Wednesday February 10, 7:44 am Eastern Time
Company Press Release
Princeton Video Image, Inc. Announces Fiscal 1999 Second Quarter Results
LAWRENCEVILLE, N.J.--(BUSINESS WIRE)--Feb. 10, 1999--Princeton Video Image, Inc. (Nasdaq: PVII; pvimage.com), today reported results for its fiscal 1999 second quarter and six months ended December 31, 1998.
For the quarter, total revenues were $164,292, compared with $201,974 in the comparable quarter of fiscal 1998. Included in total revenues for the year-ago period was the recognition of $137,500 in non-recurring fees as a result of a settlement with a former licensee. A net loss of $2.1 million, or $0.26 per basic and diluted share, compared with a net loss of $3.4 million, or $0.83 per basic and diluted share, in the year-ago period. Weighted average common shares outstanding increased by 101% in the quarter reflecting the Company's December 1997 initial public offering.
For the six months, total revenues were $442,238, compared to $334,778 in the comparable period of fiscal 1998. Included in total revenues for the year-ago period was the aforementioned recognition of $137,500 in non-recurring fees as a result of a settlement with a former licensee. A net loss of $4.1 million, or $0.50 per basic and diluted share, compared with a net loss of $5.3 million, or $1.47 per basic and diluted share, in the year- ago period. Weighted average common shares outstanding increased by 125% in the period reflecting the Company's December 1997 initial public offering.
Dennis Wilkinson, President and Chief Executive Officer, said, ''PVI recorded a 155% year-over-year revenue increase in the second quarter--excluding the license fee settlement in the year-ago period--representing the Company's eleventh consecutive quarter of year-over-year improvement. This consistent revenue growth is a clear demonstration of the growing market acceptance of live electronic imaging as a powerful medium for both advertising and viewer enhancement.''
Mr. Wilkinson added, ''We are accelerating the deployment of our proprietary L-VIS(TM) systems throughout the domestic and international marketplace. The success of this strategy was reflected in the establishment of new relationships, as well as the expansion of existing relationships, during the second quarter.''
Mr. Wilkinson continued, ''We negotiated agreements in two particularly noteworthy areas during the quarter. First was our agreement with CBS Sports covering the use of PVI's L-VIS system to show viewers the location of the first down line while play is in progress in national broadcasts of seven NFL regular season and playoff games. This agreement was significant in that it reflected a new application of PVI's proprietary technology as a production tool to enhance the viewers' experience, while also opening the door to discussions of future revenue generating agreements with CBS Sports and furthering our relationship with the NFL. Additionally, we later successfully applied this concept to create and insert a 'virtual finish line' in the national telecast of the National Thoroughbred Racing Association's Donn Handicap Race, marking the first ever use of a virtual finish line in a horseracing telecast.''
Mr. Wilkinson added, ''Continuing this momentum, following quarter-end, we signed an important agreement with the NFL for the use of our technology in all NFL International programming until and including Super Bowl XXXIV on January 30, 2000. Last month, NFL International, CanWest Global Communications Corporation in Canada, Televisa in Mexico, and FOX-TV in the United States used PVI's proprietary, patented technology to create and insert virtual advertisements and other viewer enhancing images during the live domestic and international broadcasts of Super Bowl XXXIII. Participating in both the domestic and international broadcasts of this Super Bowl was a great accomplishment for PVI, as it represented a significant expansion of our participation last year.''
Mr. Wilkinson concluded, ''We continue to be pleased with the progress in our business. The agreements successfully negotiated during and immediately following the second quarter have not only further positioned PVI as the worldwide leader in virtual advertising and imaging solutions for television, but are an indication that our strategy for building critical relationships and for revenue growth should produce results going forward. Our focus will continue to be on maintaining our market share, as well as on solidifying our leadership position in the field, while working toward continued growth in the overall market for real-time virtual image insertion.''
Princeton Video Image, Inc., the leader in virtual advertising and imaging solutions for television, has developed and is marketing a real-time Live Video Insertion System (L-VIS) that, through state-of-the-art patented pattern recognition technology, places computer-generated electronic images into television broadcasts of sporting events and other programming. These electronic images range from simple corporate names and logos to sophisticated 3-D images and animated effects. To date, PVI has provided live video insertion services for nearly 1,000 live telecasts worldwide, including broadcasts of Major League Baseball, National League Football, professional soccer, motor sports, and thoroughbred horseracing. The Company is based 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 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)
Three Months Ended Six Months Ended
December 31, December 31,
1998 1997 1998 1997
License fees(1) $ 77,975 $ 195,124 $ 145,267 $ 252,751
Advertising and
production revenue 86,317 6,850 296,971 82,027
Total revenue(1) 164,292 201,974 442,238 334,778
Costs and expenses:
Selling, general
and administrative 1,177,926 1,005,044 2,341,756 2,229,063
Research and development 382,962 430,788 826,754 876,782
L-VIS System costs 963,473 395,683 1,846,350 812,415
Total costs
and expenses 2,524,361 1,831,515 5,014,860 3,918,260
Operating loss (2,360,069) (1,629,541) (4,572,622) (3,583,482)
Interest and other
financial (expense) -- (1,814,178) -- (1,814,178)
Interest and
other income 242,095 80,697 520,858 97,070
Net loss (2,117,974) (3,363,022) (4,051,764) (5,300,590)
Accretion of preferred
stock dividends (11,012) (11,012) (22,025) (22,024)
Net loss applicable
to common stock (2,128,986) (3,374,034) (4,073,789) (5,322,614)
Basic and diluted net
loss per share applicable
to common stock $ (0.26) $ (0.83) $ (0.50) $ (1.47)
Weighted average common
shares outstanding 8,183,552 4,075,139 8,182,719 3,632,222
(1) Total license fees and revenue for the three and six months ended
December 31, 1997, include the recognition of $137,500 in
non-recurring fees as a result of a licensing dispute settlement.
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