PLAINVIEW, NY — (Marketwire) — 05/09/12 — NeuLion, Inc. (TSX: NLN), the true end-to-end technology service provider for delivering live and on-demand content to any Internet-enabled device, today announced financial results for the three months ended March 31, 2012. Revenue grew to $10.4 million for the three months ended March 31, 2012. (All amounts are in U.S. dollars.)
Revenue increased by $0.5 million, or 5%, as compared to the same period a year ago.
Non-GAAP Adjusted EBITDA Loss (as defined below) improved by $0.1 million, or 5%, as compared to the same period a year ago, and Consolidated Net Loss improved by $0.4 million, or 10%, as compared to the same period a year ago.
“Management is pleased with the continued expansion of the company-s footprint in the burgeoning market of video content streaming,” said Nancy Li, Chief Executive Officer of the Company. “Driven by the proliferation of Internet-connected devices and the fundamental shift in video consumption habits, we continue to build our proprietary technology and deliver targeted solutions in professional sports, TV Everywhere and college athletics. We fully expect our digital solutions to exploit the massive consumer demand for viewing video content anytime, anywhere, especially as adoption of interactive TV over the Internet accelerates.”
Interactive video experience delivering live and on-demand video
Launched NBA.TV, a new online video destination for international fans featuring the 24/7 NBA TV linear channel, complete live game coverage with interactive features and VOD content including full game replays, highlights and condensed game packages
Launched a digital video portal and embeddable video players for the Back9Network that features shows, interviews, travel, and lifestyle videos for golf fans.
Partnered with the Canadian Broadcasting Corporation to deliver key NHL highlight packages, including goal highlights and three-minute end-game recaps for Hockey Night In Canada, starting with the 2012 Stanley Cup Playoffs.
Scholastic athletic portal and online destination for fans
Extended partnerships with Mississippi State and the University of Pennsylvania and provided those schools with enhanced digital initiatives, including HD video, video integration on Facebook, live highlight editing and additional mobile applications.
Announced multi-year partnership with Indiana University – Purdue University Fort Wayne to provide a campus-wide ticketing platform with a user-friendly experience, allowing students to purchase tickets, make donations and manage their accounts via a unique, single login, online destination.
Multi-device content delivery
Created an authenticated online viewing experience for Toronto Raptors games that includes access to all the live action on multiple devices for Rogers Sportsnet and Sportsnet ONE subscribers.
Delivered Internet-based pay-per-view service for the Major League Fishing Challenge Cup. As an extension of the Outdoor Channel, the online service provided twice the coverage available on traditional TV, including additional videos with commentary and unedited reactions from competitors throughout the event.
Revenue was $10.4 million, as compared to $9.9 million for the three months ended March 31, 2011, marking a period-over-period increase of $0.5 million, or 5%.
Cost of revenue, exclusive of depreciation and amortization, was $4.5 million (43% of revenue), as compared to $4.0 million (40% of revenue) for the three months ended March 31, 2011, marking a period-over-period change of $0.5 million (3% of revenue).
Consolidated net loss was $3.5 million, which includes $1.6 million of non-cash and/or non-operating charges, netting a non-GAAP Adjusted EBITDA Loss of $1.9 million, as compared to a consolidated net loss of $3.9 million, which includes $1.9 million of non-cash and/or non-operating charges, netting a non-GAAP Adjusted EBITDA Loss of $2.0 million for the three months ended March 31, 2011, marking a period-over-period improvement in non-GAAP Adjusted EBITDA Loss of $0.1 million, or 5%. Non-cash and/or non-operating charges consist of depreciation and amortization, stock-based compensation, interest income, deferred income taxes and foreign exchange loss.
As of March 31, 2012, we had $9.3 million in cash and cash equivalents.
We report non-GAAP Adjusted EBITDA Loss because it is a key measure used by management to evaluate our results and make strategic decisions about our company, including potential acquisitions. Non-GAAP Adjusted EBITDA Loss represents consolidated net loss before interest, income taxes, depreciation and amortization, stock-based compensation, unrealized gain/loss on derivatives, investment income, non-controlling interests, loss on dissolution of majority-owned subsidiary and foreign exchange gain/loss. This measure does not have any standardized meaning prescribed by U.S. generally accepted accounting principles (U.S. GAAP) and therefore is unlikely to be comparable to the calculation of similar measures used by other companies, and should not be viewed as an alternative to measures of financial performance or changes in cash flows calculated in accordance with U.S. GAAP.
The below table reconciles our non-GAAP Adjusted EBITDA Loss to its most directly comparable U.S. GAAP measure, consolidated net loss:
Founded in 2000, NeuLion, Inc. (TSX: NLN) offers the true end-to-end solution for delivering live and on-demand content to any Internet-enabled device. NeuLion enables content owners and distributors, cable operators and telecommunications companies to capitalize on consumer demand for viewing video content on PCs, smartphones, iPads and other similar devices. NeuLion-s customers include major entertainment, sports, global content and news companies. NeuLion is based in Plainview, NY. For more information about NeuLion, visit .
Forward-looking statements involve significant risk, uncertainties and assumptions. Although the forward-looking statements contained in this release are based upon what management believes to be reasonable assumptions, we cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this release and we assume no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause our actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including: our ability to develop and execute on our business plan, including further diversifying our customer base; continuing to invest in and expand our sports-related business; our ability to increase revenue; general economic and market segment conditions; our customers- subscriber levels; the financial health of our customers; our ability to pursue and consummate acquisitions in a timely manner; our continued relationships with our customers; our ability to negotiate favorable terms for contract renewals; competitor activity; product capability and acceptance rates; technology changes; regulatory changes; foreign exchange risk; interest rate risk; and credit risk. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. A more detailed assessment of the risks that could cause actual results to materially differ from current expectations is contained in Item 1A, “Risk Factors,” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2011, which is available on and filed on .
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