Princeton Video Image, Inc. Announces Record Fiscal 1999 Fourth Quarter and Year-end Revenues
LAWRENCEVILLE, NJ--(BUSINESS WIRE)--Sept. 10, 1999--
-Thirteenth Consecutive Quarter of Year-Over-Year Revenue Growth-
-NFL Football, International Business Drive Record Gains-
-Revenue up 109% for Quarter, 76% for the Year-
Princeton Video Image, Inc. (NASDAQ: PVII)
(http://www.pvi-inc.com), the leader in virtual advertising and
imaging solutions for television, today reported record revenues,
excluding non-recurring items, for its fiscal 1999 fourth quarter and
year ended June 30, 1999.
For the quarter, total revenues increased 109% to $425,835,
compared with $203,610 in the comparable quarter of 1998. The Company
reported a net loss of $2.9 million or $0.35 per diluted share,
compared with a net loss of $1.9 million, or $0.23 per diluted share,
in the comparable quarter of 1998. The increased loss per share
primarily reflects the Company's increased sales and marketing
expenses, including program rights acquisition and sales promotion
programs, which the Company believes are essential for future revenue
growth.
For the year, revenues increased 76% to $1,222,213, compared with
$696,012 in fiscal 1998. Included in total revenues for fiscal 1998 is
the recognition of $137,500 in non-recurring fees as a result of a
settlement with a former licensee in the second quarter. The Company
reported a net loss of $9.7 million, or $1.18 per diluted share,
compared with a net loss of $9.1 million, or $1.55 per diluted share,
a year earlier. Weighted average common shares outstanding increased
by 39% in the period reflecting the Company's December 1997 public
offering.
Mr. Dennis Wilkinson, President and Chief Executive Officer of
PVI, Inc., stated, "Our virtual imaging technology continued to gain
momentum and popularity this past year. We reported the highest ever
revenue in the Company's history for both the fourth quarter and the
fiscal year as we achieved our thirteenth consecutive quarter of
year-over-year revenue improvement."
Commenting further on PVI's accomplishments during the year, Mr.
Wilkinson said, "A principal area of growth, and new 'firsts', this
past year was NFL football. It began with the 1998 preseason, when the
Chicago Bears, the Arizona Cardinals and the New York Giants, all
became first-time PVI clients. The pace increased in the fall, when
CBS Sports announced their selection of PVI as the exclusive provider
of the CBS First Down Line for NFL regular and post-season games.
Shortly thereafter, the NFL and PVI announced the signing of an
agreement making PVI the exclusive virtual advertising and imaging
provider for broadcasts of NFL programming outside the US. All of our
hard work paid off on Super Bowl Sunday, 1999 when our technology was
used to provide starting line-up special effects for Fox, while
simultaneously inserting targeted virtual advertisements for viewers
watching the game on Televisa in Mexico, Global Television in Canada
and the world feed in dozens of other countries."
Mr. Wilkinson continued, "Significant new revenue was generated
from other international sources as well. Our renegotiated agreement
with our Latin American Licensee generated new top-line revenue for
PVI, and Sasani Limited began generating revenue for PVI when they
signed on as our South African licensee in January."
Mr. Wilkinson added, "PVI also reached new heights in other areas
this year, beginning with the addition of the Philadelphia Phillies to
our Major League Baseball lineup. The addition of this popular team
from one of the top five US television markets was a great way to
start the fiscal year. In addition, PVI's patented technology made its
first appearance in motorsports, during the ABC Sports broadcast of
the Brickyard 400 from the Indianapolis Motor Speedway. PVI also
successfully introduced a new product - the virtual finish line - in
NTRA horseracing on Fox. In April, we introduced our Series 7 Live
Video Insertion System (L-VIS(TM)) which increases our ability to
provide virtual insertion services in a wider variety of mobile
broadcast vehicles. Finally, the UPN network brought viewers the first
domestic use of our post-production product for virtual product
placement in prime time."
Mr. Wilkinson concluded, "As competition for consumers' attention
grows, virtual advertising will prove to be an effective marketing
tool. A recently released Gallup poll concludes that virtual
advertising has more impact on TV viewers than arena signage and other
media."
Commenting on the year, Brown Williams, Chairman of the Board,
said, "This year was particularly significant for our outstanding
additions to our management group. Denny Wilkinson brought his
world-class advertising, marketing and leadership skills to the job of
President and CEO, and was joined by Carlo Basile whose experience in
digital television and product development make him a valuable
addition in the newly created role of Chief Technology Officer."
Mr. Williams continued, "We believe we have made the right
investments to build the foundation for our success in the coming
years. Since July 1 of this year, PVI technology has been seen in US
soccer during the inaugural DLJ Gotham Cup tournament. The Minnesota
Vikings have adopted our technology and sold out their virtual ad
inventory for preseason football. Our baseball clients are
experiencing higher sales than ever before. Global Television, one of
Canada's premier broadcasters has signed a multi-faceted, two-year
agreement for the use of our technology.
CBS and PVI have agreed to a multi-year extension of the first down
line agreement that also includes the CBS Sports broadcast of Super
Bowl XXXV in January 2001.
PVI is developing what could be one of its most exciting new products
- virtual images that are interactive. This product, designed for the
Internet and ultimately, interactive television, is based on PVI's
patented, proprietary technology and will offer advertisers
revolutionary new ways to reach viewers, whether they are watching
television broadcasts or streaming video."
Mr. Williams concluded, "Based on the same proprietary PVI
technology used in virtual advertising, we have now created four
distinct markets. We continue to aggressively pursue the substantial
opportunities for PVI to grow in the $18 billion sports advertising
industry. At the same time we are committed to the post production,
sports enhancement and interactive television markets. Our new
agreements are growing evidence of the breadth of interest in our
video insertion technology. Significant growth opportunities are ahead
of us and we intend to aggressively pursue them."
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. PVI has
provided video insertion services for over 1,000 live telecasts
worldwide, including broadcasts of Major League Baseball, National
League Football, professional soccer, motorsports, and other live
events.The Company is headquartered in Lawrenceville, New Jersey,
with offices in New York City and Brussels, with licensees' offices in
Mexico City and Johannesburg.
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.
PRINCETON VIDEO IMAGE, INC.
CONDENSED STATEMENT OF OPERATIONS
Three Months Ended Twelve Months Ended
June 30, June 30,
---------------------- -----------------------
1999 1998 1999 1998
License fees $ 209,443 $ 60,848 $ 527,685 $ 371,223
Advertising and
production revenue 216,392 142,762 694,528 324,789
Total revenue 425,835 203,610 1,222,213 696,012
Costs and expenses:
Selling, general and
administrative 1,827,603 1,031,518 5,911,427 4,652,384
Research and
development 307,831 450,847 1,508,875 1,719,703
L-VIS System costs 1,349,961 956,255 4,431,759 2,456,019
Total costs and
expenses 3,485,395 2,438,620 11,852,061 8,828,106
Operating loss (3,059,560) (2,235,010) (10,629,848) (8,132,094)
Interest and other
financial (expense) -- -- -- (1,814,178)
Interest and other
income 161,816 384,173 975,850 861,948
Net loss (2,897,744) (1,850,837) (9,653,998) (9,084,324)
Accretion of
preferred stock
dividends (11,012) (11,013) (44,050) (44,050)
Net loss applicable
to common stock (2,908,756) (1,861,850) (9,698,048) (9,128,374)
=========== =========== ============ ===========
Basic and diluted net
loss per share
applicable to
common stock $ (0.35) $ (0.23) $ (1.18) $ (1.55)
=========== =========== ============ ===========
Weighted average
common shares
outstanding 8,195,839 8,175,205 8,186,207 5,890,530
*T
--30--sm/ny*
CONTACT: Princeton Video Image, Inc.
Lawrence L. Epstein
Vice President of Finance and
Chief Financial Officer
Princeton Video Image, Inc.
(609) 912-9400
pvi-inc.com
or
Investor Contact:
Cheryl Schneider/John Blackwell
Morgen-Walke Associates, Inc.
(212) 850-5600
or
Contact:
Christina Friedkin
Roher Public Relations
(212) 986-6668 |
