PLAINVIEW, NY — (Marketwired) — 08/09/13 — 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 and six months ended June 30, 2013 (all amounts are in U.S. dollars).
Revenue was $11.0 million for the three months ended June 30, 2013, as compared to $8.7 million for the three months ended June 30, 2012, an increase of $2.3 million, or 26%.
Cost of revenue, as a percentage of revenue, exclusive of depreciation and amortization, improved to 29% for the three months ended June 30, 2013, as compared to 35% for the three months ended June 30, 2012.
Operating loss was $(1.0) million for the three months ended June 30, 2013, as compared to $(3.4) million for the three months ended June 30, 2012, an improvement of $2.4 million.
Non-GAAP Adjusted EBITDA (as defined below) was $0.2 million for the three months ended June 30, 2013, an improvement of $1.7 million, as compared to $(1.5) million in the same period a year ago, and Consolidated Net Loss improved by $2.2 million as compared to the same period a year ago.
Revenue was $22.9 million for the six months ended June 30, 2013, as compared to $19.1 million for the six months ended June 30, 2012, an increase of $3.8 million, or 20%.
Cost of revenue, as a percentage of revenue, exclusive of depreciation and amortization, improved to 29% for the six months ended June 30, 2013, as compared to 40% for the six months ended June 30, 2012.
Operating loss was $(1.2) million for the six months ended June 30, 2013, as compared to $(6.8) million for the six months ended June 30, 2012, an improvement of $5.6 million.
Non-GAAP Adjusted EBITDA (as defined below) was $1.1 million for the six months ended June 30, 2013, an improvement of $4.6 million, as compared to $(3.5) million in the same period a year ago, and Consolidated Net Loss improved by $5.4 million as compared to the same period a year ago.
“We are very pleased with NeuLion-s financial results for the second quarter of 2013, in particular the improvements in revenue, cost of revenue and non-GAAP Adjusted EBITDA, as compared to the same period a year ago,” said Nancy Li, Chief Executive Officer of the Company. “The growth in consumer consumption of content on Internet-connected devices such as the iPad, iPhone, Android tablets and phones, gaming devices and connected TVs has paved the way for NeuLion to increase its presence in the marketplace, and we expect our role to continue to expand going forward as we deliver continued innovation.”
Interactive video experience delivering live and on-demand video
Partnered with the Barclays Center to create the Digital Ticket, a service that allows fans to watch select games, concerts and other events outside the venue on PC, mobile and tablet devices.
Signed agreement with Coliseum Sports Media Ltd to deliver in New Zealand all 380 games of the Barclays Premier League via a dedicated pay-per-view digital service on PC, iPhone, iPad, Android phone and tablets and on the TV through Apple AirPlay.
Integrated NHL GameCenter with Twitter using NeuLion-s social media technology to provide fans with Twitter Cards allowing them to seamlessly embed videos directly in Tweets for easy sharing and viewing.
Won the 2013 Cynopsis Sports Media Award in the “App – Affiliated” category for UFC.TV.
Was a finalist in the 2013 Sports Business Awards in the “Best in Sports Technology” category.
Athletic portal and online destination for fans
Created an all-new Ivy League Conference subscription-based digital network that provides each member school with its own individual channel in addition to a conference-wide channel covering all the conference-s schools, sports and events.
Signed several new collegiate digital and ticketing partnerships with schools including Oklahoma University, the University of Nebraska Omaha, Old Dominion University and Fairfield University.
Broadcasted Digital Dudes live from Sports Video Group-s College Sports Summit in Atlanta, Georgia. With 12 sessions over the two-day conference, Digital Dudes covered a variety of topics and hosted speakers from the Big 10 Network, the Ivy League Conference, the Pac-12 Conference, Learfield Sports, the University of Miami, Duke University and others.
Multi-device content delivery
Partnered with SENSIO Technologies to deliver 3DGO!, a streaming 3D VOD channel that offers consumers access to an exceptional 3D experience at home in terms of quality, premium 3D content and user-friendliness. The NeuLion TVE Platform is responsible for the storefront interface and back-end delivery for instant access to SENSIO-s movie library of high-quality 3D entertainment.
Signed multi-year agreement with Bright House Networks to provide live streaming of high school sports to fans on multiple Internet-connected devices.
Selected by Participant Media to design and deliver the new cable network-s downloadable interactive app called Pivot. As a brand-new general entertainment network that targets 18-30 year olds (millennials), all live and on-demand content will be streamed to multiple digital devices and available to either authenticated Pay TV subscribers or to broadband-only subscribers, giving viewers an incredible digital destination to access anytime, anywhere.
Revenue was $11.0 million, as compared to $8.7 million for the three months ended June 30, 2012, an increase of $2.3 million, or 26%.
Cost of revenue, exclusive of depreciation and amortization, was $3.2 million (29% of revenue), as compared to $3.1 million (35% of revenue) for the three months ended June 30, 2012, marking a period-over-period change of $0.1 million, or 3% (6% of revenue).
Operating loss was $(1.0) million, as compared to $(3.4) million for the three months ended June 30, 2012, an improvement of $2.4 million.
Consolidated net loss was $1.3 million, which includes $1.5 million of non-cash and/or non-operating charges, resulting in Non-GAAP Adjusted EBITDA of $0.2 million, as compared to a consolidated net loss of $3.5 million, which includes $2.0 million of non-cash and/or non-operating charges, resulting in Non-GAAP Adjusted EBITDA of $(1.5) million for the three months ended June 30, 2012, marking a period-over-period improvement in Non-GAAP Adjusted EBITDA of $1.7 million.
Revenue was $22.9 million, as compared to $19.1 million for the six months ended June 30, 2012, an increase of $3.8 million, or 20%.
Cost of revenue, exclusive of depreciation and amortization, was $6.6 million (29% of revenue), as compared to $7.6 million (40% of revenue) for the six months ended June 30, 2012, marking a period-over-period improvement of $1.0 million, or 13% (11% of revenue).
Operating loss was $(1.2) million, as compared to $(6.8) million for the six months ended June 30, 2012, an improvement of $5.6 million.
Consolidated net loss was $1.6 million, which includes $2.7 million of non-cash and/or non-operating charges, resulting in Non-GAAP Adjusted EBITDA of $1.1 million, as compared to a consolidated net loss of $7.0 million, which includes $3.5 million of non-cash and/or non-operating charges, resulting in Non-GAAP Adjusted EBITDA of $(3.5) million for the six months ended June 30, 2012, marking a period-over-period improvement in Non-GAAP Adjusted EBITDA of $4.6 million.
As of June 30, 2013, we had $9.4 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, discounts 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. 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. 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 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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