital assets."
The transaction is expected to be slightly dilutive to Internap's 2007 EBITDA per share after considering the impact of expected revenue and cost synergies, but begins to be accretive in 2008 and beyond. The company also expects the impact of the acquisition will increase its organic revenue growth rates. Specifically, the companies expect to capitalize on significant growth opportunities resulting from the combined companies' ability to sell Vital Stream's services into Internap's large and growing customer base, and Internap's global presence. The companies also believe there are significant opportunities for operating cost synergies for calendar year 2007 and beyond.
Strategic Rationale
The combined company will result in:
-- Internap holding a market leadership position delivering streaming media content
-- Internap's ability to access the high-growth streaming media and on-line advertising segments
-- The strongest, most complete product line in content delivery solutions, content monetization, and on-line advertising
-- Significant new organic growth potential coupled with cross selling opportunities
The combined company will have:
-- More than 450 total employees
-- More than 135 quota-carrying salespeople
-- More than 3000 enterprise customers
The Strongest and Most Complete Product Line
By combining the two companies' product lines, Internap will be able to meet the needs of customers seeking to both deliver rich media content to their users and monetize that content. The combination of VitalStream's content delivery services, content management tools and particular expertise in Adobe (formerly Macromedia) Flash technology, with Internap's high performance route management network, will enable the new organization to easily address the needs of enterprises seeking to deliver large format media files in a streamed environment. The combined offering will be the strongest and most comprehensive available in the industry today.
Internap has long served customers across multiple verticals that have critical needs for high performance network solutions. With the growing deployment and popularity of audio and video over the Internet, the combined company is uniquely positioned to address the complexities of encoding, storing, delivering, managing and monetizing streaming media content to ensure a compelling user experience for its customers.
Internap has recently announced network upgrades and continued colocation growth to support these customer requirements and is recognized as the industry leader in performance network services. VitalStream is the solution of choice for over 800 enterprise customers and its development and support capabilities for Adobe Flash and Windows Media customer implementations set it apart in the industry. By introducing VitalStream's capabilities to Internap's customer base, the potential exists to create a new market leader in the content delivery arena.
Significant Growth Opportunities
Internap sees several immediate opportunities for growth:
-- Product cross-sell. Cross-selling products between the respective companies' customer bases
-- Geographic penetration. Leveraging Internap's industry leading performance network services and significant network footprint, in particular, Internap's well established presence in the United States, Europe and Asia, will address a growing opportunity across VitalStream's customer base and offer a global content delivery solution for Internap's customers.
The transaction is expected to close in the first calendar quarter of 2007, and is expected to be tax free to shareholders of both companies with respect to the stock consideration the shareholders receive. The transaction is subject to regulatory reviews and approvals, including the Hart-Scott-Rodino Act; approval by the shareholders of Internap and VitalStream; and certain other customary closing conditions. Thomas Weisel Partners LLC acted as financial advisor to Internap. RBC Capital Markets acted as financial advisor to VitalStream.
Conference Call
Internap and VitalStream will hold a joint conference call for investors and analysts to discuss the proposed transaction on Thursday, October 12 at 12:00 p.m. Eastern time. Participants may access the call by dialing 866 356 4281; passcode 48824120. International callers may dial 617 597 5395 passcode 48824120. The conference call will be webcast from the investor relations section of the Internap website at www.internap.com
Additional Information Regarding the Transaction
The announcement of the transaction is neither a solicitation of a proxy, an offer to purchase nor a solicitation of an offer to sell shares of the Company's common stock. Internap and VitalStream intend to file with the Securities and Exchange Commission ("SEC") a Joint Proxy Statement/Prospectus on Form S-4. In addition, other relevant materials in connection with the proposed transaction will be filed with the SEC. INVESTORS IN INTERNAP AND VITALSTREAM ARE URGED TO READ CAREFULLY THE JOINT PROXY STATEMENT/PROSPECTUS AND OTHER RELEVANT MATERIAL WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT INTERNAP, VITALSTREAM AND THE TRANSACTION. Any offer of securities will only be made pursuant to the Joint Proxy Statement/Prospectus. The documents will be available without charge on the SEC's web site at www.sec.gov. A free copy of the final Joint Proxy Statement/Prospectus may also be obtained from Internap and VitalStream through their Investor Relations contacts provided above.
The officers and directors of VitalStream may have interests in the proposed acquisition, some of which may differ from, or may be in addition to, those of the stockholders of VitalStream generally. A description of the interests that the officers and directors of the companies have in the proposed transaction will be available in the Joint Proxy Statement/Prospectus.
In addition, Internap and VitalStream, their respective officers, directors and certain of their management and employees may be deemed to be participants in the solicitation of proxies from the stockholders of Internap and VitalStream in favor of the acquisition. Information about the officers and directors of Internap and their ownership of Internap securities is set forth in the proxy statement for Internap's 2006 Annual Meeting of Stockholders filed with the SEC on April 26, 2006. Information about the officers and directors of VitalStream and their ownership of VitalStream securities is set forth in the proxy statement for VitalStream's 2006 Annual Meeting of Stockholders filed with the SEC on June 20, 2006. Investors may obtain more detailed information concerning the participants by reading the Joint Proxy Statement/Prospectus when it is filed with the SEC.
Internap "Safe Harbor" Statement
Certain information included in this press release constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, including, among others, statements regarding the combined company, the effects of the transaction, the dilutive and accretive effects of the transaction in 2007, 2008 and beyond, synergies from the transaction and growth opportunities. Those statements include statements regarding the intent, belief or current expectations of Internap, the combined company and members of our management team, as well as the assumptions on which such statements are based, and equally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "projects," "forecasts," "plans," "intends," "should" or similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by forward-looking statements. The transaction and the achievement of any anticipated benefits from the transaction are subject to significant risks and uncertainties. Many important factors that may affect Internap's and the combined company's business, results of operations and financial condition include, but are not limited to, our ability to sustain profitability; the ability to successfully integrate the operations of Internap and VitalStream; our ability to compete against existing and future competitors; pricing pressures; our ability to respond successfully to the evolution of the high performance Internet connectivity and services industry; our ability to respond successfully to technological change; our ability to deploy new access points in a cost-efficient manner; the availability of services from Internet network service providers or network service providers providing network access loops and local loops on favorable terms or at all; failure of third party suppliers to deliver their products and services on favorable terms or at all; failures in our network operations centers, network access points or computer systems; fluctuations in our operating results; our ability to secure adequate funding; the incurrence of additional restructuring charges; our ability to operate in light of restrictions in our credit facility, including our ability to maintain ratios set forth in the credit facility; our ability to attract and retain qualified personnel; our ability to protect ourselves and our customers from security breaches; our ability to protect our intellectual property; our ability to successfully complete future acquisitions; risks associated with international operations; claims relating to intellectual property rights; government regulation of the Internet; the dilutive effects of our stock price due to outstanding stock options and warrants; future sales of stock; effects of natural disasters or terrorist activity; and volatility of our stock price.
Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release and the related conference call for analysts and investors speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.
About Internap
Internap is a market leader of intelligent route control solutions that bring reliability, performance and security to the Internet. The company's patented and patent-pending technologies address the inherent weaknesses of the Internet, enabling enterprises to take full advantage of the benefits of deploying business-critical applications such as e-commerce, VoIP, and audio/video across IP networks. Internap currently serves more than 2,100 customers throughout North America, Europe, Asia and Australia. For more information, please visit the company website at www.internap.com.
VitalStream Forward Looking Statements
This news release contains forward-looking statements made by VitalStream in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, including, among others, statements regarding the consummation of the transaction, the combined company, synergies from the transaction and growth opportunities. Those statements include statements regarding the intent, belief or current expectations of VitalStream, as well as the assumptions on which such statements are based, and equally are identified by the use of words such as "may," "will," "seeks," "anticipates," "believes," "estimates," "expects," "projects," "forecasts," "plans," "intends," "should" or similar expressions. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: the risk that the transaction may not be consummated for various reasons, including failure to obtain regulatory approval and failure to obtain shareholder approval; the risk that anticipated operational synergies may not be realized and that customers may not view the combined offering as attractive; risks and costs associated with integrating separate cultures, uncertainties regarding the future demand for the products offered by VitalStream or the combined company; VitalStream's new advertising product offerings are new and evolving and may not predictably be accepted by the intended market of customers, advertisers and end-users; the combined company may be unable to keep up with evolving industry standards and changing user needs or may experience technical, network, electrical or security problems; and risks associated with innovations and offering of competitors; More detailed information about these factors and others are discussed in "Risk Factors" and elsewhere in the Annual Report on Form 10-K of VitalStream Holdings, Inc. and Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed since the filing of the Form 10-K by VitalStream Holdings, Inc. with the SEC. Such forward-looking statements speak only as of the date of this release. VitalStream is under no obligation and expressly disclaims any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
About VitalStream
VitalStream Holdings, Inc., through its wholly owned subsidiaries, is a global provider of integrated content delivery services that enable businesses to stream digital media to large audiences over the Internet. The company provides solutions, including video and audio streaming, advertising placement, reporting and analysis, live event broadcasting, media asset management, integrated Web hosting and consulting services. Internap, Flow Control Platform and Performance IP are trademarks of Internap. All other trademarks and brands are the property of their respective owners.
Internap Contacts, Atlanta
Media Contact:
L.A. Campbell, 404-302-9721
lcampbell@internap.com
or
Investor Contact:
Andrew Albrecht, 404-302-9841
aalbrecht@internap.com
or
VitalStream Contacts:
Investor Relations Contact:
The Blueshirt Group
Alex Wellins or Jennifer Jarman, 415/217-7722
alex@blueshirtgroup.com
jennifer@blueshirtgroup.com
or
Media Relations Contact:
LEWIS PR
Katie Eakins or Aida Causevic, 619-516-2559
vs@lewispr.com
Source: Business Wire (October 12, 2006 - 8:12 AM EST)
News by QuoteMedia
www.quotemedia.com
aries4747
19 years ago
VitalStream (VSTH) Reports Record Fourth Quarter Revenue;
Expects Strong Growth in 2006
via COMTEX
February 13, 2006
IRVINE, Calif., Feb 13, 2006 (BUSINESS WIRE) --
VitalStream Holdings, Inc. (OTCBB:VSTH), the world leader in audio and video streaming, today reported results for the fourth quarter and year ended December 31, 2005.
Revenues for the quarter ended December 31, 2005 were $4.7 million, an increase of approximately 56 percent over revenues of $3.0 million in the fourth quarter of 2004. Net loss for the fourth quarter of 2005 was ($2,295,000), or ($0.03) per share, versus a net loss of ($462,000), or ($0.01) per share, in the same period last year. Adjusted EBITDA for the quarter ended December 31, 2005 was ($1,335,000), compared to ($17,000) during the comparable period last year. (See "Use of Non-GAAP Financial Measures" below for definition of Adjusted EBITDA)
"VitalStream's strong growth in 2005 outpaced the industry, culminating in record revenues in the fourth quarter as traffic increased noticeably in mid-December when our upgraded content delivery network went on-line," stated Jack Waterman, chairman and chief executive officer of VitalStream. "While we experienced lower margins in the fourth quarter, we have taken the necessary steps that will result in a return to historical levels by the second quarter of 2006, with continued margin expansion through the remainder of the year. With our recent $14 million equity financing, newly strengthened Board and announced intent to move to Nasdaq through our planned reverse stock split, we enter 2006 as a significantly stronger company that is poised to capitalize on the skyrocketing demand for streaming media by content owners, advertisers and enterprises of all sizes."
Vitalstream's customer base includes many of the largest and fastest growing streamers of audio and video content including Disney and Intermix (Myspace.com). New customers added during the fourth quarter of 2005 include WalMart, Johnson & Johnson, Viacom's SpikeTV, ING, Time, Inc. and Deloitte Worldwide.
Revenues for the year ended December 31, 2005 were $15.9 million, an increase of approximately 59% from revenues of $10.0 million in fiscal year 2004. Net loss for fiscal year 2005 was ($4,018,000), or ($0.06) per share, compared to a net loss of ($1,546,000), or ($0.03) in fiscal 2004. Adjusted EBITDA for the year ended December 31, 2005 was ($1,531,000), compared to approximately $366,000 for the year ended December 31, 2004.
Financial Outlook
"Looking ahead, we believe that 2006 will be a year of unprecedented growth for online audio and video streaming. We expect that VitalStream will outperform industry growth rates in 2006 and will achieve positive Adjusted EBITDA from continuing operations in 2006 absent any potential merger or strategic investment opportunities and excluding the impact of stock option expensing. Specifically, our outlook calls for an increase in annual revenues to the range of $22 million to $24 million and Adjusted EBITDA of $2.75 million to $4 million," concluded Mr. Waterman.
VitalStream's GAAP results of operations for the first quarter ending March 31, 2006 will include the impact of expensing stock options resulting from the adoption of Statement of Financial Accounting Standards No. 123(R) as required in the first quarter of 2006. The Company is currently in the process of quantifying the impact of the adoption.
Conference Call
Analysts and investors are invited to participate in VitalStream's conference call to receive more information on its financial results. The VitalStream fourth quarter and fiscal 2005 teleconference and webcast is scheduled to begin at 2:00 p.m. Pacific Time on Monday, February 13, 2006. To participate on the live call, analysts and investors should dial 800-218-0713 at least ten minutes prior to the call. VitalStream will also offer a live webcast of the conference call, accessible from the "Investor Relations" section of the company's Web site (http://www.vitalstream.com/investor/).
Corporate Highlights
VitalStream recently:
-- Completed $14 million in equity financing leveraging strong support from both new and existing investors and significantly strengthening the company's balance sheet.
-- Announced its intention to enact a reverse split of VitalStream common stock and apply for listing on Nasdaq.
-- Announced the addition of Mel Harris, former president of both Paramount Pictures and Sony Pictures Entertainment, to the VitalStream board of directors.
-- Selected Radware's APSolute application delivery solution to ensure high availability and optimized performance of Streaming Service for Windows Media.
-- Partnered with On2 Technologies, Inc., the premier developer of Flash 8 video encoding tools, to bring the 2006 Sundance Online Film Festival to the Internet in high-quality, Flash 8 video.
-- Teamed up with Serious Magic, a leading developer of next-generation video software and communication tools, to launch the first combined PC video blogging software and streaming solution for consumers looking to add video to their blogs.
-- Added podcasting to its Content Delivery Service product line, empowering VitalStream customers to deliver audio and video podcasts for immediate playback on portable devices and desktop media players.
-- Launched VitalStream Professional Services, a core group of technical staff and select industry partners experienced in streaming technologies dedicated to delivering quality, tailored solutions for customers with specific streaming needs, such as IPTV and podcasting.
Use of Non-GAAP Financial Measures
VitalStream defines Adjusted EBITDA as net income (loss) before interest, income taxes, depreciation, amortization, non-recurring asset sales, and stock-based compensation. Adjusted EBITDA attempts to eliminate significant non-cash items and items that are not part of the Company's core operations. Adjusted EBITDA is not a measure used in financial statements reported in accordance with generally accepted accounting principles, does not represent funds available for discretionary use and is not intended to represent cash flow from operations as measured under generally accepted accounting principles. Adjusted EBITDA should not be considered as an alternative to net loss or net cash used in operating activities. VitalStream's calculation of Adjusted EBITDA may not be comparable to the computation of similarly titled measures of other companies.
VitalStream's management uses Adjusted EBITDA as a measure of its operating performance. In addition, VitalStream believes that Adjusted EBITDA may be useful to existing and potential creditors of VitalStream, and to analysts and investors that follow VitalStream's performance, because it is one measure of the income generated that is available to service any outstanding debt.
About VitalStream, Inc.
VitalStream, Inc., a wholly owned subsidiary of VitalStream Holdings, Inc. (OTCBB:VSTH), is a global provider of integrated content delivery services that enable businesses to broadcast digital media and communications to worldwide audiences via the Internet. The company provides complete solutions, including video and audio streaming, live event broadcasting, media asset management, integrated Web hosting and consulting services, that seamlessly integrate with today's leading streaming media technologies. To ensure a worldwide reach, VitalStream engineered its award-winning content delivery network certified for quality delivery in the United States, Europe and Asia. For more information, visit www.vitalstream.com.
VitalStream is a registered trademark of VitalStream, Inc. All other trademarks are property of their respective holders.
Forward-Looking Statements
This news release contains forward-looking statements made in reliance upon the safe harbor provision of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results may differ materially from those indicated by these statements. Forward-looking statements may include statements addressing future financial and operational results of the company. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: the risk that the company's revenue may decrease on a quarter over quarter basis because of a slower than projected growth in the demand for digital broadcast and streaming services; the risks that our existing customers may cease to use our services and/or may not use our services at the projected rate; uncertainties regarding the future demand for our products and services generally despite our recent infrastructure investments, expansion into other markets and product enhancements; the risk that the trend toward increasing broadband penetration may not continue; our inability to compete or the competitive advantage of companies that compete or may compete in our markets; the possibility that our new product offerings developed independently or based upon or incorporating our partners' proprietary technology may not predictably be accepted by our customers, perform as anticipated or be available longer-term due to arrangements that may be terminable under certain circumstances; we may be unable to keep up with evolving industry standards and changing user needs; the risk that we may experience technical or security problems that injure our business or increase our operating costs; and/or uncertainties regarding our ability to pursue our proposed business strategy. More detailed information about these factors and others are discussed in "Risk Factors," and elsewhere in the most recently filed Annual Report on Form 10-K of VitalStream Holdings, Inc., and other documents periodically filed by VitalStream Holdings, Inc. with the SEC. Such forward-looking statements speak only as of the date of this release. The company is under no obligation and expressly disclaims any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
VitalStream and PlayStream are registered trademarks of VitalStream, Inc. and PlayStream, Inc, respectively. All other names and marks are property of their respective holders.
The Blueshirt Group Alex Wellins, 415-217-7722 alex@blueshirtgroup.com Jennifer Jarman, 415-217-7722 jennifer@blueshirtgroup.com
Copyright Business Wire 2006
Rager
19 years ago
(R/S) VitalStream Completes $14 Million Equity Financing (R/S)
Monday February 6, 6:30 am ET
Announces Plans for Reverse Stock Split and Application for Nasdaq Listing
IRVINE, Calif.--(BUSINESS WIRE)--Feb. 6, 2006--VitalStream Holdings, Inc. (OTCBB:VSTH - News), the world leader in audio and video streaming, today announced that its board of directors has approved several significant initiatives that significantly strengthen the Company financially and strategically, positioning VitalStream for strong growth in 2006 and beyond. Specifically, the Company is announcing the successful completion of a private financing totaling $14 million in cash for VitalStream, its intention to enact a reverse split of VitalStream common stock designed to allow the company to qualify for listing of its common stock on the Nasdaq Capital Market (formerly known as the Nasdaq SmallCap Market) and eventually the Nasdaq National Market, and as announced last week, the addition of Mel Harris, former president of both Paramount Pictures and Sony Pictures Entertainment, to the VitalStream board of directors.
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"As we formalized our 2006 plan, VitalStream's board recognized that in order to accelerate our ability to capture our share of the significant operating and acquisition opportunities in the streaming media applications market, we needed to strengthen our balance sheet, expose the company to a wider investor base, and deepen our strategic relationships. We have now taken significant steps towards achieving all of these objectives," said Jack Waterman, Chairman and Chief Executive Officer of VitalStream.
"We are particularly pleased by the strong show of support from two new investors, Winslow Management Company of Boston, who was the lead in this financing round, and Crosslink Capital. In addition, demand from several existing investors, including Columbia Acorn Fund, was so strong that we were able to complete the transaction without a placement agent. Simultaneously, we believe that enacting a reverse split as the final step towards our ultimate objective of moving to the Nasdaq National Market will make the company more attractive to a broader financial base over time. Furthermore, the addition of someone of Mel Harris' stature to our board is a very strong signal that VitalStream intends to strengthen its leadership and expand its presence in the streaming media industry. With a business built around one of the fastest growing segments of the Internet sector and a financial model featuring strong recurring revenues, we are reiterating our expectations to report record revenues for the fourth quarter of 2005 and positive EBITDA in 2006, excluding stock-based compensation and absent any potential merger or strategic investment opportunities. We look forward to discussing these positive events and our 2005 financial results on our regularly scheduled fourth quarter and fiscal year conference call on February 13, 2006," concluded Mr. Waterman.
The financing transaction was accomplished through a private placement of 10,769,230 shares of common stock of the Company at a price of $1.30 per share, for aggregate proceeds of $14 million. The parties closed the private placement on February 3, 2006. The total number of the Company's common shares outstanding after the financing is 83,854,939. The Company has agreed to promptly file a registration statement registering the resale of the shares of common stock purchased in the financing transaction.
In order to meet the minimum stock price for listing on the Nasdaq Capital Market and the Nasdaq National Market, VitalStream's board of directors has approved, and recommended for approval by shareholders, a resolution authorizing the Board of Directors to effect, or in its discretion not effect, a reverse stock split of all outstanding shares of common stock within a range of 1:2 to 1:5.5 (one post-consolidation share for every two pre-consolidation shares to one post-consolidation share for every five and one-half pre-consolidation shares) at anytime prior to December 31, 2006. The Company intends to immediately seek consent for the reverse split from a majority of shareholders through distribution of a consent solicitation statement, and, assuming shareholder consent is obtained, to effect the reverse split and file an application with Nasdaq within the next few months. The record date for shareholders entitled to give their consent is February 3, 2006. It is anticipated that if the Company's application is successful, its shares of common stock will begin trading on the Nasdaq Capital Market on a post-split basis in April or May of this year.
Conference Call Information
VitalStream will report financial results for its fourth quarter and fiscal 2005 on Monday, February 13, 2006 after the close of market. The company will host a conference call for analysts and investors at 2:00 p.m. PT (5:00 p.m. ET). To participate on the live call, analysts and investors should dial 800-218-0713 at least ten minutes prior to the call. To participate on the live call from outside the U.S., dial 303-262-2140. VitalStream will also offer a live webcast of the conference call, accessible from the "Investor Relations" section of the company's Web site (http://www.vitalstream.com/investor/). A telephonic replay of the conference call will also be available for 48 hours by dialing 800-405-2236 and entering passcode 11051956#.
About VitalStream
VitalStream, Inc., a wholly owned subsidiary of VitalStream Holdings, Inc. (OTCBB:VSTH - News), is the world's leading streaming solutions provider and international content delivery network that provides the reliable choice for delivering streaming media to global audiences. VitalStream provides complete solutions, including video and audio streaming, live event broadcasting, media asset management and consulting services that seamlessly integrate with today's leading streaming media technologies. VitalStream's innovative tool set streamlines the process of delivering the leading streaming media formats, Macromedia® Flash(TM) and Microsoft® Windows Media®, over the Internet. VitalStream's worldwide content delivery network is certified for quality transfer in the United States, Europe and Asia and delivers much of today's most popular online media. VitalStream serves an international customer base including Fortune 500 corporations, movie studios, news broadcasters, music and radio companies, advertising agencies and educational institutions. For more information, visit www.vitalstream.com.
Forward Looking Statements
This news release contains forward-looking statements made by VitalStream in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. You can identify these forward-looking statements by the use of words or phrases such as "believe," "could," "may," "anticipate," "intend," "expect," "will," "plan," "estimate," "continue," "should" or "would." Actual results may differ materially from those indicated by these statements. The following factors, among others, could cause actual results to differ materially from those described in any forward-looking statements: the risk that the company may not experience strong growth despite a strong cash position on its balance sheet, including the risk that the company's revenue may decrease on a quarter over quarter basis because of a slower than projected growth in the demand for digital broadcast and streaming services; the risks that our existing customers may cease to use our services and/or may not use our services at the projected rate; uncertainties regarding the future demand for our products and services generally despite our recent infrastructure investments, expansion into other markets and product enhancements; the risk that the trend toward increasing broadband penetration may not continue; our inability to compete or the competitive advantage of companies that compete or may compete in our markets; the possibility that our new product offerings developed independently or based upon or incorporating our partners' proprietary technology may not predictably be accepted by our customers, perform as anticipated or be available longer-term due to arrangements that may be terminable under certain circumstances; we may be unable to keep up with evolving industry standards and changing user needs; the risk that inflation or technical, security or legal may increase our operating costs above those projected; the risk that our stock may not be accepted for listing on the Nasdaq Capital Market or Nasdaq National Market; and/or uncertainties regarding our ability to pursue our proposed business strategy, including successfully finding and operating strategic acquisition opportunities. More detailed information about these factors and others are discussed in "Risk Factors," and elsewhere in the most recently filed Annual Report on Form 10-K of VitalStream Holdings, Inc., and other documents periodically filed by VitalStream Holdings, Inc. with the SEC. Such forward-looking statements speak only as of the date of this release. The company is under no obligation and expressly disclaims any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
VitalStream is a registered trademark of VitalStream, Inc. All other names or marks are the property of their respective owners.
--------------------------------------------------------------------------------
Contact:
The Blueshirt Group (for VitalStream)
Alex Wellins or Jennifer Jarman, 415-217-7722 (Investors)
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Source: VitalStream Holdings, Inc.
aries4747
19 years ago
VSTH: Video blogging alliance with Serious Magic.
http://www.seriousmagic.com/products/vlogit/
VitalStream Partners with Serious Magic to Offer First End-To-End Video Blogging Solution for Consumers
1/4/2006 8:00:09 AM
IRVINE, Calif., Jan 04, 2006 (BUSINESS WIRE) -- VitalStream, Inc. (VSTH), the world leader in video streaming, and Serious Magic, a leading developer of next-generation video software and communication tools, have teamed up to launch the first combined PC video blogging software and streaming solution for consumers looking to add video to their blogs.
Vlog It(TM) enables users to create dynamic video blogs, or vlogs, within minutes and requires no video editing experience. Users can narrate photos and video clips easily by adding a voiceover using Vlog It's built-in TelePrompTer. For the ultimate vlog, those who own a webcam or camcorder can host their vlog newscaster-style by appearing on screen while recording. Vlog It comes with a library of titles, graphics, transitions and effects that give vlogs a professional, TV-like appearance. For users, owning Vlog It is like having a TV newsroom right inside their computer.
Vlog It works with any blog site, including TypePad(R), Blogger(R) and My Space(R). To add a video, users simply drag and drop the video thumbnail when creating a new post in their blog. The file compression, uploading and linking is all done automatically behind the scenes by Vlog It and VitalStream.
"As a video streaming solutions pioneer, VitalStream aims to equip the world with innovative tools for streaming on the Web," said Jack Waterman, CEO of VitalStream. "Text blogs are increasingly popular with both consumers and business professionals, and VitalStream, along with Serious Magic, remains a step ahead by being one of the first to offer a complete video blogging solution. Vlogs are a powerful vehicle for networking and communicating, and their increasing use supports the fact that video streaming is becoming more mainstream."
"Consumers desire more innovative ways to express themselves on the Web," said Stephan Bouchard, executive vice president of Serious Magic. "VitalStream's reliable, secure streaming services, paired with our easy-to-use video blogging tool, deliver a complete solution to the consumer while taking the complexity out of file compression and FTP upload."
When Vlog It users install the software, they are provided a free, limited-time trial account for saving, sharing and playing back videos. A trial version of Vlog It is available immediately at www.seriousmagic.com. The commercial version will be available by mid-January 2006 and will sell for $49.95.
VitalStream's customer base includes Fortune 500 corporations, movie studios, news broadcasters, music companies and advertising agencies. For more information, please visit www.vitalstream.com.
aries4747
19 years ago
ONT/VSTH alliance originally announced in September.
On2 Technologies and VitalStream(R) Team to Create End-to-End Flash Video Delivery Solution
Single source solution simplifies workflow for Flash video delivery
9/26/2005 8:30:28 AM
NEW YORK and IRVINE, Calif., Sept 26, 2005 /PRNewswire-FirstCall via COMTEX/ -- On2 Technologies, Inc. (ONT), and VitalStream (VSTH), a streaming media solutions provider and international content delivery network, today announced that they have partnered to create a single-source solution combining powerful, high quality Macromedia(R) Flash Video(TM) encoding tools from On2 with VitalStream's global streaming and content delivery services for digital media enterprises.
As a result of this partnership, digital media enterprise customers - for the first time -- will be able to experience Flash Video through a high quality codec available in Macromedia Flash(R) Player 8, integrated with global streaming media and delivery solutions. The partnership enables the creation and delivery of pristine quality digital media content in what is quickly emerging as the fastest adopted format for streaming over IP - Macromedia Flash Video.
"Combining the ubiquity of Flash Player with the Flash Media Server 2 software makes the Flash Platform a superior way to deliver seamless, instant- on web video experiences to millions of viewers worldwide," said Chris Hock, director of product management, Macromedia. "With today's On2 and VitalStream announcement, we're seeing the Flash Platform fuel valuable new partnerships for Flash Video creation and delivery services for global media enterprises."
"On2 has made significant strides in accelerating the adoption of what we believe is the digital media industry's most viable and compelling IP video format, Flash Video. To date, we've succeeded in providing the worldwide community of Flash developers with a high quality codec available in Macromedia Flash Player 8. With the VitalStream partnership, we are raising the stakes by offering a complete, end-to-end Flash Video creation and delivery service for the world's largest purveyors of digital media content," said Doug McIntyre, chairman, president and chief executive officer of On2 Technologies.
"VitalStream serves as the delivery vehicle for some of the world's largest digital media enterprises," added Jack Waterman, chief executive officer of VitalStream. "Partnering with On2 enables us to provide another first to these global enterprises. We're offering an unparalleled workflow that combines high quality content creation with our vast digital media delivery capabilities."
As part of the agreement, On2 and VitalStream have entered into a combined reseller and OEM arrangement in which VitalStream will actively market and sell On2's Flix family of Flash 8 video authoring solutions. Additionally, On2 will actively market and sell VitalStream's Flash 8 video streaming services to On2's Flix customer base.
About VitalStream, Inc.
VitalStream, Inc., a wholly owned subsidiary of VitalStream Holdings, Inc. (VSTH), is a global provider of integrated content delivery services that enable businesses to broadcast digital media and communications to worldwide audiences via the Internet. The company provides complete solutions, including video and audio streaming, live event broadcasting, media asset management, integrated Web hosting and consulting services, that seamlessly integrate with today's leading streaming media technologies. To ensure a worldwide reach, VitalStream engineered its award- winning content delivery network certified for quality delivery in the United States, Europe and Asia. For more information, visit www.vitalstream.com.
About On2 Technologies, Inc., The Duck Corporation
On2 Technologies (ONT) is a leading technology firm at the forefront of video compression. The company revolutionized digital media delivery with the creation of its advanced full-motion, full-screen, On2 Video compression and streaming technologies. On2 Video codecs are used extensively in the video-on-demand, videoconferencing, Internet media, surveillance, and store- and-play markets. They operate with On2's own TrueCast Server and Player software, as well as third-party player and server products. On2's software is used by such leading companies as Sony, XM Satellite Radio, NTT, AOL, BBC, ABC News, Nullsoft, SeaChange International, and Macromedia. The On2 Video decoder has an installation base of millions through its inclusion in AOL 9 Media Player, Winamp 5, Viewpoint Media Player, and others. On2 licenses its software for use in set-top boxes, consumer electronics devices and wireless applications and offers high-level video encoding, customized technical support, and consulting/integration services. Located in New York City, the company has an office in Clifton Park, NY, and operations in Cambridge, UK. To contact On2 write to sales@on2.com or visit http://www.on2.com.
Forward-Looking Statements
This news release contains forward-looking statements of VitalStream Holdings, Inc. made in reliance upon the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results for VitalStream may differ materially from those indicated by these statements as a result of various important factors including, but not limited to, the possibility that new product offerings based upon, incorporating or used in combination with its partners' proprietary technology may not predictably be accepted by its customers, perform as anticipated or be available longer-term due to arrangements that may be terminable under certain circumstances, and other factors that are discussed in "Risk Factors" and elsewhere in the Annual Report on Form 10-K of VitalStream Holdings, Inc. and other documents periodically filed by VitalStream Holdings, Inc. with the SEC. Such forward-looking statements speak only as of the date of this release. The company is under no obligation and expressly disclaims any obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
VitalStream is a registered trademark of VitalStream, Inc. All other names and marks are the property of their respective holders. VitalStream, Inc. and On2 are independent contractors of one another only, and despite the use of such terms as "partnered, partnering and partnership" in this release, none of the parties mentioned in this release are involved in a joint venture or a legal partnership with one another.
SOURCE On2 Technologies, Inc.
Kevin M. Bourke of BourkePR, +1-781-545-7449, or bourkepr@comcast.net; or Aida
Causevic, or Katie Eakins, both of LEWIS PR for VitalStream, +1-619-516-2559, or
vs@lewispr.com
http://www.prnewswire.com
Copyright (C) 2005 PR Newswire. All rights reserved.
aries4747
19 years ago
VSTH/ONT Sundance Film Festival collaboration drawing attention.
http://festival.sundance.org/2006/watch/index.aspx
Tech plays supporting role at Sundance festival
By Michelle Meyers, CNET News.com
Published on ZDNet News: January 18, 2006, 1:19 PM PT
Filmmakers will play the starring roles at the 2006 annual Sundance Film Festival, a 10-day independent film showcase opening Thursday night in Park City, Utah.
And though not eligible for an Oscar, technology will play a supporting role, whether capturing and projecting real-life images onto a big screen, or letting viewers around the globe see festival offerings with an ever-expanding online program.
"Technology continues to emerge as a tool for filmmakers to turn to," said Ian Calderon, the Sundance Institute's director of digital initiatives. "It's more sophisticated, more elegant, easier to use and less expensive."
Calderon, who has been on the board since Robert Redford founded the institute in 1981, was there in the early days of video, when it was considered a threat to film. Now, with more than half of the 193 Sundance films screening in a high-definition format, it's all about digital.
"It's really been marvelous to watch the subtle organic transition," Calderon said, adding that filmmakers are no longer basing their film-versus-digital decisions purely on economics or speed. "It's an aesthetic decision....And in the end, what matters most to the theatergoer is not what technology is used, but 'have I been told a good story'."
At this year's festival, which runs through Jan. 29, 52 percent of the films will be shown on Sony HDcam, the only video format the festival uses, said Mike Plante, the festival's presentation manager. With the exception of two 16mm films, the rest will screen on 35mm projectors, he said.
Just more than 30 percent of the films were actually made using a digital format, Plante added. The rest were shot on 35mm or 16mm film, save a few that used other formats.
Technology at the festival, however, is not just about what's on the screens in the festival's 12 theater venues (including three in Salt Lake City). It's an integral part of other festival offerings, many of which are sponsored by high-tech companies, including Adobe Systems, Hewlett-Packard and Intel.
Sundance from your home
Most notably--at least for those interested in film but unwilling or unable to fight crowds and cold in Park City--is the festival Web site and its expanded programming. This year, 50 of the 73 filmmakers chosen to participate in the highly competitive Shorts Program have agreed to let their work be streamed on the Web. That's up from the number of willing filmmakers last year, a trend reflective of how filmmakers are viewing the Internet as a tool for film distribution, said Sundance Online Producer Joseph Beyer.
Buyer pointed out that the Shorts Program is considered a showcase of the best work from emerging filmmakers. There were 4,327 submissions in dramatic, documentary and animated categories. Click here (PDF) for the full Shorts Program lineup.
This is the sixth year for the online festival, but the model was significantly revamped last year, Beyer said. Instead of a separate online film competition, a decision was made to treat the site as a regular festival venue for the Shorts category. Sundance is now the only major film festival to premiere films on the Internet in conjunction with their live premieres, according to a press statement.
The online response to change last year was incredible, Beyer said, noting the 40,000 e-mails sent by viewers from around the globe expressing gratitude for the free online Shorts Program, this year underwritten by Adobe Systems.
"They felt like they were part of the festival," he said. "We realized, Redford too, that our true audience has yet to reveal itself. It's a global audience."
Other Sundance Online offerings include podcasts of panel discussions. One such discussion, "Brave New World, Entertainment and Social Change," will focus on new and more mobile content distribution and its effect on film.
Sprint is underwriting the production of Live@Sundance, 20 video segments on the festival that will be available on the Web site and on Sprint phones.
A technology-related venue at the festival is the Film Center, formerly the Digital Center, which will feature an array of cameras and projectors, hands-on workshops and forums and discussion on the convergence of art and technology.
One of the likely topics of discussion at the Film Center is emerging methods of distribution. "We live in the 1,000 channel universe. How is someone going to find your film?" Calderon asked.
The Film Center is also home to the Digital Cafe, sponsored by Hewlett-Packard, where festivalgoers can check their e-mail. HP is also sponsoring the HP Snapshot Cafe. There, attendees can pick up free prints of candid shots taken by staff members throughout the festival. The company is also providing computers and wireless zones at all festival offices and official venues.
Intel, among other things, is hosting its Intel Digital Experience Zone, where festivalgoers can experience movies, music, games and more with the company's latest in home, mobile and handheld computers.
Other technology-related festival sponsors include DirecTV, Moviefone and Sony Electronics.
aries4747
19 years ago
VSTH news: Deploys Radware for optimized Windows Media performance and availability.
VitalStream Selects Radware's Application Delivery Solution for High Quality Streaming Media and Content Delivery Service
via COMTEX
January 25, 2006
Radware application-smart networking architecture enables world leader in audio and video streaming to provide best user experience with reliable, secure, fast media delivery
MAHWAH, N.J., Jan 25, 2006 /PRNewswire-FirstCall via COMTEX/-
Radware (Nasdaq: RDWR), the leading provider of intelligent integrated solutions for ensuring the fast, reliable and secure delivery of networked and Web-enabled applications over IP, announced that Vital Stream, Inc. (OTC Bulletin Board: VSTH), the world leader in video streaming has deployed Radware's APSolute application delivery solution to ensure high availability and optimized performance of Streaming Service for Windows Media.
Radware's APSolute(TM) Application Delivery product suite, including Radware's Application Front-End solution, ensures the optimal delivery of content over VitalStream's global Content Delivery Network (CDN). Ideal for application acceleration, Radware eliminates network bottlenecks, failures and downtime from local and global enterprise servers and provides fault tolerant operations for all IP applications, including Web services and online applications.
VitalStream's Streaming Service provides organizations with more options for delivering and protecting streaming video from their Web sites. Architected specifically for massive capacity and scalability, VitalStream equips its customers with enhanced global load-balanced traffic management capabilities. This means VitalStream can determine the best data center from which to get a data stream for efficient, high-quality delivery.
"Radware's smart approach to traffic management arms VitalStream with advanced technology for identifying which data center would provide a subscriber with the best user experience at any given moment," said Philip N. Kaplan, president and COO of VitalStream. "As the leading source for streaming media and content delivery solutions, VitalStream is consistently on the cutting edge. Radware's product suite strengthens our solution for reliable, secure and efficient content streaming."
"As a leading provider of content delivery services, VitalStream has a track record of providing customers speedy delivery, service reliability, accurate reporting and secure authentication," said Dr. Michelle Blank, chief marketing officer of Radware. "The combination of our global solution for optimizing the delivery of applications over IP networks with VitalStream's technology assures the fastest, most reliable and secure delivery of steaming media to VitalStream customers."
About Radware
Radware (Nasdaq: RDWR) is the global leader in integrated application delivery solutions, assuring the full availability, maximum performance and complete security of all business critical networked applications while dramatically cutting operating and scaling costs. Over 3,000 enterprises and carriers worldwide use Radware application-smart switches to drive business productivity and improve profitability by adding critical application intelligence to their IP infrastructure, making networks more responsive to specific business processes. Radware's APSolute product family provides the most complete set of application front-end, remote access and security capabilities for application-smart networking to ensure faster, more reliable and secure business transactions. Learn more on how Radware application delivery solutions can enable you to get the most of your investments in IT infrastructure and people. www.radware.com.
About VitalStream, Inc.
VitalStream, Inc., a wholly owned subsidiary of VitalStream Holdings, Inc. (OTC: VSTH), is an international provider of integrated content delivery services that enable businesses to broadcast digital media and communications to worldwide audiences via the Internet. Leading in market innovation, VitalStream provides complete solutions, including audio and video streaming, live event broadcasting, media asset management, integrated Web hosting and consulting services that seamlessly integrate with today's leading streaming media technologies. To ensure a worldwide reach, VitalStream engineered its award-winning content delivery network certified for quality delivery in the United States, Europe and Asia. For more information, visit www.vitalstream.com.
This press release may contain forward-looking statements that are subject to risks and uncertainties. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to, general business conditions in the Application Switching industry, changes in demand for Application Switching products, the timing and amount or cancellation of orders and other risks detailed from time to time in Radware's filings with the Securities and Exchange Commission, including Radware's Form 20-F.
aries4747
19 years ago
VSTH/ONT collaboration for Sundance Film Festival deserves some attention. The finished product is fun to cruise.
http://festival.sundance.org/2006/watch/index.aspx
On2 Technologies and VitalStream Partner to Deliver High-Quality Flash 8 Video to the Sundance Online Film Festival
Leading video streaming solutions and compression technology providers partner to bring annual event to a global audience CORRECTION: Please note corrected target URL for the 2006 Sundance Online Film Festival.
1/17/2006 12:16:56 PM
IRVINE, Calif. and NEW YORK, Jan 17, 2006 /PRNewswire-FirstCall via COMTEX/ -- VitalStream, the world leader in video streaming, and On2 Technologies, Inc. (ONT), the premiere developer of Flash 8 video encoding tools, are bringing the 2006 Sundance Online Film Festival to the Internet in high-quality, Flash 8 video.
DEEPBLU Studios, the creative group behind the world-renowned showcase for independent filmmakers, is leveraging VitalStream's powerful content delivery network (CDN) optimized for Flash 8 video delivery and On2 Technologies' Flash 8 video encoding tools to enhance the official Web site for the event, http://festival.sundance.org. On2's product, On2 Flix Pro, enables creation and delivery of Flash 8 video content for a high-quality, seamless online experience for attendees.
"Movie-goers want to be immersed in the films they see in a theater without thinking about how the film will be projected or delivered," said Amye Osti, creative director of DEEPBLU Studios. "Flash 8 video enables us to create the same experience for visitors to the Sundance Online Film Festival, offering high quality, evocative videos for a true Sundance experience."
]Earlier this year, VitalStream and On2 Technologies partnered to create a single-source solution to create and deliver pristine quality digital media content with Macromedia Flash 8 video, which is quickly emerging as the highest-quality format for streaming over IP. DEEPBLU will use On2 Flix Pro to create the video content, and VitalStream's CDN to deliver high-quality Flash 8 video to the hundreds of thousands of people who will visit the 2006 Sundance Online Film Festival.
"Research shows more people are going online to view events like the Sundance Film Festival, supporting a need for advanced content delivery services," said Jack Waterman, chief executive officer of VitalStream. "VitalStream's leading video streaming services, supported by Flash 8 and combined with On2's video encoding, improve entertainment to attract and engage online audiences."
"The Sundance Online Film Festival is the latest in the list of highly visible entities who are realizing the endless creative possibilities with Flash 8 video," said Eric Ameres, chief technical officer and executive vice president of software development for On2 Technologies. "On2 Flix Pro is rapidly becoming the tool-of-choice for Flash developers and digital media designers, and coupled with powerful content distribution networks from VitalStream, we're making Flash 8 video an increasingly viable, hotly desired medium for creating and delivering content."
About VitalStream, Inc.
VitalStream, Inc., a wholly owned subsidiary of VitalStream Holdings, Inc. (VSTH), is a global provider of integrated content delivery services that enable businesses to broadcast digital media and communications to worldwide audiences via the Internet. The company provides complete solutions, including video and audio streaming, live event broadcasting, media asset management, integrated Web hosting and consulting services, that seamlessly integrate with today's leading streaming media technologies. To ensure a worldwide reach, VitalStream engineered its award-winning content delivery network certified for quality delivery in the United States, Europe and Asia. For more information, visit www.vitalstream.com.
About On2 Technologies, Inc., The Duck Corporation
On2 Technologies (ONT) is a leading technology firm at the forefront of video compression. The company revolutionized digital media delivery with the creation of its advanced full-motion, full-screen, On2 Video compression and streaming technologies. On2 Video codecs are used extensively in the video-on-demand, videoconferencing, Internet media, surveillance, and store- and-play markets. They operate with On2's own TrueCast Server and Player software, as well as third-party player and server products. On2's software is used by such leading companies as Sony, XM Satellite Radio, NTT, AOL, BBC, ABC News, Nullsoft, SeaChange International, and Macromedia. The On2 Video decoder has an installation base of millions through its inclusion in AOL 9 Media Player, Winamp 5, Viewpoint Media Player, and others. On2 licenses its software for use in set-top boxes, consumer electronics devices and wireless applications and offers high-level video encoding, customized technical support, and consulting/integration services. Located in New York City, the company has an office in Clifton Park, NY, and operations in Cambridge, UK. To contact On2 write to sales@on2.com or visit http://www.on2.com.
SOURCE On2 Technologies, Inc.
Kevin M. Bourke of BourkePR, +1-781-545-7449, or bourkepr@comcast.net, for On2
Technologies; or Katie Eakins, or Katie Assar, both of LEWIS PR, +1-619-516-2559, or
vs@lewispr.com, for VitalStream
http://www.prnewswire.com
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