PLAINVIEW, NY — (Marketwired) — 11/07/13 — 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 nine months ended September 30, 2013 (all amounts are in U.S. dollars).
Revenue was $10.0 million for the three months ended September 30, 2013, as compared to $9.3 million for the three months ended September 30, 2012, an increase of $0.7 million, or 7%.
Cost of revenue, as a percentage of revenue, exclusive of depreciation and amortization, improved to 26% for the three months ended September 30, 2013, as compared to 31% for the three months ended September 30, 2012.
Operating loss was $(1.5) million for the three months ended September 30, 2013, as compared to $(2.1) million for the three months ended September 30, 2012, an improvement of $0.6 million.
Non-GAAP Adjusted EBITDA (as defined below) was $0.2 million for the three months ended September 30, 2013, an improvement of $0.8 million, as compared to $(0.6) million in the same period a year ago, and Consolidated Net Loss improved by $0.4 million as compared to the same period a year ago.
Revenue was $33.0 million for the nine months ended September 30, 2013, as compared to $28.5 million for the nine months ended September 30, 2012, an increase of $4.5 million, or 16%.
Cost of revenue, as a percentage of revenue, exclusive of depreciation and amortization, improved to 28% for the nine months ended September 30, 2013, as compared to 37% for the nine months ended September 30, 2012.
Operating loss was $(2.8) million for the nine months ended September 30, 2013, as compared to $(8.9) million for the nine months ended September 30, 2012, an improvement of $6.1 million.
Non-GAAP Adjusted EBITDA (as defined below) was $1.3 million for the nine months ended September 30, 2013, an improvement of $5.4 million, as compared to $(4.1) million in the same period a year ago, and Consolidated Net Loss improved by $5.8 million as compared to the same period a year ago.
“NeuLion delivered strong financial results for the third quarter of 2013, which was especially impressive given the current seasonality of the business,” said Nancy Li, Chief Executive Officer of the Company. “We are very excited to see increased demand across a wide variety of industries as consumption of digital content through Internet-connected devices continues to increase. We strive to drive innovation and continue to be a leader in this industry.”
Interactive video experience delivering live and on-demand video
Launched new versions of NFL Game Pass, NFL Game Rewind and NFL Audio Pass with enhanced features for the start of the 2013 – 2014 football season.
Streamed the Rogers Cup in Canada live to give fans unlimited access to every serve, volley and smash throughout the tennis tournament.
Extended partnership with the American Hockey League and delivered all new AHL Live website for all 1,200 live games for fans on multiple devices, including iPad, iPhone and Android.
Reached another technology milestone with the delivery of the NeuLion Sports Platform Version 5.0.
Athletic portal and online destination for college fans
Created and launched all-new, conference-wide digital networks for America East and the Atlantic 10 Conferences. Both designed to expand the content and its reach with live and on-demand streaming of events, interviews, featured stories and highlights; available on multiple devices.
Launched and redesigned over 20 NeuLion partners- official college athletic and conference websites for the start of the fall 2013 sports season.
Started the 2013-2014 NCAA college season with over 175 schools, which we expect collectively to stream over 18,000 live collegiate events.
Multi-device content delivery
Launched version 3.0 of BTN2Go, featuring the ability to choose among live game, archived games and individual highlight packages, enhanced social media sharing on Facebook and Twitter, and an enhanced fan experience on mobile and tablet devices.
Partnered with Rogers to deliver NFL Sunday Ticket Online in Canada as part of the Rogers Anyplace TV service that includes access to all 206 NFL games live online for Rogers Cable customers who have subscribed to the NFL Sunday Ticket Package.
Extended partnership with Canadian Broadcasting Corporation to clip highlights and deliver them to mobile and Xbox devices during Hockey Night in Canada.
Revenue was $10.0 million, as compared to $9.3 million for the three months ended September 30, 2012, an increase of $0.7 million, or 7%.
Cost of revenue, exclusive of depreciation and amortization, was $2.6 million (26% of revenue), as compared to $2.9 million (31% of revenue) for the three months ended September 30, 2012, marking a period-over-period improvement of $0.3 million, or 10%.
Operating loss was $(1.5) million, as compared to $(2.1) million for the three months ended September 30, 2012, an improvement of $0.6 million.
Consolidated net loss was $1.7 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 $2.1 million, which includes $2.8 million of non-cash and/or non-operating charges, resulting in Non-GAAP Adjusted EBITDA of $(0.6) million for the three months ended September 30, 2012, marking a period-over-period improvement in Non-GAAP Adjusted EBITDA of $0.8 million.
Revenue was $33.0 million, as compared to $28.5 million for the nine months ended September 30, 2012, an increase of $4.5 million, or 16%.
Cost of revenue, exclusive of depreciation and amortization, was $9.3 million (28% of revenue), as compared to $10.5 million (37% of revenue) for the nine months ended September 30, 2012, marking a period-over-period improvement of $1.2 million, or 11%.
Operating loss was $(2.8) million, as compared to $(8.9) million for the nine months ended September 30, 2012, an improvement of $6.1 million.
Consolidated net loss was $3.3 million, which includes $2.1 million of non-cash and/or non-operating charges, resulting in Non-GAAP Adjusted EBITDA of $1.3 million, as compared to a consolidated net loss of $9.2 million, which includes $5.1 million of non-cash and/or non-operating charges, resulting in Non-GAAP Adjusted EBITDA of $(4.1) million for the nine months ended September 30, 2012, marking a period-over-period improvement in Non-GAAP Adjusted EBITDA of $5.4 million.
As of September 30, 2013, we had $21.3 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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