broadcast.com Reports Second Quarter Financial Results Revenue Increased 155% from Same
Period In 1997
PR Newswire - August 18, 1998 17:14
DALLAS, Aug. 18 /PRNewswire/ -- Broadcast.com (Nasdaq: BCST) today reported revenues totaling $3.7 million for the second quarter ended June 30, 1998,
an increase of 155% from the same period in 1997. Net loss for the second quarter was $3.9 million, or $0.27 per basic and diluted share, compared with a net loss
of $1.5 million, or $0.12 per share during the second quarter of 1997.
Revenues for the six months ended June 30, 1998 were $6.9 million, up 171% from the same period in 1997. Net loss for the six-month period was $6.6 million, or
$0.46 per basic and diluted share compared with a net loss of $2.5 million, or $0.22 per share during the same period of 1997.
"Broadcast.com has clearly positioned itself as the leader in Internet broadcasting," commented Todd Wagner, Chief Executive Officer of Broadcast.com. "We
continue to aggressively build our business services and Web advertising sales forces as well as drive traffic to our Web sites. As we look into the second half of the
year, our focus remains on the execution of our stated strategic objectives of aggregating content, developing our network infrastructure and capitalizing on
opportunities through distribution partnerships with leading Internet companies."
Broadcast.com posted strong growth in all revenue segments, with business services revenues representing the highest percentage of total revenues. Business
services revenues increased to $1.5 million for the second quarter ended June 30, 1998, an increase of 86.5% over the same period of 1997. Business services
revenues represented 39.5% of total revenues for the second quarter, compared with 54.1% of total revenues during the same period of 1997. This increase in
revenues was primarily due to a growing number of business services events broadcast by the Company. The company broadcast 395 business services events in
the second quarter of 1998, compared with 151 business services events broadcast in the second quarter of 1997. For the six months ended June 30, 1998, the
Company broadcast 744 business services events, up from 271 business services events for the same period of 1997. Through June 30, 1998, broadcast.com has
broadcast over 1,700 business services events.
Web advertising revenues increased to $1.4 million for the second quarter ended June 30, 1998, an increase of 152.6% over the same period of 1997. Web
advertising revenues represented 36.3% of total revenues for the second quarter, compared with 36.7% of total revenues during the same period of 1997. The
increase in Web advertising revenues was due primarily to an increase in ads sold to existing and new advertisers on the broadcast.com Web sites, including
increased sales of gateway ads, which sell at a higher rate than traditional banner ads, and the addition of revenue from the sale of sponsorship packages.
Traditional media advertising revenues increased to $625,000 for the second quarter ended June 30, 1998. Traditional media advertising revenues represented
16.7% of total revenues for the second quarter, compared with 8.0% of total revenues during the same period of 1997. The increase was due primarily to direct
cash payments for broadcasting radio and television station feeds and prepaid advertising sales, both of which did not occur in the second quarter of 1997, and
increased sales of ad spots acquired through the licensing of additional radio and television stations.
About broadcast.com
Broadcast.com (Nasdaq: BCST) is the leading aggregator and broadcaster of streaming media programming on the Web with the network infrastructure and
expertise to deliver or "stream" hundreds of live and on-demand audio and video programs over the Internet or intranets to hundreds of thousands of users. The
broadcast.com Web sites offer a large and comprehensive selection of programming, including sports, talk and music radio, television, business events, full-length
CDs, news, commentary and full-length audio books, serving an average of over 460,000 unique users per day. Broadcast.com broadcasts on the Internet 24 hours
a day, seven days a week, and its programming includes more than 355 radio stations and networks, 21 television stations and cable networks, and game
broadcasts and other programming for over 400 college and professional sports teams. Broadcast.com also provides Internet and intranet broadcasting services to
businesses and other organizations, including turnkey production of live and archived press conferences, earnings conference calls, investor conferences, trade
shows, stockholder meetings, product introductions, training sessions, distance learning telecourses and media events. For more information on broadcast.com and
its live and on-demand programming, visit broadcast.com.
Broadcast.com is a trademark of broadcast.com inc.
This announcement contains forward looking statements that involve risks and uncertainties, including those relating to the Company's ability to grow its business
services, Web advertising and traditional media advertising revenues. Actual results could differ materially from those projected in the forward-looking statements
and reported results should not be considered an indication of future performance. Factors that might cause or contribute to such differences include, among others,
the Company's limiting operating history, availability of content, acceptance of streaming media technology, continued growth in the use of the Internet, acceptance of
the Internet as an advertising medium, license fees payable to content providers, risks of system failure, delays and inadequacy, dependence on a single sight and
competitive pressures. More information about potential factors which could affect the Company's business and financial results is included in the Company's
quarterly report on Form 10-Q for the period ended June 30, 1998 which is expected to be on file with the Securities and Exchange Commission (www.sec.gov) by
August 19, 1998. The Company cautions investors that its business and financial performance are subject to substantial risks and uncertainties. The accompanying
statements of operations and balance sheets are an integral part of this announcement.
broadcast.com inc. BALANCE SHEETS (unaudited)
June 30, December 31,
Assets 1998 1997
Current assets:
Cash and cash equivalents $17,889,238 $21,337,116
Accounts receivable, net of allowance
of $196,241 and $76,240, respectively 2,852,684 1,976,765
Prepaid expenses 1,868,917 1,032,198
Other 386,247 11,311
Total current assets 22,997,086 24,357,390
assets
Property and equipment, net 3,290,830 2,812,971
Prepaid expenses 175,070 935,720
Intangible assets, net 500,185 126,733
Total assets $26,963,171 $28,232,814
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable 975,099 362,214
Accrued liabilities 1,537,439 677,662
Total current liabilities 2,512,538 1,039,876
Stockholders' equity:
Preferred stock, 5,000,000 shares
authorized, $0.01 par value,
no shares issued and outstanding - -
Common stock, 60,000,000 shares
authorized, $0.01 par value,
14,385,071 and 13,976,285 shares
issued and outstanding, respectively 89,851 85,763
Additional paid-in-capital 40,678,541 36,838,152
Accumulated deficit (16,317,759) (9,730,977)
Total Stockholders' equity 24,450,633 27,192,938
Total liabilities and stockholders'
equity 26,963,171 28,232,814
broadcast.com inc.
Statements of Operations
(unaudited)
Three Months Six Months
Ended June 30, Ended June 30,
1998 1997 1998 1997
Revenues:
Business services $1,480,277 $793,727 $2,606,762 $1,240,438
Web advertising 1,358,968 538,017 2,681,879 1,069,323
Traditional media
advertising 624,706 116,826 1,141,413 207,577
Other 280,362 17,990 490,173 36,179
Total revenues 3,744,313 1,466,560 6,920,257 2,553,517
Operating expenses:
Production costs 1,000,666 593,035 2,225,623 1,062,457
Operating and
development 3,014,650 1,127,669 5,261,791 1,777,234
Sales and
marketing 2,638,348 779,704 4,309,075 1,298,886
General and
administrative 711,986 255,632 1,300,165 652,464
Depreciation and
Amortization 508,540 223,449 950,996 399,913
Total operating
expenses 7,874,190 2,979,489 14,047,650 5,190,954
Net operating loss (4,129,877)(1,512,929) (7,127,393)(2,637,437)
Interest and other
income 265,545 61,343 540,611 122,354
Net loss $(3,864,332)$(1,451,586)$(6,586,782)$(2,515,083)
Basic and diluted
net loss per share $(0.27) $(0.12) $(0.46) $(0.22)
Shares used in the net
loss per share
calculations 14,384,144 11,675,219 14,230,728 11,552,089 |
