PVI reports...
Friday February 4, 7:35 am Eastern Time
Company Press Release
Princeton Video Image, Inc. Reports Increased Revenues for Fiscal 2000 Second Quarter
- Quarterly Revenues of $571,728, Up 248% Year-Over-Year - - Fifteenth Consecutive Quarter of Year-over-Year Revenue Growth -
LAWRENCEVILLE, N.J.--(BUSINESS WIRE)--February 4, 2000-- 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 second quarter ended December 31, 1999.
For the quarter, total revenues increased 248% to $571,728 compared to $164,292 in the same period last year. The increase was fueled by significant increases in the use of PVI's patented technology in both domestic and international markets. The Company reported a net loss of $3.2 million, or $0.34 per share in the second quarter of fiscal 2000 versus a net loss of $2.1 million, or $0.26 per share in the second quarter of fiscal 1999. The increased loss per share is largely due to a significant investment in sales and marketing, including program rights acquisition and consulting expenses associated with promoting the use of PVI's technology both in the television production community and with various soccer organizations including FIFA. Other contributing factors include investment in the Company's field operations, and legal expenses related to further strengthening of its patent portfolio. The loss was partly offset by the sale of state tax NOL benefits from prior years. Weighted average common shares outstanding for the quarter were 9,556,553, which includes 1.6 million shares issued in a private placement on October 22, 1999. This compared to 8,183,552 for the same period last year.
For the six months ended December 31, 1999, total revenues increased 144% to $1.1 million, compared to $442,238 in the same period a year ago. The Company reported a net loss of $6.2 million, or $0.70 per share versus a net loss of $4.1 million, or $0.50 per share for the first six months of fiscal 1999. Weighted average common shares outstanding for the first six months of fiscal 2000 were 8,885,019, compared to 8,182,719 for the comparable year-ago period.
Mr. Dennis Wilkinson, President and Chief Executive Officer of Princeton Video Image, Inc., (PVI) commented, ''We are extremely pleased with our revenue growth for the second quarter and first half of fiscal 2000. The sharp increase in our year-over-year revenues is indicative of the success of our hard work and expanded marketing efforts. We just completed our first full season of NFL Football with CBS, during which we produced the CBS Virtual First Down Line in 24 broadcasts versus participating in only seven games last season. More recently, our Super Bowl activities for 2000 included insertion of virtual advertisements in the world feed of the Super Bowl as well as in Canadian and Mexican broadcasts. Participants in the Super Bowl for insertion of virtual advertisements included such well-known companies as Kodak, General Motors and Charles Schwab. Our efforts in the sports marketplace were further enhanced with the addition of Don Garber, the recently named Commissioner of Major League Soccer, to our Board of Directors in December of 1999.''
Commenting on the quarter's performance, Mr. Wilkinson stated, ''We believe that our revenue this quarter is indicative of a greater trend as our technology is applied to a larger variety of television programming. While we are still creating new opportunities within the sports marketplace, we are now able to branch out into other markets as demonstrated by our growing and expanding relationship with CBS. Our technology, which started on the football field, has expanded into a variety of non-sports programs, including regular use on CBS' The Early Show. Internationally, our revenue from Latin America was up significantly, and we generated new revenue from Canada. We expect both markets to produce strong revenue growth in the future. We strengthened our intellectual property rights by adding our sixth U.S. and third European patent. All of these moves provide us with greater clout in our marketing of L-VIS(TM) technology and expand our opportunities to share our technology with a growing and increasingly more diverse audience.''
Mr. Wilkinson continued, ''We made significant investments during the quarter in sales and marketing as well as field operations and support. These investments, which were fully expensed in the quarter, lay the groundwork for future business growth and prepare PVI to take advantage of new opportunities in domestic and international markets.''
Looking ahead, Mr. Wilkinson said, ''We are progressing into a relatively quiet quarter for live sports programming; however, we firmly believe both domestic and international sales will continue to grow in the coming quarter. Our technology will continue to expand beyond live sports into entertainment and news programming. The dramatic growth in interest in Internet delivered video and in interactive television has yielded a number of new opportunities for our technology. We are actively exploring these opportunities in our development group, while we focus on sales and marketing initiatives in our existing business.''
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.
PRINCETON VIDEO IMAGE, INC.
CONDENSED STATEMENT OF OPERATIONS
(Unaudited)
For the three months ended For the six months ended
December 31, December 31,
------------------------ -------------------------
1999 1998 1999 1998
---- ---- ---- ----
Royalties and
license fees $ 265,061 $ 77,975 $ 481,733 $ 145,267
Advertising and
contract revenue 306,667 86,317 597,938 296,971
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Total revenue 571,728 164,292 1,079,671 442,238
Costs and expenses:
Sales and marketing 1,300,908 303,370 2,234,494 777,863
Product development 624,105 382,962 1,205,648 826,754
Field operations
and support 1,683,568 963,473 2,926,638 1,846,350
General and
administrative 947,522 874,556 1,858,672 1,563,893
------------------------ -------------------------
Total costs
and expenses 4,556,103 2,524,361 8,225,452 5,014,860
Operating loss (3,984,375) (2,360,069) (7,145,781) (4,572,622)
Interest and other
income 185,627 242,095 323,434 520,858
------------------------ -------------------------
Loss before tax
benefit (3,798,748) (2,117,974) (6,822,347) (4,051,764)
Tax benefit 596,998 - 596,998 -
Net loss (3,201,750) (2,117,974) (6,225,349) (4,051,764)
Accretion of
preferred stock
Dividends (11,012) (11,012) (22,025) (22,025)
------------------------ -------------------------
Net loss applicable
to common
stock $(3,212,762) $(2,128,986) $(6,247,374) $(4,073,789)
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Basic and diluted
net loss per share
applicable to
common stock ($0.34) ($0.26) ($0.70) ($0.50)
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Weighted average
number of
shares of
common stock
outstanding 9,556,553 8,183,552 8,885,019 8,182,719
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Contact:
Princeton Video Image, Inc.
Lawrence L. Epstein
Vice President of Finance and
Chief Financial Officer
(609) 912-9400
pvi-inc.com
or
INVESTOR CONTACT
Cheryl Schneider/John Blackwell
Morgen-Walke Associates, Inc.
(212) 850-5600
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