Friday April 28, 7:01 am Eastern Time
Company Press Release
Princeton Video Image, Inc. Reports Increased Revenues for Fiscal 2000 Third Quarter
Quarterly Revenues of $790,277 Up 123% Year-Over-Year
LAWRENCEVILLE, N.J.--(BUSINESS WIRE)--April 28, 2000-- Sixteenth Consecutive Quarter of Year-over-Year Revenue Growth
Princeton Video Image, Inc. (NASDAQ: PVII; pvi-inc.com), the leader in virtual advertising and imaging solutions for television, today reported results for its fiscal 2000 third quarter ended March 31, 2000.
For the quarter, total revenues increased 123% to $790,277 compared to $354,140 in the same period last year. The increase was fueled by increased use of PVI's patented technology in professional and college football, increased royalty revenue from the Company's Mexican and Canadian licensees and revenues from CBS's ``The Early Show''. The Company reported a net loss of $3.1 million, or $0.32 per share in the fiscal 2000 third quarter versus a net loss of $2.7 million, or $0.33 per share in the third quarter of fiscal 1999. The increase in the net loss reflects the Company's investment in new salespeople, graphics and field operations as well as legal fees to further strengthen its patent portfolio. The reduced loss per share reflects a 20% increase in the number of weighted average shares outstanding. Weighted average common shares outstanding for the quarter were 9,850,870 compared to 8,183,552 for the same period last year.
The Company's third quarter net loss improved 17% from a loss of $3.8 million in the second quarter of fiscal 2000, excluding the second quarter gain from the sale of state tax NOL benefits.
For the nine months ended March 31, 2000, total revenues increased 135% to $1.9 million, compared to $796,378 in the same period a year ago. The Company reported a net loss of $9.4 million, or $1.02 per share for the nine-month period versus a net loss of $6.8 million, or $0.83 per share for the first nine months of fiscal 1999. Weighted average common shares outstanding for the first nine months of fiscal 2000 increased 12.5% to 9,206,803, compared to 8,182,996 for the comparable year-ago period.
Mr. Dennis Wilkinson, President and Chief Executive Officer of Princeton Video Image, Inc., (PVI) commented, ``The breadth of events in which our video insertions are being used has expanded tremendously. In the third quarter alone we signed a contract with Jack Nicklaus Productions to create insertions for its broadcasts of golf events and in auto racing we signed a full season agreement with the Indy Racing League which includes the insertion of advertisements in the ABC Sports Broadcast of America's most famous auto race, the Indianapolis 500. We resigned deals to insert advertisements and images in Major League Baseball with the Philadelphia Phillies and the San Diego Padres and greatly expanded our business signing a full season deal with ESPN for Sunday Night Baseball. We provided virtual program enhancements for the Ski jump event in Turner Network Television's broadcast of the Winter Goodwill Games. Finally, in international soccer, Publicidad Virtual, our licensee in Mexico, entered into a multi-year agreement to insert virtual advertisements in Mexican National Team soccer broadcasts on Mexico's two largest television networks, Televisa and TV Azteca. These broadcasts are expected to reach over 70% of the Mexican audience. In addition to sports broadcasts, we created virtual images for the pre-awards portion of the Grammy Awards program on CBS owned television stations. Along with our continued relationship with CBS News to create and insert promotional images in broadcasts of 'The Early Show' and our continued presence in football, these agreements highlight the continuing growth of virtual imaging across the broad spectrum of broadcasting and demonstrates the expanding adoption of virtual image insertion technology by advertisers as they seek new ways to reach consumers.''
Mr. Wilkinson continued, ``In addition, Princeton Video Image has begun development work on the next generation of virtual advertising technology - personalized, interactive advertising and visual enhancements inside streaming media and digital television. The promise of interactive television is growing near and we believe our interactive capabilities can be an important value-added feature that creates new revenue for programmers and customized viewing experiences for consumers. As part of our ongoing development of this breakthrough application of our core technology, PVI will be demonstrating this technology to potential strategic partners in the coming months and will continue to devote significant attention and resources to this important product.''
Princeton Video Image, Inc. has developed and is marketing a real-time video insertion system that, through patented pattern recognition technology, places computer-generated electronic images into television broadcasts of sporting events as well as other programming. These electronic images range from simple corporate names and logos to sophisticated 3-D images and animated effects. In virtual advertising, broadcasters insert advertising messages into telecasts so that the ads appear as part of the live stadium scene. PVI has provided video insertion services for over 1,200 live telecasts worldwide, including broadcasts of Major League Baseball, the National Football League, professional soccer, motorsports, and other live events. The Company is headquartered in Lawrenceville, New Jersey, with offices in New York City and Brussels, and licensees' offices in Mexico City, Johannesburg and Madrid.
Any statements contained in this press release that relate to future plans, events or performance are forward-looking statements that involve risks and uncertainties including, but not limited to, those relating to market acceptance, dependence on strategic partners and third party sales, contractual restraints on use of PVI's technology, a rapidly changing commercial and technological environment, competition, possible adverse regulations, need for additional financing, intellectual property rights and litigation, and other risks identified in PVI's filings with the Securities and Exchange Commission. Actual results, events or performance may differ materially. PVI undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events.
For the three months For the nine months
ended ended
March 31, March 31,
-------------------- ------------------------
2000 1999 2000 1999
---- ---- ---- ----
Royalties and
license fees $ 494,060 $ 172,975 $ 975,793 $ 318,242
Advertising and
contract revenue 296,217 181,165 894,155 478,136
-------------------- ------------------------
Total revenue 790,277 354,140 1,869,948 796,378
Costs and
expenses:
Sales and
marketing 936,922 867,825 3,171,416 1,645,688
Product
development 801,948 374,290 2,007,596 1,201,044
Field operations
and support 1,429,936 1,235,448 4,356,574 3,081,798
General and
administrative 951,920 874,243 2,810,592 2,438,136
-------------------- ------------------------
Total costs
and expenses 4,120,726 3,351,806 12,346,178 8,366,666
Operating loss (3,330,449) (2,997,666) (10,476,230) (7,570,288)
Interest and
other income 193,308 293,176 516,742 814,034
-------------------- ------------------------
Loss before
tax benefit (3,137,141) (2,704,490) (9,959,488) (6,756,254)
Tax benefit - - 596,998 -
-------------------- ------------------------
Net loss (3,137,141) (2,704,490) (9,362,490) (6,756,254)
Accretion of
preferred stock
Dividends (11,013) (11,013) (33,038) (33,038)
-------------------- ------------------------
Net loss
applicable to
common stock $(3,148,154) $(2,715,503) $(9,395,528) $(6,789,292)
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Basic and diluted
net loss per share
applicable to
common stock ($0.32) ($0.33) ($1.02) ($0.83)
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Weighted average
number of shares
of common stock
outstanding 9,850,870 8,183,552 9,803,636 8,182,996
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Contact:
Princeton Video Image, Inc., Lawrenceville
Lawrence L. Epstein
Vice President of Finance and
Chief Financial Officer
609/912-9400
pvi-inc.com
or
Investor Contact:
Morgen-Walke Associates, Inc., New York
Cheryl Schneider/John Blackwell
212/850-5600 |
