PLAINVIEW, NY — (Marketwired) — 05/03/13 — NeuLion, Inc. (TSX: NLN), a leading enabler and provider of live and on-demand content to Internet-connected devices, today announced financial results for the three months ended March 31, 2013 (all amounts are in U.S. dollars).
Revenue was $11.9 million in the first quarter of 2013, as compared to $10.4 million in the first quarter of 2012, an increase of $1.5 million, or 14%.
Cost of revenue, as a percentage of revenue, exclusive of depreciation and amortization, improved to 29% in the first quarter of 2013, as compared to 44% in the first quarter of 2012.
Operating loss was $(0.2) million in the first quarter of 2013, as compared to $(3.4) million in the first quarter of 2012, an improvement of $3.2 million.
Non-GAAP Adjusted EBITDA (as defined below) was $1.0 million in the first quarter of 2013, an improvement of $2.9 million, as compared to $(1.9) million in the same period a year ago, and Consolidated Net Loss improved by $3.2 million as compared to the same period a year ago.
“Management is extremely pleased with our financial results for the first quarter of 2013. The 14% increase in revenues was the result of strong organic growth. That increase in revenues was complemented by a continuing substantial improvement in both cost of revenue and Non-GAAP Adjusted EBITDA as we continue to closely monitor costs,” said Nancy Li, Chief Executive Officer of the Company. “As consumers turn more and more to connected devices, such as iPad, iPhone, Android tablets and phones, gaming devices and connected TVs, NeuLion-s technological leadership has made us the vendor of choice for content owners seeking to satisfy that demand. We continue to expect our role in this evolving marketplace to expand.”
Interactive video experience delivering live and on-demand video
Powered Microsoft Xbox 360 applications for NHL GameCenter LIVE and NBA League Pass using NeuLion-s streaming technology to deliver all live and archived games in HD at 60 frames per second.
Extended multiyear agreement with Major League Soccer, which has seen growth in subscriptions to MLS Live each and every year since migrating to NeuLion-s technology platform.
Expanded partnership with Sportsnet to deliver the Grand Slam of Curling via an online streaming service with multiple monetization options through various cable operators across Canada or as a subscription-based service.
Added new smartphone support for Mixed Martial Arts fans, including the delivery of UFC.TV on Blackberry 10 and a fan-friendly mobile website for Bellator Fighting Championships.
Athletic portal and online destination for fans
Partnered with Pac-12 Enterprises to create a unified, videocentric digital platform for all Pac-12 universities. The NeuLion College Platform will allow the Pac-12 Digital team to foster innovation across a common technology platform with an aggregate audience, while member schools can focus on developing engaging digital content chronicling the accomplishments of their student athletics.
Developed “Big Ten Connect” for Learfield Sports Digital as an innovative second-screen experience during the 2013 Big Ten Men-s Basketball Tournament. The app featured live radio broadcasts of every game, live scores and stats, ongoing Twitter coverage, photo galleries and video content including fan reactions, interviews and behind-the-scenes footage.
Launched NCAA March Madness 75th Anniversary campaign with Turner Broadcasting and MediaVest to encourage fans to vote for all-time favorite players, moments and teams throughout the tournament history at ncaa.com through NeuLion-powered banner ads, pre-roll videos, social media posts and custom content.
Multi-device content delivery
Partnered with the Gospel Music Channel to deliver an authenticated digital service, using the NeuLion TVE Platform, for select GMC TV affiliates. The new service will include free VOD streaming of approximately 300 movie titles available anytime, anywhere.
Signed agreement with Bell Canada to launch authenticated streaming service that will give Bell Canada subscribers access to live sports and entertainment content on digital devices.
European cable operator ZON TV, the leading cable TV provider in Portugal, expanded its use of the NeuLion TVE Platform to enhance the reach and penetration of ZON television content to include Android smartphones and tablets.
Revenue was $11.9 million, as compared to $10.4 million for the three months ended March 31, 2012, an increase of $1.5 million, or 14%.
Cost of revenue, exclusive of depreciation and amortization, was $3.4 million (29% of revenue), as compared to $4.5 million (44% of revenue) for the three months ended March 31, 2012, marking a period-over-period improvement of $1.1 million, or 24% (15% of revenue).
Operating loss was $(0.2) million, as compared to $(3.4) million for the three months ended March 31, 2012, an improvement of $3.2 million.
Consolidated net loss was $0.3 million, which includes $1.3 million of non-cash and/or non-operating charges, resulting in Non-GAAP Adjusted EBITDA of $1.0 million, as compared to a consolidated net loss of $3.5 million, which includes $1.6 million of non-cash and/or non-operating charges, resulting in Non-GAAP Adjusted EBITDA of $(1.9) million for the three months ended March 31, 2012, marking a period-over-period improvement in Non-GAAP Adjusted EBITDA of $2.9 million.
As of March 31, 2013, we had $15.2 million in cash and cash equivalents.
We report Non-GAAP Adjusted EBITDA 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 represents consolidated net loss before interest, income taxes, depreciation and amortization, stock-based compensation, discount on convertible note 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 to its most directly comparable U.S. GAAP measure, consolidated net loss:
NeuLion, Inc. (TSX: NLN) offers the true end-to-end solution for delivering live and on-demand content to Internet-enabled devices. NeuLion enables content owners and distributors, cable operators and telecommunications companies to capitalize on the massive 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 .
Certain statements herein are forward-looking statements and represent NeuLion-s current intentions in respect of future activities. Forward-looking statements can be identified by the use of the words “will,” “expect,” “seek,” “anticipate,” “believe,” “plan,” “estimate,” “expect,” and “intend” and statements that an event or result “may,” “will,” “can,””should,” “could,” or “might” occur or be achieved and other similar expressions. These statements, in addressing future events and conditions, involve inherent risks and uncertainties. These factors should be considered carefully and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this release are based upon what management believes to be reasonable assumptions, NeuLion 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 NeuLion assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law. Many factors could cause NeuLion-s 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 realize some or all of the anticipated benefits of our partnerships; general economic and market segment conditions; our customers- subscriber levels and financial health; 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. A more detailed assessment of the risks that could cause actual results to materially differ from current expectations is contained in the “Risk Factors” section of NeuLion-s Annual Report on Form 10-K for the fiscal year ended December 31, 2012, which is available on and filed on .
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