I think its a great buy here, they lost like 3 1/2 bucks!!! Anything that looses that much money will fly.. Look at AMZN! BUT in 97 they lost over 8 bucks so thats not good.. They should have lost 16.. hmmm
Digital Lava Reports 1998 Fourth Quarter, Year End Results
The Company Reports Increased Demand for Its Products in Target Markets
LOS ANGELES, March 25 /PRNewswire/ -- Digital Lava, Inc. (Amex: DGV), today reported sales for the fourth quarter and year ended December 31, 1998, and highlighted the increasing demand for its video software products in the training, corporate communications, distance learning and research markets.
Results
For the quarter ended December 31, 1998, revenues increased 68% to $316,000 from $188,000 for the fourth quarter of 1997. The company reported a net loss for the fourth quarter of 1998 of $469,000, or ($3.17) per basic and diluted share, versus a loss of $1,098,000, or ($8.05) per basic and diluted share, for the fourth quarter of 1997. For the full year, the revenues rose 159% to $1,464,000 from $565,000 in 1997. The company reported a loss of $3,731,000, or ($25.22) per share compared to $4,245,000, or ($31.14) per basic and diluted share, for 1997.
Digital Lava's Chief Financial Officer, Danny Gampe, said, "The significant increase in revenue for both the quarter and the year is indicative of our initial success in capturing our market opportunity in the training, corporate communications and distance learning applications. We are now well-positioned to achieve significant growth as we further penetrate our target markets, driven by our unique technology. We believe that the ability to integrate video with Web applications, documents, images and text will become an essential component on the desktop of the future."
1998 Performance
Digital Lava's Chief Executive Officer, Joshua Sharfman, stated, "The company's digital video software products continue to be unique and state-of the-art in providing an empowering and enabling technology to our existing customers and target markets. During 1998, we enhanced our technology leadership position by launching VideoVisor Professional(TM), which further increased our open architecture and is more complementary to other user systems and Internet applications. As our technology evolves, Digital Lava remains driven by our vision for the future use and role of video on the desktop in business environments. Further, our continued focus on the development of strategic
partnerships, which include Real Networks and Microsoft among others, will allow our
technology to continue to be a leader in its field."
Sharfman added, "The completion of our initial public offering in February 1999
resulted in raising gross proceeds of $18.1 million with net proceeds of $9.9 million to
the Company after expenses and debt repayment. This has given us the financial
wherewithal to enhance our competitive position. We intend to use these proceeds to
build and strengthen our nationwide sales force, as well as to develop and add innovative
features to our product line."
Outlook
Sharfman said, "The success we experienced in 1998 supports the fact that the ability
to manage and utilize video and related information on the desktop is a valuable
corporate asset. Our strategy is to significantly expand our distribution capability;
continue to refine and develop new products to address customers' needs; focus on being
the solution provider for the training, business communication and distance learning
marketplaces; and to continue to expand our strategic partner base. We expect higher
revenue growth in fiscal 1999 versus fiscal 1998 as our sales and marketing efforts take
effect and as our customer base expands."
Digital Lava Inc.
Digital Lava is a provider of software products and services related to the use of
video for corporate training, communications, research and other applications. Digital
Lava's product line includes vPrism(TM) and VideoVisor(TM)software. vPrism(TM) allows
users to organize and manage video, link to other types of data and publish video,
together with linked data, as VideoCapsule(TM) files on compact discs and digital video
discs, or stream the video information over company intranets or the Internet.
VideoVisor(TM) allows users to access VideoCapsule(TM) files and manage, manipulate and
integrate video with other information and their desktop computers. Digital Lava's
VideoVisor(TM) software won the "Best New Streaming Product" award at the Desktop Video
Communications (DVC) 1998 Spring Conference in Santa Clara, Calif., a "Networked
Multimedia People's Choice Award" at the 1998 DVC Fall Conference in Boston, a "NewMedia
Invision 98 Award" in a competition sponsored by NewMedia Magazine and a "Best New
Streaming and Broadcast Product" at the MultimediaComm Conference in San Jose in Spring
1999. Digital Lava is a traded on the American Stock Exchange under the symbol DGV. The
Company's award winning Web site is www.digitallava.com.
Forward-Looking Statements
This news release may contain forward-looking statements concerning the business and
products of the Company. Actual results may differ materially depending on a number of
risk factors, including, but not limited to the following: development, shipment and
market acceptance. Other risks inherent in the business of the Company are described in
Securities and Exchange Commission filings, including the Company prospectus on Form
SB-2. The Company undertakes no obligation to revise or update any forward-looking
statements to reflect events or circumstances after the date of this release.
Digital Lava Inc.
Comparative Income Statement
Three Months ending Twelve Months ending
Dec. 31, Dec. 31,
1998 1997 1998 1997
Revenue $315,986 $188,104 $1,463,618 $564,572
Cost of Revenue 44,439 21,356 288,778 122,976
Gross Profit 271,547 166,748 1,174,840 441,596
Gross Margin 85.9% 88.6% 80.3% 78.2%
Operating Expense
Selling , General &
Administrative 330,178 979,846 3,103,418 3,316,961
Research and
Development 108,576 122,777 442,718 445,162
Total Operating
Expense 438,754 1,102,623 3,546,136 3,762,123
Loss from Operations (167,207) (935,875) (2,371,296) (3,320,527)
Interest Expense (302,114) (162,325) (1,359,245) (924,842)
Net Loss ($469,321) ($1,098,200) ($3,730,541) ($4,245,369)
Basic and Diluted
Loss per Share ($3.17) ($8.05) ($25.22) ($31.14)
DIGITAL LAVA INC.
Selected Balance Sheet Data
Dec. 31, Dec. 31,
1998 1997
Cash and Equivalents $30,893 $173,262
Total Current Assets $1,140,313 $429,576
Property, Plant and Equipment, net $59,647 $94,137
Total Assets $1,216,925 $525,678
Total Current Liabilities $7,297,445 $4,142,923
Total Stockholders Deficit ($6,080,520) ($3,617,245)
/CONTACT: Danny Gampe, Chief Financial Officer of Digital Lava, Inc., 310-470-1149,
or General Information, Stacy Roughan, Investor-Analyst Contact, Eileen Morcos, or Media
Contact, Marjorie Ornston, all of The Financial Relations Board, 310-442-0599/
07:00 EST
|
