Princeton Video Image, Inc.
Announces Fiscal 1998 Fourth
Quarter and Year-End Results
LAWRENCEVILLE, N.J.--(BUSINESS WIRE)--September 2, 1998--Princeton Video Image,
Inc. (Nasdaq: PVII; pvimage.com), today reported results for its fiscal 1998 fourth
quarter and year ended June 30, 1998.
For the quarter, revenues increased by 132% to $203,610, compared with $87,871 in the
comparable quarter of 1997. The Company reported a net loss of $1.9 million, or $0.23 per
diluted share, compared with a net loss of $1.7 million, or $0.71 per diluted share, in the year-ago
period. Weighted average common shares outstanding increased by 241% in the quarter reflecting
the Company s December 1997 initial public offering.
For the year, revenues increased by 229% to $696,012, compared with $211,634 in 1997. The
Company reported a net loss of $9.1 million, or $1.55 per diluted share, compared with a net loss
of $5.8 million, or $2.52 per diluted share, a year earlier. Weighted average common shares
outstanding increased by 157% in the year reflecting the Company s December 1997 initial public
offering. Included in results for the year are charges of $2.2 million, or $0.37 per diluted share,
associated with interest expense, commissions, fees, and other charges related to the issuance of
non-recourse promissory notes and a bridge financing arrangement entered into by the Company
in the first-half of the fiscal year. Excluding these charges, the Company would have reported a net
loss of $7.0 million, or $1.18 per diluted share.
Mr. Brown Williams, Chairman and Co-Founder, said, ''Fiscal 1998 was a watershed year for
Princeton Video Image. We began our expansion into national and international markets, as well
as our transition from a technology company to a marketing company.''
Mr. Williams continued, ''Of particular significance was our alliance with NFL International and
Coca-Cola to provide electronic imaging during the international broadcast of Super Bowl XXXII
in January 1998. This event was a significant achievement for Princeton Video Image, helping to
pave the way for new domestic and international alliances. Additionally, we signed deals with
ESPN Sunday Night Baseball and Fox Sports Baseball, representing significant breakthroughs
into national broadcasting.''
Mr. Williams commented, ''Throughout fiscal 1998, we continued to develop strategic
relationships with broadcasters and advertisers, as well as specific teams. We added the
Philadelphia Phillies to our Major League Baseball roster and 3 new NFL teams -- the Chicago
Bears, Arizona Cardinals and the New York Giants -- and were particularly pleased that 5 of the
agreements we signed during the year represented the continuation or extension of existing
relationships, further supporting the value-added nature of our technology. These renewals include
the San Francisco Giants, San Diego Padres, KPIX (TV)/San Francisco 49ers, Baltimore
Ravens, and the ESPN X Games.''
Mr. Williams continued, ''Additionally, we recently made a breakthrough into a new and
potentially significant market -- motorsports. Princeton Video Image s technology was used during
the August 1, 1998, national broadcast by ABC Sports of The Indianapolis Motor Speedway
Corporation s Brickyard 400, representing the first ever use of electronic imaging in a United
States motorsports event. Because of its popularity and remarkable growth rate, we believe the
motorsports category can become a major source of revenue for PVI.''
Mr. Williams added, ''In order to support our effort to build a world-class management team, in
February 1998 we named Lawrence Epstein as Chief Financial Officer, bringing PVI his 20 years
of broadcasting experience, as well as his exceptional track record of accomplishments. We are
continuing our aggressive search for a Chief Executive Officer and look forward to announcing an
equally powerful addition.''
Mr. Williams concluded, ''In fiscal 1999 and beyond, we intend to build upon the proven strategic
success of our partnerships, develop new products, and increase our penetration of the domestic
and international markets.''
Princeton Video Image, Inc. developed and is marketing a real-time video insertion system that,
through patented pattern recognition technology places computer-generated electronic advertising
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. The company is headquartered in Lawrenceville, New Jersey, with offices in
New York City.
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 the Company 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 the Company s filings with the
Securities and Exchange Commission. Actual results, events or performance may differ materially.
The Company 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,
1998 1997 1998 1997
(Unaudited)
License fees 60,848 43,735 371,223 130,526
Advertising revenue 142,762 44,136 324,789 81,108
Total revenue 203,610 87,871 696,012 211,634
Costs and expenses:
Selling, general and
administrative 1,031,518 816,888 4,652,384 3,028,895
Research and development 450,847 379,713 1,719,703 1,722,598
L-VIS System costs 956,255 594,737 2,456,019 1,274,890
Total costs and
expenses 2,438,620 1,791,338 8,828,106 6,026,383
Operating loss (2,235,010) (1,703,467)(8,132,094) (5,814,749)
Interest and other
financial (expense) -- -- (1,814,178) --
Interest and other income 393,540 2,711 881,926 84,088
Loss on disposal of fixed
assets (9,367) -- (19,978) --
Net loss (1,850,837) (1,700,756)(9,084,324) (5,730,661)
Accretion of preferred
stock dividends (11,013) (11,013) (44,050) (44,050)
Net loss applicable to
common stock (1,861,850) (1,711,769)(9,128,374) (5,774,711)
Basic and diluted net loss
per share applicable to
common stock $(0.23) $(0.71) $(1.55) $(2.52)
Weighted average common
shares outstanding 8,175,205 2,399,880 5,890,530 2,287,884
Contact:
Princeton Video Image, Inc.
Lawrence L. Epstein
Vice President of Finance and
Chief Financial Officer
609/912-9400
pvimage.com
or
Morgen-Walke Associates, Inc.
Cheryl Schneider/Gordon McCoun/Tessa Lavender
212/850-5600
|
