Company News: Page (1) of 1 - 03/16/12 Email this story to a friend. email article Print this page (Article printing at MyDmn.com).print page facebook

NeuLion Reports $39.7M in Total Revenue for Fiscal 2011

(March 16, 2012)

PLAINVIEW, NY -- (Marketwire) -- 03/16/12 -- 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 and year ended December 31, 2011 (all amounts are in U.S. dollars). Revenue grew to $39.7 million for the year ended December 31, 2011 primarily due to strong organic growth.

For the year ended December 31, 2011:

  • Revenue increased by $6.5 million, or 20%, as compared to a year ago.

  • Non-GAAP Adjusted EBITDA Loss (as defined below) improved by $4.1 million, or 37%, as compared to a year ago, and Consolidated Net Loss improved by $2.8 million, or 16%, as compared to a year ago.

For the three months ended December 31, 2011:

  • Revenue decreased by $0.4 million, or 4%, as compared to the same period a year ago.

  • Non-GAAP Adjusted EBITDA Loss (as defined below) improved by $0.2 million, or 18%, as compared to the same period a year ago, and Consolidated Net Loss improved by $0.1 million, or 3%, as compared to the same period a year ago.

"Management is pleased with the year-over-year improvement in the company's revenue," said Nancy Li, Chief Executive Officer of NeuLion, Inc. "We continue to build on our unique strengths in the new and evolving IPTV marketplace. Our customers' recognition of NeuLion's technological leadership in this rapidly expanding field has put NeuLion at the forefront of online video delivery. We fully expect our customers' requirements, and NeuLion's role, to continue to grow as the adoption of TV over the Internet accelerates."


Fourth Quarter Operational Highlights:
Professional Sports
Interactive video experience delivering live and on-demand video

  • Developed, for Maple Leaf Sports and Entertainment Ltd., the Real Sports Xbox app (NeuLion's first application specifically for the Xbox marketplace) to deliver live and on-demand games for Leafs TV, NBA TV Canada and GOL TV Canada.
  • Unveiled all-access UFC app for Android that allows fans to watch live pay-per-view events, weigh-ins and press conferences and to score the fight in real-time.

College Sports
Athletic portal and online destination for fans

  • Designed and delivered the first live streaming iPad app for Texas A&M Athletics and launched five similar apps shortly thereafter for Duke University, Louisiana State University, University of Oregon, Iowa State University and Mississippi State University.
  • Upgraded James Madison University and Dartmouth College to our HD Adaptive Streaming video player for the Fall Sports season.

TV Everywhere
Multi-device content delivery

  • Announced partnership with SENSIO to deliver video-on-demand content in 3D.

Financial Results for the Year Ended December 30, 2011:

Revenue was $39.7 million, as compared to $33.2 million for the year ended December 31, 2010, marking a year-over-year increase of $6.5 million, or 20%.

Cost of revenue, exclusive of depreciation and amortization, was $16.4 million (41% of revenue), as compared to $14.4 million (43% of revenue) for the year ended December 31, 2010, marking a year-over-year improvement of 2%.

Consolidated net loss was $14.4 million, which includes $7.5 million of non-cash and/or non-operating charges, netting a non-GAAP Adjusted EBITDA loss of $6.9 million, as compared to a consolidated net loss of $17.2 million, which includes $6.2 million of non-cash and/or non-operating charges, netting a non-GAAP Adjusted EBITDA loss of $11.0 million for the year ended December 31, 2010, marking a year-over-year improvement in non-GAAP Adjusted EBITDA loss of $4.1 million, or 37%. Non-cash and/or non-operating charges consist of depreciation and amortization, stock-based compensation, unrealized gain on derivative, loss on dissolution of majority-owned subsidiary, investment income, deferred income taxes and foreign exchange gain/loss.

Financial Results for the Three Months Ended December 31, 2011:

Revenue was $10.7 million, as compared to $11.1 million for the three months ended December 31, 2010, marking a period-over-period decrease of $0.4 million, or 4%.

Cost of revenue, exclusive of depreciation and amortization, was $4.5 million (42% of revenue), as compared to $4.6 million (41% of revenue) for the three months ended December 31, 2010, marking a period-over-period change of 1%.

Consolidated net loss was $2.9 million, which includes $2.0 million of non-cash and/or non-operating charges, netting a non-GAAP Adjusted EBITDA loss of $0.9 million, as compared to a consolidated net loss of $3.0 million, which includes $1.9 million of non-cash and/or non-operating charges, netting a non-GAAP Adjusted EBITDA loss of $1.1 million for the three months ended December 31, 2010, marking a period-over-period improvement in non-GAAP Adjusted EBITDA loss of $0.2 million, or 18%.

As of December 31, 2011 we had $12.3 million in cash and cash equivalents.

Use of Non-GAAP Measures

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:

Consolidated Statement of Operations Reconciliation: Three months ended, Year ended, December 31, December 31, 2011 2010 2011 2010 $ $ $ $ ----------- ----------- ----------- ----------- Consolidated net loss (2,934,194) (2,957,315) (14,373,030) (17,167,466) Depreciation and amortization 1,194,688 1,393,876 5,367,289 5,177,980 Stock-based compensation 472,296 481,350 1,647,422 2,360,187 Unrealized gain on derivative 0 0 0 (1,389,300) Loss on dissolution of majority-owned subsidiary 130,197 0 227,402 0 Deferred income taxes 299,094 0 299,094 0 Investment income and foreign exchange gain/loss (42,841) (49,604) (44,883) (14,634) ----------- ----------- ----------- ----------- Non-GAAP Adjusted EBITDA loss (880,760) (1,131,693) (6,876,706) (11,033,233) =========== =========== =========== ===========

About NeuLion
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 www.neulion.com.

Forward-Looking Statements
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 www.sec.gov and filed on www.sedar.com.

NEULION, INC. CONSOLIDATED BALANCE SHEETS (Expressed in U.S. dollars, unless otherwise noted) As of December 31, ------------------------ 2011 2010 $ $ ----------- ----------- ASSETS Current Cash and cash equivalents 12,346,882 12,929,325 Accounts receivable, net 3,494,077 2,356,843 Other receivables 309,764 296,154 Inventory 797,436 946,780 Prepaid expenses and deposits 1,189,311 1,014,703 Due from related parties 734,452 1,261,776 ----------- ----------- Total current assets 18,871,922 18,805,581 Property, plant and equipment, net 4,294,476 5,119,422 Intangible assets, net 6,609,465 9,283,151 Goodwill 11,327,626 11,240,432 Other assets 226,266 259,497 ----------- ----------- Total assets 41,329,755 44,708,083 =========== =========== LIABILITIES AND EQUITY Current Accounts payable 9,597,359 5,504,489 Accrued liabilities 5,314,308 5,431,217 Due to related parties 13,298 26 Deferred revenue 6,624,693 6,432,445 ----------- ----------- Total current liabilities 21,549,658 17,368,177 Long-term deferred revenue 1,050,495 548,309 Other long-term liabilities 432,159 495,275 Deferred tax liability 299,094 - ----------- ----------- Total liabilities 23,331,406 18,411,761 ----------- ----------- Redeemable preferred stock, net (par value: $0.01; authorized: 50,000,000; issued and outstanding: 28,089,083) Class 3 Preference Shares (par value: $0.01; authorized: 17,176,818; issued and outstanding: 17,176,818) 10,000,000 10,128,667 Class 4 Preference Shares (par value: $0.01; authorized; 10,912,265; issued and outstanding: 10,912,265) 4,864,591 - ----------- ----------- Total redeemable preferred stock 14,864,591 10,128,667 ----------- ----------- NeuLion, Inc. stockholders' equity Common stock (par value: $0.01; authorized: 300,000,000; issued and outstanding: 140,012,310 and 139,180,279, respectively) 1,400,122 1,391,802 Additional paid-in capital 77,257,524 75,480,756 Promissory notes receivable (209,250) (209,250) Accumulated deficit (75,314,638) (60,963,093) ----------- ----------- Total NeuLion, Inc. stockholders' equity 3,133,758 15,700,215 Non-controlling interest - 467,440 ----------- ----------- Total equity 3,133,758 16,167,655 ----------- ----------- Total liabilities and equity 41,329,755 44,708,083 =========== =========== NEULION, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Expressed in U.S. dollars, unless otherwise noted) Years ended December 31, -------------------------- 2011 2010 $ $ ------------ ------------ Revenue Services revenue 36,612,650 31,500,279 Equipment revenue 3,053,732 1,673,469 ------------ ------------ 39,666,382 33,173,748 ------------ ------------ Costs and Expenses Cost of services revenue, exclusive of depreciation and amortization shown separately below 13,985,258 12,842,304 Cost of equipment revenue 2,391,212 1,575,118 Selling, general and administrative, including stock-based compensation 25,612,668 27,101,557 Research and development 6,201,372 5,048,189 Depreciation and amortization 5,367,289 5,177,980 ------------ ------------ 53,557,799 51,745,148 ------------ ------------ Operating loss (13,891,417) (18,571,400) ------------ ------------ Other income (expense) Unrealized gain on derivative - 1,389,300 Gain (loss) on foreign exchange 12,985 (47,160) Investment income 31,898 61,794 Loss on dissolution of majority-owned subsidiary (227,402) - ------------ ------------ (182,519) 1,403,934 ------------ ------------ Consolidated net and comprehensive loss before income taxes (14,073,936) (17,167,466) Deferred income taxes (299,094) - ------------ ------------ Consolidated net and comprehensive loss (14,373,030) (17,167,466) Net loss attributable to non-controlling interest 21,485 8,771 ------------ ------------ Net and comprehensive loss attributable to controlling interest (14,351,545) (17,158,695) Adjustment to the carrying amount of redeemable preferred stock 153,233 (362,046) ------------ ------------ Net and comprehensive loss attributable to NeuLion, Inc. common stockholders (14,198,312) (17,520,741) ============ ============ Net loss per weighted average number of shares of common stock outstanding - basic and diluted $ (0.10) $ (0.14) ============ ============ Weighted average number of shares of common stock outstanding - basic and diluted 139,610,112 122,364,447 ============ ============ NEULION, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Expressed in U.S. dollars, unless otherwise noted) Years ended December 31, ------------------------ 2011 2010 $ $ ----------- ----------- OPERATING ACTIVITIES Consolidated net loss (14,373,030) (17,167,466) Adjustments to reconcile net loss to cash used in operating activities Depreciation and amortization 5,367,289 5,177,980 Stock-based compensation 1,647,422 2,360,187 Unrealized gain on derivative - (1,389,300) Loss on dissolution of majority-owned subsidiary 227,402 - Deferred income taxes 299,094 - Changes in operating assets and liabilities Accounts receivable (1,199,419) (2,753) Inventory 105,578 381,710 Prepaid expenses, deposits and other assets (145,778) 248,208 Other receivables (13,610) 1,205,584 Due from related parties 527,324 483,874 Accounts payable 3,449,839 (350,837) Accrued liabilities (92,865) (402,536) Deferred revenue 694,434 1,928,935 Long-term liabilities (63,116) (233,055) Due to related parties 13,272 (346,395) ----------- ----------- Cash used in operating activities (3,556,164) (8,105,864) ----------- ----------- INVESTING ACTIVITIES Purchase of property, plant and equipment, net (1,875,825) (1,952,209) Acquired cash of TransVideo - 243,226 ----------- ----------- Cash used in investing activities (1,875,825) (1,708,983) ----------- ----------- FINANCING ACTIVITIES Private placement, net 4,849,546 9,754,338 Proceeds from exercise of stock options - 32,155 ----------- ----------- Cash provided by financing activities 4,849,546 9,786,493 ----------- ----------- Net decrease in cash and cash equivalents during the year (582,443) (28,354) Cash and cash equivalents, beginning of year 12,929,325 12,957,679 ----------- ----------- Cash and cash equivalents, end of year 12,346,882 12,929,325 =========== ===========


Copyright @ Marketwire

Page: 1


Related Keywords: NeuLion, Inc. , Internet, Communications, Web, Smart Phone, Research, Video, Broadcast, Management, Streaming, Internet/Web, Prosumer/Consumer, Business, Internet, Phone OS, VOD, Law, Anim, Broadcast Technology, Internet Media, DTV, HDTV, IPTV, IPTV, Canada, USA, Marketwire, Inc., , Sports, Financial, Television, Games, Internet Technology, Game Technology, Business, Entertainment, Internet, Sports, Basketball, Other,

HOT THREADS on DMN Forums
Content-type: text/html  Rss  Add to Google Reader or
Homepage    Add to My AOL  Add to Excite MIX  Subscribe in
NewsGator Online 
Real-Time - what users are saying - Right Now!

Our Privacy Policy --- @ Copyright, 2015 Digital Media Online, All Rights Reserved