"Thursday November 9, 7:41 am Eastern Time
Press Release
Princeton Video Image, Inc. Reports Improved Fiscal 2001 First Quarter Results
First Quarter Revenues Up 159.7% Year-Over-Year; Eighteenth Consecutive Quarter of Year-over-Year Revenue Growth
LAWRENCEVILLE, N.J.--(BUSINESS WIRE)--Nov. 9, 2000-- Princeton Video Image, Inc. (Nasdaq:PVII; pvi-inc.com), the global leader in virtual advertising and imaging solutions for television, today reported results for its fiscal 2001 first quarter ended September 30, 2000.
For the quarter, net revenues increased to $1.3 million, a 159.7% increase over first quarter 2000 net revenues of $507,943, and a 12.2% sequential increase over record fourth quarter 2000 revenues. The growth was driven by increased advertising and contract revenue for the use of PVI's patented proprietary technology in broadcasts of ESPN's Sunday Night Baseball and Indy Racing League competitions, as well as increased royalty and license fees from international licensing. The Company reported a net loss of $2.9 million, or $0.29 per diluted share, compared to a net loss of $3.0 million, or $0.37 per diluted share in the comparable year ago quarter. The weighted average common shares outstanding for the quarter were 9,975,258 compared to 8,213,484 for the same period last year. The increase in shares is attributable to the private placement of approximately 1.6 million shares of PVI's common stock conducted during the second quarter of fiscal 2000.
Mr. Dennis Wilkinson, President and Chief Executive Officer of Princeton Video Image, Inc., commented, ``During the first quarter we continued to expand our customer network of both first-time users and existing customers, while simultaneously achieving improved operating margins, as evidenced by the continuing decline in our total costs and expenses as a percentage of sales. Contributing to the quarter's performance was the increased use of our technology by domestic broadcasters including CBS and ESPN, and increased revenues from our international licensees, primarily in Latin America. Additional accomplishments for the quarter include:
-- The formation of PVI Europe, a majority owned subsidiary of PVI,
in partnership with Interactive Media, N.V. The formation of PVI
Europe has garnered strong interest for our patented proprietary
technology throughout Europe, and we believe that European growth
will contribute significantly to our international revenue base.
-- We received a new patent, No. 6,100,925, covering PVI invented
technology used to stabilize the physical location of virtual
images inserted in television broadcasts. The technology was
developed to rectify instances of images not appearing correctly
as a fixed part of the scene being televised, which is commonly
associated with images created using other technologies.``
Mr. Wilkinson concluded, ``The next six months will be critical for PVI. We will introduce iPoint into the streaming media market through RealNetworks' RealPlayer®, we will introduce our branded first down line in the international feed of Super Bowl XXXIV, and position our company to take advantage of the rapidly changing television market. We continue to believe that our current and new products will help lead the revolution in television advertising that is currently underway.''
About Princeton Video Image, Inc., (www.pvi-inc.com)
The global leader in virtual advertising solutions for television, PVI has developed and marketed a real-time video insertion system. This system, through patented computer vision 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. PVI has provided video insertion services for thousands of live telecasts worldwide, including broadcasts of Major League Baseball, National League Football, professional soccer, motor sports, and other live events. PVI is the exclusive virtual advertising provider for NFL International broadcasts. Beyond sports venues, PVI's virtual imaging technology provides branding-oriented program enhancements for The Early Show on CBS. The Company is headquartered in Lawrenceville, New Jersey, with offices in New York City, Brussels, and Johannesburg, as well as licensee offices in Madrid and Mexico 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)
For the three months ended
September 30,
--------------------------
2000 1999
---- ----
Royalties and license fees $584,910 $216,672
Advertising and contract revenue 734,347 291,271
-----------------------
Total revenue 1,319,257 507,943
Costs and expenses:
Sales and marketing 855,061 933,586
Product development 712,856 581,543
Field operations and support 1,450,003 1,243,070
General and administrative 1,324,528 911,150
-----------------------
Total costs and
expenses 4,342,448 3,669,349
Operating loss (3,023,191) (3,161,406)
Interest and other income 160,009 137,807
-----------------------
Net loss (2,863,182) (3,023,599)
Accretion of preferred
stock dividends (6,611) (11,013)
-------------------------
Net loss applicable to
common stock $(2,869,793) $(3,034,612)
==========================
Basic and diluted net
loss per share
applicable to
common stock ($0.29) ($0.37)
==========================
Weighted average
number of shares of
common stock
outstanding 9,975,258 8,213,484
--------------------------------------------------------------------------------
Contact:
Princeton Video Image, Inc.
Lawrence L. Epstein, 609/912-9400
pvi-inc.com
or
Morgen-Walke Associates, Inc. (Investor Relations)
Cheryl Schneider/HaniHenein/Brian Schaffer, 212/850-5600"
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