IATV - ACTV Interactive Television Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : IATV - ACTV Interactive Television

Public Reply Prvt Reply Mark as Last Read File

Previous 10 PreviousNext

To: Mark Lijewski who started this subject	8/14/2000 10:29:34 AM
From: art slott	of 4748

Widely followed Bear Stearn's analyst Edward Yardeni reiterates a buy on Actv. ACTV, INC. (IATV - NASDAQ - $13 5/8 - BUY) reported financial results for its second quarter ended June 30, 2000 mid-day on Friday. As expected, all revenue was a result of ACTV's HyperTV operations. As timing of contracts is difficult to predict, we are not surprised by the slight discrepancy between our projections and actual revenue results. ACTV reported total revenue for the quarter of $1.062 million, an increase of approximately 134% versus the $453,713 generated in Q2 1999, but approximately 13% less than our estimate of $1.2 million. Operating expenses for the quarter were $1.8 million. We expect operating expenses will continue to increase as revenue grows before leveling out in the beginning of 2002. SG&A increased 89% to $7.2 million from $3.8 million in Q2 1999, but decreased as a percentage of total revenue. The increase in SG&A was a result of additional employee hires (ACTV now has between 160-170 employees versus approximately 85 employees at year-end 1999), primarily on the HyperTV side. ACTV generated a net loss of ($8.1) million for the quarter or ($0.18) per share versus a net loss of ($5.6) million or ($0.14) per share in Q2 1999. Excluding a one-time extraordinary charge of approximately $1.4 million related to the early extinguishment of debt (ACTV used proceeds from its secondary in February to pay down approximately $5.7 million in debt), ACTV generated a net loss of ($6.7) million or ($0.15) per share. We are in the process of updating our ACTV model to more accurately reflect the rollout of services such as FOX Sports Plus and Digital ADCO's SpotOn service. We believe ACTV has made significant progress in distribution negotiations with several large MSOs and expect that announcements regarding distribution specifically for SpotOn will be made in the near term. We believe ACTV remains on track to begin to deploy a test market for SpotOn in Q4 and we also expect Liberty IATV will showcase its first "One to One" pay-per-view event in Q4 (We believe an announcement regarding the type of event will come in the near term.). We continue to believe that ACTV represents a very attractive risk/reward scenario and we rate shares of ACTV as a BUY with a 12-month price target of $47.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 PreviousNext