(PR NEWSWIRE) INTERVU Reports Record Second Quarter - Revenues Increased F
INTERVU Reports Record Second Quarter - Revenues Increased Five-Fold From
Previous Year
INTERVU Grows Customer Base by Over 75% in Second Quarter
SAN DIEGO, July 22 /PRNewswire/ -- INTERVU Inc. (Nasdaq: ITVU), the
leading service provider of Internet audio and video delivery solutions, today
reported record-breaking net revenues for the quarter ended June 30, 1999.
Revenue for the 1999 second quarter increased more than five-fold to
$1.7 million, from $0.3 million in the corresponding period last year, and a
41% increase when compared to the first quarter of 1999.
The net loss for the quarter totaled $4.0 million, or ($0.34) per share,
compared with a net loss in the corresponding period last year that totaled
$3.1 million, or ($0.34) per share. During the first and second quarters of
1999, INTERVU did not record any charges relating to the NBC Strategic
Alliance. Therefore, the net loss excluding charges associated with the NBC
Strategic Alliance for the quarter remained the same, compared with a net loss
in the corresponding period last year of $2.6 million, or ($0.28) per share.
For the six-month period ended June 30, 1999, net revenues were
$3.0 million, more than a six fold increase in revenues of $0.4 million for
the corresponding period in 1998. The net loss for the six-month period ended
June 30, 1999, was $7.1 million, or ($0.65) per share, compared with a net
loss in the corresponding period last year that totaled $8.8 million, or
($0.99) per share. The net loss excluding the NBC charges in the
corresponding period last year totaled $4.4 million, or ($0.50) per share.
INTERVU ended the second quarter with $115.5 million in cash and cash
equivalents. This increase in cash over the previous quarter resulted from a
May 10 public offering that was led by Prudential Securities. This offering
raised $97.8 million in net proceeds from the issuance of 2,875,000 shares of
common stock.
"This was another highly productive quarter for INTERVU," said Harry
Gruber, Chairman & CEO of INTERVU. "As we rapidly grow our number of
customers to record levels -- a 75% increase over the first quarter of this
year -- we continue to focus our efforts on the expansion of our distributed
network and value-added services to support this rapidly growing customer
base. At the halfway point in 1999, we have 235 customers, over 40% of which
have come through our 16 resellers."
During the second quarter, INTERVU continued to expand its strong presence
in the entertainment industry, while also moving rapidly into the business-to-
business space. New entertainment customers for the quarter included CNET,
Quokka Sports, Tunes.com, and NBC6, the local NBC affiliate in Charlotte,
North Carolina. In addition, INTERVU closed a deal with Muze and agreed to
make 1.2 million 30-second promotional music clips from over 100,000 CDs
available to online music retailers. The clips will enable consumers to
sample the music before making their purchasing decisions. Some of the live
entertainment events INTERVU delivered during the second quarter included TBS
Superstation's coverage of the Coca-Cola 600 NASCAR race, practice sessions
and behind-the-scenes footage from ESPN's Summer X Games, and live coverage of
the Wimbledon tennis tournament.
In the business-to-business space, INTERVU signed a number of new Internet
conferencing customers, including CCBN.com, Investor Broadcast Network
(formerly Vcall), c-call, and through its relationship with Visual Data
Corporation (Nasdaq: VDAT), INTERVU is also supporting PRNewswire. Another
area of high-growth for streaming media is in the convention & meeting
industry. INTERVU has delivered sessions for over 10 multi-day conferences
since the beginning of the year, 80% of which utilized INTERVU AUDIENCE, the
company's promotional software solution that provides Web site owners with an
easy-to-use, comprehensive solution for bringing people to live events. Over
the past quarter, INTERVU delivered sessions from the MP3 Summit, the National
Cable Television Association's Cable '99 convention, and Pseudo Program's
coverage of E3, the largest gaming convention in the industry.
INTERVU also established a relationship with Netpodium, a Seattle-based
innovator of live, interactive Web-based communications. Netpodium uses the
INTERVU network, and INTERVU offers the Netpodium software platform to its
customers in need of chat and interactivity during an online presentation
broadcast.
INTERVU's senior management, including Harry Gruber, CEO, Ken Ruggiero,
CFO, and Ed Huguez, COO, will announce the company's 1999 second quarter
financial results via the Internet using INTERVU's new Internet broadcasting
service, INTERVU Presents. This service allows users to broadcast live and
on-demand audio and video presentations with synchronized Microsoft PowerPoint
slides via the Internet over INTERVU's distributed network.
To view INTERVU's second quarter Webcast at www.intervu.net, users must
have Microsoft Internet Explorer with version 4.0 or above installed and the
Windows Media Player installed. The Webcast will also be available on demand
via INTERVU's Web site following the live event.
About INTERVU Inc.
INTERVU provides Web site owners and content publishers with services for
the delivery -- "streaming" or downloading -- of live and on-demand video and
audio content over the Internet. INTERVU's services automate the publishing,
distribution and programming of video and audio content. INTERVU uses a
scalable, patent-pending distribution network comprised of servers
strategically located in major Internet hosting centers. INTERVU's customers
use its video and audio distribution services to transmit entertainment,
sports, news, business to business, advertising and distance learning content.
INTERVU's current customers include CNET, CNN, House of Blues, Intel, MSNBC,
Microsoft, AOL MovieFone, Music Choice, NBC, Onradio.com, RadioWave.com,
Saatchi & Saatchi, and Turner Broadcasting. Additional information can be
found at www.intervu.net.
Except for the historical information contained herein, this news release
contains forward-looking statements that are subject to risks and
uncertainties that might cause actual results to differ from those foreseen,
including the market acceptance for INTERVU's specialized services,
technological change and intense competition, as well as the other risks
detailed from time to time in INTERVU's SEC reports, including the report on
Form 10-K filed on March 30, 1999.
INTERVU Inc.
Income Statement
(In thousands, except share and per share data)
Three Months Ended Six Months Ended
June 30, June 30,
1999 1998 1999 1998
Net revenue $1,734 $283 $2,966 $396
Operating expenses
Research and development 1,999 846 3,221 1,406
Sales & marketing 2,123 1,080 3,882 2,034
General & administrative 2,300 1,151 3,972 1,825
Total operating expenses 6,422 3,077 11,075 5,265
Loss from operations (4,688) (2,794) (8,109) (4,869)
Charges associated with
the NBC Strategic Alliance
Agreement -- 500 -- 4,373
Interest income 735 231 1,033 427
Net loss (3,953) (3,063) (7,076) (8,815)
Basic and diluted loss
per share (0.34) (0.34) (0.65) (0.99)
Net loss excluding
NBC charges (3,953) (2,563) (7,076) (4,442)
Net loss per share (basic
and diluted) excluding
the NBC charges (0.34) (0.28) (0.65) (0.50)
Weighted average
shares outstanding 11,734,589 9,022,496 10,965,960 8,923,612
INTERVU Inc.
Balance Sheet Information
(In thousands)
June 30, December 31,
1999 1998
Cash, cash equivalents
and short term investments $115,475 $27,046
Working capital $112,420 $24,799
Total liabilities $5,603 $3,051
Total stockholders' equity $117,759 $27,313
SOURCE INTERVU Inc.
-0- 07/22/99
/CONTACT: Kenneth L. Ruggiero, 619-623-8400, ext. 154,
kruggiero@intervu.net, or Anjeanette Steele, 619-623-8400, ext. 134,
asteele@intervu.net, both of INTERVU Inc./
/Web site: intervu.net
(ITVU)
CO: INTERVU Inc.
ST: California
IN: CPR MLM
SU: ERN
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