Wednesday December 29, 3:44 pm Eastern Time
Company Press Release
SOURCE: Entertainment Digital Network, Inc.
EDnet Reports Year End Results
SAN FRANCISCO, Dec. 29 /PRNewswire/ -- Entertainment Digital Network, Inc. (OTC Bulletin Board: EDNT - news) announced fourth quarter and fiscal year financial results today.
For the quarter and fiscal year ending September 30, 1999, the Company reported an increase in its core and new services, which offset the majority of the loss of revenue from the sale of its subsidiary, Internet Business Solutions (``IBS') in December, 1998. Revenues for the quarter show a slight decrease in net sales to $1,002,789 compared to revenues of $1,147,028 in the prior period. Revenues for the fiscal year ended September 30, 1999 decreased to $3,910,466 compared to $4,247,998 in the comparable period last year. The decrease in revenues for the quarter and the year to date was directly due to of the loss of $348,811 for the quarter and $1,111,722 for the year in contribution sales of web development, consulting and hosting from the Company's subsidiary, IBS. This decrease in revenue plus the costs of developing the infrastructure for the company's new products and services resulted in a loss for the quarter of ($137,910) or ($0.01) per share based on 20,200,059 weighted average shares outstanding. This is compared with a net income of $56,570 in the prior years comparable quarter. For the fiscal year, the Company recorded a net loss of $125,907 or $.01 per share based on 22,987,372 weighted average shares outstanding. Net income for the fiscal year ending June 30, 1998 had been 518,136 or $.07 per share based on 12,749,745 weighted average shares outstanding. The current fiscal year includes a gain from sale of the assets of its subsidiary, Internet Business Solutions, of $663,530. The prior year's net income included non-recurring gains from the sale of Preferred shares of Breakthrough Software, Inc., of $415,000 and gains of $710,488 from the restructuring of debt and write off of note payables to IDB for $200,000.
``The fourth quarter reflects accelerated revenue growth in our new webcasting and video transport businesses, and the continued expansion of our core audio client base,' said Tom Kobayashi, Chief Executive Officer of Entertainment Digital Network, Inc. ``In the fourth quarter of fiscal year 1999 we saw revenues from the new product and service for transporting video over high speed, wide bandwidth Internet connections. We have seen significant growth in the sales of this new product at the start of our new fiscal year, and with the new version 1.3 software, the capabilities of this video transport appliance have increased dramatically. In addition, the live webcast production service that we launched in the second quarter of this fiscal year, has shown significant growth in the fourth quarter and continues strong as we begin the new fiscal year. We continue to make significant investments in human resources and capital equipment, and now have the infrastructure to expand our services and to aggressively sell our new video products. Our growth strategy places major emphasis on our new products and services in order to insure future multiple sources of recurring revenue in addition to our core ISDN audio business.'
EDnet, a subsidiary of Visual Data Corporation (Nasdaq: VDAT - news), is a systems integrator and network service provider, specializing in private transmission of high-quality digitized audio and video over wide area networks (WAN), and provides wideband Internet access, hosting and web broadcasting services.
This press release contains forward-looking statements that involve risks and uncertainties. The Company's actual results could differ materially from those discussed here. Factors that might cause such a difference include, but are not limited to, those discussed in the Company's Form 10-QSB and Form 10-KSB, filed with the Securities and Exchange Commission. |
